This is a copy of the official letter of reprimand given to the Director of Schools Tee Jackson. It is for the manipulation of monies within the school budget. While Mr Jackson may be the main culprit this outrage could not have been accomplished without the co-operation of the Director of Finance Mrs. Garner and the lack of responsible involvement by the School Board, the School Committee, The Budget Committee, the Full Commission and the County Executive Mrs. Vanzant. This very activity had been warned about on a number of occasions.
It is to the School Board's credit that they, under the tenacious leadership of Mrs. Murrey and Mr. Story, have finally put a stop to this unacceptable behavior. Congratulations to the School Board and a very special thank you to Mr. Story.
July 8, 2010
Tee Jackson
Director of Schools
Giles County Board of Education
720 West Flower Street
Pulaski, Tennessee 38478
RE: Fiscal Accountability – Letter of Reprimand
Dear Mr. Jackson:
The board of education has been made aware of two instances in which a fund in the school system budget has been overspent. For the past two years, the textbook has had expenditures that have significantly exceeded appropriated revenues. Even more concerning is the fact that expenditures for textbooks have been paid our of another line item in the budget, albeit in the same major category, and no budget amendment was ever presented to, or approved by the board of education. In another instance, a supplemental, year-end appropriation covered the deficit, although the existence of the deficit was never made known to the board of education.
The clear and unambiguous policies of the board mandate that line item transfer authority rests with the board of education. Policy 2.201 states that “Line-item transfers within major categories shall be made upon the recommendation of the director of schools and approval by the board.” The authority of the director of schools in matters of purchasing is set out in Policy 2.810 which states as follows [in pertinent part]: “The director of schools or his/her designee shall approve all claims for payment prior to their submission to the board.” Reading these policies together, it is clean that if a purchase creates a deficit in any line in the budget, then it is the duty of the director of schools to submit a budget amendment to the board for its approval to rectify the deficit.
Further, board policy addresses the establishment of a procedure to achieve valid, transparent management of all funds. Specifically, Policy 2.100 states as follows [in pertinent part]: “In fiscal management, the board seeks to achieve the following goals: (3) To use the available techniques for budget development and management; and (5) To establish efficient procedures for accounting, reporting, purchasing and delivery, payroll, payment of vendors and contractors, and all other areas of fiscal management.”
The textbook fund is a specific, mandated line in the chart of accounts of the board as mandated by the Uniform Chart of Accounts developed by the Tennessee Department of Education. This is the only line from which textbook purchases are authorized. Policy 2.800 that addresses expenditures states as follows [in pertinent part]: “No expenditure may be authorized or made which exceeds the appropriation for any fund of the budget as adopted or amended. Employees of this system will not create or authorize creation of a deficit in any fund. Expenditures or encumbrances will not be authorized, made incurred in excess of any fund balance.”
Finally, Policy 2.805 addresses notification of the board in the event of budget variations. That policy reads as follows [in pertinent part]: “The director of schools shall make all routine purchases without further board authorization; however, the board shall be promptly informed of any substantial variation from budgeted estimates become necessary.”
It should stated and clearly understood that the issues raised in this letter do not concern illegal use of public funds for there is no evidence that public funds have been expended for any illegal purpose. Rather, it should be clearly stated that there exists a legal, regulatory, and policy process that establishes the accounting processes for public school funds and the body with whom final authority rests to govern those expenditures.
As a result of these instances, the following resolution shall be initiated effective immediately:
1. There shall be complete and unequivocal compliance with all board policies, state mandates, and regulatory requirement relating to the expenditures of budgeted funds;
2. There shall henceforth be a quarterly financial report provided to the board by the director of schools, and the county finance director, as appropriate, detailing the condition of all funds by line item and major category – the dates for such reports shall be included in the annual calendar of the meeting of the board of education;
3. Amendments to the budget, if any, shall be prepared and presented to the board for approval on at least a quarterly basis, in conjunction with the report specified in Item 2 above – the amendments shall then be presented to the county commission for approval if such is required; and,
4. Forecasts of overspending in any line item or major category shall be presented to the board as soon as such is known or reasonably anticipated by either the director of schools or the county finance director.
The board of education possesses the duty to approve a budget that provides, among other things, adequate textbooks, materials, and supplies for the education of the students in this district. Based upon the reasonable recommendations of the director of schools, the record demonstrates that this duty has not been violated. However, the board, in compliance with its statutory duties, must depend upon the director of schools to strictly comply with all currently effective purchasing, budgeting, and accounting processes. As a result of variances from these processes, it is the determination of the board that this letter shall be considered a formal, written reprimand which shall be permanently placed in the personnel file of the director of schools. It should be noted that further failure to comply with the mandates set out herein or with the valid policies or regulatory requirements of the board or the State of Tennessee shall constitute grounds for further personnel action.
If you have questions concerning content of this correspondence, do not hesitate to contact the chairman of the board.
For the Giles County Board of Education,
_____________________________________
Mike Young, Chairman
This letter was formally presented to, and approved by a vote of the majority of the
membership of the board of education at its meeting occurring on the __________day of
____________, 2010 and has been made an attachment to the minutes of that meeting.
