More good news heard at Monday's school board meeting

Hugh Beal announced at Monday's school board meeting that there is a Request For Proposal (RFP) for new auditors. Maher Duessel has been the school district's auditors for over twenty-five years! Maher Duessel is also the municipality's auditor. Do a search for Maher Duessel on Lebo Citizens and you will find these posts. https://lebocitizens.blogspot.com/search?q=maher+duessel

There have been many Mt. Lebanon residents who have objected to having the same outside auditor year after year. Yet Jan Klein, Tim Steinhauer, Mary Birks, Elaine Cappucci, Jo Posti, and others were very defensive when it was brought up. How could Maher Duessel have NO FINDINGS OR ISSUES TO REPORT with the Capital Campaign? See School Board is pulling a whopper!

For years, former school board presidents have humiliated residents at school board meetings when we would question the Century of Excellence Campaign or outside auditors or even Mt. Lebanon School District's business director.

As far back as eight years ago, when I first started following local affairs, I remember this post from the two meanies bloggers from Real Lebo, Kristen Linfante and Elaine Labalme.  http://www.reallebo.com/2010/02/school-district-budget-numbers-mocked.html

In addition to this good news, there appears to be interest in resurrecting the Audit and Finance Committee. You can see Elaine Cappucci questioning Hugh Beal through clenched teeth about this at Monday's meeting. Clearly, she was not happy with this idea. I believe it was Josephine Posti who disbanded this committee. At that time, when we questioned that move, we were publicly reprimanded for doing so.

Bravo School Board!

$109 Million Liability on the books

Amy Lewis, from Maher Duessel, spoke at tonight's school board meeting. As written on the Agenda, Approval of Fiscal Audit for the 2013-14 Fiscal Year,

– Annually, the Board reviews the audit by Maher Duessel, CPAs of the fiscal records for the prior fiscal year. This year’s audit will be reviewed by Amy Lewis, CPA and Dave Duessel, CPA and will be presented in final form for approval at the October 20 meeting.

Ms. Lewis reported that there has been a change in auditing and our PSERS obligation must be on the books this year. It is approximately three times our covered payroll.

Our school board directors, however, like to blame Tom Corbett.

Hallelujah! UPDATED

After thirty (?) years with Maher Duessel, the Mt. Lebanon School District is changing auditors! From Monday's Discussion Agenda:

Audit Services Bid – Every three years the District requests bids for audit services for the annual financial audit. This audit covers all of the District’s funds and bank accounts and is required by law. The low bid was from Zelenkofske Axelrod LLC at their bid price of $19,500 for year one and $19,900 for year two. The Superintendent recommends Zelenkofske Axelrod LLC the Audit Services contract as the lowest responsible bidder meeting specifications.

Also, it looks like the school district is moving away from a three year contract and going to a two year contract. KUDOS School Board Directors! I am so happy with all the changes that you are making which were long overdue!

From my April 5, 2015 post:

Audit Services Request for Proposal – Every three years the District requests proposals for audit services for the Independent Certified Public Audit of the District’s finances. This year four companies responded to the request with prices in the first year ranging from $19,500 to $24,000, $20,475 to $24,825 in year two and $21,499 to $25,650 in year three. While all firms have experience in auditing governmental entities and public school districts, only two reference CAFR audits where the school district attained ASBO’s Certificate of Excellence Award. Maher Duessel is the lowest cost of those two firms. Since their work with Mt Lebanon School District has been exceptional in prior years, we are recommending continuing their contract for another three years. The price quoted for their audit including the CAFR work is $23,550 in year one, $24,150 in year two and $24,750 in year three. The superintendent recommends approval of this action. (Does that make it thirty years with the same outside auditor?)

Update 3:42 PM I know that the Rock Pile discussion scheduled for Monday is the most pressing issue to the sports people, but there will also be a discussion for a non-profit fundraising drive. Again, moving in the right direction! So many positive steps under this new administration. YAY!

Non-Profit Fundraising Drive – The Board will discuss this matter.

An FYI, Upper St. Clair School District is moving forward with a renovation for their high school. They want to REMOVE A PEDESTRIAN BRIDGE, build an eight lane pool, build a special-use swimming pool, build a multi-use complex at the stadium which includes district offices, a single structure at Boyce Middle School for dressing rooms, restrooms, concession stand, and announcing booth, new electrical service from Truxton Drive; stadium light pole relocations and upgrade; visitor’s-side bleacher refinishing; new stadium scoreboard and sound-system; rock excavations per soils report; fencing along Washington Road; expansion of restroom counts to comply with Allegheny County requirements; and parking lot paving at Boyce field. FOR $22.65 MILLION.

Commission Meeting Agendas for Tuesday UPDATED 2X

Tuesday's meetings will be action packed. For starters, here is what is in store for the Commission Discussion Session starting at 6:30 PM: 

1. Deer topics:
a. Presentation on roadside detectors – Edward Mulka, JAFA Technologies
b. Conference call regarding sterilization – Enid Feinberg, Wildlife Rescue

6:55 P.M.
2. Wildcat/Middle Field Improvements Project:
a. Bids
b. Funding sources
c. Environmental tests
d. Maintenance
e. Other

7:15 P.M.
3. Review MS-4 and plan for TMDL stormwater. 

I really don't know what Item 3 is about, but the Commission has set aside 25 minutes for this agenda item.

But wait, there's more!

At 8:00 PM, the real fun begins. On the Commission Meeting Agenda: 

First, Senator Matt Smith and State Rep. Dan Miller will be presenting a citation to Mt. Lebanon for being an Allegheny League of Municipalities (ALOM) Banner Community. 

After recognition of a Mt. Lebanon volunteer, Citizen Comments begins. Citizens have five minutes to speak on any topic. Please sign the sheet as you enter the commission chambers if you wish to speak at this time. This is NOT for the Public Hearing.

Agenda Item 5 is the Public Hearing on Capital Investment. There will be a separate sign up sheet for the Public Hearing. This is when you can speak about the list of possible projects discussed so far:

1. Wildcat/Middle field remaining allocation
2. School safety signage
3. Recycling cans
4. Robb Hollow park improvements
5. Deer sterilization and other deer management practices
6. Traffic pedestrian upgrades
7. Bird Park and Twin Hills trail signs
8. Iroquois fill and grass
9. Church Place concrete pad
10. Rockwood Park concrete pad
11. Other park improvements
12. Consultant to develop design guidelines and HARB ordinance
13. Golf course pavilion
14. Firing range improvements
15. Public Works facility improvements
16. Private street contribution
17. Expanding street reconstruction and maintenance
18. Prescription drug incinerator
19. Sidewalks at tennis center
20. Other capital projects listed in the 2014-2018 Capital Improvement Program

First item on the list will be approved. See Agenda Item 14. We will get to hear from the sports people to please assign funds toward the turf project, even though it is already on the agenda. Deer people, here is your chance. PAYT people, time to speak up. Want more money for Tom Kelley's Public Works facility and parks improvements? Get in line. Sidewalks at the tennis center? Sign up. Live on a private road which needs attention? Tell the Commissioners all about it. Kelly Fraasch has been trying to talk about a prescription drug incinerator at all the Commission Discussion Sessions, but the commissioners would always run out of time. See where her possible project is on the list? Almost at the end. I know this will never happen, but it would be nice if the people who want artificial turf, would let the others speak, since it is already an agenda item. If not, I can see this being an after midnight meeting again. 

That was only Agenda No. 5. Items 6 & 7 are Home Rule Charter amendments for the November election.

Still with me? Let's skip to No. 12. Usually, Maher Duessel is appointed as an independent auditor annually, but this year, they will be getting a three year contract. This firm has been our independent auditor for the Municipality and the School District for YEARS! The commission wants to appoint Maher Duessel for audit years 2014, 2015, and 2016. 

But Items 14 & 15 are what most people are interested in, of late. 

14. Consideration to assign funds for athletic field improvements.

At this time, the Commission would like to assign an additional $162,600 for this project.

Use of Funds Amount
Base Bid $ 859,000
Add Alt. 6 (filtration) 21,000
Add Alt. 9 (fountain) 8,000
Professional services 122,000
Contingency 40,000
Total $1,050,000

Source of Funds Amount
11/25/13 Assignment $ 637,400
7/13/14 Assignment 162,600
Non-Municipal Sources 250,000
Total $1,050,000

The original amount to be assigned was $112,600. November 25, 2013 Commission Meeting Minutes

15. Award of bids for the installation of turf at Wildcat/Middle fields

On July 8, 2014, the Mt. Lebanon Commissioners will award the contract to Vasco Sports Contractors for Base Bid 1 - Blended Turf with Thatch Zone with Sand and Rubber Infill ($859,000)
Add Alternate 6 - Storm Filtration System ($21,000) and
Add Alternate 9 - Water Fountain ($8,000)
for a total price of $888,000, subject to:
a) Receipt of the NPDSS (?) permit,
b) Receipt of $250,000 of non-municipal funds, and
c) Review and approval of all contract language by the Solicitor and Municipal Manager.

Number 16 has been top secret. The Commission had been speaking of a turf maintenance agreement with the School District, but we never would get any details. No. 16 is to execute the turf maintenance agreement with the School District.

And if there hasn't been enough controversial topics, the Commission will consider parking issues on Academy Avenue. 

Finally, Agenda Item 18 is moving the parking on Cedar Blvd. near Wildcat and Middle Fields, from the north side of the road to the south side of the road.

What the commissioners have managed to do is pack as many hot topics as possible into one evening. The only issue missing is the dog park. That could be under Robb Hollow park improvements.

And in case you missed it, Charlotte Stephenson wrote an excellent Letter to the Editor in today's Post-Gazette. "Newcomer tax and turf unnecessary"

Update July 4, 2014 11:02 AM Please visit newly created "Mt. Lebo Residents Against Child-Health Risks of Artificial Turf" on Facebook.

Update July 6, 2014 5:53 PM Mt. Lebanon, PA Residents Against Artificial Turf at Wildcat and Middle Fields Petition here.

SOS

Monday's school board meeting agenda has been posted. Same old... "Typical for this time of year."

Oct. 8, 2012 School Board Discussion Meeting agenda


The shell game continues.

Ratification of June 30, 2012 List of Budgetary Transfers – The list of budgetary transfers to close the books on June 30, 2012 is required by law. It is a lengthy list totaling $2,435,420 and reflects transfers from and to budgetary accounts which have or need additional funding. Last year the list totaled $1,685,433. The superintendent recommends approval of this list.

Audit Report for Year Ending June 30, 2012 – Annually, the independent audit firm, Maher Duessel, CPAs, completes a financial audit of the District financial records. A draft of the audit report will be presented and reviewed by Amy Lewis, CPA and Dave Duessel, CPA. The final audit report will be complete for Board action at the October 15, 2012 meeting. The superintendent recommends approval and acceptance of the report.

More change orders, of course.

Change Orders for High School Project – This month there are a number of change orders for the Board to consider.

a. #PL-02-11 for $2,189 to Vrabel Plumbing for temporary water to B building for asbestos abatement when water lines were offline during construction.

b. #PL-03-12 for ($19,776) to Vrabel Plumbing to credit the District for reusing rain conductors rather than replacing them since the current ones are in good condition.

c. #AB-01-13 for $12,828 to Precision for Asbestos abatement to an unforeseen area hidden in the wall in a shaft. 

d. #FP-01-14 for $3,593 to Simplex Grinnell for temporary work required for Fire Department regulations to keep building B open while we are occupied during phasing.

e. #IN-01-02 for $5,866 to Farfield Electric for the balance of the cost of the temporary generators as part of the large insurance claim. This will be covered by insurance and will be a deduct change order once the final accounting for the claim is complete.

The total cost of all these change orders is $4,700. These have been reviewed by the architect, construction manager, Rick Marciniak and Jan Klein. The superintendent recommends them for approval.

I hope they did the math correctly this time.

And finally, for discussion:

1. Feasibility Study – The Board will discuss the Feasibility Study that was presented by Pursuant Ketchum.

2. Strategic Plan – The Board will hear a presentation regarding the District’s Strategic Planning efforts.

Obviously, the Board will be sharing all the topics that were discussed at their three coffees. The feasibility study has been a hot topic here. "Direct and supervise the completion of the District’s Strategic plan", Tim Steinhauer's Number Two goal, was delegated to a facilitator and committee.  Our tax dollars at work.

November Change Orders and Other MTLSD Business

The November 11, 2013 school board agenda has been published here.

Amy Lewis and Dave Duessel from Maher Duessel, CPAs will be at the November 18, 2013 school board meeting to review the results of their fiscal audit of the 2012-13 school year finances.

A new tax collector and delinquent tax collector will be appointed on November 18, 2013 due to the unfortunate passing of John Ferguson.

"WealthEngine, whom the District has contracted to provide wealth screening services for the capital campaign, will provide a National Change of Address service and initial wealth screening for about 18,000 alumni records which will be used to populate the campaign database. The total cost with an early signing discount is $6,840." I hope the school district will share alumni records with reunion committees. The Class of 1972 was able to located approximately 700 alumni. I am wondering if this purchase is truly necessary.

Proposed new rental rates covering current and anticipated costs will be presented to the Board for consideration.

Change Orders for High School Renovation Project – The following change orders are presented for Board consideration. All the change orders listed below (totaling $244,386) have been reviewed by the architect, PJ Dick and the District administration.

 

a. GC-85-182 to Nello for $22,394 for fine arts building design coordination, 

b. GC-86-183 to Nello for $24,717 for athletic wing window pockets and new 

beam, 

c. GC-87-184 to Nello for $19,516 for B building code revisions , 

d. GC-88-185 to Nello for $17,445 for time & materials on doors jamb corrections, 

e. FP-04-186 to SimplexGrinnell for $10,081for phasing and changes in rated walls, 

f. ME-16-187 to McKamish for $25,430 for added duct in Little Theatre, 

g. PL-24-188 to Vrabel for $22,955 for courtyard storm work, 

h. PL- 25-189 to Vrabel for $21,162 for phasing relocation of utilities, 

i. EL-50-190 to Farfield for $6,348 for changes to walls and added electrical 

controls, 

j. EL-51-191 to Farfield for $29,973 for sound system in Little Theatre, 

k. EL-52-192 to Farfield for $27,924 for lights changes, chiller and duct work, and 

l. GC-89-193 to Nello for $16,441 to phasing change on structure demolition. 

School Board is pulling a whopper!

On tonight's agenda are the following discussions:

Acceptance of 2017 Single Audit Report – The annual audit of the District’s finances has been completed by Maher Duessel CPAs and the results of the audit will be reported by Amy Lewis, CPA at the meeting. There are no findings or issues to report. The Superintendent recommends acceptance of the audit report.

Jo Posti is making her reset presentation tonight for the Century of Excellence Million Dollar Heist. This is what the late Nick Meduho had asked about at the last meeting, when Mary Birks said, "Nope." It is after the election and before the new board takes over.

Athletic Field Discussion - we already know that Bill Moorhead, Dan Remely, and the soccer ref's wife, Mary Birks will be going off the board and they are in favor of turfing everything in sight.

And then there is the Teachers Contract.

Letter of Engagement for Chief Negotiator – The Board is asked to consider the appointment Ira Weiss, Esq. as special counsel for teacher contract negotiations at a cost of $125 per hour plus training services of $1,500. The Superintendent recommends this appointment.

If these items are up for discussion, the board will be voting next week. It will be Birks, Remely, and Moorhead's last meeting. Ever. All of these items should be tabled for the new board! It looks like Mary is not going out quietly.

True Confession time

I have never seen a CAFR. CAFR stands for Comprehensive Annual Financial Report. The School District posts them here on their website.  The latest CAFR is available here. It includes the independent auditor's report from Maher Duessel, the accounting firm who the school board hires year after year since the 90's. See A case of deflected argumentation? Their report includes this statement:

These financial statements are the responsibility of the School District’s management. Our responsibility is to express opinions on these financial statements based on our audit.

 

So what prompted me to find the CAFR? A reader sent me this email concerning graduation rates:

 

Did you happen to read the spring edition of Pittsburgh Quarterly? In it, they list the top 5 and bottom several high school graduation rates by regional school district. Interestingly, Mt. Lebanon was not in the top five (Penn Trafford was #1 @ 99.71%). I went to the link -- www.pittsburghtoday.org to look at all of the regional districts. Mt. Lebanon is at 96.01% which is below Peters, USC, Char Valley, Franklin Regional, Peters Township and Pine Richland -- to name a few. Interestingly, on the Lebo High School report card, the graduation rate is listed as 97%. Still well below the higher performing districts, but higher than listed on the PA Department of Education's website. I thought you would find this interesting.

I sent it on to a professional in the area for input.  Here is the response:

I think that number is in the back of the CAFR each year.

 

But when taxes increase, demographics will shift due to falling home prices. That means people of a lower socioeconomic status will replace people who were of higher socioeconomic stats and therefore graduation rates would tend to drop in kind.

OK, so taxes are going up.  I better take a look at a CAFR. Here is what stood out for me, at least what I was able to understand. 

 

• On page 115 of the pdf, we had only 8 buildings in 1998 with 5600 students. Today we only have 5200 students and yet have all 10 buildings open. 
• On page 117 of the pdf, talk about a change in socioeconomics!!  The number of free and reduced lunches has SKYROCKETED (doubled) from 2009 to 2011. To be fair, 2011 was the first year where all 10 schools participated in the National School Lunch Program. In 2002, there were 133 students who participated in the free or reduced lunch program.  In 2011, there were 431.
• The CAFR does not show graduation rates though.

 

Still amazed at what was contained in this report, I went to yet another expert concerning bonds. Here is the expert's analysis:

Going through the CAFR and on page 110, it shows that the Disrict total borrowing capacity is $25,000,000.

Assuming they have $80,000,000 available (from previous bond issue and cash on hand) then that would leave them with being able to float $25,000,000 in debt to get the $113,000,000.  A little addition and subtraction will tell you that $80,000,0000 plus $25,000,000 is only $105,000,000.  Hence the need to wait an additional year to float the next round of bonds.  If they floated them this year they would need to go to referendum because they would exceed the 225% Act 50 non-electoral debt limit. If they would have floated them last year, the gap would have been even higher.  But with the combination of making $12,000,000 a year in debt payments to reduce outstanding debt, and the increase in taxes to create more revenue, the District will eventually be able to borrow all the money it needs and max out its credit card without a vote by the people.

Wow!  Doesn't that just give you warm fuzzies?

 

We don't need an outside audit, why Mary? UPDATED 100117

Pursuant Ketchum Consulting Services Agreement 

Pursuant Ketchum invoices from a RTK 

Retained Counsel Fees Schedule according to PK Consulting Services Agreement totaling $184,000. (Travel and Strategic Creative Services not included.)

Missing receipts totaling $54,931. Were they paid from other funds? Was the contract terminated? Is this another example of award winning Jan Klein's creative financing?

I am not an accountant. In fact, I am terrible at numbers. So how was this approved by Maher Duessel, the outside auditing firm that MTLSD has employed for over twenty five years?

Lebo Citizens Readers, I still have time for a Flashback Friday. Please read Dear Mt. Lebanon Neighbor:

Update October 1, 2017 6:30 PM Unless there are missing receipts, the invoices for travel total $17,560.05. The cap was $21,000.

Also, unanswered emails to the school board.

From: egillen476@aol.com [mailto:egillen476@aol.com]
Sent: Saturday, September 30, 2017 7:20 PM
To: schoolboard@mtlsd.net
Subject: Second Request

Dr. Strotmeyer,

OK, I lied. This is my first request. I was just saving myself the time to send the usual second request email.

I want to thank you, Dr. Strotmeyer, for being so prompt with your last response. Since you seem to be the only responsive school board director, i am addressing this to you.

From my blog:

Pursuant Ketchum Consulting Services Agreement 
Pursuant Ketchum invoices from a RTK 
Retained Counsel Fees Schedule according to PK Consulting Services Agreement totaling $184,000. (Travel and Strategic Creative Services not included.)

Missing receipts totaling $54,931. Were they paid from other funds? Was the contract terminated? Is this another example of award winning Jan Klein's creative financing? Would you be able to answer my questions?

Thanks in advance. 

Elaine Gillen

www.lebocitizens.blogspot.com

***************

From: egillen476 <egillen476@aol.com>
To: TSteinhauer <TSteinhauer@mtlsd.net>; egillen476 <egillen476@aol.com>
Cc: schoolboard <schoolboard@mtlsd.net>
Sent: Sun, Oct 1, 2017 3:39 pm
Subject: Re: CC web page update or lack of

Tim,

The link to the exercise in futility is now working again. I watched it again. Not only were you "happy to put it on the internet," but Mary Birks told Mrs. Bongiorno that "We will put it on the Capital Campaign Website."

When?

Elaine Gillen

www.lebocitizens.blogspot.com

-----Original Message-----
From: egillen476 <egillen476@aol.com>
To: TSteinhauer <TSteinhauer@mtlsd.net>
Cc: schoolboard <schoolboard@mtlsd.net>
Sent: Sun, Oct 1, 2017 12:39 pm
Subject: CC web page update or lack of

Where is the 2 page report that I have requested? Capital Campaign Financial Report through August 31, 2017 (2 pages) It is not on the Capital Campaign web page.

Where is the list that you offered to post FOUR TIMES to Paula Bongiorno? Watch this exercise in futility. Unfortunately, the clip has been removed. Did you have something to do with that?

Elaine Gillen

www.lebocitizens.blogspot.com

Tuesday's school board meeting - New Location

Because of the holiday weekend, the school board meeting will be held on Tuesday in the High School Large Group Instruction Room, D205. This is a new and permanent location for school board meetings. Those attending the meeting should enter the High School from the South Parking through Entrance B 9. Parking is available in the South Lot which can only be accessed from Cedar Boulevard to Morgan Drive to the South Lot.

Tuesday's Agenda includes:

Audit Services Request for Proposal – Every three years the District requests proposals for audit services for the Independent Certified Public Audit of the District’s finances. This year four companies responded to the request with prices in the first year ranging from $19,500 to $24,000, $20,475 to $24,825 in year two and $21,499 to $25,650 in year three. While all firms have experience in auditing governmental entities and public school districts, only two reference CAFR audits where the school district attained ASBO’s Certificate of Excellence Award. Maher Duessel is the lowest cost of those two firms. Since their work with Mt Lebanon School District has been exceptional in prior years, we are recommending continuing their contract for another three years. The price quoted for their audit including the CAFR work is $23,550 in year one, $24,150 in year two and $24,750 in year three. The superintendent recommends approval of this action. (Does that make it thirty years with the same outside auditor?)

2015-2016 Proposed Final Budget – The proposed budget for the upcoming fiscal year will be discussed at the meeting.

Audit Response - PDE has requested that we submit a written response to the previous state audit (for the 2010, 2009, 2008, and 2007 fiscal years that was completed in January of 2013).

Change Orders for High School Renovation Project – The change orders for the high school project total $47,356 from the Contingency, $4,184 from soft costs, and $7,067 from the Capital Budget. The change orders are as follows:

a. GC-112-275 to Nello for $14,742 for a courtyard wall, 

b. EL-78-276 to Farfield for $19,864 for wiring, lights, elevator changes, gas shut off and smoke dampers, 

c. PL-36-277 to Vrabel for $12,750 for sump pumps, drains and sewer lines, 

d. EL-79-278 to Farfield for $4,184 for cabling, and 

e. EL-80-279 to Farfield for $7,067 for power to fume hoods