Philly Schools Misspent $17M in Aid: Audit

Philadelphia School District misspent $17.7 million and has to pay it back, a federal audit found.
 
The audit claims that while spending almost $140 million in government aid, the school district bungled $17.7 million of it. The district failed to follow federal rules in its spending.

The feds are demanding the Philadelphia School District repay the $17 million. And if the district does not provide the “adequate documentation” to justify the spending of the rest of the $140 million in government aid, it will have to return all of the aid money.

The audit examined the district's accounting methods from July 2005 through June 2006, when Paul Vallas was chief executive and the School Reform Commission was composed of other members.
 
The district has 30 days to respond to the report. The federal agency said the findings were similar to what they have found in some other districts.