- Generally Accepted Accounting Standards of Fiscal Management
- Demonstrate Fiscal Soundness
- Timely Notice of Defect
Friday, May 14, 2010
Letter from Meridian School District (5/5/2010)
The attached letter from the Chairman and Superintendent of the Meridian School District ask for North Star to cure the following defects:
Blandford Letter_to_Kerri_Pickett-Hoffman_dated_March_8,_2010
Letter from the Bond Salesman, who received a commission for the sale of the bond to North Star Charter School, to the Kerri Pickett
Letter from Jim Blandford at RW Baird
Letter from Jim Blandford at RW Baird
Conflicts?
Bond Salesman for North Star pressures North Star board to appoint Joe deVera to North Star board. (See the public document from Jim Blandford to Kerri Pickett)
Notes from the Interview with Joe Devera on (3/17/2010) stated in his interview with the North Star Board the following:
Have you acted as an agent or received any compensation from R.W. Baird or Jim Blandford or anyone else associated with our Bond or any other Charter School Bond in the State of Idaho?
Jim Blandford asked me to introduce him to Compass to help them work through possibility to finance a school. I introduced the parties and talked through the scenarios. I didn’t receive any compensation. I do consider Jim a friend because he’s taken care of our school. I introduced a friend to a good charter in hopes that they would be able to help each other out. No money has changed hands.
Is there a list of promises made to R.W. Baird on behalf of North Star from Joe DeVera?
No and I will put this in writing in the form of a resolution.
Are you willing to share all correspondence between he and all R.W. Baird employees and subcontractors since not being on the board at North Star Charter School?
Sure—absolutely. I find it interesting that people (or whoever is asking this question) are willing to dig my dirt up and not stand up on this board and face their own problems.
It is reported that Joe deVera, alone, met with Compass Charter School at the January 14th meeting. It was reported that he discussed the North Star Bond and the process the school went through to get it. Allegedly, deVera recommended Jim Blandford as a person for Compass to use to obtain a bond. It appears that he contacted Mr. Blandford for the school. Subsequent to that, it is reported that both Mr. Blandford and Mr. deVera together met with several members of Compass Charter's board and staff to discuss the possibility of a bond for Compass.
Notes from the Interview with Joe Devera on (3/17/2010) stated in his interview with the North Star Board the following:
Have you acted as an agent or received any compensation from R.W. Baird or Jim Blandford or anyone else associated with our Bond or any other Charter School Bond in the State of Idaho?
Jim Blandford asked me to introduce him to Compass to help them work through possibility to finance a school. I introduced the parties and talked through the scenarios. I didn’t receive any compensation. I do consider Jim a friend because he’s taken care of our school. I introduced a friend to a good charter in hopes that they would be able to help each other out. No money has changed hands.
Is there a list of promises made to R.W. Baird on behalf of North Star from Joe DeVera?
No and I will put this in writing in the form of a resolution.
Are you willing to share all correspondence between he and all R.W. Baird employees and subcontractors since not being on the board at North Star Charter School?
Sure—absolutely. I find it interesting that people (or whoever is asking this question) are willing to dig my dirt up and not stand up on this board and face their own problems.
It is reported that Joe deVera, alone, met with Compass Charter School at the January 14th meeting. It was reported that he discussed the North Star Bond and the process the school went through to get it. Allegedly, deVera recommended Jim Blandford as a person for Compass to use to obtain a bond. It appears that he contacted Mr. Blandford for the school. Subsequent to that, it is reported that both Mr. Blandford and Mr. deVera together met with several members of Compass Charter's board and staff to discuss the possibility of a bond for Compass.
Unanswered Questions
1. When the bonds were issued, didn’t the board know the school would not be able to afford the second-year payment?
4. Why has the board not engaged in discussions with the investors, if only to confirm that the Blandford letter is as it appears and that the investors actually are all in agreement that they want the school to conform to the Blandford letter?
7. The board has been called “dysfunctional” by its consultant, George Coburn. What has the board done to bring greater accountability to its actions?
9. Is it acceptable behavior for board members to talk among themselves in small numbers and make decisions?
10. Why did the trustees want Ken Carroll to resign?
Isn’t that why there was so much discussion about refinancing, even from Blandford?2. What if the board had not begun construction when it did, at a time when it did not have permanent financing?
Why did the board not address this fact at the beginning?
Why didn’t the board do a thorough financial feasibility study?
Is the board covering up its responsibility? By blaming the administration?
Wasn’t that decision a very risky one?3. It appears that the “Blandford letter” is written by Jim Blandford, evidently a commissioned bond salesman, but also represents John Buck, who appears also to be a commissioned financial advisor for the bond and also an investor of the same bond. The letter states that Mr. Blandford was in the process of contacting the investors. In public meeting he was challenges about whether the letter, in fact, represented the investor’s wishes and he said one – John Buck.
Why was it made, who is responsible for urging it to be made and why weren’t the stakeholders informed of the risk?
Did the board act in good faith when it appeared to take the Blandford letter at face value? Did the board discuss the possibility that the Blandford letter is self-serving and that it might have been written only to protect the continuing business interests of a few people? If not, why not?
4. Why has the board not engaged in discussions with the investors, if only to confirm that the Blandford letter is as it appears and that the investors actually are all in agreement that they want the school to conform to the Blandford letter?
Is it because they want to protect their potential bond business in Idaho first? Shouldn’t they have let the investors in on the budget deliberations right at the beginning?5. If you were an investor, would you want to be kept out of the solution?
Would you want to have the fabulous teachers and administrators and parents in a state of fear and panic?6. Ms. Smith has reportedly designed a timeline of events so that everyone can better understand how the board got itself in this position.
Would you want the board to put their leader on leave just at the time when they needed her?
Would you want two additional board members to resign as a result of the new appointed board members dysfunction?
Doesn’t this lack of transparency and communication with the investor groups also increase the liability of the board?
Why has the board not allowed administration to show it?
Why do they not want to discuss the time-line with the stakeholders?
Is this responsible action? Or is it avoidance of blame?
7. The board has been called “dysfunctional” by its consultant, George Coburn. What has the board done to bring greater accountability to its actions?
a. Why does the board not want to be audited by the Idaho Charter School Network?8. Does George Coburn have a conflict of interest?
b. Why did the board delay for ten days giving documents that were requested by individuals under the Freedom of Information guidelines when it could have supplied them within hours?
Why did the board originally refuse to give copies of the Blandford letter as requested under the Freedom of Information guidelines?
That letter was and will be discussed in open meetings.
c. Is the board comfortable with the stakeholders contacting the Secretary of State about this issue?
a. Wasn’t he recommended by then Chairman Herrold?
b. Hasn't Trustee Herrold spoken out against the teachers having too much say? Too much pay?
c. Didn’t Trustee Herrold sign a contract with him to be an independent consultant without board approval? Didn’t the board ratify the contract she had signed after the fact on Feb 22?
d. Didn’t Coburn’s role then change from independent consultant to employee of the school to design the budget and control the finances till the end of the year? Why wasn’t George Coburn’s job posted? Doesn’t this become a conflict of interest with Trustee Herrold because he now is employed by the school (at $2500/ week) without this position being put out to bid?
e. Is this a case of a self-serving board?
9. Is it acceptable behavior for board members to talk among themselves in small numbers and make decisions?
a. To delay giving stakeholders information?
b. To deny giving stakeholders information?
c. To place blame rather than accept responsibility?
d. Is that one of the reasons they don’t want an audit?
10. Why did the trustees want Ken Carroll to resign?
a. Did they not want him to bring up board accountability?
b. Is it because he wanted them to be transparent and communicate fully with the stakeholders?
Found at northstarcharter.org
- 2010 Election Timeline
- Board Information (Get Involved Link)
- 5/13/2010 Board Agenda (Speculation of a new agenda item being added surrounding the non-renewal of Administration’s contracts)
Trustee Carroll's Resignation Letter
To: Kerri Pickett-Hoffman
CC: NSCS Board
Date: May 12, 2010 7:31:31 AM MDT
Subject: NSCS, Resignation
Dear Kerri,
North Star Charter School was founded and has been steadily building a great educational opportunity for it’s many students. I am proud of the school and many of the results to date.
However, I am extremely disappointed in the level of dysfunction that is preventing our ability as a board to operate effectively from a sound basis of facts and role clarity.
My ability to be add value as a board member is compromised by the root causes of our dysfunctional behavior. I have been ineffective in my efforts to influence the board to reduce or eliminate this dysfunction.
Therefore, I am submitting my resignation effective immediately.
This will allow for my position to be included in election process for new board members that will be taking place over the next few months.
I have also put together a complete set of documents that will be given to the Board Clerk which might prove to be helpful in any effort to review the record of these past few years during which we expanded the school to K-12 and constructed the new building.
I strongly believe in our North Star Charter and Bylaws along with principles of transparency, open meetings, and effective oversight.
I remain a NSCS supporter and will assist in the future from the role of an interested patron.
Sincerely,
Ken Carroll
CC: NSCS Board
Date: May 12, 2010 7:31:31 AM MDT
Subject: NSCS, Resignation
Dear Kerri,
North Star Charter School was founded and has been steadily building a great educational opportunity for it’s many students. I am proud of the school and many of the results to date.
However, I am extremely disappointed in the level of dysfunction that is preventing our ability as a board to operate effectively from a sound basis of facts and role clarity.
My ability to be add value as a board member is compromised by the root causes of our dysfunctional behavior. I have been ineffective in my efforts to influence the board to reduce or eliminate this dysfunction.
Therefore, I am submitting my resignation effective immediately.
This will allow for my position to be included in election process for new board members that will be taking place over the next few months.
I have also put together a complete set of documents that will be given to the Board Clerk which might prove to be helpful in any effort to review the record of these past few years during which we expanded the school to K-12 and constructed the new building.
I strongly believe in our North Star Charter and Bylaws along with principles of transparency, open meetings, and effective oversight.
I remain a NSCS supporter and will assist in the future from the role of an interested patron.
Sincerely,
Ken Carroll
Parent Minutes (5/4/2010)
NOTE: Next Thursday, May 13th, will be the regularly scheduled Monthly Board meeting.
May 4th, 2010 Board Meeting Summary
All board members were present.
Dan Hullinger asked for the addition of an agenda item: “Possible Conflict of Interest on the Board”. This was added as the first item.
AA: POSSIBLE CONFLICT OF INTEREST ON THE BOARD
Ken Carroll has a business relationship with Phyllis Smith’s boyfriend. While this has been the circumstance for entire time Ken has served, it is perhaps time to address whether this truly does represent a conflict of interest and thus a liability for the board as a whole as decisions made could be construed as tainted. The issue was brought up by the Meridian School Board (our charter’s sponsoring organization) at a recent meeting.
There was much discussion among the board members of it NOT meaning ill towards Ken. Ken is honorable, talented. and means well for the school. In many cases in business world “perceptions is reality” and having 2 (potentially conflicting) interests could be a problem for the board/school. Board decided to seek legal counsel on what conflict of interest might mean in relation to non-profit corporation rules which charter schools operate under.
A. BOARD ELECTION TIMELINE PROPOSAL
Brenda Taylor presented a proposed timeline for upcoming board elections. There are presently 5 positions that will be open for election (see letter to parents from 4/23/2010 for which ones they are). Need to set dates for: nominations, applications due, when ballots will be available to public, and when voting ends. Discussion on whether it would be best to finish election process before school got out or allow parents more time to study out issues/candidates and mail ballots back later. One goal is to increase voter turnout (typically 20% or less): advertise, voter booths at the school, candidate forum to ask questions, etc. Board voted on a timeline — watch for it soon. This will either be from PTO or in Friday newsletter. Discussion on how to help transition as most of the board could be new.
B. BUDGET VALIDATION TEAM UPDATE
have formed group of 15 (parents, teachers, community members). Divided into 5 groups of 3 people. Each group has a list of topics (budget line items) to discuss and offer solutions.
C. FINANCIAL EMERGENCY RESOLUTION
As discussed April meeting, need to declare so that budget and contracts can be delayed from normal deadlines and so teacher salaries can be negotiated.
D. FINANCIAL EMERGENCY TIMELINE
May 15th — “letters of intent” given to teachers so staffing plans can begin
some public hearings will be held. dates being worked out.
June 11th — final budget to be approved by board and then contracts can be given to teachers
E. ENROLLMENT REPORT/UPDATE ON RECENT LOTTERY
Principal Smith presented the enrollment and wait list numbers. Numbers presented were from right after the April lottery. Grades K-8 are full (and have significant wait lists), 9th is mostly full.
F. STRATEGIC PLAN FOR ENROLLMENT
G. CONSIDERATION of ICSN PROGRAMMATIC AUDIT
Decided that this audit program may be a good one but the timing was not right with the budget deadlines approaching.
May 4th, 2010 Board Meeting Summary
All board members were present.
Dan Hullinger asked for the addition of an agenda item: “Possible Conflict of Interest on the Board”. This was added as the first item.
AA: POSSIBLE CONFLICT OF INTEREST ON THE BOARD
Ken Carroll has a business relationship with Phyllis Smith’s boyfriend. While this has been the circumstance for entire time Ken has served, it is perhaps time to address whether this truly does represent a conflict of interest and thus a liability for the board as a whole as decisions made could be construed as tainted. The issue was brought up by the Meridian School Board (our charter’s sponsoring organization) at a recent meeting.
There was much discussion among the board members of it NOT meaning ill towards Ken. Ken is honorable, talented. and means well for the school. In many cases in business world “perceptions is reality” and having 2 (potentially conflicting) interests could be a problem for the board/school. Board decided to seek legal counsel on what conflict of interest might mean in relation to non-profit corporation rules which charter schools operate under.
A. BOARD ELECTION TIMELINE PROPOSAL
Brenda Taylor presented a proposed timeline for upcoming board elections. There are presently 5 positions that will be open for election (see letter to parents from 4/23/2010 for which ones they are). Need to set dates for: nominations, applications due, when ballots will be available to public, and when voting ends. Discussion on whether it would be best to finish election process before school got out or allow parents more time to study out issues/candidates and mail ballots back later. One goal is to increase voter turnout (typically 20% or less): advertise, voter booths at the school, candidate forum to ask questions, etc. Board voted on a timeline — watch for it soon. This will either be from PTO or in Friday newsletter. Discussion on how to help transition as most of the board could be new.
B. BUDGET VALIDATION TEAM UPDATE
have formed group of 15 (parents, teachers, community members). Divided into 5 groups of 3 people. Each group has a list of topics (budget line items) to discuss and offer solutions.
C. FINANCIAL EMERGENCY RESOLUTION
As discussed April meeting, need to declare so that budget and contracts can be delayed from normal deadlines and so teacher salaries can be negotiated.
D. FINANCIAL EMERGENCY TIMELINE
May 15th — “letters of intent” given to teachers so staffing plans can begin
some public hearings will be held. dates being worked out.
June 11th — final budget to be approved by board and then contracts can be given to teachers
E. ENROLLMENT REPORT/UPDATE ON RECENT LOTTERY
Principal Smith presented the enrollment and wait list numbers. Numbers presented were from right after the April lottery. Grades K-8 are full (and have significant wait lists), 9th is mostly full.
F. STRATEGIC PLAN FOR ENROLLMENT
G. CONSIDERATION of ICSN PROGRAMMATIC AUDIT
Decided that this audit program may be a good one but the timing was not right with the budget deadlines approaching.
Subscribe to:
Comments (Atom)