Findings from an audit of Detroit Public Library’s finances from 1999 to March 2002 have been forwarded to the U.S. Attorney’s Office and the Internal Revenue Service after a city investigation uncovered improper financial management practices. According to the report submitted October 30 to Mayor Kwame Kilpatrick, the investigation of library finances “confirms the validity of a majority of allegations” made by David Gates, the library’s former chief accountant.
“In general, the DPL accounting system internal controls were so poor that an unacceptable and high risk existed for fraud, waste, and abuse,” Auditor General Joseph L. Harris said. “In our opinion, some of the questionable procurements and disbursements may be the result of gross negligence or fraud and should be investigated further by law enforcement officials.”
In addition to a federal probe, the city council has asked that the Ethics Commission and the Detroit Police Department’s Public Corruption Task Force investigate the matter.
The audit report indicates that the current library administration, led by interim Director Nancy Skowronski, has “initiated corrective action by creating written internal control procedures for all major financial functions and an action plan to improve internal controls.”
“We welcome the recommendations and we will continue to work closely with the auditor general’s office to investigate, analyze, and provide solutions to updating an antiquated budget and finance system in use with no changes for over 50 years,” Skowronski said.
Posted November 11, 2002.