Audit says N.Y. district hid surplus funds

School officials in the Oyster Bay-East Norwich (N.Y.) district wrote up more than $800,000 in false purchase orders in an apparent attempt to hide surplus funds that otherwise could have been used to hold down taxes, according to state auditors. Oyster Bay's superintendent, Phyllis Harrington, denies any attempt at manipulation and says that the bulk of funds covered by the purchase orders eventually was spent on other, necessary programs.

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