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Monday, September 17, 2012

Today the State Auditor Found Another $1.3 Million Mismanaged by Seattle Public Schools—Paging School Board President Michael DeBell!

Posted by on Mon, Sep 17, 2012 at 2:25 PM

The Washington State Auditor posted a report today that alleges financial mismanagement by Seattle Public Schools was much worse than the district first let on. Last year, the auditor confirmed that the district paid $1.5 million for questionable services and another $280,000 for services it never received as part of its Regional Small Business Development Program, creating the "Pottergate scandal" that resulted both in the superintendent's termination and criminal charges against district employee Silas Potter.

But that was just the half of it.

A laundry list of questionable spending: Overcharged, unnacounted, or never delivered.
  • A laundry list of questionable spending: Overcharged, unnacounted, or never delivered.
This most recent audit report, which examines a second program that was also managed by Potter from 2005 to 2009, finds that in addition to the previous $1.8 million, "Seattle School District incurred unnecessary costs of approximately $1.3 million due to a lack of adequate internal controls and supporting documentation."

The new questionable spending results from 14 vendors who received money through the school district's Small Works Program. Some examples: In one instance, the district paid $36,500 for a security system that staff estimated should only cost $5,500, which the audits describes as a "markup of 660 percent." In another case, the district paid $95,882 for demolition work at South Shore School, but when audit staff tried to interview the business proprietor about a vague invoice, the vendor refused to talk. In other cases, one vendor charged the district a 1,000 percent markup on cables, another vendor never installed cameras that were paid for, and yet another charged for cleaning at rates inflated high above market rates. "This is very serious," says Mindy Chambers, a spokeswoman for the state auditor's office, adding, "It points to some significant weaknesses in the systems the district has or had in place to ensure accountability over public resources."

So now that the superintendent is gone and Potter has been charged, who's to blame?

The School Board is trying hard to spin this story by saying appropriate safeguards are now in place to prevent a recurrence (including appointing an internal auditor and partnering with the Seattle Ethics and Elections Commission). That's appreciated, but the school board should have—and could have—caught this years ago. And no one should be taking more responsibility than school board president Michael DeBell.

Why DeBell? He was overseeing district spending during critical years: DeBell was chair of the district's Audit & Finance Committee in 2006-'07, he served on the board's Operations Committee from '06-'08, and he was the board's appointee to the Building Excellence (BEX) committee that examines capital investments. All three made him uniquely positioned to spot a $3 million leak from capital investments. In 2009, the board got red flags from the "Sutor Report," which warned about problems with accountability in the small-works contracting program. It appears that DeBell was asleep at the wheel.

And while some folks—namely the Seattle Times editorial board—tend to depict a new cast of reformers elected to the school board as a bunch of children who now have a majority, the reformers aren't the problem. The biggest scandals at Seattle Public Schools happened five to seven years ago, when the supposed adults were in charge. And none of those adults should be held more accountable than DeBell.

 

Comments (11) RSS

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Dougsf 1
Hey, isn't 1000% markup on cables Radio Shack's business model?

Also, this is what having nothing to add looks like. Sorry.
Posted by Dougsf on September 17, 2012 at 2:31 PM
2
Who would have thought an affirmative action program for minority businesses would be rotten to the core?

I'm sorry, no one mentioned it was a $ocial ju$tice program?
Posted by Silas T. Potter jr. on September 17, 2012 at 2:51 PM
3
They must have bought Monster Cables.
Posted by arbeck http://www.facebook.com/arbeck on September 17, 2012 at 2:56 PM
Dougsf 4
@2 - I know it isn't feeding time yet, but... bilking the public sector 'cause you got a buddy in a position to write a few checks on its behalf is not the exclusive domain of any group. It's as old a scam as anything.
Posted by Dougsf on September 17, 2012 at 3:05 PM
5
They should replace the Vendor 1 with the actual names and give them the opportunity to make it right. I realize that is looking backwards but suppliers need to be held responsible for this crap too (especially if they are local)! Hold the public officials accountable, set a new direction, but definitely publish the names of those vendors that have severely molested our system and stolen our kids' future. Shame on them!
Posted by STM on September 17, 2012 at 3:23 PM
6
I don't understand this system. You get bids for jobs and choose the most reasonable one. That way you don't take it in the ass. How hard can that be.
Posted by Lew Siffer on September 17, 2012 at 4:11 PM
A Magnolia Heron 7
Lew,

The school officials have friends who are contractors. They tell those friends they should put in a crazy bid because they will push it through. The job only costs a tenth of what they charge, the excess is then split between the school officials who approved the bid and the contractor. It's not like the school district is being taken advantage of here. Officials in the school district are stealing money via a third party.
Posted by A Magnolia Heron on September 17, 2012 at 4:46 PM
Just Jeff 8
DeBell is an idiot with no visible means of financial support.
Posted by Just Jeff http://pstonews.wordpress.com on September 17, 2012 at 8:15 PM
9
Maybe whoever is in charge of purchasing learned math in Seattle public schools and doesn't know any better.
Posted by fruitbat on September 17, 2012 at 9:51 PM
10
The School Board has three primary duties: to provide governance, to oversee management, and to represent the community that elected them. The previous Board, the one that was beloved of all of the downtown establishment and the Seattle Times editorial board, utterly failed to do any of their three jobs. They did not provide governance - they didn't write policy and they didn't enforce policy. They specifically refused to do either of these although they freely acknowledged that the polices were routinely violated. They did not oversee management. The specifically refused to do it. They did not represent the community that elected them. Instead they represented the handful of extremely wealthy people who paid for their campaigns.

It's too bad that we could only get rid of two of the four in the last election.
Posted by Charlie Mas on September 17, 2012 at 10:26 PM
11
If you want to know the name of teh vendors in teh report, call the auditor's office. they have to tell you - its a public record. If you read any of their other reports you'll see that their standard practice is to not name people in teh published reports. Last year, we all had to read the documents posted by the Times that they got after putting in a public records request in order to find out the names of all the vendors they identified. They call them work sources/papers or something like that.
Posted by Arturo on September 17, 2012 at 11:30 PM

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