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Auditor: Erie School District on the verge of insolvency

By   /   February 16, 2017  /   No Comments

The Erie School District has had a lot of problems — and they seem to be getting worse.

Apart from being in debt, running continuing deficits and planning for program cuts, auditors announced in a report that in one year’s time Erie may be unable to make necessary payments and stay solvent.

“The District has suffered recurring losses from operations and has a net capital deficiency, which raises substantial doubt about its ability to continue as a going concern,” according to the audit report.

If it were a business, the auditors concluded, ESD would be failing “as a going concern.”

“I have never seen it used with regard to a government entity,” district Chief Financial Officer Brian Polito said to GoErie.com about the “going concern” language.  “It is typically used to describe a business that is on the verge of insolvency.”

Read more here.

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