Philadelphia audit finds school district owes former employees $2.8 million

A photograph of a brownish building.
A new audit from the city controller found the district owes former employees $2.8 million and had lost track of several expensive pieces of equipment. (Chi Tian / Chalkbeat)

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The School District of Philadelphia owes $2.8 million in delayed termination payments to more than 700 former employees, according to an audit the city controller released Thursday.

The district owes the majority of that money to employees who retired or otherwise left the district in fiscal year 2024. But it owes more than $500,000 to employees who left the district in fiscal year 2023 or earlier.

“Every employee deserves to be paid accurately and on time for the work they performed,” City Controller Christy Brady said in a press release Thursday. “When former employees are still waiting years after leaving the school district to receive compensation they earned, it raises concerns about accountability and compliance.”

The audit found the district also could not locate several expensive pieces of equipment worth a total of nearly $300,000, including printers, Smart Boards, and a piano.

Brady’s office referred to these as “deficiencies in internal control.” “Now more than ever, resources must be managed responsibly and efficiently,” she said.

The audit comes after months of scrutiny and debate over the school district’s spending. During the city’s budget cycle this spring, several members of the City Council questioned why the district asked for more funding while simultaneously planning to close schools. And a recent poll found 86% of city voters supported auditing the district.

School district spokesperson Monique Braxton said in a statement that the district was pleased the audit identified no material weaknesses or significant deficiencies, “reflecting the District’s strong commitment to fiscal stewardship, transparency, and accountability.”

She added that the district has already developed corrective action plans to address the audit’s findings, including implementing improved asset-tracking procedures and centralized oversight for its inventory management.

“We will continue working to improve our processes, strengthen accountability, and make sure public dollars are managed wisely and responsibly,” Braxton said.

The Philadelphia Federation of Teachers filed a grievance in May over the district’s delayed termination payments, as well as a grievance over delayed supplemental pay to current staff.

Rebecca Redelmeier is a reporter at Chalkbeat Philadelphia. She writes about public schools, early childhood education, and issues that affect students, families, and educators across Philadelphia. Contact Rebecca at rredelmeier@chalkbeat.org.

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