PENNSYLVANIA COMPUTERS STOLEN FROM SCHOOLS IN POCONO MOUNTAIN SCHOOL DISTRICTPennsylvania Auditor General Jack Wagner Reveals Missing Computers and Money Wasted at Pocono Mountain School DistrictReleases Audit and Investigation Reports of District

HARRISBURG, Pa., Aug. 4 /PRNewswire/ -- A special investigation by Auditor
General Jack Wagner has revealed that officials at Pocono Mountain School
District failed to properly oversee more than $7.3 million in computer
equipment in the district's possession. As a result, Wagner found that the
district spent more than $77,000 for 69 computers that the district could not
locate or are not in use.
Most of the money, more than $53,000, was spent by the district to make
lease payments for 57 overdue computers. The district also appears to have
lost twelve computers that are currently under lease. The district claimed
that these twelve computers were stolen; however, district personnel failed to
notify law enforcement or the district's insurance carrier and there was
little evidence to support the district's claim.
"It is the role of the auditor general to make sure that tax dollars are
spent properly," Wagner said. "Pocono Mountain School District must take
immediate action to get control over its equipment and eliminate wasteful
spending."
Wagner's investigative report recommended that district officials take the
following actions:

-- Strengthen internal controls over the district's inventory of computer
equipment;
-- Immediately notify local law enforcement and the district's insurance
carrier regarding computers that allegedly had been stolen; and
-- Immediately negotiate a buyout of its current lease so that the
district can stop making monthly payments for missing computers.

The auditor general's special investigation was conducted after the
department's routine compliance audit of Pocono Mountain School District,
covering the 2000-01 and 2001-02 school years, initially found inadequate
controls and physical security over the district's computers. That audit, the
report of which also was released today, found that the district:

-- Overstated instructional time summaries and pupil membership reports,
causing the Department of Education to overpay the district by
$174,296;
-- Inadequately documented pupil transportation miles, preventing an
accurate verification of the Department of Education's $7.7 million
transportation subsidy;
-- Erred in reporting health-service reimbursement information, causing
the Department of Health to underpay Pocono Mountain by $6,627; and
-- Failed to solicit bids for the purchase of musical equipment,
bleachers, and a Jeep Cherokee, violating state law that requires
competitive bidding for purchases greater than $10,000.

Furthermore, two current school board members failed to file a statement
of financial interests in separate years, violating the Public Official and
Employee Ethics Act.
"Officials at Pocono Mountain School District have failed to comply with
state law and wasted much-needed resources for their students," Wagner said.
The Department of the Auditor General conducts audits of Pennsylvania's
501 school districts to make certain they are complying with state laws and
effectively performing their duties, and that internal controls are in place
and working properly. As in this case, such audits often lead to
investigations focusing on waste, fraud, or abuse of public funds.
Full copies of both reports, including the auditor general's
recommendations and the district's responses, are available at the Department
of the Auditor General's website, http://www.auditorgen.state.pa.us.

Auditor General Jack Wagner is responsible for ensuring that all state
money is spent legally and properly. He is the Commonwealth's elected
independent fiscal watchdog, conducting financial audits, performance audits
and special investigations. The Department of the Auditor General conducts
more than 5,500 audits per year. To learn more about the Department of the
Auditor General, taxpayers are encouraged to visit the department's website at
http://www.auditorgen.state.pa.us.



SOURCE Pennsylvania Department of the Auditor General
Web Site: http://www.auditorgen.state.pa.us