Normally school districts put presentations on their Board agendas so residents can know if they should attend to learn about what is going to be said.
District 300 wanted this one under the radar.
In other words, no photos and nothing highlighted to the media. They even left it off the agenda.
What District 300 administrator wants to alert residents that it needs to fix its internal controls?
Certainly not incumbent board members up for reelection in April.
Here’s what was discussed at Wednesday’s Finance Committee Meeting.
Board policy 4:30
Operational Services
Controls and Reports. The Chief Investment Officer CIO shall establish a system of internal controls and written operational procedures to prevent losses arising from fraud, employee error, misrepresentation from third parties or imprudent employee action.
You might think the highly-paid administrators might know what needs to be fixed. Or could/would ask their independent auditor.
Instead the plan, apparently is to rely on a consultant, PMA, to do the review.
How does PMA make a lot of money?
If you guessed from school districts investing their funds with the company, that’s a pretty good guess.
Forget for a moment that Huntley District 158 used to have money invested with PMA that violated that district’s policy of requiring collateralized deposits.
Until board member Larry Snow pointed out how this either shouldn’t be done or the policy should be changed.
District 158 withdrew its uncollateralized deposits from PMA.
When I was McHenry County Treasurer collateralization was not required. I required it on the larger investments.
Laura Pauli from PMA gave a sample Investment Policy and Procedure Manual to District 300 at the meeting.
On its face, this sounds like a potential conflict of interest.
Copies were not made available for audience members.
When’s the last time you heard of a school district going out to bid for where it invests its money?
I used to do it all the time when I was county treasurer. It was good policy 40 years ago and it still is.
If a company like PMA actually pays less money than other investment options, with the lack of watchdogging and oversight that goes on in most school districts, who would ever know?