Kruppe responds to board accusations of financial mismanagement
Shortly after the Hazel Park school board formally reinstated Superintendent Amy Kruppe, President Beverly Hinton explained why she was put on administrative leave in January for violation of board policies.
At a May 27 special meeting, Hinton read a statement on “how it all started” and Kruppe’s attorney, Heidi Sharp, immediately rebuked the allegations.
“We are shocked and disappointed that Ms. Hinton would make such a public statement insinuating that the district had financial troubles which were the fault of Dr. Kruppe following the four-month long investigation which cleared Dr. Kruppe of any wrongdoing regarding the district’s finances,” Sharp said in a statement. “Ms. Hinton knows that the investigation absolved Dr. Kruppe of any of these allegations or claimed ‘lack of financial oversight’ because as she admitted, as the Board President, she has been privy to the entire investigation report.”
UHY Professional Services, a national firm with offices in Detroit, was paid $55,000 by the district last summer to conduct an audit. Hinton said the fee rose to $130,000 due to poor financial record keeping and explained the impact it would later have.
“UHY was scheduled to begin the audit in September, but the audit was delayed five times because the business office had not prepared the required work,” said Hinton. “This resulted in missing the required audit due date of November 1. The audit officially began Oct. 21, 2024 and completed in February 2025.”
Sharp said the district’s business manager at the time, Jason Zirnis, explained to the board in both June and August 2024 that the audit would be submitted late due to Plante Moran resigning as district auditor earlier in the year and Zirnis leaving his position.
Hinton said the delay led to the district having to take out a $12 million loan to cover payroll and operating expenses because state aid could not be distributed to the district until the audit was complete. She said $8 million has been repaid, with $4 million and the remaining interest due this August.

Sharp said those numbers were incorrect.
“$8.9 million (has been) repaid as of Feb. 19,” she said. “This included $97,900 in interest. Currently $3.1 million in principal remains to be repaid. This includes $120,000 interest expense.”
She added, “This loan is a common practice in the district, with loans obtained by the district from 2015-2023 while awaiting state funds.”
Hinton said the final audit revealed Hazel Park had overspent by $6 million, claiming it dropped their fund balance from 11% to 1%. Since the fund balance was below the state mandated 5%, the district was put on a Michigan Treasury watchlist and is now required to submit monthly financial reports to the state. Hinton did not say what the parameters were to be taken off of the watchlist.
“During the February (budget) amendment after the audit the fund balance was projected to be $1.39 million as of June 2025,” said Sharp. “Thereafter at the next amendment provided to the board in April the fund balance was projected at $1.43 million.”
She added, “Revenue that should have been received by September 2024 was not and would be actualized in the 2024-2025 budget. Meaning the funds are not missing but being reported in subsequent years.”
“The cumulative financial mismanagement led to over $755,000 in additional unplanned expenses ….. largely stemming from improperly maintained financial records,” said Hinton. “And that’s why it all began, because the books were not in order and it cost us $755,000 of money for students because everything was in disarray.”
At the opening of the meeting, a board vote to immediately reinstate Kruppe was approved 4-3. Secretary Darrin Fox and Trustees April Beato, Nathon Becker and Monica Ratte voted in favor. Hinton, Treasurer Heidi Fortress, Vice President Deborah LaFramboise voted against.
The Oakland Press has requested final report on Kruppe and the audit submitted in February.
Sharp said Kruppe is looking forward to putting this chapter behind her.