This from the
Herald-Leader:
Kentucky State Auditor Adam Edelen is expected Wednesday to
release findings from a "thorough investigation" of alleged
mismanagement in Fayette County Public Schools.
 |
| Adam Edelen |
Fayette
Superintendent Tom Shelton said Monday afternoon that he looked forward
to the release of the auditor's findings and wanted to regain public
trust.
"We are confident that the report will reassure our
community that all public funds are accounted for and that there was no
illegal activity, while also pointing to concrete areas for
improvement in our budget and finance processes," Shelton said. "We are
ready to put these allegations to rest and begin the process of
regaining public trust and confidence as we refocus our entire district
on our core mission of serving students."
In August, Edelen told
the Herald-Leader that his office was in the final stage of the
investigation, and he said he probably would release the findings this
month. Edelen said they had hoped the investigation wouldn't take this
long, but "upon conducting our investigation, there were numerous
allegations that came to the attention of our auditors."
He said
it was important that people "be held to account if there are misdeeds
found" and that "they be cleared if there are not."
Edelen's
spokeswoman, Stephenie Hoelscher, said Monday she couldn't discuss
details of the findings before Wednesday's news conference, to be held
on the Newtown campus of Bluegrass Community and Technical College.
Hoelscher said BCTC had nothing to do with the investigation; its campus
simply would be the site of the news conference.
Fayette County
Public Schools officials were given the findings late last week and
asked to respond, she said. Hoelscher said she received that response
Monday.
"We are confident that the examination will finally
answer important questions that have been raised about the district's
financial situation," she said Monday.
The release of the
findings brings to a close a nearly four-month investigation into
allegations made by the district's budget director.
In May, Julane
Mullins sent board members an email alleging that a budget shortfall
was caused by irregular accounting that worsened with "numerous acts of
mismanagement." She also forwarded that information to Edelen's office.
In
May, when the school board approved a tentative budget, cuts to the
budget were described as totalling about $17.5 million. Earlier, Shelton
had suggested $19.1 million in cuts.
The allegations led to public drama and divisions in the district's organization.
In
Mullins' email, she questioned the timing of an accounting journal
entry made by district finance director Rodney Jackson. She also
questioned the handling of significant pay raises for top district
officials.
Shelton and Jackson responded strongly to the
allegations, saying they did nothing wrong or against district policy.
They also have denied doing anything that resulted in the district's
budget cuts.
In the email, Mullins took issue with Shelton's
actions regarding a board policy that required approval for transfers of
more than $50,000. Mullins has said that in May 2013, Shelton wanted
transfers in his budget in excess of $50,000 to include two $75,000
transfers to NaviGo, a career and college preparation company. NaviGo
was founded a friend of Shelton, former Kenton County Superintendent Tim
Hanner.
Mullins said in the email that Shelton directed that
these "budget transfers be made despite the fact that they violated the
board policy requiring approval for such expenditures."
Shelton has said that allegation was untrue and that he simply paid two $75,000 invoices to NaviGo from his budget.
Shelton
told the Herald-Leader that his relationship with Hanner, whom he knows
personally and professionally, had "nothing to do with the decision to
find a way to improve college and career planning in our schools."
Hanner told the Herald-Leader this summer that Navigo had done everything the company was contracted to do.
"Everything we have done is in good faith," he said.
After Mullins made her allegations, Shelton asked Edelen to investigate to reassure citizens there was no wrongdoing.
Additionally,
Shelton has recommended to the school board that his annual evaluation
be delayed until the state auditor completed the investigation.
Edelen
has said that after Mullins made the initial allegations in late May,
the investigation quickly expanded to other allegations.
Hoelscher
said Monday that at least three auditors worked on the investigation.
Their work included conducting interviews and reviewing documents.
She said the investigation was narrowly focused on the allegations that centered around "budget and finance issues."
Read
more here:
http://www.kentucky.com/2014/09/15/3430856_state-auditor-to-release-findings.html?sp=/99/322/&rh=1#storylink=cpy
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