Fort Bragg Unified School District

School districts normally conduct their affairs within established policy and procedure guidelines. The findings reveal that some policies and procedures were not properly adhered to by the Fort Bragg School District (FBSD). Irregularities included improper payments to members of the school district Board of Trustees (Board), lack of clear complaint prbcedures, and questionable use of district funds for non-academic purposes. The report concludes with recommendations to eliminate irregularities.

REASON FOR INVESTIGATION

The Grand Jury received numerous citizen complaints of alleged irregularities in some actions of FBSD including, but not limited to: cash payments in lieu of health insurance premiums to Board members; payments for experimental medical procedures; health insurance paid for adult, non-students children; legal fees improperly paid for selected school employees; falsification of academic records, attendance fraud. and regular smoking at the Noyo High School campus:

Brown Act violations in Board meetings; and inadequate complaint procedures for parents against district officials.

PROCEDURES

Investigations concentrated on complaints concerning use of district funds. Interviews included citizens who filed complaints, an officer of the former provider of school district health insurance, present and immediate past members of the FBSD Board, acting district superintendent, and district office employees. Regulations of the former school district insurance providers, FBSD Board Bylaws (BB) and Board Policies (BP), and California Education Code (Ed.Code) and Government Code (Govt.Code) sections relevant to nepotism and to payment of and insurance for school board members were reviewed. Information on the legal status of insurance payments was provided by the office of County Counsel.

FINDINGS

1. State law (Ed.Code 35120) stipulates that each school board member in a district the size of Fort Bragg is allowed a maximum cash payment of $240 per month if all meetings are attended.

2. The FBSD Board states in their bylaws that they will serve without payment (BB 9250).

3. All Board members are provided with the same health coverage as other district employees.

4. The Board voted to provide cash in lieu of insurance coverage to those members who requested it (Board minutes, April 12, 1990: action retroactive to December 1989).

5. Monthly cash payments in lieu of insurance premiums (totaling $15,337.00) were made to one Board member from 1990 to September 1995.

6. Monthly cash payments in lieu of insurance premiums (totaling $3,654.38) were made to another Board member from October 1993 to March 1995.

7. In both cases, payments were made from the FBSD general fund.

8. State law does not permit cash payments in lieu of insurance premiums [Govt.Code 53200- 53210].

9. Provision of health insurance benefits to school board members is permitted {Gox.t.Code 53208].

10. At present. monthly insurance premiums for Board members are more than the maximum allowable stipend of $240 per month.

11. Health insurance benefits can be provided to former Board members who have served twelve years or more if the former members agree to and do pay the full costs of the health and welfare benefits' [Govt.Code 5320 1(b)]. Retired Board members using district health insurance are paying the full cost of the premiums.

12. The policy of the health insurance carrier in 1987-89 specifically excluded payment for experimental medical procedures." A payment claim submitted to the insurance carrier was partially denied because the policy excluded "experimental procedure." The portion of the claim denied by the insurance carrier was paid by the district from the FBSD general fund.

13. In July 1997, the Board allocated $40,000 to pay for sod for the new stadium, with the reasons given that this would allow "using the field earlier in the school year" and that this is "a reasonable contribution to the very hard-working Sports Foundation" (1997-98 Budget Request for Board Action. July 10, 1997). This money was paid from the developer fee fund (per square foot fees assessed on new construction). State law mandates that these fees be used for educational facilities [Ed.Code 17620].

14. In September, 1993, "smoke breaks" between classes were instituted at Noyo High School. FBSD receives funding for "Tobacco Free Schools." Smoking on campus is a violation of state law and Board policy [Ed.Code 4890048901. BP 3513.3].

15. Alleged Brown Act violations during Board meetings were not investigated in detail. Both agendas and verbal reports indicate that the current Board is conducting meetings in accordance with Brown Act regulations.

16. Several interviewees expressed concern for the lack of accountability that had existed within the FBSD Board. The Board did not exercise its authority in relation to the Superintendent and the Superintendent was resistant to Board direction and review.

17. According to FBSD's previous complaint procedure, the superintendent is the designated compliance officer making it virtually impossible to file a complaint against the superintendent (BP 1312). Lack of a complaint process in this situation is a violation of Ed.Code 3156.5. The process by which individuals can file complaints against FBSD employees is currently being revised by the district.

1 8. There is no limit to how long an individual can serve on the Board. Currently two members have served more than 15 years each.

19. The following allegations were not investigated: improper insurance coverage for adult, non-student children of FBSD administrators: falsifying academic records and attendance fraud at Noyo High School; and nepotism in the FBSD. The employees involved are no longer employed by the FBSD.

20. The following allegations are currently in litigation: improper payment of legal fees for selected FBSD employees, and breaches of confidentiality.

Recommendations

1. Money paid in lieu of insurance premiums legally belongs to the FBSD and should be paid back in full. (See Findings I - 12.)

2. The Board should review its current policy and consider dropping health insurance for members and providing either compensation as allowed by the Ed.Code or no compensation except for service-related re-reimbursement. (See Findings 1, 10.)

3. The Board must exercise caution in place of leniency when interpreting rules and regulations. To interpret stadium sod as an "educational facility" is open to interpretation. In all cases, the Board must attempt to make judgments for the benefit of the entire school community. (See Finding 13.)

4. The Board, all administrators, and school personnel must insure that necessary steps are~ taken to immediately stop student smoking on school campuses. (See Finding 14.)

5. The Board should seriously consider taping sessions, particularly closed sessions, which would send a strong message that the Board accepts accountability for its actions. (See Finding 15.)

6. The superintendent and Board must do all in their power to facilitate the rapid completion of an equitable, easy-to-use complaint process. This process must include means by which complaints can be brought against any district employee including an administrator. (See Finding 17.)

7. The Board should review and consider changing its Board Bylaws to provide limits to successive terms. (See Finding 18.)

8. The Superintendent and the Board are admonished to make every effort to insure that proper accountability is maintained.

COMMENTS

1. Without exception, all individuals interviewed for this report were cooperative and willing to share both their compliments and concerns about the FBSD. The Grand Jury commends these persons and the many others they represent who are genuinely concerned about, and willing to work hard for, the good of this school district.

2. Fully paid health insurance is provided to full-time FBSD employees. Board members are not full-time employees. Payment of cash compensation as allowed by the Ed.Code would avoid the appearance of a double standard for Board members and FBSD employees.

The publication (Getting There from Here (Educational Research Service, 1997) a professional review of school boards, clearly states under the heading "Recommendations to School Board Members:" "Board members should receive reimbursement for all costs associated with their participation in local, state, and national workshops and all other service-related costs, but should not receive a salary or other payment for their time as school board members."

3. The FBSD Board is elected by the citizens. To insure that the Board of Trustees best represents their interests, the citizens of Fort Bragg are reminded that it is their duty and obligation to vote for the candidates of their choice.I

RESPONSE REQUIRED

Fort Bragg Unified School District Board of Trustees (Recommendations 1 -8).

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