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City Controller: School District Owes Millions To Former Employees

PHILADELPHIA (CBS) - The School District of Philadelphia owes a lot of money to ex employees, according to an audit by City Controller Alan Butkovitz.

The audit shows the school district owes $6.5 million in termination pay to 2,500 former employees. Some of them left the district as long as 15 years ago.

Other findings are the district needs tighter controls on managing SEPTA TransPasses, and schools aren't following procedures in managing their school activity funds.

In response to the findings, the district blamed "chronic underfunding" for its inability to fully process termination pay. It says it's already hired an employee to help ease the backlog.

The district is also tightening how it keeps track of student TransPasses, and improving oversight of its petty cash accounts.

In presenting the audit, Butkovitz repeated his call for more power to fully comb through the district's books.

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