(c) It shall be the duty of the board of school directors to keep an accurate account of all devises, bequests, grants, endowments, gifts, and donations accepted, the income arising therefrom, the proceeds thereof, and the expenses of administering the same; and at the end of each fiscal year to render a detailed statement of such devises, bequests, grants, endowments, gifts, and donations, held and possessed by such school district, the proceeds thereof, the investments which have been made therewith, the income arising therefrom, the expenses of administration, and the purposes to which the income arising therefrom have been applied. Such statement shall be audited as hereinafter provided for the auditing of school finances.School Board Director Hugh Beal tried to pinpoint the actual start of the Capital Campaign at the last school board meeting. The superintendent said that the actual start would probably have been August 12, 2013 when Alyssa DeLuca was hired. Have the school board directors kept an accurate account of this campaign since its inception? No. Mr. Beal had to abstain from a vote since he was not informed. Has there been a detailed statement at the end of each fiscal year? No. We were in the Quiet Phase for several years. In addition, the detailed statement at the end of fiscal year 2016 keeps changing from month to month.
Mr. Beal questioned the accuracy of the 8/31/17 campaign spreadsheet and if the Administration stood by its accuracy. They did. The table above proves otherwise.
In the video clip above, Mr. Beal continues by saying that the school board should take ownership of the capital campaign. Who is in charge of the Capital Campaign? The school board? It doesn't feel like it. The Century of Excellence Campaign is definitely an internal operation, namely the Campaign Cabinet. All donations received by the school district must be approved by the school board unless the Board has given the superintendent the authority to accept donations on its behalf. Most boards formally vote to accept all donations and gifts over a certain amount (i.e. $1000) and allow the superintendent to accept small gifts and report them as information items on a monthly basis. The acceptance and fiscal management of all donations should be being captured by the District's auditors.
Who is on the cabinet? From the Capital Campaign website:
And the District Representatives?
This is the only report that I am aware of, presented on November 21, 2016.
https://1drv.ms/v/s!Aq7yK_oWz4yC4nXTvWo7HI8LBF4p PowerPoint is available here.
Had the timeline been placed on the school district website as promised by under PA Ethics Commission investigation School Board President Mary Birks, and Superintendent Steinhauer, with one of his goals - improve communication with community stakeholders, we would be able to see that the school board directors had not been informed for months at a time of the progress of the Capital Campaign. I am still waiting for the timeline to be released through a Right To Know.
School Board Directors Riemer, Strotmeyer, Olbrich, and Beal have been chastised by this group for asking too many questions.
 |
| Dan Remely, Mary Birks, Elaine Cappucci, Katie Caste |
Bottom line - the Century of Excellence Capital Campaign is in violation of § 2-216 of the PA School Code. Gifts to districts; investment accounts.
Update October 10, 2017 4:39 PM The video from last night's school board meeting is available here. Click here to view http://multimedia.mtlsd.org/Play.asp?12028118732501576!5
Keeping an accurate account is up to interpretation according to Klein and the board.
ReplyDeleteGolly. Makes one wonder if the "cabinet" personnel are just lazy and stupid, or if they were kind of hoping to use the donations as a kind of slush fund for pet projects and in their arrogance assumed nobody would ask questions.
ReplyDeleteHow can the numbers keep changing?? That's the kind if thing that gets people into legal trouble.
After the meeting last night, residents were also targeted by this group.
ReplyDeleteI notified the media. We'll see if this is swept under the rug, like everything else I have shared with them. The only reporter coming close to exposing this corruption has been Janice Crompton from the Post-Gazette.
The Director of Business rewrites spreadsheets without consequences. The Board President is under investigation by the PA Ethics Commission. The former school board director, who was forced to resign because of nepotism, is running for two seats on the school board, in spite of the fact that her son was hired as a teacher in the middle school. Job postings are altered nine months after the fact. The superintendent is a well paid puppet, under the control of the above mentioned. Residents are forced to file Right To Knows for information promised to them at public meetings. The Director of Advancement of the Capital Campaign and the MLFE is being paid by taxpayer dollars. All MLFE and Capital Campaign meetings are closed to the public. The Capital Campaign is in violation of the PA School Code.
Seriously, members of the press, how and why do you not cover ANY of this?
Elaine
And not a peep from our state legislators, who will be voting to raise Harrisburg taxes so they can send the money to these fools that ignore state law and ethics rules.
ReplyDeleteWhen Paula called Lebowitz a defender and cheerleader! Highlight moment.
ReplyDeleteSo who runs the campaign?
Jo Posti (co-chair) and on the CCRB campaign committee
Beth Evans and on the CCRB campaign committee
Carol Walton (major donor and capital member) and on the CCRB campaign committee
Lisa Sullivan and on the CCRB campaign committee
Larry Lebowitz (co-chair) and on the CCRB campaign committee
Elaine Cappucci (Capital member)
Mary Birks (Donor 3-5 years as she said when arguing with Nick)
Dan Remely
Katie Caste (Capital treasurer)
So, yeah. Who runs it?
Wait. Did that guy say all contributions were consumed by administrative costs?
ReplyDelete3:57, whether he said it or not the continually changing financial statements expose that truth. If it weren’t for the $923,000 “loaned or invested” in the campaign from the district itself, the campaign would be bankrupt.
ReplyDeleteSo what we essentially have is the district using its own funds disguised as donors contributions.
I still find it amazing that the board that whines that it has been necessary “to raise property taxes by more than $17 million above the rate of inflation over the past 10 years. That’s more than any otheralready Allegheny County school district.” has almost $1 million laying around to prop up a fundraiser that is going to paint a $20,000 shrine to jocks.
What about smaller class sizes at Lincoln, what about our state legislator’s cry for more special education services.
Wouldn’t our currents students and future students be better served by putting that “already-gotten” $923,000 where it really belongs!
Not one member of the media responded. Even Janice Crompton, the reporter from THE POSTI Gazette, was a no show last night. Yes, I'm disappointed. So much corruption. Flagrant offenders. No consequences. I am so discouraged.
ReplyDeleteElaine
When Nick M. brought up the discrepancy in the two spreadsheets and said that Jan Klein lied, the camera was on Birks, Timmy, and Klein. Nobody flinched. Mary said that the Capital Campaign is a 100 year plan. OMG. She went on about pledges, when Nick stopped her by saying, "You can't count on pledges, Lady!" Birks was furious.
ReplyDeleteThen Paula brought up the nepotism policy. Larry chewed her out. Peterson said that it is OK to have relatives on the board. Cappucci stormed up after Paula and ripped Paula a new one during her five minutes at the microphone. Cappucci accused Paula of politicking.
So much corruption. And where was the media? Who cares, right? Is the League of Women Voters planning a Candidates Forum? Nope. This is the ONLY place you can read about the corruption. I'm just beating my head against the wall. They are wearing me down.
Elaine
While technically Peterson is correct that Cappucci can serve as a director, it is also imperative that she “must not vote on or otherwise attempt to influence decisions on matters that could result in private financial gain for themselves, their families, or businesses with which they or their families are associated”
ReplyDeletehttps://www.psba.org/wp-content/uploads/2015/01/Essentials-for-School-Board-Service-2016.pdf
Cappucci is legally forbidden from debating or voting on some of the most important matters before the board because her son could gain financially, so why become a director?
We taxpayers must organize and be ready with a petition to the Governor, Attorney General, Auditor General, and our two legislators to prosecute Cappucci on ethics violations if upon winning a seat on the board she even opens her mouth on teachers contracts or coaching pay.
“It takes a village” to see that the law will be enforced.
From the Almanac
ReplyDelete“Mt. Lebanon School District’s Capital Campaign has $6 million goal
Published: August 21, 2015”
““Obviously, we want to reach the financial goal set for the campaign,” Posti said. “But one of the important outcomes of the campaign is getting people to understand how public schools are funded and to understand the challenges every school district is facing right now in order to maintain the quality of programs and the things they think are important to a child’s education.”
Yes Jo Jo, PA school district’s are sitting on over $4 billion dollars in reserves according to the Auditor General. You’re right, people need to understand how public schools are funded!
Too bad you’re probably not the person to tell them the facts.
To Mary Birks-
The fund raiser is a 100 year effort? To raise $6 million (see Almanac article above). That’s only $60,000/year! You and Campaign Chair better get your stories straight.
You’ve spent more than that in salary benefits and expenses every year since the fundraiser started.
That’s not very smart or are you just making things up as you go along?
Elaine, did Beal, Strotmeyer, Riemer, Remely flinch or even join in Nick’s question about the discrepancy... no they did not. So much for campaign promises.
ReplyDelete8:27 AM, you are full of baloney. Remely wasn't at the meeting. He phoned in. Beal isn't running. Beal brought this to light. The camera wasn't on Strotmeyer or Riemer. Riemer wants an outside audit. Strotmeyer is being thrown under the bus by Cappucci. Hmm, I wonder who you are, 8:27 AM.
ReplyDeleteElaine
I hit publish too soon. Sorry.
ReplyDeleteRemember, Mary Birks speaks "For the Board."
Elaine
Elaine, I wasn’t at the meeting and haven’t yet watched the tape.
ReplyDeleteJust asking if any of the current directors or candidates had the same issues with the financial statement discrepancies as Nick does.
If Remely is on the phone during the meeting he’s there and can speak. Beal not running again does not negate his participation in current board issues.
Riemer yes called for an audit, did he ask for it again? The new discrepancies certainly warrant his initial request.
Strotmeyer should be livid with Cappucci if she is throwing him under the bus. He’s absolutely within his rights to question the campaign finances.
If Cappucci wins, Strotmeyer could very well be off the board and that would be a shame.
So I don’t understand your anger, I’m just trying to determine whom I should vote for come November.
It is pretty clear to me who you should be voting for, 9:17 AM. Strotmeyer, Riemer, Diamond for the four year term. Riemer for the two year term.
ReplyDeleteGoing back to banging my head against the wall.
Elaine
And at 8:27 AM, you answered your own question without attending the meeting or watching the tape.
ReplyDeleteBanging head and wondering why I even do this.
Elaine
Yes, Elaine you got me.
ReplyDeleteI assumed that since you didn’t report that any of the directors took up for Nick’s concerns about the financial discrepencies, that none did. My bad.
So while I’m strongly leaning in voting for the Strotmeyer, Riemer, Diamond Team I’m Still left with deciding whom to vote for to fill the fourth seat.
Do I leave that blank on the ballot?
While I’ll never vote for Birks, Cappucci or Caste I was hoping that Remely might awaken to what made him and promise so many years ago.
There are also directors that will be running in a couple of years. Be nice to know where they stand on accuracy, accountability and transparency.
Do they stand with The Timmy Team guaranteeing the status quo or do they stand with Strotmeyer, Riemer and Diamond?
I’d love to vote for Paula or Nick, but I guess a write-in will be a wasted effort.
Let's get through this election before you start worrying about the next one. Just vote for the three (Strotmeyer, Riemer, and Diamond) for the four year term. Thanks.
ReplyDeleteElaine
I removed the following comment and moved to this post, where it belongs. Let's try to post under the appropriate post.
ReplyDeleteThanks.
Elaine
******
Read this document for newly elected school board directors from the PSBA, 9:38.
https://www.psba.org/wp-content/uploads/2015/01/Essentials-for-School-Board-Service-2016.pdf
Page 24) “6:10. What does the concept “conflict of interest” mean and why should school directors try to avoid such conflicts?The term “conflict of interest” in the broader context of school board service refers to any potential clash between the public interest and the private financial interest of an individual director. Both the School Code and the Public Official and Employees Ethics Act prohibit various categories of conflicts of interest that school directors and other public officials must take great care to avoid. A public official must not vote on or otherwise attempt to influence decisions on matters that could result in private financial gain for themselves, their families, or businesses with which they or their families are associated. Violations can result in civil penalties, criminal prosecution and being banned from holding public office or public employment. The Ethics Act also requires school directors to file annual statements of financial interest. The free online Conflicts of Interest course available in PSBA’s LEARN Portal will teach you about the restrictions and requirements you must understand and be able to navigate.”
“Violations can result in civil penalties, criminal prosecution and being banned from holding public office or public employment.”
If Cappucci gets elected the minute see expresses and opinion or tries to influence the board on anything to do with teacher compensation, scheduling, class sizes, sports schedules, benefits or healthcare she will be in immediate violation of state ethics laws.
She and the board know this rule since their first day as a director and their associations with the PSBA and should be prosecuted if they defy them.
Birks violated the ethics code by voting on sending money to an entity from which she personally profits.
Ignorance that she didn’t know what she was voting on is a pretty pathetic excuse.
Cappucci will be violating ethics laws if she even tries to influence anything that might affect her son’s employment.
Thank you Elaine for providing a link to the board meeting.
ReplyDeleteI thought Birks response to Nick’s questions offensive considering she had no answers to any of his questions.
On the Rock Pile discussion. I thought the maintenance estimates for grass vs turf deceptive. The turf numbers should also reflect the replacement cost every 8 years and its oblivious their number doesn’t reflect.
I also like to hear how much the district spent on maintenance of the Rock Pile prior to the construction project. I doubt they spent anywhere near $40,000/ year and it was always in pretty decent shape.
But what I found most important was Riemer’s question about what items will the Capital budget need to address in coming years! Roofs, furnaces, etc. There’s a guy that is thinking about future budgets and looking out for taxpayers as opposed to Lebowitz that says we’ve got $5 million let’s spend it.
Strotmeyer also pointed out that the $5 million is also used to pay for books and technology.
So Riemer and Strotmeyer have locked in my vote just for those moments of wisdom. Even, dare I say it, Remely seemed to put on his thinling cap on the Rock Pile discussion. While he cave as usual or stay smart, will be a tough decision to make as I pull the lever for the fourth Director.
Why is it every time I listen to Lebowitz’s comments on some project, I’m reminded of Professor Harold Hill?
ReplyDeleteThere was a heated debate between President Birks and Nick N. over pledges and it appears they both could be right — if Jan Klein has “appropriate evidence to document the pledge” then the pledge can be counted as revenue.
ReplyDeleteIf there is no evidence then Nick was right and the pledges cannot be counted as revenue.
So Ms. Birks, no need to get testy, just show the appropriate documentation that should accompany the pledge and I’d suggest that since you have no experience being the Executive Director of a non-profit you learn accounting procedures and how to control your temper.
Outreach will be better for it if you do.
http://www.nonprofitaccountingbasics.org/accounting-bookkeeping-revenue-contributions/pledges-receivable-explaining-basics-your-development
“Pledges Receivable: Explaining the Basics to Your Development Department | Nonprofit Accounting Basics”
“Why is the Accounting Department’s Role so Important Anyway?
The accounting department’s role is important because they make sure that any potential pledge meets all revenue recognition criteria and there is appropriate evidence to document the pledge and any donor restrictions. Once a pledge meets the criteria for recognition, it can be recorded at fair value.”
"We remain grateful to all who continue to be actively engaged and generously invested in this campaign. Thank you to our donors for their continued support, and our volunteers for their ongoing efforts on behalf of the Century of Excellence Campaign."
ReplyDeleteWhy are we paying someone a ridiculous salary if the bulk of the fundraising efforts comes from the volunteers? You know, because they made the donations!