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Detroit Schools Tighten Financial Oversight After Fraud

DETROIT (AP) -- Detroit's public school district has moved to tighten financial oversight following a federal investigation that uncovered kickbacks and bribery.

More than a dozen people were charged in April in connection with school supply fraud. The U.S. Attorney's Office continues to investigate and last month filed charges against another district vendor who is accused of billing for services not delivered.

School district officials say they have addressed a lack of oversight by restructuring the Office of Inspector General, effective July 1, to include two primary functions: investigations and internal audits.

The office, closed in 2015, was re-established by emergency manager Steven Rhodes just days after federal charges were announced. School spokeswoman Chrystal Wilson tells The Detroit News a new procurement policy requires additional signatures and changing how invoices are handled.

 

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