New Castle News

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February 5, 2010

NEW CASTLE SCHOOLS: Audit�s clean slate pleases district

Nothing thrilled Karen Humphrey.

Superintendent George Gabriel and business manager Joseph Ambrosini agreed. Nothing was good.

The state Auditor General�s preliminary audit of the New Castle Area School District came up clean � no findings or observations. That�s a first in approximately 40 years.

�It was clear as a bell,� Humphrey said. �It was exciting news.�

She was one of five school board members who attended Monday�s conference with state auditors. The report covers the 2006-2007 and 2007-2008 school years.

The Auditor General�s office must finalize the report before forwarding it to the Pennsylvania Department of Education and releasing it to the public.

The Auditor General�s office consistently has issued findings and observations against the school system. Abbie Baxter-Betley, the district�s assistant business manager, examined audits dating back to 1973. Each noted some flaw in district operations.

�We had to sit through some pretty rough audits in the past,� said Humphrey, who has served on the board since December 1995.

Among the areas targeted were transportation, financial reporting and teacher certification. The topic causing the greatest uproar dealt with travel and conference expenses.

Nicholas DeRosa, a retired school district administrator, was singled out in the past for unverified and unnecessary costs involving conferences in New Orleans, San Francisco and San Diego. In an unrelated matter, DeRosa is facing federal charges of bank fraud, mail fraud and money laundering conspiracy as part of a mortgage fraud investigation.

Former board member Peter J. Yerage had found himself under scrutiny regarding travel expenses to a conference in Washington, D.C.

�Prior audits were embarrassing, to say the least,� Gabriel said. �We�re no longer going to accept findings or observations.�

Ambrosini said that $85 million passed through the district during the audit period.

�The auditors told the administration and board that to have no findings or observations is monumental for a district our size,� he said.

Auditors reviewed seven areas, ranging from compliance with past audit findings to the operations of the Information Technology Department.

�They even checked the lights around the buildings,� Ambrosini said.

Gabriel said the school system�s performance resulted from a collective effort.

�What this (comes) down to is effective management of school district funds and providing quality programs for our kids.�

Humphrey said the audit shows that New Castle�s administrators are serious about their responsibilities.

�When George said he wanted a clean audit, they weren�t just words,� she said. �It is important for a community to have a school district (it) can be proud of.�

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