State audit starts today Phillipsburg district facing scrutiny. Auditors checking up on spending in all Abbott districts. Wednesday, March 14, 2007 • By DANIEL HAUSMANN • The Express-Times PHILLIPSBURG | State auditors will begin combing through the Phillipsburg School District's financial books today as part of a statewide look into the operations of New Jersey's Abbott districts. Auditors have already looked into the finances of the four big city districts: Paterson, Jersey City, Newark and Camden. The results of those audits showed some mismanagement and the state Department of Education vowed to make corrections. The audit stemmed from a state Supreme Court order. The state auditors will take a hard look at 1,000 transactions each in Phillipsburg's administrative and technology accounts. School Business Administrator Bill Poch said the auditors will attempt to determine the educational value of each individual purchase. "It seems extensive," Poch said. "They could be here for up to two months." Auditors will also examine 350 transactions each in every other district account. The process will include a look at school board meeting minutes and monthly reports submitted by departments. This is on top of the annual audit Phillipsburg has performed by an outside agency. Poch found out about this procedure during a March 6 meeting regarding state aid for Abbott districts. He said administrators will have an opportunity to justify expenditures to the auditors. Poch said state officials gave little rationale as to why they are targeting Phillipsburg and those specific accounts. "It's a way to get money back," Poch said. A news release on DOE's Web site said the audits were part of a mandate by Gov. Jon Corzine to better control spending and limit waste. Reporter Daniel Hausmann can be reached at 610-258-7171 or by e-mail at dhausmann@express-times.com. © 2007 The Express-Times. Used by NJ.com with permission.