EDITOR: The FCMAT Report (Fiscal Crisis Management Assistance
Team) did not give the district a clean bill of health. After two
days of interviews, the state FCMAT team did not find fraud,
misappropriation of funds or other illegal practices.
EDITOR:
The FCMAT Report (Fiscal Crisis Management Assistance Team) did not give the district a clean bill of health. After two days of interviews, the state FCMAT team did not find fraud, misappropriation of funds or other illegal practices.
However, the scope of the FCMAT Audit was very narrow in nature and only related to the district’s construction contracts, organizational process and procedures and employee behaviors. I believe that a second in-depth financial audit by FCMAT will come to a much different conclusion then the first audit.
FCMAT was not complimentary of the district staff. The report did find that the district entered into an agreement against the advice of legal counsel that was atypical and did not protect the best interests of the district. They found that the district abdicated its oversight responsibility and made errors in judgment that have led to significant cost overruns.
They determined that the district had inexperienced personnel in critical positions. Finally, the district administration was found to be negligent. All of these issues are the direct responsibility of the district superintendent who must be held accountable.
Over the last 18 months the Saylor Consulting Report, The Goodell Audit and most recently the FCMAT Audit have all come to the same basic conclusion. All three reports have made recommendations to the district but there is very little written evidence of any meaningful attempt on the part of the district to seriously implement any recommendation.
The FCMAT update given July 19 to the MHSD Board of Trustees was no more then smoke and mirrors. Although the report suggested to the superintendent that their recommendations should be a priority, no sense of urgency was evident in the district’s presentation.
What the trustees received were reiterations of programs and procedures that already exist with a promise to follow-up at the end of the year. Da! The FCMAT Report was very clear. What the district “has been” doing isn’t working. The district’s processes and procedures have been a failure, they are NEGLIGENT.
Although FCMAT found the district staff to be negligent, the negligence must be shared by the board of trustees because they lost control of their fiscal responsibility by leaving too many decisions up to the “professionals.” allowed the problems to continue.
For what ever reasons, the board of trustees is ultimately responsible for some number between $30 million and $50 million in cost overruns. Negligence, even if it is not intentional, is a serious issue that must be dealt with. Someone needs to be held accountable. We are talking about $30 million plus of taxpayer dollars.
Two of the three of the district’s assistance superintendents have quit. They will be gone by the end of August. It is imperative that this district must move forward. This board of trustees has the obligation to continue to clean house and get the district back in order so that the next board can do their job effectively. I strongly recommend that a new superintendent be appointed as soon as possible and that Dr. McKennan be relieved from her duties at the earliest possible time.
Harlan Warthen,
Morgan Hill
