Middletown Board of ED investigated

MIDDLETOWN, Conn. (WTNH) - City officials in Middletown are steaming mad about what they call sloppy accounting by the city's school district.

The mayor says sloppy book keeping by the schools is costing the city and the school kids big bucks and it could lead to criminal charges.

In a press conference on Apr.14, Middletown Mayor, Sebastian Giuliano accused the Middletown Board of Education of sloppy accounting processes, and said the board is under criminal investigation for its mileage reimbursements for employees.

Superintendent of Schools Michael Frechette and Board of Education Chairman Ted Raczka both denied the allegations.

Giuliano and City Treasurer Christine Bourne called the press conference after receiving a report from the accounting firm Blum Shapiro, which had just completed its audit into the city and Board of Education's finances.

Superintendent of Schools Michael Frechette said he was not aware of any criminal investigation. Detective David Fuchs confirmed that Middletown police are investigating allegations that the board misappropriated funds, though he could not provide any more details until the investigation is complete.

Giuliano said the Board of Education had $2.29 million left over at the end of the school year in June 2010, but that money had been moved to other accounts within a few days. Frechette denied the allegations, reiterating that the schools only had $50,776 in their accounts at the end of the last school year, which was returned to the Board of Education.

Business Manager Nancy Haynes, who handles the school district's finances, could not be reached for comment Thursday.

Blum Shapiro also sent a letter to the Common Council , outlined the deficiencies it found, and offered "constructive suggestions for your consideration as part of the ongoing process of modifying and improving accounting controls and administrative practices."

Frechette said the firm's recommendations were "benign at best."

"When you don't have supplies in the classroom, but this kind of money is just floating around, or is being misspent, that's inexcusable," says Giuliano.

The mayor says he doesn't think the board of education is intentionally ripping taxpayers off, but the result is the same.

"I would think that professional educators who's job it is to run a school district would have a little more regard for the public trust they hold," says Giuliano.