Early last week, the case of the missing $100,000 from a Germantown High School student activities fund came to light. A few days later, a letter from the School Reform Commission's inspector general raised questions of fraudulent billing practices in one of the district's contracted security firms - a firm whose contract the district recently renewed.

To cap it off, last week about 40 protesters, frustrated with how the district handles its finances, demonstrated outside district headquarters. They say the district needs more transparency in awarding outside contracts.

All this almost makes us long for the simpler days of surprise $73 million deficits. Naturally, it also makes us wonder whether the controls imposed during those 2006 deficit days are enough - especially for a budget as complex as the district's.

Take away its primary mission for a second - the education of children - and the district is essentially a $2 billion government agency, funded by a complex network of city, state and federal money. The district's pot of gold will always tempt the dishonest and unscrupulous. The School Reform Commission's job is to protect the pot.

Should the state step in and impose stricter controls? In the wake of 2006's budget blow-up, a financial accountability unit was created, and the district began submitting two budget reports to the state education and budget secretaries; the state can withhold funding if the reports don't show adequate progress in cutting costs.

One silver lining: Both these problems were brought to light by the district's own inspector general. In one, his recommendation that a $403,000 contract with Security Universal LLC, a school contractor, be terminated came after the SRC renewed a contract. The SRC is doing its own review.

Incoming schools chief Arlene Ackerman has a long to-do list to improve education, but none of it will matter if better fiscal management isn't given top priority.

City Council also has a role to play in holding school officials accountable. Council is required to authorize nearly $1 billion in local funds for schools. In the past, the process has been little more than a rubber stamp; the time for that is over.

Given the multitude of budget-related issues facing the school district, Council needs to take its oversight responsibility seriously. They can do that starting today, when two-day hearings are to begin.

Council will hold five hearings on the $2.3 billion district budget. Considering that there were more than 60 hearings about Mayor Nutter's proposed operating budget of $4 billion, Council should consider expanding the number of hearings.

Two of the hearings will be dedicated to public comment. Both hearings will be held tomorrow , when Council is in session from 1:30 p.m. to 7 p.m. To get on the schedule, contact Sharon Ortiz at 215-686-3407. (Bring multiple copies of your testimony to distribute to media and members of Council.)

Can't attend the hearing? The Daily News and WHYY's "It's Our Money" project on the city budget, funded by William Penn Foundation, will post public testimony on budget matters. Visit www.ourmoneyphilly.com and testify. *