DATE: Thursday, June 12, 1997               TAG: 9706120467

SECTION: LOCAL                   PAGE: B1   EDITION: NORTH CAROLINA 

SOURCE: BY PAUL SOUTH, STAFF WRITER 

DATELINE: MANTEO                            LENGTH:   91 lines

OUTSIDE AUDITOR TO REVIEW FINANCES THE DISTRICT'S FINANCE OFFICER HAS BEEN PLACED ON PAID LEAVE; THE AUDIT IS TO BEGIN NEXT WEEK

In an effort to quell speculation over the financial condition of Dare County Schools, the district will bring in an independent auditor to review the books, Superintendent Leon Holleman said Wednesday.

The district's finance officer, Becky Wescott, was placed on paid administrative leave earlier in the week.

Holleman declined to elaborate on the decision to call in outside experts.

``I'd rather not speculate until we get the full scope,'' Holleman said. The firm probably will come from outside the county, and is expected to go to work next week.

School Board Chairman Fletcher Willey acknowledged Wednesday that the school district is over budget for the year, but said the amount is not known at this time.

The board plans to outline the schools' financial picture at a meeting Monday of the Dare County Board of Commissioners.

Willey said the independent audit is part of his call last week for a complete review of county education finances by June 30.

``The fiscal year ends June 30, and normally we would have an audit anyway,'' Willey said in an interview. ``Some of the work will be done earlier than it normally would have been.''

Holleman confirmed Tuesday that Wescott had been placed on administrative leave with pay. Her salary is $55,000 annually.

Attempts to reach Wescott have been unsuccessful.

Financial matters were near the top of the School Board's agenda on Tuesday night. Two board members, Susie Walters and Donna Buxton, raised concerns about the failure of the board's newly configured Finance Committee to provide a report on the system's financial condition, as had been scheduled. Willey said the report was not ready for presentation.

Walters was removed from the Finance Committee following last week's shakeup of the board's

leadership when Willey replaced Buxton as chairman.

``I did ask in writing that the Finance Committee report be put on the agenda,'' Buxton said. ``I'm concerned that we don't have a financial report. Some of the board members take this very seriously. I don't understand why we don't have this on the agenda.''

Walters also expressed concern about the money picture.

``I also have concerns about our financial situation since our audit,'' Walters said. ``I've not received any response when I asked about finances. The only response I've received was to be removed from the committee with no explanation.''

Willey responded: ``All of the School Board members take finances seriously.''

Some citizens also expressed concern about the makeup of the finance panel. Chuck Burton of Nags Head, a leading proponent of the overwhelmingly defeated $59.5 million bond issue, called for Virginia Tillett to be removed and replaced with either Walters or board member Loretta Michael.

``This will accomplish two things,'' Burton said. ``First, this will provide representation on this important committee for all areas of Dare County, and the recent reorganization left the northern beaches without any representation whatsoever. Second, neither the immediate past chair (Buxton) and or the previous chair (Tillett) will play an immediate role in what has been described as a challenging situation.

In a finance-related matter, the board unanimously approved a 25-cent increase in school breakfast and lunch prices beginning next fall. The increase is in response to deficits in the last few years in the schools' food service operation.

Prices for full breakfasts for K-12 students will increase from $1 to $1.25. Mini-breakfasts will increase from 50 to 75 cents. Students who receive federal assistance through the school lunch program will pay 30 cents.

For lunch, adults will pay $2.50. Students in grades K-5 will pay $1.50. Lunches for grades 6 through 12 will rise from $1.50 to $1.75. Milk will increase from 30 to 35 cents per carton.

``Over the past five years we've used local money to supplement our lunchroom operation,'' Holleman said. ``This will generate an additional $60,000 in revenue based on last year's participation.''

In a letter last spring, the North Carolina Local Government Commission raised concerns about the food service operation in the county. The district has spent amounts ranging from $150,000 to as much as $220,000 annually.

Buxton expressed concern about the operation. ``It's obvious this is not going to fix the overall problem of the Child Nutrition Program,'' Buxton said. ``This is really only a first step. My goal is to bring it to solvency and stand on its own merit.''

Board member Michael put forth the idea of a troubleshooter to come in and repair the system.

``We need a management program in place to try to get us back in the black,'' Michael said. ILLUSTRATION: MEETING

THE SCHOOL BOARD IS SCHEDULED TO PRESENT AN OUTLINE OF THE SCHOOL

DISTRICT'S FINANCIAL PICTURE AT 9 A.M. MONDAY AT A MEETING OF THE

DARE COUNTY BOARD OF COMMISSIONERS.

Send Suggestions or Comments to webmaster@scholar.lib.vt.edu