If that link doesn't work, here is the podcast to download. Agenda is posted here and saved in Google Docs here.
Capital Campaign Counsel – The Board will discuss the engagement of Campaign Counsel for a potential Capital Campaign.
Who is Capital Campaign Counsel? Why it is Pursuant Ketchum with lead consultant being Elliott Oshry for the low, low price of $184,000 paid over two years. Where does it say all that in the meeting minutes from the following week? Another Right To Know for the Consulting Services Agreement with Pursuant Ketchum, I guess.
God Bless Scott Goldman. He asked the important questions twenty seven minutes into the meeting. Jan Klein said that $200,000 may be used as seed money for the campaign. It would be done via a transfer of assets, something she does frequently. It would be listed as a loan to be paid to the General Fund. It would not be included in the base budget. No problem, because this campaign will be self sufficient and it would be paid off. Jan said that it isn't permitted unless it is a loan to be paid off! It was not voted on because Jan said they do that all the time. It would be in a separate fund. Yikes!
So the loan/investment seed money was never approved by the school board!!!
20 comments:
Never approved by the board and the amount was only $200,000.
So how did it balloon to $923,530.02 cents!?!
And why did Klein say it was an investment during the board discussion?
How does the Century for Excellence campaign pay back a loan when it's underwater?
Plus the board just unanimously voted to approve disbursements from that fund.
I hope Lebo Citizens readers take the time to listen to the podcast. There is a lot there!
Elaine
Best move it's to get the $300,000 in pledges, put it in the general fund. Pay back the loan. Then get the ethics commission involved.
http://www.paauditor.gov/auditor-general-hotline
Let's review.
From the 7-17 release of the fundraisers financial statement we have a $923,530.02 line item noted as a loan from the district's Capital Fund.
From the 8-17 revised financial documents that $923,530.02 is noted as a Reserve from the General Fund.
In the Campaign discussion session Jan Klein is reported to declare that the 9-17 item is an investment not a loan. But a recent state document is very specific on what type of investments a school district is allowed to make and it doesn't appear that the fundraiser fits as a secure investment vehicle.
Now we find in a recent post "We hit by at dirt," that in a 2013 board meeting Klein said she could loan the campaign $200,000 as seed money as long as it's paid back. Except in neither financial report there is no $200,000 loan shown as revenue nor an item showing the $200,000 as being paid back.
Adding further confusion, when Steinhauer was asked by Paula Bonjourno for the dates when the board voted on any of the items he couldn't deliver the information.
Looks very suspicious to me.
8:08 AM, the loan was from the General Fund, not the Capital Fund, per 7-17 RTK document.
Elaine
I would be willing to bet, 8:08 AM that it looked suspicious to you and everyone else (except the school board and Timmy administration) in 2013!
Elaine
Not suspicious to Steinhauer and the board back in 2013?
Hell this group is already thinking about being loved as visionaries by the taxpayers of 2112!
Why would they worry about the accounting on the fund toda?
While all this fundraiser stuff is being reset and the board is still talking about how they'll need its money to keep the district running in the future has everyone forgotten about the Build Our School Now people that were pushing for a $150,000,000 high school project?
I think some of those players are still driving things in the district.
Dr. Steinhauer offered to email that information to Ms. Bonjorno or put it on the website. Ms. B. pressed to have it stated in the public meeting. What would Dr. S. have sent ?
Not trying to stir the pot here but where are Reschenthaler and Miller? There is no way they can claim this isn't in their scope of job duties. Their respective chambers share some of the responsibility for both the financial and legal rules that apply to school boards. Both of them are lawyers.
I just think those two should hear from people who have concerns.
I hope someone out of the hundreds of people who read this post, will actually follow up on this information. Jan Klein, Timmy, and some out of control present and former school board directors got us in this mess because nobody was watching.
Seriously, I have to wonder why there are Cappucci, Remely, Caste, and Birks yard signs starting to pop up. The PA Ethics Commission is doing an investigation over one matter. Will the PA Auditor General be next to initiate an investigation?
Elaine
I absolutely agree with 1:26 about our state rep and senator.
In conversations with them on local matters one has said they don't get involved in local politics.
That's fine except the district's handling and accounting of its revenues and expenses extends beyond the realm of "local politics."
One only has to listen closely to the school board criticize Harrisburg for not sending it enough money to see how It's not local.
The PA Dept. of Education has rules the district must adhere too, its sets limits on how much it can spend on things like buildings and limits how much it can raise local taxes though they allow often allow more often than not for Jan's and other district's favorite exemptions and exclusions.
If our state rep and senator are really our voices in Harrisburg, there is certainly enough evidence to call for a complete and thorough audit by the Auditor General into this matter.
If they claim they're not familiar with the issue, then they really aren't concerned much with the district they represent since both will be voting soon to resolve the state budget impasse that will determine state education money.
Quite of information has surfaced since I shared the anonymous letter from the inside back on April 27, 2017. So much more has been exposed since then, but the Timmy Ticket has no shame and still expects their yard signs to be planted all through Mt. Lebanon.
Anonymous letter from the inside
Elaine
*Quite a bit of information...
Elaine
Make the call, 2:03 PM.
Elaine
In a call it has been discussed that there should be an audit.
The idea was rejected.
Not sure if it is relevant but this is from the March 19, 2013 Almanac:
"The Mt. Lebanon school board voted to move ahead with a proposed $6 million capital campaign at its March 18 meeting, selecting fundraising consultant Pursuant Ketchum as campaign counsel. Pursuant Ketchum conducted the original feasibility study for the campaign in the fall of 2012. The firm will aid in selecting a campaign manager, as well as guiding subsequent fundraising efforts.
The district’s initial outlay for the campaign is estimated at around $184,000.
Critically, however, this will not be a cash expenditure. Jan Klein, director of fiscal services, explained the initial expense will be funded as a loan from the district’s general fund. This will then be repaid with campaign proceeds at a later date. The outlay for the campaign would therefore not impact the district’s operating budget for the 2013-2014 school year."
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