Monday, January 16, 2012

The Cost of "Bad Apples" . . .


 “I never noticed the apple until it was pointed out to me this week along with its explanation. Mark is spot on. It looks like the PSEA will support candidates that will be sympathetic to them at contract time. Not me. I guess I negotiate too hard. No tax increases for 6 years straight now. Test scores are still up and we ranked 3rrd in the county last year for SAT scores.”
Brant Miller’s Facebook comment
Regarding an apple that appeared on campaign signs


So Brant Miller negotiates too hard . . .

Fort Cherry administrators receive a benefit package known as the Act 93 Compensation Plan.  Act 93 is statewide, but each school district negotiates its own Act 93 plan.

The Act 93 that gives FC administrators bonuses for doctorate degrees, full tuition reimbursement, 5% of grant money, a generous insurance buy-out, and on and on . . .


The “bad apples” we talked about in the last post have gotten tens of thousands of dollars in bonus money from their “papers”. 

Brant Miller was on the board in 2005 when the “doctorate bonus” was added to the Act 93 agreement.

==================================================
       Fort Cherry School Board
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Observer-Reporter (Washington, PA)-June 29, 2005

       * Date: June 27

       * Action: The board unanimously approved a five-year administrative compensation plan effective at the beginning of the 2005-06 school year. There are two new provisions in the plan.

       If teachers before 2009 have a co-pay as part of their health-care coverage, administrators also will be subject to a co-pay. After 2009, when the current collective bargaining agreement with the teachers union expires, if teachers are subject to a co-pay, administrators also will be subject to a co-pay.

       The second provision creates an annual $5,000 payment, over and above the base salary, for administrators who obtain a doctorate degree. Business manager Paul Sroka equated the compensation to which teachers receive when they obtain a master's degree.


For being such a “hard negotiator”, Miller seems pretty soft when it comes to administrative perks. 
(For a closer look at Miller’s self-described negotiating style, refer to Nov. 5, 2011, post:

Let’s take a look at the Act 93 to see just how “hard” the administration has it at FC:

Here are the highlights (the entire document can be viewed at http://www.observer-reporter.com/www/PDF/ftcherryact93.pdf):

            D.     TUITION REIMBURSEMENT

1.   The Board shall reimburse each school Administrator for tuition in the amount of one hundred percent of the first eighteen (18) credits per year, at the University of Pittsburgh rate, for furthering their education in the field of educational administration, or other related fields of education.  In order to be eligible for reimbursement, the administrator must obtain prior approval by the Superintendent of the course(s) and submit evidence of successful completion.  (B- or better grade or P if class is pass/fail.)

The University of Pittsburgh’s part-time per credit rate for the School of Education, Dept. of Administration and Policy, is currently $760 per credit. 
Cost to taxpayers per year: $13,760.
Total cost to taxpayers:  ???
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E.     EDUCATIONAL COMPENSATION

Any administrator that earns a doctorate degree from an accredited university will receive an annual stipend of $5,000.

Cost to taxpayers so far for Dinnen’s two doctorates:  approximately $70,000, plus the cost of tuition reimbursement for the second doctorate.
Cost to taxpayers so far for Jacoby’s doctorate:  approximately $25,000, plus the cost of tuition reimbursement.
Cost to taxpayers so far for Craig’s doctorate:  approximately $25,000, plus the cost of tuition reimbursement.
Every year, until the Act 93 is renegotiated, Dinnen will receive $10,000 per year, Jacoby and Craig, $5000 each.
And don’t forget this information which we shared with you in the November 29th post:
According to a former board member who was on the board in 2005, the doctorate stipend was initiated by Dinnen.
As the former board member described it, it was Dinnen who approached the board in 2005 and requested the $5000 bonus be added to the Act 93 compensation plan.
He went on to say that Dinnen told the board that it was the only way FC could hang on to Jacoby, who was working on her doctorate at the time.
At the time of the addition of the $5000 stipend to the Act 93, Dinnen had acquired his second doctorate (full tuition reimbursement courtesy of FC taxpayers), entitling him to $10,000 per year.

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2.   An Administrator on approved leave shall continue one’s membership in the School Employees’ Retirement Association.  The School District shall pay when required into the School Employees’ Retirement Fund on the behalf of each such Administrator the full amount of the contribution required by law to be paid by and on account of such person so that retirement rights shall be in no way affected by such leave of absence.


Cost to taxpayers: ???
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7.     DOCTORAL LEAVE
Administrators covered by provisions of this salary/benefit plan shall be eligible for a doctoral leave of absence with full pay during the period of July 1 through December 31 of a single school year. 

If Jacoby was on paid doctoral leave . . . 
Cost to taxpayers:  Jacoby’s full salary, plus benefits, plus the cost of a substitute.
According to the official board minutes from October 22, 2007, the cost of a substitute was $60 per day.
“Mrs. Schwab made a motion, which was seconded by Mr. Duran, that the board appoint Mrs. Frances Harrig as Interim Elementary Principal at a rate of $60.00 per day, with the start date to be determined. Motion passed unanimously.”

Total cost to taxpayers:  ???

L.     MILEAGE

The district shall allow mileage to Administrators for distance incurred as a result of administrative duties performed for the district.  The current IRS allowance shall be used for reimbursement purposes.

As shown on previous posts, mileage adds up, especially when you are out of the office as much as some FC administrators.
Cost to taxpayers:  $.50 to $.57 per mile  - number of miles:  ?????
Total cost to taxpayers:  ???

P.     RETIREMENT AND EARLY RETIREMENT BONUSES

In the event an Administrator retires during the length of this agreement, the Fort Cherry School Board/District agrees to the following:
1.    The retirement must be voluntary.
2.   The Administrator shall give written notice to the Superintendent, as per teacher contract or board discretion.
3.   Provide health coverage of $600.00 per month in cash or insurance reduction with the employee paying the remainder of the premium.
4.   Give the employee a $25,000 bonus.  This provision applies only to administrators currently employed in the District, as of January 25, 2010.
5.   Pay $75.00 for each day of unused sick leave.

A $25,000 bonus upon retirement???!!!!
This is hard negotiating????!!!!
Total cost to taxpayers:  ???

2.    Administrators will be awarded five (5) percent of any grants they obtain for the district, with the maximum amount not to exceed $5,000, except for someone hired into the School District with the express purpose of grant solicitation.

And finally, there’s that 5% bonus for grants.
As stated previously in this blog, until the district stops spending taxpayer money fighting the release of the administrators’ W-2s and 1099 forms, the taxpayers have no way of knowing exactly how much money has been skimmed off the grants for bonuses (see Oct.15th post, http://fortcherryinfo.blogspot.com/2011/10/whats-up-with-w-2s.html).
Total cost to taxpayers:  ???

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Currently the Business Manager and High School Principal are attending universities – on Fort Cherry taxpayers’ dime.
In the course of researching the information contained in this blog, the authors spoke to former administrators.

According to one former administrator, Dinnen also allegedly offered him the use of his papers.  He refused.  Allegedly, at a later date, Dinnen told him that another administrator had no problem submitting Dinnen’s work as his own.
Uh-oh . . . another administrator had no problem submitting Dinnen’s work as his own”??!! 
How far has this gone?
Will FC ever get its truth, honor and integrity back???

Additional Costs to FC Taxpayers???
Going back to the two dissertations presented in the last post (“One Bad Apple . . . “), the cost to FC taxpayers may include more than cost of tuition reimbursement, doctoral bonuses, and a substitute principal:
Consider this:
Dinnen’s paper, Appendix D:

Dinnen sent an initial cover letter and questionnaire guide on May 1, 2002

These letters were composed with an atypical Fort Cherry Letterhead with a FC address.

The mailings included a cover letter with a questionnaire guide (on the reverse side), a questionnaire, and a self-addressed stamped envelope.  The address was Dinnen's home address on the SASE.

These questionnaires consisted of 6 pages, copied on 3 sheets of paper.

Dinnen refers to these mailings as "survey packets".  That would be bulk mail; certainly extra postage would be involved.

They were mailed to 484 superintendents; 164 responded at 33.88%.

Dinnen wanted to increase the number of responses so he decided with a follow-up mailing to 320 superintendents.  Dinnen states in his paper, "Because of the time that had elapsed from the initial mailing, the entire survey packet was again sent to all 320 superintendents who had not responded to the initial survey." 

The second mailing was sent September 6, 2002.


Jacoby's paper p. 101, Appendix:

The initial cover letter consisted of 1 page, with the University of Pittsburgh, Department of Administration and Policy letterhead.

This included two copies of University of Pittsburgh Adult Consent Forms - 1 was kept by the responder and the 2nd returned.  The consent form was consisted of 4 pages, but it's not sure if both the front and back were used for a 2-page mailing.

Jacoby invited 300 principals in western Pennsylvania to respond.

Those who participated were included in a $50 BP gas card drawing.

In order to increase participation, a second mailing went out.  It also included a cover letter and the 2 consent forms along with a paper survey - a 4-page document.


So how does this affect the FC taxpayer?

More than likely, ALL survey packets, from both administrators, went through FC mailings/postage.

AND, it’s possible that FC secretaries typed these documents at the request of the administrator.

In addition, possibly ALL the paper and envelopes were from FC supplies.  And don’t forget about the $50 BP gas card . . . if Jacoby feels comfortable charging FC taxpayers for “Halloween Items for Faculty Meetings and Grade Level Meetings” (after all, what's a meeting without the “proper atmosphere”), she probably would not be opposed to making the taxpayers pay for the $50 BP gift card . . .  









In the end, once again, the likelihood is that Fort Cherry taxpayers footed the bill. 

Think about this . . .

If a citizen submits a right-to-know request to the district, FC charges the citizen 25 cents per page for the document.  If the document is mailed from FC to the requestor, additional charges are added for postage.

Let’s assume that as taxpayers we can charge Dinnen and Jacoby at that rate:

Dinnen (initial mailing):

·         484 superintendents @ 4 pages  = 1936 pages
·         484 self-addresses stamped envelopes
·         484 envelopes mailed with 484 SASEs = 968 envelopes


Dinnen (2nd mailing):

·         320 superintendents @ 4 pages = 1280 pages
·         320 S self-addresses stamped envelopes
·         320 envelopes mailed with 320 SASEs = 640 envelopes


Dinnen (totals):

·         3216 pages @ .25= $804.00  
·         1608 envelopes

Since we're not sure what the postage was, let's use today's .44 for a simple mailing. 

·         1608 envelopes @ .44 for postage = $707.52.


Minimum total cost for Dinnen’s mailings:  $1511.52.

Keep in mind that postage to mail out what Dinnen refers to as “survey packets” would have been much more than that amount, so postage could very well have been over $2000.00.


Jacoby's initial mailing alone may have consisted of 3 pages sent to 300 principals plus a self-addressed stamped envelope.  Of that initial mailing only 36 responded.  A second mailing went out which included the cover letter, the 2 consent forms, a SASE, and a survey which consisted of roughly 9 pages, possibly front and back now at 4.5 pages.  Let's round down- for the benefit of the doubt, and say that the survey packet consisted of 7 pages.  Here's the math:

Jacoby (initial mailing):

·         300 principals @ 3pages = 900 pages
·         300 self-addressed stamped envelopes
·         300 envelopes mailed with 300 SASEs = 600 envelopes


Jacoby (2nd mailing):

·         273 principals @ 7pages = 1911pages
·         273 self-addressed stamped envelopes
·         273 envelopes mailed with 273 SASEs = 546 envelopes

Jacoby (totals):

·         2811 pages @ .25 = $702.75 
·         1146 envelopes

We’ll use simple postage again, although it too would have been much more.

·         1146 envelopes @ .44 for postage= $504.24


Minimum total cost for Jacoby’s mailings:  $1206.99.

This could possibly be closer to $1500.00.

So, should Dinnen and Jacoby have had to pay for the supplies and postage for the 2 dissertations, the cost may have ranged between $2700.00 to $3500.00 and more.

Was the former School Board aware of these potential financial burdens placed on unsuspecting taxpayers?  Did it even occur to them to ask during those years if these practices were occurring?

It is our hope that the new board president and the new board members will demand to be kept informed of how our tax dollars are spent.

Sunday, January 15, 2012

A Shell Game? . . .


W..T..F? . . .
. . . What’s up with The Funds?

This post will present documentation that will show:
·         a large sum of money unaccounted for
·         actions taken without formal Board approval
·         official actions being taken without Board resolution (as required by PA state code)
·         a suspected attempt to move money around to hide its availability
It will also show:
·         FC administrators lack of respect for Board authority
·         FC’s former board president overstepping his bounds and authority
·         FC's lack of openness to the public that is required under the Sunshine Act
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FC has posted the 2010-2011 Annual Financial Report on its website.  (http://www.fortcherry.org/170310111811173687/lib/170310111811173687/_files/AFR.pdf)
This report is submitted annually to the PDE through the PA Office of the Budget, Comptroller Operations.
Page 4 of the AFR depicts the balance of FC’s major funds.
As you can see, the AFR shows that FC has $1.3 million dollars tied up in a COMMITTED FUND.


FC is reporting a $1.3 million fund balance in a Committed Fund to the state . . .
Yet the Committed Fund (and the $1.3 million held in it), does not appear as such on the Account Summaries Sheet that is distributed to the public and given to board members at the monthly board meetings.  The Account Summaries Sheet is created each month by Sroka to summarize the balance of FC’s major funds.
The money shown in the Committed Fund on the AFR is actually the money shown as “Reserve for Technology (General Fund)” on the latest Account Summaries Sheet available to the public.
FC reported that fund’s balance as $1,308,589 to the state, but Sroka reported only $635,457, to the public, a difference of $673,132.
Why the $673,132 difference?


Prior to June of 2010, the “Reserve for Technology (General Fund)” was called the “Capital Reserve/Technology” Fund.
As shown in Cypher’s 2007 annual audit, FC’s Capital Reserve/Technology fund was established according to PA school code and as such, was restricted to be used for capital improvements.


Cypher and Cypher
Audit for school year ending June 2007



Although it went against PA School Code, for years FC purchased technology with money from the “Capital Reserve/Technology” Fund.
Possibly to ensure that the state remain unaware that the money was spent on technology instead of capital improvements, this fund was called the “Capital Reserve/Technology” Fund on all internal FC documentation.  However, on all state reports it was labeled as “Capital Reserve”.
In addition, FC repeatedly labeled all purchases on state reports as money spent on  buildings/improvements, not technology purchases.
Cypher advised FC against spending money from its “Capital Reserve/Technology” Fund on technology.  According to PA School Code, Capital Reserve Funds were to be used for capital improvements and the purchase of school buses only, not technology.

Cypher and Cypher
Audit for school year ending June 2009



Effective July 2010, new accounting rules (GASB 54) mandated the reclassification of “Capital Reserve Funds”.  Under GASB 54, Capital Reserve Funds were to be reclassified as “Capital Projects” Funds.  This newly classified fund would retain the restrictions placed on the old Capital Reserve Fund and also “help financial statement users to better understand the purposes for which governments have chosen to use particular funds for financial reporting.”
Essentially the reclassification makes it blatantly obvious that the money must be spent the way the government intended – for capital improvements - bad news for anyone abusing a Capital Reserve Fund.
At that time, there was dissension between the administration and some board members over the reclassification of that fund.  Ultimately, the fund was not reclassified as mandated by GASB 54, instead Dinnen, Sroka, and B. Miller made the following moves:

MOVE 1:
In June of 2010, without board approval, money that was previously held in the Capital Reserve/Technology Fund was reported to the PDE in the 2010-2011 Final Budget as transferred to the General Fund under Budgetary Reserve.


2010-2011 Final General Fund Budget (PDE-2028)
AUN:  101632403   Fort Cherry SD
Printed 8/24/2011 9:46:28 AM v2.0


Even though Dinnen and Sroka called the fund “Special Revenue Fund for Technology” on the document submitted to the PDE, a “Special Revenue Fund for Technology” never existed.
The “Special Revenue Fund for Technology” was actually the “Capital Reserve/Technology Fund” and we believe was purposely mislabeled on this PDE document and others by Dinnen and Sroka – more about this in a future post.
The document, with its misleading information, was signed by Dinnen, Sroka, and B. Miller.



MOVE 2:
Then, in December 2010, in a last minute agenda change, Dinnen, Sroka, and B. Miller slyly maneuvered the board into approving the transfer of all the money ($707,576), out of the Capital Reserve/Technology Fund and into Budgetary Reserve; a move that was reported to the PDE as board-approved six months earlier.

MOVE 3:
Next, in June of 2011, and again without board approval, that money, now up to $710,854, was reported to the PDE on the 2011-2012 Final Budget as a board-approved move into a “Committed Fund”, which Dinnen, Sroka, and B. Miller designated for technology.

0830    Estimated Ending Committed Fund Balance         710,854
“Explanation:  This amount is designated for Technology purchases per GASB 54 and School Board approval.”



As in 2010, this 2011 budget was signed by Dinnen, Sroka, and B. Miller.




Why does this matter?

Before the money was moved to a Committed Fund in June 2011, that money was reported to the state by Dinnen, Sroka, and B. Miller as held in Budgetary Reserve.
They earmarked the money for technology; but according to the PA Comptroller’s Office, money held in Budgetary Reserve is simply money held in the General Fund – it’s not designated for any special expenditure or limited for use for any special account.
5900 Budgetary Reserve
Budgetary Reserve is not an expenditure function or account. It is strictly a budgetary account.
PA Department of Education
 Manual of Accounting

In other words, Budgetary Reserve can be used for any purpose, such as teacher salaries and programs. 
Remember . . . the board, under Dinnen’s direction, voted to eliminate teachers and programs in May of 2011.
Could it be that Dinnen, Sroka, and B. Miller realized that the public would be aware that money in Budgetary Reserve could legally be used for salaries and programs?


So . . .
Just as teachers and programs were eliminated, we see Dinnen, Sroka, and B. Miller make a move to change the status of the money - attempting to get it into a “Committed” Fund and therefore unavailable for things such as paying teacher salaries or maintaining programs.

Money held in a “Committed” Fund is restricted to the use it was committed for – in this case, they designated it for technology.
Back in spring of 2011, with the major cuts in state funding looming, did Dinnen, Sroka, and B. Miller come up with a plan to shield $1.3 million by reporting it to the state as transferred into a Committed Fund?
But . . .
The board never voted to move the money into a Committed Fund as Dinnen, Sroka, and B. Miller claimed on the budget submitted to the PDE.
0830    Estimated Ending Committed Fund Balance         710,854
“Explanation:  This amount is designated for Technology purchases per GASB 54 and School Board approval.”

In addition, PA School Code mandates that a board resolution is required to establish a Committed Fund.
0830 Committed Fund Balance
Amounts constrained to be used for a specific purpose as per government’s highest level of decision making authority such as the school board, board of directors, board of trustees, etc. Note: Board Resolution required. Constraint can also be removed or changed by an equal level action.
PA Department of Education
 Manual of Accounting
Board resolutions must be submitted to the PDE.
Fort Cherry did not submit a Board Resolution to the PDE because the board never voted to establish a Committed Fund in the first place.  No vote, no resolution.
This document confirms that the PDE does not have a resolution from FC. 



Therefore, it appears that despite cuts in state funding, FC has had money available all along in the General Fund, enough that it did not need to eliminate teachers and programs.
The school auditor will be at the meeting on Tuesday, January 17.
The public, and the board members we rely on to represent the public, need to ask Mr. Cypher to explain:
·         How the money was moved without board approval
·         How the money was moved without official board resolution
·         Why there is a $673,000 difference in the fund balance
The public, and the board members we rely on to represent the public, need to ask each person - Dinnen, Sroka, and B. Miller - to explain why they signed a document and moved the money without board approval and without informing the public.
The meeting starts at 7:30 p.m.
Please attend.