State tells Detroit schools it needs an accountant

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By Tiffany Griffin

Story Created: Sep 4, 2008 at 7:37 AM EST

Story Updated: Sep 4, 2008 at 7:37 AM EST

DETROIT (AP) — State officials have told the Detroit Public Schools to appoint an independent certified public accountant to oversee federal funds for low-income children after an audit showed it misused millions of dollars.

The Detroit News reports Thursday that the action comes after the Michigan Department of Education gave the district high-risk status because of its financial instability and history of unsatisfactory performance. Officials say the district is the state's first to be deemed high-risk.

The state says an audit shows the district misused $53.6 million of the federal funds from 2004-2006. Detroit schools' spokesman Steve Wasko says the district welcomes the state's involvement and will continue to work together.

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