I.C. school audit needs follow-up

By The Gazette Editorial Board

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We applaud Iowa City Schools Superintendent Stephen Murley for ordering the audit of the district's financial operations in the wake of two embarrassing financial errors made by the district last year: a $2 million bookkeeping error and a $25,000 Internal Revenue Service fine, which was later refunded.

But now comes the important part: Following through by cleaning up the messes the audit brought to light.

That's apparently going to take more resources - scarce enough for school districts in these belt-tightening days. But some changes and investment are necessary if administrators and board members want to be responsible stewards of public money.

The public deserves answers not only about how things got to this point, but also a clear plan for cleaning up the district's financial mess.

Auditors from Synesi Associates of Wilmette, Ill., outlined a number of serious concerns about widespread and troubling flaws in district financial practices in an audit report released earlier this month, and then presented to school board members.

Just a few of their findings: Out-of-date software, a budget process that leaves out key educational personnel, a “grossly understaffed” technology department and no standard operating procedures for purchasing.

The district doesn't seek competitive bids for as many services and contracts as it should, and is missing several key positions - including a budget director - to ensure efficient, responsible fiscal operations, according to the auditors' report.

With updated software and better controls, the district could have avoided last year's embarrassing $2 million mistake, auditors said.

After the report was released, Paul Bobek, the district's executive director of Administrative Services who also served as the district's chief financial officer, abruptly resigned. Neither Bobek nor the district have said what prompted the move, one of several recent administrative resignations and retirement announcements.

Murley said last week he plans to give school board members a plan for correcting the problems outlined in the auditor's report. He promised regular updates to the board and the public.

That's good. We want to see more openness and monitoring in the future and explanations on how the district will be doing things differently.

Clearly, too, school board members must hold district administrators accountable - asking questions, demanding results and acting as the leaders Iowa City voters elected them to be.

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