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Interim CFO reports accounting problems, duplicate payments exceeding $500,000 at William Penn SD
Summary
Interim chief financial officer David Seblowski told the board the business office found reconciliations and audit-adjusting entries that were not posted, multiple duplicate payments (more than $500,000 so far), and a backlog of unrecorded wire transfers; staff are rebuilding year-to-date records before preparing a treasurer's report.
David Seblowski, the district's interim chief financial officer, told the board that his short, three-month review of William Penn's business office uncovered accounting and control problems that must be corrected before the district can present reliable monthly financial reports.
"I'm gonna be brutally honest with you, and it's it's really not good news from what we have found, so far," Seblowski said, summarizing his initial findings after starting mid-November and working on-site three days a week.
Seblowski said the district's audited financial statements for the year ended June 30, 2024, include adjusting entries from the auditor that were not posted to the district's APTA financial system. As a result, he said, ending balances for 2023-24 and starting balances for 2024-25 are incorrect in the accounting system and must be fixed before staff can reliably project 2025-26. He said the current chart of accounts does not follow the Pennsylvania accounting manual and that he plans to expand and rework the account structure, effective July 1, 2025.
Seblowski said bank accounts were last reconciled in February (year not specified in the meeting), and numerous wire transfers had not been recorded in the financial system. He said business-office staff have identified several duplicate payments and are attempting recovery; he told the board the duplicate payments currently total "over half a million."
"As of right now, it's over half a million," Seblowski said in response to a board question about the size of overpayments.
On one identified item, a $402,000 wire to Aramark for services, Seblowski said Aramark acknowledged an overpayment and is working to reissue a check to the district in the district's name so the funds can be deposited and recovered.
Because of these findings, Seblowski said the district would not present a treasurer's report for the upcoming board meeting; prior monthly reports that were approved may need restatement and re-approval once the books are corrected. He told the board that he and two retired business-office professionals are rebuilding the ledger back to July 1, 2024, and that the process will be lengthy but necessary.
Seblowski and other staff said they are addressing invoice-processing procedures and other internal controls noted in the audit and working to remove findings in the next audit cycle. The board did not take a formal vote on the matter during the meeting; Seblowski asked for time to continue the remediation work and to return with corrected reports.
