Detroit must appoint an accountant to oversee federal funds

Detroit Public Schools must appoint a certified public accountant to oversee the district's federal funds designated for low-income children after an audit showed the district misused $53.6 million of those funds from 2004 to 2006. The corrective action comes after the district was given high-risk status because it has a history of "unsatisfactory performance" and "is not financially stable," according to a notice from the Michigan Department of Education.To read The Detroit News article, click here. FROM JULY 2008: A federal audit says Detroit Public Schools misused $53.6 million in federal funds designated for low-income children and should return that amount to the U.S. Department of Education or provide documents that the money was used properly. The federal education department's Office of Inspector General issued the audit of the district's Title I funds from 2004 to 2006. The funds were supposed to be used to improve teaching and learning of students at risk of failing to meet state academic standards. The audit uncovered more than $1 million questionable personnel expenditures and $52 million in inadequately documented costs. To read The Detroit News article, click here.

EARLIER: A federal investigation into how the Detroit Public Schools used funds designated for low-income students could mean the district will have to pay back up to $17 million to the federal government. The Office of Inspector General of the U.S. Department of Education is investigating how the district used Title I funds -- money intended to help low-income students -- from 2004 to 2006.
To read The Detroit News article, click here.