Friday, October 25, 2013

Revisionist History 101

I'm not going to waste a lot of  time refuting Judy Koening's weekly serving of inane drivel -- but I would think by now John Paradise and the owners of paper should be damn embarrased to have their names on the same page as hers.  Granted, she is a "columnist" not a "reporter" but that shouldn't free her completely from at least a minimal obligation for accuracy.

The following linked documents may provide a little more complete (and CERTAINLY more accurate) history of the Community School situation:

Minutes of June 21, 2006 School Committee Meeting - Discussion of Community School's FY 2007 Budget raising issues about cost allocations and budgeting methods.

Town FY 2006 Audit Management Letter -- Points out that expenditures are not being approved by School Committee as required by law and that program revenue and expenses are not being properly monitored.

Memo from (then) School Committee member to (then) Community School Director outlining concerns about the program and a proposed action plan.

June 2008 Memo re: need for Community School Restructuring - Why Community School restructuring was necessary.

Minutes of July 30, 2008 School Committee Meeting - Discussion with CS Director about potential changes to CS Program

October 2008 Letter to the Editor from (then) School Committee Member responding to (then) Community School Director's public comments about the reorganization of the Community School.

January 2010 Memo re: status of Community School Reorganization

2009 Community School Audit Report - This was the first financial statement audit of the Community School ordered by the School Committee.  It showed a loss of $180,000 for the year ended June 30, 2009 -- BEFORE the program was restructured and the School Committee began actual oversight.  This report also points out that programs should be self-supporting, Invoices were still being paid and lease obligations were still being incurred without School Committee approval.  Auditors were unable to complete the  audit on Balance Sheet because CS Cash account could not be reconciled to Town Treasurer's records.  No subsequent audit or follow-up examinations have been done (as of March, 2013).

Summary of Community School Financials - FY 2008, 2009 & (Dec) 2010 shows consistent losses (Note these were in-house financials prepared on the cash basis -- revenue is not matched with corresponding costs. (Example -- Summer Camp shows positive income in March-June when prepayments come in; but a loss in July-August when related expenses are paid.  Because July-August is a subsequent fiscal year, these are even more distortive when reviewed on an annual basis.)

11 comments:

Anonymous said...

Went to turn off the computer last night and took a look to see what you had written about the Johnson ruling only to discover I needed to read Koenig's article. So now I've read it and it is classic Koenig. It is not accurate, written to support her agenda, and leaves out more than half of the story. I remember being told by the publisher once that Judy doesn't have to be factual because she is writing opinion not reporting.

One important fact I think is that while the Community School was accumulating the nest egg mentioned in her article, they were paying back the municipal government a sizable loan for covering their employee health insurance when they could not cover that cost. I always thought it strange that the municipal government had to bail them out as they were beginning to build a nest egg to pursue building a new preschool. Also the town would still have to bound the new preschool as the Community School money would not cover the building costs. I think it is also important that people be aware that the town bailed the Community School out recently for the same reason.

It is unfortunate that the Community School went under. But you could see that coming. While I don't always agree with Mr. Guerin's or Mr. Simmon's style of communication, what they did in trying to bring to light the financial issues associated with the Community School I believe was the right thing. These problems started long before Mr. Lehane took over. It is not about Mr. Lehane, though I would say describing the Community School as a "healthy system" at the time he took it over is I believe misleading. It has been a slow process for the School Committee to follow up on the audit information. Dr. Canfield inherited a mess.

Anonymous said...

Dear Mr. Simmons:

Isn't there any news outlet, CCT,Cape Cod Today, Broadsider, Enterprise (ha,ha) that you could take this info and have them generate an article or editorial in order to get the truth out?

The misinformation out there for the voters of Sandwich is doing a great injustice at ballot box!

Bob Simmons said...

While my wife may agree about my style of communication, i agree that this problem definitely pre-dated Jim Lehane. I was disappointed Jim bailed out, he would have been a good guy to lead the work-out -- once he acknowledged there was a problem. As the minutes and memos show, many of the changes were based on discussions with him.

Bob Guerin said...

Since when have audited financials become a matter of opinion? The town’s own books and records and the town’s audit results show negative balances and recurring losses at the Community School year-over-year. Despite these facts, Judy and Jim get to say otherwise in writing because Judy’s article appears as an editorial? It’s outrageous.
I also wonder, was Judy suggesting my (and Bob’s) lack of professionalism was in pointing out the deficits and losses; or, in preventing the construction of yet another school building; or, some other “dastardly” action that saved the schools and taxpayers hundreds of thousands if not millions of dollars?

Anonymous said...

The Community School has been a shell game for a long time. As I recall, they opened a dance academy, rented outside space, bought equipment, and then couldn't afford the payroll taxes. Somebody came in and bought the equipment from them and then the Town had to bail them out on payroll taxes. So much for that "business plan" ! (unless you were the folks who bought the "used" equipment and took over the business. THEY seem to be able to make it work.)

Anonymous said...

I chuckled when I heard about the "Save the Pool" facebook page -- wouldn't it be fun if "liking" a web page would pay your bills. But, these are the same people who think all taxpayers should be paying for their recreation ... so what do you expect?

If they want me to help kick in a almost $1 million to a pool I never use, I have two questions:

(1) What will it cost going forward to operate it properly?

(2) How will those expenses be paid?


If you want a million bucks for kids to play with underwater robots and learn to get out of a kayak ... forget it.

Nobody seemed concerned for the past decade or more when kids weren't allowed in the pool during the day -- now its a vital part of their education?

Not buying it.

Anonymous said...

Hang on! Excellent questions -- and they do need to be answered. BUT I also want to know how they are planning to pay the Johnson settlement -- How much (if anything) will the insurance company be paying, what are we paying for legal services -- most likely both hers * ours.

Also, do the two remaining people who caused this massive expense plan to resign?

Anonymous said...

i think you just killed a fly ..... with a mallet. these documents pretty much shatter the myth.

Anonymous said...

WHAT DID HAPPEN TO THE $400,000 AND THE COMPUTERS

Bob Simmons said...

Go visit the Town Accountant -- according to the audit report, the program lost $180,072 for FY '09 -- the year BEFORE the School Committee replaced the Executive Council. Funny thing happens when revenue declines and you start paying expenses -- cash goes away.

The computers were leased (illegally)-- call the School Department and ask them where they are.

Anonymous said...

As far as I can tell the town is on the hook completely to pay back the salary Dr. Johnson lost now that a judge as declared she had a legal contract. I would assume the lawyers fees are on the town's dime. But I think the insurance company will have to pay any settlement. So that is over $300,000 that will have to be found in the budget as I see it.