Police investigate credit card misuse in Penn Hills schools
Penn Hills police are trying to determine whether an employee or employees of the financially troubled Penn Hills School District misused school district credit cards and, if so, how much money was involved, the police chief said on Monday.
Police started the investigation when acting school Superintendent Nancy Hines went to them at 2 p.m. Monday with what “the district believes to be documented evidence of theft and fraud,” according to a statement the district posted on its website.
“This all involves school district credit cards used by employees,” police Chief Howard Burton said.
“We have got to sit down, crunch the numbers, see what the receipts are for and try to verify what was purchased,” Burton said.
“We aren't sure how much money is involved,” Burton said, adding that very preliminary indications are that “it does not appear to be a large amount.”
The possible credit card misuse was uncovered when the school board began insisting last month on immediate audits of business practices in the district, which ended the 2013-14 school year with a $9 million deficit.
The district is seeking a loan of as much as $18 million to pay for day-to-day expenses, including payroll. The loan will likely lead to a 1-mill increase in the property-tax rate for a 10-year period.
“Over the weekend, one of these internal investigations reached a level, whereby it became appropriate and prudent to involve (police) in consideration of formal ... charges,” according to the school district statement.
Burton assigned police Detective Teresa Gongaware to investigate. He said her investigation could take “at least a week, possibly longer.”
Teresita K. Kolenchak, communications consultant for the school district, said she could not say anything more than what appeared in the prepared statement.
“As this matter involves personnel, no further comments will be offered at this time,” she said.
Last month, the school board retained a business consultant at a cost of $400 a day to fill in for Rick Liberto, director of business affairs, who was placed on paid administrative leave in March while the district audits financial practices.
Liberto has said that the school district knew of financial problems that led it to take the $18 million loan but did not address them.
Michael Hasch is a staff writer for Trib Total Media. He can be reached at 412-320-7820 or mhasch@tribweb.com.
