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Gary School Superintendent Says She Didn’t Submit $7M in Payroll Taxes “Because the Money Was Not There”
Newly elected School Board Member Norman Bailey asked the simple question no one has thought of before “how did we get so messed up with the IRS?” The Gazette broke the story of the Gary Community School Corporation’s $7M in IRS liens in 2014
February 17, 2017-The Gary Community School Corporation finally has a few board members who may be asking the right questions. At a work study session today, newly elected board members were to be introduced to the manner and procedures utilized by the Gary Community School Corporation. Board Member Carlos Tolliver stepped up and repeatedly insisted that the board be provided with documentation as to purchasing procedures. You can see those questions and comments in the full videos, below.
The most interesting exchange of the day came when Board Member Norman Bailey asked “I want to know how long have we used this process?” Accounting Supervisor Mary Comer replied, “since forever.” Bailey went on to clarify, “the reason for that question is how did we get so messed up with the IRS?” Bailey was referring to a series of Internal Revenue Service liens filed against the School Corporation in 2014 after payroll taxes were not submitted in 2013. After a long pause, Dr. Cheryl Pruitt engages in a response that ends in the statement “the money was not there.”
According to the Indiana State Board of Accounts audit conducted for the year 2013:
“The 2013 estimated monthly basic grant distribution from the State of Indiana Department of Education for the General Fund is $5,200,000. The monthly gross payroll, employer related taxes, pension benefits and health insurance for General Fund alone is estimated at $5,800,000 a month. This amount does not include any vendor disbursements for items such as utilities and office supplies used monthly for operations of the School Corporation.” (See http://www.in.gov/sboa/WebReports/B41979.pdf p.16)
The report, however, also states:
“On January 3, 2013, the School Corporation received $18,000,000 from the sale of two elementary school buildings to the Gary Community School Building Corporation.”
Keep pushing Mr. Bailey and Mr. Tolliver. The parents who elected you deserve answers.