School district probes questions about spending
The Mill Valley School District, facing questions about official spending, has commissioned a special audit to examine the use of district credit cards for restaurant meals, hotel stays, trainings and special staff events.
The district board agreed last week to pay $5,000 to Eide Bailly LLP for the audit. The firm will “search for questionable activity” in the credit card bills from July 1, 2017, through June 30, 2020, according to the contract. A report is due by late May. Also last week, the board began a review of district policies for accepting gifts, grants and donations.
Both the audit and the policy review follow an investigation earlier this month regarding $163,000 in expenses on district credit cards from 2014 to 2019. The probe came after district parents obtained copies of the credit card receipts through public records requests.
“We understand that community trust can be eroded when financial aspects of a public institution come into question, and this additional independent audit will provide further transparency and clarify answers to questions from our community,” district spokesperson Amanda Finlaw said in an email. “The district is confident that all financial processes, including credit card use, have been legal and ethical.”
Most of the expenses occurred during the term of former superintendent Paul Johnson. Johnson, now superintendent of the Los Gatos Union School District, has maintained that the staff training, meals and other events were covered by gifts from outside donors and that no taxpayer funds were used.
Finlaw said the district did not feel it was necessary to probe back to 2014.
“Fiscal years 2017-18, 201819 and 2019-20 are being audited, as this provides a look back at three full fiscal years under three different superintendents,” she said.
Johnson’s last school year was 2017-18. Raquel Rose, now superintendent at the Kentfield School District, was interim Mill Valley superintendent in 2018-19. Kimberly Berman has been superintendent since the 2019-20 school year.
On Tuesday, Finlaw provided additional insight on several credit card charges that had raised questions in the earlier investigation because they were not explained.
“Purchases have been made at Costco, Safeway, and Amazon for meetings and staff events such as the annual staff recognition luncheon that celebrates years of service and retiring staff members,” Finlaw said in an email. “The Netflix charge was directly reimbursed by personal check from
former Superintendent Paul Johnson as it was made on this card in error. Evidence of this reimbursement has been provided.”
As to a $1,200 purchase on Amazon on April 14, 2018, Finlaw said that was “for a camera and a phone tripod adaptor for district communications and operations.”
The policy changes under review will affect funds donated to the district, including those from Kiddo!, the district’s community foundation, as well as PTAs, individuals and other sources.
The policy is to lay out a budget and a timeline in advance so donors and community contributors understand the district’s needs.
“The district will develop annually, with input from Kiddo! and PTAs, budget recommendations that reflect
unfunded priorities,” the policy states. “The superintendent will formally communicate budget recommendations funding requests to Kiddo! and PTAs each year.”
Another policy under review calls for the district to “conduct an annual technology audit of each site’s existing hardware, software and equipment conditions and communicate its findings to Kiddo! and PTAs in time for their budget development process in
the spring.”
In addition, trustees are looking at guidelines for conflict of interest in accepting donations.
“While greatly appreciating suitable donations, the board discourages any gifts that may directly or indirectly impair its authority to make decisions in the best interest of district students or its ability or commitment to provide equitable educational opportunities,” the tentative policy states.