District actually most transparent in years
SMMUSD HDQTRS Considering that it has been a year marked by criticism regarding the transparency in business matters of the Santa Monica-Malibu Unified School District, it’s ironic the 2006-2007 school year is actually the year in which there has been the most open discussion by the administration.
So were the words of Financial Oversight Committee (FOC) Chairman Paul Silver during a joint meeting with the Board of Education on Thursday.
Almost near the conclusion of the school year, the administration has faced much scrutiny from city officials and the public, accusations of a lack of transparency and accountability, traced to confidentiality agreements placed on former Chief Financial Officer Winston Braham and in settlement agreements in the special education program.
The Financial Oversight Committee formed in 2000 to provide a checks and balances to the Board of Education, has been busy reviewing financial audits and providing expert advice on long-term financial planning.
The members of the Financial Oversight Committee and Board of Education came together for a special joint meeting in the midst of a regularly scheduled school board meeting on June 7, the former providing advice to the latter on fiscal matters. More than any other agency, the SMMUSD receives far more public scrutiny, Silver said, rattling off state-mandated disclosure forms the district regularly submits, including the first and second interim budget update reports and AB1200, which helps school districts identify potential fiscal crises before they emerge.
“The district, like most school districts, has had a lot of independent oversight,” Silvern said.
The FOC is concerned about a deficit in the general budget, which currently stands at $800,000 and could grow to $2.3 million during the 2009-2010 school year, Silvern said, warning the budget is still vulnerable and may “still be in for a few surprises.”
Among the recommendations suggested that evening is one requesting that the district communicates its budget in a way that is understandable to the public, eliminate the operating deficit in five years and to conduct a financial evaluation of the special education program.
Silvern also suggested adding a brief update by the Financial Oversight Committee in the communications section of the board’s agenda, typically reserved for reports by student board members, union representatives, the PTA president and various district advisory committees.
It was a welcome suggestion by school board members.
“I think that would be an excellent way to proceed and keep financial transparency,” said school board member Kelly McMahon-Pye.
The district should hire the best chief financial officer possible, Silvern said, recognizing there has been difficulty in finding a permanent replacement in light of the controversy surrounding Braham and the small market for the position.
Dr. Stephen Hodgson has served as CFO in the interim since January.
“The hard work that Dr. Hodgson has provided to the board and FOC is much evidence as to how crucial that position is,” Silvern said.
Superintendent Dianne Talarico gave the board a brief update on the CFO search process with a new timeline projecting interviews to occur by the end of July and a hire in August.
“I’m hoping the shadow cast over us during [20]06 and a little bit of the [20]07 part of the school year begins to fade and people do see us in a different light,” Talarico said.
Originally published in the Santa Monica Daily Press print edition on June 11, 2007. Read the original PDF.