TUSD audit points to $18M savings
Recommendations include an increase in schools to be cut
By George B. Sánchez
ARIZONA DAILY STAR
TUSD could achieve nearly $18 million in savings over five years if it implements the recommendations of a five-month audit, according to officials with the company that did the review.
However, some of those possible savings were questioned during a presentation at Tuesday night's special meeting of the Tucson Unified School District Governing Board.
Bill Carnes of MGT of America Inc., the company that conducted the audit, told the board the district could save $260,000 by closing 10 schools and programs. The number sharply contrasted with previous projected savings by district officials of up to $1 million in savings per school closed.
The audit report list included eight schools and two alternative high school programs for closure. The district, facing a projected $20 million budget deficit next school year, is in the process of deciding whether to close four elementary schools to save money.
The list used to calculate closure savings included the four elementary schools — Corbett, Ochoa, Rogers and Wrightstown — and two alternative high school programs, as well as Menlo Park and Erickson elementary schools, Naylor Middle School and Santa Rita High School. The latter four schools have not been mentioned as sites for closure.
The announcement about closure savings generated discussion within the Governing Board.
"If that's for 10 schools, I find that unbelievable," said board member Joel Ireland.
Carnes said his estimate was based on numbers provided by the district. But Superintendent Roger Pfeuffer said MGT's savings projection could not be accurate.
The audit report, nearly 400 pages long, was divided into seven sections:
● Governance, district organization, management and leadership.
● Personnel and human-resource management.
● Financial management, purchasing and warehousing.
● Facilities use and management.
● Transportation.
● Administrative and instructional technology.
● Potential savings.
In total, 74 recommendations were made in the report. Twenty-two had fiscal implications with an estimated net savings of $17.8 million over five years for TUSD.
Some of those recommendations included: Reorganizing the Governing Board office and eliminating two of its current 4 1/2 office positions; putting in place a stricter budget process and control system that holds schools and departments accountable for spending; and hiring an internal auditor.
Reorganizations of TUSD's central office and the Engineering, Facilities and Planning Department were also cited as ways to save money.
The audit called for adding 11 more maintenance staffers, 27 more custodians and a chief technology officer as well as hiring another attorney in the district.
The report and an executive summary will be available on TUSD's Web site today, Pfeuffer said.
Before the report was released, sections of it were read by TUSD officials familiar with the various section topics. TUSD officials were asked to review the sections for accuracy. Suggested corrections needed to be supported with documentation.
Those who reviewed the report agreed not to discuss any of the findings before it was made public.
In October, the Governing Board hired MGT to perform an organizational audit. Along with an inspection of TUSD's business practices and operations, auditors held two community forums to gather public input.
Both forums were held in the first week of December. Members of the community were also encouraged to fill out an online survey as part of the audit.
MGT's audit came about, along with the Governing Board's independent audit committee, in the wake of a $700,000 insurance error brought to the board's attention one year ago.
Initially district officials sought to find a solution with the help of employee unions but changed course and asked employees to pay for the error.
Nearly two weeks later, two administrators were suspended without pay for five days as a result of the error. Payroll and benefits-accounting staffers were moved out of human resources and into financial services for better financial oversight and Pfeuffer recommended an outside group audit TUSD.
TUSD's Governing Board Audit Committee made its first public presentation to the board March 11, which included an explanation of activities since it first came together in September 2007. The committee has filed 19 public-records requests with TUSD officials, according to a committee report to the board.
Superintendent's contract
The Governing Board was scheduled to approve its contract with Elizabeth Celania-Fagen, who is scheduled to become TUSD's next superintendent July 1. However, the issue was rescheduled for a later meeting.
Celania-Fagen, currently an associate superintendent for Des Moines Public Schools, was asked to lead Tucson's largest school district on March 12. She accepted the job shortly after the board announced its decision. The vote was 3-2 in deciding to hire Celania-Fagen over local businessman Richard Myers.
She will be replacing Pfeuffer, who became superintendent in 2004 after previous Superintendent Stan Paz resigned. In 2005, the Governing Board decided to forgo a $50,000 national search for a superintendent and extended Pfeuffer's contract until the end of this school year.
Celania-Fagen will be the district's 30th superintendent since 1886, according to district records.
● Contact reporter George B. Sánchez at 573-4195 or at gsanchez@azstarnet.com.
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