THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Friday, September 29, 1995 TAG: 9509290002
SECTION: FRONT PAGE: A14 EDITION: FINAL
TYPE: Editorial
LENGTH: Medium: 51 lines
Virginia Beach public schools took another step in the direction of fiscal responsibility and accountability this week: Interim Superintendent Jim Pughsley put Mordecai Smith, chief financial officer since the beginning of this year, on administrative leave.
In several official capacities since 1989, Mr. Smith has had considerable responsibility for developing and implementing school budgets. The past school year, 1994-95, ended at least $7.4 million in deficit, despite the chief financial officer's assurances only days before year's end that the district would post a surplus. Mr. Smith apparently had anticipated some last-minute bookkeeping that other finance officials say he should have known would not work. Mr. Smith, among others in the school system, also ignored several warnings by the schools' internal auditor of questionable practices and trouble ahead.
The Beach school system's financial mess did not begin with Mr. Smith's employment, and the investigation into its origins won't end with his departure. City finance officials are working with the outside auditor to reconstruct what went wrong, who's responsible and recommend solutions. Their report is expected within several weeks.
Meantime, School Board members are resisting conditions City Council has attached to covering the schools' deficit. Chief among those conditions is a long, hard look at consolidating city and school financial services. The city has long advocated such a merger as economical, efficient and a matter of right-sizing. So have some past School Board members. To some vocal members of the current board, however, consolidation is a usurpation of board prerogatives and constitutional duties by a governing body that protects taxpayers at the expense of school-chil-dren.
City Council, and city taxpayers, can truthfully respond that recent School Boards have failed in their fiduciary duty to taxpayers and students: Without taxpayers, there'll be no schools ``for the children.'' And students, if properly educated, will one day be taxpayers properly concerned with both the effectiveness and efficiency of schools.
City Council could pursue an alternative raised by several members of the Beach's legislative delegation: Get General Assembly approval for a change to the city charter that would consolidate city and school financial services. It would be better to achieve that goal by cooperation than coercion. But board members as well as council members should bear in mind that this option exists. by CNB