Sainato: State says nothing wrong with audit

January 24, 2006

PAT LITOWITZ
plitowitz@ncnewsonline.com

A local legislator has one issue with the Pennsylvania Auditor General's audit of the New Castle Area School District. People are impatient.

"If there's a problem in the New Castle school district, the auditor general's office would contact us," state Rep. Chris Sainato said. "The auditor general's office says nothing's wrong.

"You would have to give (the district) the benefit of the doubt."

Last week, state Rep. Frank LaGrotta said he had learned that a preliminary audit of the "school district's transportation contract has revealed potential significant and unexplained overpayments" to Laidlaw Transit.

He also claimed there were "allegations of an improper relationship between the school district and Lawrence County Affordable Housing."

The school district has no relationship with the nonprofit agency, spun off from the Lawrence County Housing Authority. However, Nick DeRosa, assistant superintendent, entered into four real estate transactions last month with Affordable Housing.

Karen DeCarlo, a manager with Laidlaw Transit, is a former Affordable Housing board member. She voted in favor of purchasing the properties from DeRosa and his business partner, John Orlando. DeCarlo said last month she was not told DeRosa had a role in the sale.

LaGrotta's remarks came a day before the district's meeting with state auditors.

"The district seems to be running a lot better than in the past," Sainato said. "They've done well with their finances in the last couple of years.

"I've seen nothing that says they've been doing something wrong."

District officials said they were disappointed with LaGrotta's comments.

"At no time is or was the New Castle Area School District involved in any business with Affordable Housing," district solicitor Charles Sapienza said.

"Any individual employed by the (district) who may have any business with any outside agency or entity is purely a private matter between that individual and that entity."

After LaGrotta's comments appeared in the New Castle News, Sainato called the auditor general's office.

"There isn't a problem with the audit," he said.

The audit covers the school years 2002-'03 and 2003-'04. The report is expected to be available to the public within 90 days.

Meanwhile, the state remains quiet about its work.

"It is a violation of department of the auditor general policy to discuss details of an ongoing audit, and no one was authorized to do so," said communications director Steve Halvonik. "We will not comment on the audit until the report is completed."

Sainato said he doesn't fault LaGrotta for what took place.

"Frank did what he thought was appropriate," he said. "We have respect for each other."

Despite the district's disagreement with LaGrotta, Sapienza said school officials "will continue to work with any and all state agencies regarding the improvement of the educational process for our children."

Copyright (c) 2006, New Castle News