Philly school audit: Nearly $50,000 in equipment missing

An audit of the Philadelphia School District uncovered nearly $50,000 in missing equipment, City Controller Alan Butkovitz said Wednesday.

Auditors chose a sample of 50 items from seven schools and found items missing at each school.

Among the missing items were laptops valued at $1,500 each; a $12,400 cash register; a $900 digital camera; and a $1,200 projector.

At one school, equipment sat in its box, unused, because a district identification tag was never received, Butkovitz said.

"Not having the necessary tools and equipment in the classroom is bad enough, but it is troubling when this equipment has already been paid for with tax dollars and now it can't be located," Butkovitz said in a statement.

The controller also criticized the district as having sloppy record-keeping.

District officials say the irregularities pointed out by Butkovitz are not widespread and will be corrected.

Michael Masch, chief financial officer for the district, said officials "take every penny of taxpayer money seriously" and that in general, Butkovitz's findings showed good practices.

"The audit showed overwhelmingly that the district was in compliance with accepted accounting principles and standards," Masch said.

The audit covered the year ending June 30, 2009, a period when the district had a surplus of $21 million in a $3 billion budget.

The missing items represent a fraction of 1 percent of the district's $260 million personal-property budget.

Missing artwork, targeted in previous Butkovitz audits as a problem, remained an issue for the controller.

The district claims $8.4 million worth of artwork, including $242,350 worth of work designated "not observed" because it is in closed school buildings, and $250,950 of items labeled "cannot locate."

Masch said the work that was not observed could not be viewed because it is in buildings deemed hazardous to enter.

"We don't have any reason to think that the artwork in there is of any value or historical significance," Masch said.

The district said missing artwork will be taken off the books so it will not be counted in the district's inventory.

Butkovitz called on the district, which has 265 schools and 162,000 students, to "address and correct" problems.

"School District management must establish strict controls that require all principals to ensure that school property is safe and secure," said Butkovitz.

Most principals are on top of documenting school property, but a few have neglected the task, Masch said. An online system to be implemented this year should help, he said.

The audit also found weaknesses and "questionable practices" in the district's safeguarding and accounting for $811,529 in petty cash funds; $490 million in misclassifications of districtwide statements; and some principals failing to personally account for the accuracy of attendance records for their staff.

In general, the district does a good job of keeping track of its money, Masch said. He pointed to several changes under Superintendent Arlene Ackerman, such as adopting a debt-management policy and better documenting dealings with food service providers.

"Our level of compliance is high already, but we think it could be better," he said.