Duquesne City School fund was 'piggy bank for personal no-interest loans'
The cash-strapped Duquesne City School District might have violated state law by doling out no-interest, personal loans totaling more than $41,000 to four employees without the knowledge of its court-appointed receiver, state Auditor General Eugene DePasquale said Monday.
“It is outrageous that the staff of the Duquesne School District — including its former superintendent — used this district's general fund as a piggy bank for personal no-interest loans,” DePasquale said in a statement.
Barbara McDonnell — who resigned from her post as superintendent in early November after serving 17 years in the district — is accused of taking out 11 of the 22 personal loans flagged by DePasquale in a scathing audit released Monday. Receiver Paul Long accepted her resignation last week, district spokeswoman Sarah McCluan said.
McDonnell could not immediately be reached for comment.
In his 42-page report, DePasquale pointed out weak internal controls and findings that over the past four years the former superintendent received a total of $23,150 in no-interest loans, a principal received $10,000, a clerk received $6,940 and an administrative staff member received $1,160. The employees were not named in the report.
Read more: http://triblive.com/news/education/taxes/13060629-74/duquesne-city-school-fund-was-piggy-bank-for-personal-no-interest-loans
