Accountant pays district for Audit Error

Mike Johnson & Kay Nolan:

By the time Virchow Krause & Co.’s accounting error was discovered, the mistake had been repeated and the deficit had ballooned to $2.7 million in fall 2004, prompting a downgrading of the district’s bond rating and budget freezes, district officials said.
The firm discovered the error during a 2004 audit and reported it to the district. After about 1 1/2 years of negotiations, Virchow Krause agreed to pay the district $275,000 and to forgive $15,476 owed to the firm by the district. The School Board approved the settlement agreement late Tuesday.