Commission blasts district’s unauthorized spending


By JORDAN COHEN

news@vindy.com

NILES

In a lengthy, and at times heated meeting, members of the Financial Planning and Supervision Commission strongly criticized the administration of the Niles City School District for going forward with purchase orders and personnel changes without commission authority.

The district has been in fiscal emergency since February and its recovery plan, budgeting and expenditures are subject to commission review and approval. No purchase orders above $5,000 are permitted unless the commission approves them first.

Yet, Superintendent Ann Marie Thigpen said the district had to act on two of them and the commission was anything but sympathetic.

One of the two drawing particularly strong criticism was payment of nearly $15,000 to repair the schools’ public address system. The commission had tabled approval in an earlier meeting.

“That is not how this is supposed to work,” said the commission’s Robert Swauger, a former Niles city treasurer. “Nothing is to be paid until it’s approved.”

Superintendent Ann Marie Thigpen said the system had failed to function for tornado drills. “It was a safety issue,” she said.

Thigpen and district Treasurer Lori Hudzik attributed the issue to “bad accounting practices,” prompting a warning of potential findings for recovery against the district should the commission decide against approval.

“We don’t want a purchase order after the fact,” commission Chairman Bob Foss said to reporters after the meeting.

The commission, however, approved the payments, but warned it was not likely to do so again.

The negative reaction continued over personnel issues with Swauger demanding an explanation for the position of custodial supervisor.

“Doesn’t he do the same things everyone else does?” he said before questioning the necessity of having more than two school psychologists despite the district’s “shared services” with other school entities.

Thigpen promised a review.

The commission narrowly approved the personnel items.

Nearly overshadowed by the panel’s criticism was a report from the state-appointed financial supervisor showing an improving financial picture. It projects positive fund balances through 2022, some of which are savings achieved through new labor agreements with the teaching and non-teaching unions. The commission approved both contracts Wednesday.

Niles City Schools still face a projected deficit of more than $1,028 million in 2023. Districts under fiscal emergency are required to develop a recovery plan that projects a five-year forecast of positive balances.