Auditor: Schools wasted $400K

Broward officials allowed contractors huge markups on materials to pave tracks

The Broward County School District paid far too much for asphalt for its athletic tracks and playgrounds and failed to get required permits, according to an internal audit presented to the school board Tuesday.

The auditor found 47 invoices between 2010 and 2017 that paid $150 to $300 per-hour rates for supervisors, laborers and installers. By contrast, Palm Beach County schools paid $15 to $45 per hour for a comparable project in 2016, according to the report.

The district’s Physical Plant Operations Department also allowed contractors to mark up the price of materials by as much as 150 percent. The audit pointed out that Palm Beach and Orange County schools have restricted markups to 10 percent.

The huge markups meant that Pence Sealcoating Corp. was paid $12,875 in one instance for materials that cost $5,150 last year and more than $24,000 for materials costing about $10,700 three years earlier, the audit said.

Chief Auditor Patrick Reilly said these practices resulted in the district spending $400,000 more on labor and materials than what other school districts would pay.

Department director Sam Bays said staff saved

money in other areas and the hourly wages included services in addition to labor, such as equipment. But Reilly said he was told during audit research that the wages included labor only. Even if several services were bundled into the labor invoice, Reilly said, contracts should be done in a way where the district knows exactly what it’s paying for.

School board member Robin Bartleman said staff should own up to the mistakes, which are similar to those raised by a 2011 grand jury report that slammed the district for mismanagement.

“Spin it however you want, but that doesn’t work for me,” she said. “Policies need to be followed.”

Board member Laurie Rich Levinson demanded that staff inspect similar contracts to make sure they’re paying reasonable rates.

“I’m appalled that we accepted a bid written like this,” she said. “We are not paying the right price for commodities and services. I don’t care how you rationalize it.”

Another problem the audit uncovered concerned building permits. Crews between 2010 and 2017 replaced tracks at sites including Hollywood Hills, Taravella and Pompano Beach high schools without the required permits. That could mean that the tracks weren’t built to code, which is established to protect the people using them, according to the report.

Superintendent Robert Runcie said staff will be changing some protocols as a result of the audit, including adhering to clearer guidelines about when building permits are required.

The report comes as the district prepares to begin countywide renovations covered by an $800 million bond approved in 2014.

“I want to make sure that we don’t repeat past mistakes,” Bartleman said. “We have to be accountable to taxpayers.”

Board member Nora Rupert said the board should reconsider enlisting an inspector general to oversee bond spending. The board previously opted not to seek a county inspector general because of the $2 million price tag. Instead, members sought the help of a special agent working for the U.S. Department of Education. However, his five-person staff has limited resources.

“We need to make sure that every T is crossed and I is dotted and there should be no deviation at this point,” Rupert said. “After three years of passing the bond, here we are. My expectation is that we should be a welloiled machine.”