According to its forensic audit something like $200,000 of cash was paid to administrators, supposedly in place of family health care benefits reportedly without approval by the school board.

At its May 17th meeting, Huntley School District 158’s board seemed already to have made the decision not to go after the money.

That seems strange to me because the $100,000 audit could be recouped if only half the money discovered were recouped.

Leading the charge to close up everything about the forensic audit was newly elected board member Jim Carlin.

“Is their work done now and we’re just waiting for the report?” Carlin asked Superintendent John Burkey, who replied that was the case.

Aileen Seedorf, another new member, then asked, “Is there anything we did not ask them to do that we’re still thinking about?”

“Did they take a look at the benefits?” Larry Snow wanted to know, implying the auditors had been asked to investigate further.

“What did we discuss about it?” Board President Shawn Green asked.

I think it was Tony Quagliano, appointed to replace Glenn Stewart last summer when he was got the $101,000 Chief Operating Officer post and elected to a two-year term in April, who outlined the following:

In the scope of the audit they were supposed to review the audits and the suggestion was they try to delineate which benefits were approved by the board and which ones weren’t.

“Are you specifically talking about payments in lieu?” Carlin Asked.

The answer turned out to be “Yes.”

Quagliano said he wanted to know who got cash who had

1- no health insurance
2- single coverage and
3- full family coverage

“That’s what I’m still hazy on,” he said.

Carlin wanted to know “to what end would we want additional study?” and whether the board wanted the “money back.”

“I think you’d have to look hard at anyone who was getting cash in lieu (of health benefits) who were getting full health benefits,” Quagliano replied.

Apparently there is a legal opinion from district attorneys.

Carlin asked, “Wouldn’t they have to go through all the records again?” to which Quagliano, the board’s liaison to Jefferson Wells, the forensic auditing firm, replied he didn’t think so.

The longest serving board member, Kim Sjaka put in her opinion: “I have issues of going any further on this audit. I don’t see spending any more,” pointing to other needs of the school district.

There was a little tension between Carlin and Quagliano when Carlin implied that one of the reasons Quagliano outlined for the audit—payroll problems–was known before it began.

Quagliano asked how he knew and Carlin replied that he “was up visiting with Mr. Hall.”

“You’ve never physically been in that office,” Quagliano asserted.

But, Carlin said he had been.

“They (the forensic auditors) just can’t keep going,” indicating if this was something that could be answered in the next two weeks that would be alright.

“It doesn’t seem to be that we are going to take any action,” Carlin said re-iterating his opinion that no reimbursement should be sought.

“I’m not aware that we are not going to pursue any repayment at this point,” Seedorf interjected. “Maybe someone decided and I did not hear about it.”

She then asked if the administrators who had received the cash benefits had paid taxes on the money.

Suggesting it would be a clerical task to get the information Quagliano desired, newly elected board member Kevin Gentry staked out his position:

“I personally would find it a stretch to go back and try to recover cash unless the person approved it himself.”

That’s seems to let everyone off the hook except, perhaps, a previous school superintendent.

Quagliano pressed for the information so that the board would have “information available when we make the final decision.” He also mentioned forwarding the information to the district’s attorneys for “a more accurate answer” on the question of reimbursement.

Superintendent Burkey pointed out that the attorneys had said the district would have “to show there’s a financial loss to the district.”

“And you would have that…,” Quagliano said.

The fringe benefit was as high as $5,400 a year.

Lauren Smith, Human Resource Director, indicated she could develop the data, which she described as “a narrative,” which Burkey said would be ready for the Human Resources Committee meeting.

Snow reminded her that it needed to be done for each year.

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Pictures of the following are shown in descending: Huntley School Board members Jim Carlin, Aileen Seedorf, Tony Quagliano, Kim Sjaka, Jim Carlin again, Kevin Gentry, plus District 158 Human Resources Director Lauren Smith.