Detroit school employees must show I.D. to get paychecks

June 10, 2009
District tries to crack down on ghost payrollers

From The Detroit Free Press: Amid questions about ghost employees and improperly issued paychecks, all Detroit Public Schools employees were required Tuesday to show their new identification cards and claim their checks or direct-deposit stubs personally. But some employees saiy the payroll audit process made them endure long lines and two-hour waits only to find out their checks weren't available. Emergency Financial Manager Robert Bobb mandated the procedure after three cases of suspected payroll theft were uncovered and turned over to the U.S. Attorney's Office and Wayne County Prosecutor's Office.

Earlier...from The Detroit News: The Detroit school system is instituting mandatory training for bookkeepers and a regular process of auditing schools after audits showed sloppy bookkeeping, employees using school funds for personal loans and missing cash receipts. The findings that could lead to criminal indictments in some cases, Emergency Financial Manager Robert C. Bobb says. All but five of 194 schools audited skirted district requirements by not providing support for expenditures, not preparing bank reconciliations, not getting appropriate signatures on checks and, in some cases, deliberately misappropriating funds.

RELATED: Detroit Public Schools officials has begun a massive downsizing of its top leaders in an effort to shore up a $306 million deficit and bring the district in line with others of similar size. Robert Bobb, the district's emergency financial manager, says the cuts include nearly 80 percent -- 181 positions of 231 -- of the district's curriculum department; 11 of the 21-member executive cabinet, including the police chief, chief of facilities and head of contracting and procurement; and more than half the district's assistant superintendents. In addition, transportation services and possibly school-based security will be outsourced.

Earlier...from The Detroit News: Detroit Public Schools' audits conducted on every school show sloppy bookkeeping, employees using school funds for loans and missing cash receipts. Emergency Financial Manager Robert C. Bobb says dozens of the 194 schools audited skirted district requirements by not providing support for expenditures, not preparing bank reconciliations and not getting appropriate signatures on checks. The audits of every school for 2008-09 were conducted by 35 auditors from four consultant firms over the last three weeks.

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