tag:blogger.com,1999:blog-28765366.post2049838310099175538..comments2024-03-18T16:51:10.406-07:00Comments on Seattle Schools Community Forum: State Audit Reveals Issues With District ComplianceMelissa Westbrookhttp://www.blogger.com/profile/17179994245880629080noreply@blogger.comBlogger15125tag:blogger.com,1999:blog-28765366.post-64491507490685744822010-05-27T14:38:59.355-07:002010-05-27T14:38:59.355-07:00From Wikipedia (not the best source, I know, but.....From Wikipedia (not the best source, I know, but...)<br /><br />"Materiality, a concept or convention within auditing and accounting, relating to the importance/significance of an amount, transaction, or discrepancy. The objective of an audit of financial statements is to enable the auditor to express an opinion whether the financial statements are prepared, in all material respects, in conformity with an identified financial reporting framework such as Generally Accepted Accounting Principles (GAAP). The assessment of what is material is a matter of professional judgment.<br /><br />"Information is material if its omission or misstatement could influence the economic decision of users taken on the basis of the financial statements. Materiality depends on the size of the item or error judged in the particular circumstances of its omission or misstatement. Thus, materiality provides a threshold or cut-off point rather than being a primary qualitative characteristic which information must have if it is to be useful."<br /><br />"In government auditing, the political sensitivity to adverse media exposure often concerns the nature rather than the size of an amount, such as illegal acts, bribery, corruption and related party transactions. Qualitative materiality is therefore likely to be more important in government auditing than in private sector auditing. Qualitative materiality refers to the nature of a transaction or amount and includes many financial and nonfinancial items that, independent of the amount, may influence the decisions of a user of the financial statements."<br /><br />So when the District says the amounts are not material, they are referring to the effect on their financial statements. And they appear to be correct. But informed users of those statements, such as the folks on this blog, understand that although the nominal amounts are immaterial, the reasons for those mistakes occuring is the real issue.<br /><br />Incompetence.Michaelhttps://www.blogger.com/profile/14341427446081103440noreply@blogger.comtag:blogger.com,1999:blog-28765366.post-89901371101822450182010-05-27T12:37:56.663-07:002010-05-27T12:37:56.663-07:00"The press release claims that "no mater..."The press release claims that "no material instances of non-compliance were found". Really? Hmmm. So what would they call the errors that were found?"<br /><br />I actually tried to look this up (with little success) but I infer that it is a technical term in accounting that seems to imply that "material" means they knew they were not complying rather than they are just ignorant. <br /><br />Basically, it's the district trying to cover themselves.Melissa Westbrookhttps://www.blogger.com/profile/12588239576000641336noreply@blogger.comtag:blogger.com,1999:blog-28765366.post-49713619843890769802010-05-27T07:32:57.479-07:002010-05-27T07:32:57.479-07:00Here is the District's press release regarding...<a href="http://www.seattleschools.org/area/news/0910/20100526_state_auditors_report.pdf" rel="nofollow">Here</a> is the District's press release regarding the State Auditor's report.<br /><br />It's not credible.<br /><br />I like the reference to a survey that suggests "<i>public confidence that the district’s resources are being spent wisely has increased steadily since 2006</i>" Two points: 1) the District doesn't believe surveys. 2) despite the steady increase, the public's confidence remains very low.<br /><br />The press release claims that "<i>no material instances of non-compliance were found</i>". Really? Hmmm. So what would they call the errors that were found?<br /><br />I think it is interesting that the press release quotes Dr. Goodloe-Johnson as saying "<i>we are committed to having controls in place that catch errors and correct them quickly</i>" when that's exactly what the State Auditor's report says they are NOT doing. The State Auditor's reports says that the District relys on the State Auditor to catch errors.Charlie Mashttps://www.blogger.com/profile/17173903762962067277noreply@blogger.comtag:blogger.com,1999:blog-28765366.post-55539803450035238862010-05-26T22:58:00.402-07:002010-05-26T22:58:00.402-07:00"At what point does the state take action?&qu..."At what point does the state take action?"<br /><br />When they screw finances up so bad that the state (OSPI) has to take it over, or the County has to pay the District's bill.<br /><br />The auditor cannot take action (lack of authority). They can only report. My boss was asking the same question about our employer (to remain nameless)Michaelhttps://www.blogger.com/profile/14341427446081103440noreply@blogger.comtag:blogger.com,1999:blog-28765366.post-79205972753875610762010-05-26T21:30:53.533-07:002010-05-26T21:30:53.533-07:00So, when do they lose control of the money? At wha...So, when do they lose control of the money? At what point does the state take action?ttlnhttps://www.blogger.com/profile/16036145163804967748noreply@blogger.comtag:blogger.com,1999:blog-28765366.post-17362223994860531932010-05-26T14:18:11.603-07:002010-05-26T14:18:11.603-07:00"That the Auditor's office thinks the dis..."That the Auditor's office thinks the district is relying on the state audits to find their mistakes rather than doing it themselves is troubling."<br /><br />Troubling? Yes. Indicative of incompetence? Yes. Indicative of a District "leadership" that doesn't give a rip? Oh, HECK yes!Michaelhttps://www.blogger.com/profile/14341427446081103440noreply@blogger.comtag:blogger.com,1999:blog-28765366.post-30618285892597281192010-05-26T14:14:50.104-07:002010-05-26T14:14:50.104-07:00Yes, the Board knows.Yes, the Board knows.Michaelhttps://www.blogger.com/profile/14341427446081103440noreply@blogger.comtag:blogger.com,1999:blog-28765366.post-71516698091135377982010-05-26T09:03:42.208-07:002010-05-26T09:03:42.208-07:00I hadn't really thought I needed to e-mail the...I hadn't really thought I needed to e-mail the Board with this but now I wonder if they even know. Hmm.Melissa Westbrookhttps://www.blogger.com/profile/12588239576000641336noreply@blogger.comtag:blogger.com,1999:blog-28765366.post-70059640937520964682010-05-26T07:01:49.340-07:002010-05-26T07:01:49.340-07:00This audit finding will be a factor in the Superin...This audit finding will be a factor in the Superintendent's performance evaluation, right?<br /><br />She is, after all, the chief executive of the District. Her work is primarily administrative, not academic. She is supposed to keep the operation running smoothly more than she is responsible for academic outcomes. After all, people keep telling me that teacher effectiveness is the primary school-based determinant of academic outcomes - not anything the superintendent does.<br /><br />This audit finding will be a factor in the CFO's performance evaluation, right? And it will color the confidence that the Board has in his statements about the budget, right?Charlie Mashttps://www.blogger.com/profile/17173903762962067277noreply@blogger.comtag:blogger.com,1999:blog-28765366.post-61310985282260663782010-05-25T22:58:22.749-07:002010-05-25T22:58:22.749-07:00If any of this crap was going down in a business h...If any of this crap was going down in a business heads would be rolling.<br /><br />Hey it is only parents and kids....<br />Thus three superior court Judges could give a rip as to enforcing the legal standard for School Board decision making.<br /><br />As for State Audits and following correct procedures well clearly NO WAY.<br /><br />The level of incompetence or is it corruption is shocking but hardly surprising.dan dempseyhttps://www.blogger.com/profile/15536720661510933983noreply@blogger.comtag:blogger.com,1999:blog-28765366.post-27903442893440078682010-05-25T21:57:29.656-07:002010-05-25T21:57:29.656-07:00Remember that the Superintendent received a $5,280...Remember that the Superintendent received a $5,280 bonus in the midst of this fiasco.<br /><br />Merit pay what a great idea.<br />So nice of the Board to Model this for us.<br /><br />Recall petition is drastically needed to recall 4 school board members.dan dempseyhttps://www.blogger.com/profile/15536720661510933983noreply@blogger.comtag:blogger.com,1999:blog-28765366.post-30828079573153005072010-05-25T21:48:01.710-07:002010-05-25T21:48:01.710-07:00I really, really, really wish that I could say tha...I really, really, <em>really</em> wish that I could say that this all comes as a huge surprise to me.Meghttps://www.blogger.com/profile/12795753563127975720noreply@blogger.comtag:blogger.com,1999:blog-28765366.post-53952347570102943242010-05-25T20:31:50.121-07:002010-05-25T20:31:50.121-07:00Educators, check your paystubs. Some were overpaid...Educators, check your paystubs. Some were overpaid, so odds are some must have been underpaid.<br /><br />Who will find out who was overpaid and who was underpaid?<br /><br />If they ever try using merit pay, that'll be a hoot: "This teacher DESERVED this $823,621.00! That teacher DESERVED $1.69!"seattle citizenhttps://www.blogger.com/profile/16724175257161649500noreply@blogger.comtag:blogger.com,1999:blog-28765366.post-92190052832760819992010-05-25T20:02:40.774-07:002010-05-25T20:02:40.774-07:00Looks like our finance team was taught using Disco...Looks like our finance team was taught using Discovering Math.Anonymoushttps://www.blogger.com/profile/08757135936625691712noreply@blogger.comtag:blogger.com,1999:blog-28765366.post-87094361043518450072010-05-25T19:07:15.718-07:002010-05-25T19:07:15.718-07:00Time to FIRE someone who runs the show
with cause...Time to FIRE someone who runs the show<br /><br />with cause... Bye Bye Superintendent.dan dempseyhttps://www.blogger.com/profile/15536720661510933983noreply@blogger.com