
DATE: Sunday, July 27, 1997                 TAG: 9707270106

SECTION: LOCAL                   PAGE: B1   EDITION: NORTH CAROLINA 

SOURCE: BY PAUL SOUTH, STAFF WRITER 

DATELINE: DUCK                              LENGTH:  121 lines

AUDITORS TO STUDY DARE SCHOOLS' SHORTFALL AT RETREAT, BOARD TRIES TO FIND WAY TO GET PEOPLE MORE INVOLVED IN SCHOOLS.

The Dare County Board of Education will bring in state auditors to help figure out how the system came up $305,000 short in its 1996-97 budget.

But school officials were quick to say that there is no evidence that funds had been stolen or misappropriated.

The board, wrapping up a two-day retreat Saturday, also agreed on a draft proposal to get citizens more involved in future school construction and other matters.

Finances and facilities have dominated the local school agenda for the past 10 months, even before the overwhelming defeat of a proposed $59.5 million construction bond May 20.

The board asked Superintendent Leon Holleman to bring in the state Local Government Commission or the Department of Public Instruction to review the district's books.

The LGC is an arm of the North Carolina State Treasurer's Office, while the SDPI oversees the state's schools.

Also, by a 4-3 vote, the board hired Sonja Hibbard of Elizabeth City to do the board's 1996-97 audit.

Last Thursday, the board fired the Henderson, N.C., accounting firm of Holden, Moss, Knott, Clark and Taylor. Then, a motion to hire Hibbard failed when the board tied 3-3.

Board member Sam Twiford, who was absent at Thursday's special meeting, broke the tie Saturday.

``I think it's time to move forward,'' Twiford said.

Board member Donna Buxton, however, still had questions about the Becky Wescott matter. Wescott, the district's financial officer, was put on paid administrative leave last month for undisclosed reasons. But officials say there was no evidence of wrongdoing on Wescott's part.

Hibbard was hired as a consultant after Wescott was placed on leave.

``My understanding as to why we had an auditor come in was to make sure we were in compliance statutorily,'' Buxton said. ``I feel like we should have a report as to why she was put on administrative leave, and if it was related to practices in the finance office.

``I don't know how we're going to deal with a nearly $25 million budget without a finance officer.''

Board members Susie Walters and Loretta Michael said they would have preferred hiring an auditor after advertising and competitive bids.

Last month, the Dare County Board of Commissioners passed a $305,000 bailout package to cover cost overruns.

Holleman said that to avoid future problems, the district should re-establish its contingency fund. In 1993-94, the school district had a $3.2 million contingency fund. But the county Board of Commissioners, Holleman said, told the district to reduce that amount.

Damage from Hurricane Emily in 1993 and cost-of-living adjustments for county-paid teachers in 1994-95 and 1995-96 depleted much of the fund, Holleman said.

He also said the district will continue to downsize school staff.

``There is a perception that there is an attempt on the part of the school system to hide money,'' Holleman said. ``First, we have no money to hide. Second, the Dare County schools have been audited annually, and third, the money handled is not cash. There has not been any evidence whatsoever that anyone has stolen anything.''

Other recommendations from Holleman included:

Opening the budget process. In recent years, three-person finance committees from the Board of Commissioners and the Board of Education have worked out the education budget. Holleman would like to see the entire board involved in public budget workshops.

Currently, all school money is in a single account. Holleman would change that, so that all money could be more easily tracked.

Further cuts, including reductions in field trips, cellular phones on buses and in some extra-curricular programs. Slow-pitch softball has been cut from the schools' athletic program. More cuts are expected in the central office staff as well

``The new word for the Dare County Board of Education needs to be `No','' Holleman said. ``Unless you can tell me where the money is coming from or what we can cut to get it. We're going to have to stop trying to do everything for everybody. We can't do it.''

Holleman also defended the decision to shift principals within the district.

``Over the past six weeks, a series of events have occurred that people have linked together. That series began May 20 with the defeat of the bond,'' Holleman said. ``We made some administrative changes with the thought that in a school system, administrators sometimes have to be moved to grow and excel. There was no hidden agenda. This was not done arbitrarily or capriciously, or with the intent to get anyone.''

The board is moving to find a replacement for former Manteo Principal Everett Walterhouse, Holleman said. Walterhouse said earlier this month that he was taking an unpaid leave to spend more time with his family.

Ads have been placed in education journals and newspapers in Charlotte, Raleigh and Norfolk, and the position has been posted on the Internet. A 10-member search panel of parents, students and staff will weed out the applicants to be interviewed.

Walterhouse will remain until a successor is chosen, Holleman said.

The plan to get citizens more involved in school construction and other matters could lay the groundwork for a another bond vote.

Under the draft, four 14-member fact-finding committees will be formed. Each panel will work on academic outcomes, demographics, finances and facilities maintenance.

Each board member will select two citizens for each of the four committees. No school board member will serve on any committee.

Subcommittees of school district staff will advise the committees.

The committees will hold public hearings, then then make recommendations to the school board.

In the second phase, a 15-member panel will reach resolution on the various recommendations. That group, comprised of seven board appointees, the four committee chairs and four staff members representing the county's four board districts will make recommendations. Any final decision rests with the board.

If the idea is approved in August, members may be chosen as early as September.

``We need people who are going to look at the big picture,'' Michael said. ``Not at one school or one area, but who want to do what's best for all the children of the county.'' ILLUSTRATION: Graphic

DECISIONS

A weekend retreat accomplished more than relaxation. Among the

decisions:

Bringing in a state auditor to figure out a $305,000 shortage

last year.

A proposal to include citizens in future school construction,

possibly in preparation for a future bond vote.

Hiring an outside auditor for next year.