On Tuesday state Auditor Susan Montee delivered a stinging audit report on the Jennings School District, citing a hemorrhage of finances due to deficit spending.
The primary culprit, according to the audit, was a bloated, top-heavy administration put in place by former Superintendent Kay Royster and approved by the school board.
The audit, which was requested by then-Gov. Matt Blunt, revealed disintegrating district finances. Though district receipts increased steadily throughout these years, the operating fund balance declined approximately $12.6 million (56 percent) from the beginning of fiscal year 2005 through 2008.
The school board’s response to this staggering decline made no reference to the lost balance, mentioning only “various cost cutting measures” to be implemented in the coming year.
The reasons for the district’s financial decline, however, are clear from the audit.
“Administrator salaries increased by a total of approximately $988,000 from fiscal year 2006 to 2008. The increase is primarily due to the creation of nine administrative positions,” the audit reported, noting that the new positions were created and filled by Royster and approved by the school board.
The new positions included a second director of Technology (Norris Roberts), despite already having one on staff (Steve Schmitz ) who remained on staff at the same salary.
In addition, when the positions for director of Federal Programs (Shelia Nicholson) and director of Facilities (Joan Hubbard) were refilled in fiscal year 2007, the new hires were given raises of approximately $44,000 and $47,000, respectively.
“The reasons for the addition of these positions are not clear, and the necessity of the positions is questionable, given the small size of the district,” the audit notes.
Jennings School District covers approximately four square miles in the North County cities of Jennings, County Club Hills and Flordell Hills.
The district operates a senior high school, an alternative high school, a middle school, three intermediate schools (grades 4-6) and three primary schools (grades K-3).
Enrollment was approximately 3,100 for the 2007-2008 school year. The district employed 412 full- and part-time employees, including 27 administrators, 231 teachers, and 154 support staff.
Again, in its response to the audit, the school board did not attempt to explain its approval of the expensive administrative bloat under Royster. It did, however, promise to cut back.
“There will be a net reduction of at least four administrative positions for 2009-2010, for a savings of approximately $400,000,” the school board noted.
“Other positions are still under review, so additional cuts are possible. Also for next year, administrator salaries have been cut by two percent, saving an additional $50,000.”
The audit also takes the school board to task for giving Royster a generous severance package when none was guaranteed her under the terms of her contract.
“The school board terminated the contract of the former superintendent in February 2008, citing mismanagement and declining student test scores. As part of the superintendent’s severance package, the board agreed to pay $238,817 to buy out the remainder of her contract (through June 2009) and $10,892 for her and half of her spouse’s health insurance through June 30, 2009,” the audit notes.
“The severance package paid by the district appears excessive considering the reasons cited by the board for the termination. The district’s contract with the former superintendent did not specify any severance conditions, and it is unclear why the board agreed to pay the health insurance costs.”
In response, the school board noted that it “has changed legal counsel, and any future employment contracts will contain a reasonable severance condition.”
The audit also turned up a lack of competitive bidding for a number of electrical and maintenances contracts. In one case, the proposal to install power in the high school computer labs – which paid $130,373 – was submitted after the work was completed.
The district also was criticized for going over budget on a handheld computer project meant to “bridge the digital divide” that cost more than $1.25 million but has never been widely utilized.
The Jennings School District has an elected Board of Education with seven members that serve three-year terms without pay.
Five of its members served the entire period covered by the audit, including its three officers: President Miranda Jones, Vice-President Rose Mary Johnson, Secretary Yolanda Fountain-Henderson, Harold Austin and Tamara Thomas.
William Coleman Jr. and Jackie Simmons served July 2007-April 2008 before being replaced by John Schlereth and Joseph Turner.
Henderson, Austin and Thomas voted against dismissing Royster.
The Jennings School District has been classified as “Provisionally Accredited” by the Missouri Department of Elementary and Secondary Education.
Its present superintendent, who replaced Royster, is Clarence Holman, the former principal at Jennings High School. In a unanimous vote, he was made superintendent after serving for a year as Royster’s interim replacement.