Introduction

The Board of Education of the Brandywine School District created this Financial Review Task Force in December 2000 and asked it to develop recommendations on the managing of the district’s operating budget, planning and financing construction programs, and developing improved financial control and reporting procedures.

• The district’s last current expense tax referendum was held in 1994. The revenues generated by the tax rate authorized in that referendum are no longer adequate to meet the district’s needs. The Board of Education desired recommendations on when a current expense referendum will be needed and how best to conserve district funds until a referendum is approved.
• A capital expense referendum planned for 1999 to seek authorization for a second round of renovations at district schools was never held. The Board of Education desired a recommendation on when such a referendum will be needed and an update of a 2-year-old school facilities study to determine whether any priorities should be adjusted.

• Several recent incidents pointed out deficiencies in the school district’s financial controls. The Board of Education desired an independent review of the quality and completeness of internal financial controls and public financial reports, plus recommendations for improvements.

Our task force of more than 20 members included district residents, representatives of community groups and leaders in business, construction, education and government. Each member was assigned to one of three committees: Operating Budget, Buildings and Grounds (Capital Budget), or Financial Controls and Reporting.

Stephan Lehm, president of VanDemark & Lynch, Inc., and J. Kent Riegel, retired president of ICI Americas, served as co-chairmen. Committee chairpersons were: Stephen Grimble, treasurer of the University of Delaware, Operating Budget; Herbert L. Duffield, president of Furlow Associates, Inc., Buildings and Grounds (Capital Budget), and Dr. James L. Spartz, vice president for academic affairs at Wilmington College, Financial Controls and Reporting.

Members of our three committees met weekly throughout January. In addition, we reviewed numerous documents, visited Brandywine schools, and consulted with district and other education officials to learn more about the areas we were studying.

This report, which summarizes the task force’s findings, is intended to provide the Board of Education with a guide for decision-making on crucial financial issues confronting the Brandywine School District. We believe that implementation of its recommendations should also help the Board of Education and district administration regain some of the public confidence that has been lost in recent years.

Executive Summary

In the last six months or so, the task force found, the Board of Education and administration of the Brandywine School District have begun to take significant steps to improve many aspects of their financial operations.

The financial issues facing the school district, the task force believes, will require far more significant actions if the Board of Education is to succeed in restoring both economic stability and fiscal credibility within the Brandywine community. It is essential that the board achieve these objectives so it provide the infrastructure and resourses necessary to return the district to its historic standards of educational excellence.

This section of the report summarizes many of the measures we believe the Board of Education must take to ensure that Brandywine achieves and maintains its position as an outstanding school district.

Operating Budget Committee Recommendations

Building and Grounds (Capital Budget) Committee Recommendations

Financial Controls and Reporting Committee Recommendations

Committee Reports

Operating Budget

Background

The Brandywine School District’s Fiscal Year 2001 budget (excluding Bush School) is $98,410,000. Of this amount, $24,814,000, or 25 percent, is funded with local tax receipts and carryover reserves. Local operating expenses have exceeded current year tax receipts in every year since FY1998 and, without a revenue increase, these deficits will widen in future years. As a result, the carryover reserve has been declining and will be inadequate by the FY 2003 school year.

Summary

Here are the committee’s key recommendations:

• Hold an operating expense referendum during the 2001-2002 school year.
• Review the ratio of non-classroom personnel to pupils to determine if there are opportunities for improving productivity.
• Establish benchmark staffing ratios for non-classroom personnel and develop an action plan for attaining them.
• Make managers accountable for adhering to budgets for non-personnel expenses.
• With an enrollment decline of 16 percent projected between FY 2000 and FY 2005, determine whether the number of school buildings in use should be reduced.
• Promptly develop a comprehensive strategy and action plan to rebuild public confidence in Brandywine’s stewardship to maximize the referendum’s probability for success.

Conclusions and Recommendations

A referendum should be held during the 2001-2002 school year to increase local tax revenue, starting with the 2002-2003 school year. Additional revenue is needed to ensure there are adequate resources to fund the school district’s mission. Exhibit A, which follows this portion of the report, summarizes actual and projected amounts of local funds, revenues and expenses from FY 1995 through FY 2004.

• The district’s reserve carryover balance has declined from a peak of $9,513,000 at the end of FY 1997 to $4,079,000 at the end of FY 2000. Without budget cuts or additional revenue, the carryover reserve is expected to drop to $2,957,000 by the end of FY 2002. That reserve would not be sufficient to pay the district’s bills during the summer of 2002 while awaiting the arrival of tax receipts in the fall.
• From 1994, when the last operating expense referendum was held, through 2000, cumulative inflation was 16 percent. Local spending from FY 1995 through FY 2001 (forecast), the current fiscal year, is up 15 percent. Local revenue, however, has increased by only 4 percent.
• From FY 2000 to FY 2001, local expenses have been reduced $2,627,000, or 9.6 percent. Salaries and other employment costs are down $633,000, or 3 percent, and other expenses (including encumbrances) are down $1,994,000, or 35 percent. Contracted services and supplies and materials, the major components of the "other expenses" category, have been cut by $1,312,000, or 25 percent. Even with the local expense reductions projected for FY 2001, there will be a shortfall of $147,000 in local revenue. In FY 2002, this deficit is expected to increase to $975,000 because tax receipts will be flat and expenses are projected to increase by 3.5 percent.

• Central office professionals: Brandywine has 62 percent fewer positions than the other New Castle County districts and 8 percent fewer than the national mean.

• School building professionals: Brandywine has 23 percent more personnel than the other New Castle County districts, but 7 percent fewer than the national mean.
• Compared to the other New Castle County districts and the national mean, Brandywine has more assistant principals, counselors and librarians. If Brandywine were to match the other New Castle County districts’ staffing ratios in each of these three categories, it could reduce its staff by 19.8 full-time-equivalent professionals.
• Secretaries and custodial personnel: Comparison data for these positions are available only for the other New Castle County districts. Brandywine has 12 percent more secretarial positions and 42 percent more custodial positions than the other New Castle County districts. If Brandywine were to match the other New Castle County districts’ staffing ratios in these categories, it could reduce its staff by 41.7 full-time-equivalent positions.

• Savings realized from improving non-classroom personnel productivity could be invested in the classroom, or reflected in a lower referendum rate increase.
• Brandywine should establish challenging benchmark staffing ratios for non-classroom personnel and develop an action plan and timetable for achieving sustained productivity improvement. Personnel productivity objectives should be linked to number of pupils and not to the state units formula for administrative and other non-classroom personnel.

Administrators should justify all spending lines when the annual budget is submitted to the Board of Education for approval. Encumbrances should be reported against the appropriate budget line to capture the total spent in each expense category.

Finally, the Board of Education should not approve spending on new programs or initiatives without challenging administrators to reduce expenses elsewhere by a corresponding amount. Spending must be prioritized to ensure a balanced budget.

• Promptly develop a comprehensive, multimedia communication plan that will reach virtually all Brandywine property owners. Enlist parents, grandparents, employers, empty-nesters, teachers and administrators in the effort. Anticipate and proactively respond to negative issues. Start early.
• Consider a phased-in rate increase so taxpayers don’t have to absorb it all in the first year.
• Explain to the public, simply and clearly, how local funds are spent.
• Review the growth rate in local tax revenues as compared to inflation and expense growth.
• Emphasize how well Brandywine is directing its personnel resources to the school and classroom levels, rather than to the district office, and how well expenses are being controlled.
• Emphasize the need to increase classroom resources devoted to professional development and technology, so Brandywine can provide the education and results a child needs to succeed in the 21^st century.
• Commit to the public that the district will not seek another operating referendum for at least five years.
• Evaluate operating referendum strategy in conjunction with timing of capital referendum.

Building & Grounds (Capital Budget)

Background

• Review the major capital expense needs for the cycle of building improvements and renovations originally proposed in 1999.
• Review the buildings slated for renovations, as well as some of the buildings proposed for the next renovations cycle, and establish priorities for the projects.
• Recommend a date for a capital improvement referendum.
• Make other appropriate recommendations to the board following the review of the capital improvement budget and district facilities.

At its first meeting, on Jan. 3, the committee discussed the current proposal to renovate eight schools over a four-year schedule. That proposal was based on a 1999 assessment by an architectural consultant of all the schools in the district.

At that meeting, the committee decided that a physical inspection of each school would be required to validate the proposed renovation schedule. Two-person teams from the committee were assigned to conduct the inspections. Their visits included: a visual walk-through inspection, discussions with the building administration and faculty in an effort to differentiate between wants and needs, a review with the building’s custodial and maintenance staff, and an observation of non-public areas in each building.

In addition to the eight buildings recommended for renovation, along with their respective grounds, the committee surveyed three buildings tentatively scheduled for the next renovations cycle that are believed to have the greatest need for improvements. (Highlights of the findings from these inspections are included at the end of this report.)

As the committee reviewed the district’s capital expense needs and priorities, it also examined several significant related issues. They included: the use of modular classrooms, the deterioration of athletic facilities and playgrounds, the current state funding formulas for major and minor capital improvements, and the quality of custodial services within the district.

Summary

Here are the committee’s recommendations:

• The eight schools currently proposed for building renovations are in need of renovations.
• The current proposed sequencing and timing of renovations for those eight schools seems reasonable and practical.
• The preferable option for Concord High School would be to renovate the existing building rather than build a new school at that site.
• The committee recommends the use of temporary (modular) classrooms as a less disruptive, less expensive and more efficient alternative than the option of renovating a section or wing of a building at a time.
• The Brandywine School District should seek state funding to help purchase modular classrooms for use as a "holding school" during the renovation of Concord High School and other buildings.
• Roof leaks are a major problem in the Brandywine School District. The Board of Education must make preservation of its buildings, equipment and supplies a high priority; this starts with making sure that all roofs receive needed repairs and/or replacement.

• The Board of Education should hold a capital improvement referendum on or before June 15, 2001.
• The funding approved by the state Budget Office and Department of Education for the renovations was based on estimates made two years ago. The Board of Education should re-estimate the projects before holding the referendum.
• The brick veneer or "skin" at Concord High School needs repair or stabilization. The building itself is structurally sound.
• Maintenance funds, typically covered by minor capital improvement budgets, appear to be insufficient to properly maintain the district’s buildings, facilities and grounds.
• The Board of Education should establish a skill assessment test program, accompanied by follow-up instruction, for its maintenance staff.
• The Board of Education must ensure that custodial and housekeeping standards are improved. Successful custodians should be used as trainers or mentors for staffs at schools where improvements are needed.
• The Board of Education should restart its renovation cycle in 2004.

Conclusions and Recommendations

First year: Harlan, Mount Pleasant Elementary, Mount Pleasant High

Second year: Concord, Claymont

Third year: Lombardy, Forwood

Fourth year: Talley

After inspecting three schools scheduled for the next cycle of renovations (P.S. du Pont, Lancashire and Hanby), the committee concluded that the timeline for work on these buildings does not need to be advanced.

Two years ago the state Department of Education and the state Budget Office approved an estimate of $95,993,100 (with the 40 percent local share totaling $38,397,200) for renovations at the eight schools. The authorized total is capped by state formula. (A breakdown of these costs is found in Exhibit C, at the end of this section.)

Previous Brandywine projects have exceeded amounts authorized by the state, in part because of the lag between authorization and construction. Since the estimates were made in 1999, the committee believes the approved funding levels may be insufficient and recommends that the projects be re-estimated. If additional funds are not authorized by the state, the available funds should be reallocated among buildings, based upon updated estimates, to present a more realistic program for the referendum.

The committee also believes the Board of Education, along with other school boards in Delaware, should urge state officials to develop more realistic allowances for inflation as school districts plan major capital improvements that often do not begin until several years after construction estimates are prepared.

Some of the recommended renovations, for example, the roof and window replacements at Mount Pleasant High School, could be accomplished during the summer, with no relocation of students required.

The only exception is that Burnett Elementary, which was closed in 1999, could be repaired and used as a holding school during renovations to Harlan Elementary, which is only three blocks away. Although it was originally built as a junior high school, Burnett is too small to accommodate the Concord or Talley student bodies.

Placing modular classrooms at Concord would enable classroom renovations there to be completed during a single school year. The school’s gym, kitchen and cafeteria would be renovated during the summer and would be used during the school year. The modular classrooms could subsequently house Talley students for one year of renovations and pupils from two elementary schools for another year. After the next round of renovations is complete, the modular classrooms could be redeployed for use at other sites in the district.

Under state law, the state provides 60 percent of the cost for modular classrooms. The school district must seek authorization for these classrooms from the State Department of Education and must persuade state officials that using modular classrooms is an essential element of the renovation program. District officials and residents should be prepared to petition state senators and representatives, if necessary, to see that this funding is provided.

Using the Channin and Old Mill Lane buildings as holding schools would not be feasible. Both schools are out of service and considered excess; they are too small to handle the Concord or Talley student bodies. Renovations to put them into serviceable condition are estimated at $12 million and would not be funded by the state, so Brandywine taxpayers would have to shoulder the entire expense.

The current renovation plan calls for adding classrooms at Lombardy and Forwood elementary schools. The committee recommends that the Board of Education examine the current impact of the choice program and the future impact of both choice and charter schools to determine whether additional classroom space will indeed be required at both buildings.

Several members of the committee inspected the tracks at the district’s three high schools. All are cinder tracks. Some members of the committee suggested that all-weather tracks be installed at all three high schools, or at a minimum of two schools. The high schools also lack facilities for athletes to practice field events, and other playing fields at many buildings need grading. In observing indoor athletic facilities, the committee also noted the lack of diving areas at the two swimming pools now operated by the district.

School playgrounds are also in need of attention and repair. They should be improved as part of the renovation projects.

These upgrades may be financed on a 60-40 state-local basis. The committee believes the Board of Education should seek state funding to support these improvements.

A task force should examine and recommend improvements for the district’s athletic fields, gymnasiums, swimming pools and playgrounds.

The skills of maintenance personnel vary widely. The committee recommends that the district set up a skill assessment test program, accompanied by follow-up instruction, for the maintenance staff. This is the best long-term approach to upgrading skills. Continuous training for both new and long-term personnel is essential. The program recently begun by the maintenance supervisor is a good start, but follow-up is required.

Committee members noticed that when the head custodian takes pride in a facility, there will be clean space, with little trash stored in non-public areas. The attitude of the head custodian and his or her staff is essential to a clean school. High-performing custodial teams should be rewarded for excellence.

Successful custodians should be used as trainers or mentors for staffs at schools where improvements are needed. Successful custodians can provide good examples of what can be accomplished on a limited budget.

The board of education should also direct that the accumulation of damaged and worn-out furniture and other materials should be removed from all schools or recycled.

The committee also believes that supervisors should conduct monthly walk-throughs of all buildings to assess custodial performance and storage of unsalvageable materials.

Building inspections

Mount Pleasant Elementary (Randy Horne and Steve Lehm)

The school requires renovations. Some storage areas are filled with paint and other materials that should have been recycled or taken to a landfill. The school generally needs to be cleaned up.

The school requires renovations, generally in accordance with the architect’s report.

In addition, the problem with deteriorating ties between the outer brick wall and the inner block wall were reviewed. An outside contractor and Jerry Brown of Anderson Brown Higley Associates conducted a separate inquiry. Their study confirmed that the deteriorated wall ties were caused by conditions related to the wall and coping construction that allow water to infiltrate between the block and brick, a lack of weep holes in the outer wall to relieve trapped water, and flashing failure with the cavity of the walls.

The condition may be resolved by replacing corroded ties and applying new stainless steel ties to stabilize the outer wall, reinforcing the brick and repointing. A detailed report from the architect, including costs and alternatives, is expected by March 1.

The school is in poor condition. The use of the stage area for offices is inappropriate. The gym definitely needs renovations. Security at the school must be improved. The need for an addition should be re-evaluated before the referendum.

Forwood Elementary (Theo Gregory and Rick DiSabatino)

Mount Pleasant High (Frank Montgomery and Ed Capodanno)

The inspection confirmed the need for re-roofing, boiler repairs and window replacement.

Claymont Elementary (Frank Montgomery and Ed Capodanno)

The modernized area looks great,but the rear portion of the building needs help. Some portions of the school need a good cleaning and general housekeeping. Repairing the swimming pool, which is not currently used, should be questioned because it will be costly and the school district already operates pools at Concord High and P.S. du Pont Elementary.

Harlan Elementary (Craig Gilbert and Mike Berardi)

Harlan is an architectural treasure waiting to be saved. Renovation is long overdue. The gym is in poor condition. The playground needs an overhaul.This school should be high on the modernization list.

Talley Middle (Craig Gilbert and Mike Berardi)

P.S. du Pont Elementary (Randy Horne and Steve Lehm)

Overall, the school is in fair condition. It does need new HVAC systems. Staff safety is a concern that could be partially remedied by installation of additional outside lighting. The technology wiring and power supply are problems. The auditorium roof and ceiling need immediate repair. Windows also need repair.

Lancashire Elementary (Frank Montgomery and Rick DiSabatino)

Hanby Middle (Craig Gilbert and Mike Berardi)

The school has a problem with high humidity, caused in part by ground water and the HVAC system. The chief custodian takes good care of the facility.

Financial Controls and Reporting

Background

While the Financial Controls and Reporting Committee focused primarily on the budgeting process, financial controls, and financial reporting, its members also discussed the "culture" of the board and district administration as it relates to financial management, as well as the qualifications and job description for the chief financial officer.

Summary

• The Board of Education should make its recently adopted Code of Ethics the starting point in an examination to ensure that the board and the district administration are operating under similar high-quality fiduciary and ethical standards.
• The Board of Education should revise the current job description for the position of Chief Financial Officer to provide greater emphasis on the position’s financial management responsibilities by including qualifications such as management skills, integrity, commitment, education and experience suitable for managing a budget that now totals approximately $100 million. The position should report to the superintendent and should include responsibility for training all personnel involved in the management of the district’s financial affairs. Any variances from these qualifications should require prior approval by the Board of Education.
• The Board of Education should establish and utilize a District Finance Committee, which would meet regularly to review the financial status of the district.
• The Board of Education should establish a policy and promote a culture of training with respect to the management of the district’s financial affairs.
• The Board of Education should direct the administration to develop budget and financial reports that are internally consistent and easy to understand. All reports should use the same revenue and expense categories. Information on revenues and expenses for the two or three previous years should be included in these reports whenever appropriate.

Conclusions and Recommendations

Although the committee is making a number of recommendations concerning specific controls and processes, its members believe that none of these actions, if adopted, will have the desired effect unless they are supported by an organization that has the appropriate culture and qualified personnel.

The foundation of the culture and the underpinning of providing qualified personnel begins with the Board of Education itself. The committee believes that the board cannot expect its staff to adopt new operational controls and procedures of high quality fiduciary management without the board taking steps to ensure that its own fiduciary processes are in order.

This is not to say that the Board of Education hasn’t done so, only that the committee hasn’t included board procedures in its review. We understand, for example, that the board has adopted a code of ethics; this is an essential starting point. We suggest that the board examine this code, as well as any other of its relevant procedures, in light of those recommendations of the task force that it adopts. By doing so, the board will ensure that its procedures establish the standards of ethics and fiduciary management it seeks and that these standards are consistent with the district’s financial management standards.

The committee would also suggest that, in reviewing such procedures, the board recognize that not only is the substance of such procedures important, but they must also clearly demonstrate the district’s commitment to prudent fiscal management. Such steps will not only establish a culture of the highest level of integrity and appropriate fiduciary behavior within the district, but also strengthen the credibility of the board and administration within the community.

The committee observed that a number of individuals have performed the role of chief financial officer in recent years, although they have had different titles and backgrounds. This turnover has resulted in a variety and, at times, confusing array of policies, reporting procedures and forms of financial reports. Through the work of this task force, the committee has had the opportunity to work with the incumbent chief financial officer, an individual who has demonstrated financial management skills, professionalism and a strong sense of commitment.

The committee feels that it is essential to the district’s financial management that this position be reserved to candidates not only of the highest integrity, but also with clearly demonstrated financial management skills, credentials and experience appropriate to an organization with a budget of $104 million. Therefore, the committee recommends the Board of Education should revise the job description for the chief financial officer to reflect these objectives:

• The description should establish clear standards for the position, including demonstrated financial management skills and experience, integrity, commitment and education appropriate to an organization with a budget equivalent to the district.
• The position should report to the Superintendent.

• The position should include the responsibility for and affirmative obligation to conduct training all personnel involved in the management of the district’s financial affairs.

The committee recommends that the Board of Education establish and utilize a District Finance Committee, which would meet regularly to review the financial status of the district. The committee might also be helpful in the annual budget process and could make recommendations to the board concerning the specific format and content of financial reports. Such a committee might be particularly important as a new superintendent is employed. The committee would be composed of the superintendent, the chief financial officer, one or two school board members, one or two outside individuals with financial or accounting experience, and at least one user of the financial system, such as a school building principal.

The committee recommends that the Board of Education establish a policy and promote a culture of training with respect to the management of the district’s financial affairs.

Training should, first of all, focus on those whose primary responsibility is financial management and should address not only district policies and procedures, but also relevant federal and state procedures.

The committee also recommends that current staff, both from the finance staff as well as others who are involved in the management of district funds, should be involved in the development of such training policies.

The budget process is the foundation to, and an integral part of, the Board of Education’s strategy to exercise control and management of the district’s financial affairs. The committee reviewed the current budget processes and the financial reports the board uses to oversee the development and implementation of the district’s budget and also received presentations and explanations from the district’s financial staff. Following that review, the committee submits the following observations and recommendations:

• District funds are derived from three general sources: federal, state and local. The complex and demanding procedures and safeguards that accompany federal and state funding provide a measure of control and monitoring mechanisms. We encourage the Board to utilize these procedures and safeguards as part of its financial control strategy.
• Local funds, representing a very significant percentage of the district’s budget, however, are largely controlled by policies established by the board. Therefore, it is important that the board focus special attention on the controls and reporting of these funds.

Given the volume and complexity of these controls, the challenge to the board will be to implement processes that not only discharge its fiduciary obligations, but are internally consistent and as simple as possible to follow. It is important for the board to recognize that many members of the Board of Education, both now and in the future, as well as district staff, will not have financial backgrounds.

There are a variety of financial reports currently available within the district. All of them provide important and useful information, but some lack simplicity and internal consistency. For example, the reports include at least three groups of expenditure categories: state object codes, micro budget units (MBUs) and summary expenditure categories. The state object code requires expenditures to be categorized using a chart of hundreds of classifications. MBUs are a two-digit code that permits expenses to be differentiated into up to 100 categories. Lastly, the district uses 14 summary expenditure categories in its district-wide budget and in some reports.

Similarly, the fiscal year 2001 budget the committee reviewed contains 66 revenue sources, which for state and federal purposes must be maintained in separate accounts. However, the reports provided to the board and used by the financial staff use categories different from those used in the budget documents. Consequently, the board cannot easily compare the periodic reports to the approved budget. This significantly dilutes the effectiveness of the budget process and related reporting.

If there are valid reasons for having different formats of reporting and budgeting, this should be explained to the board and processes should be developed so that the board has documentation to track the district’s performance against approved budgets.

Expend Expend %age of

Other State

Federal

Local

Local Tuition

Other Funds

(Encumbrances could be shown separately or as part of the expenditures.)

• Local operating tax receipts
• Tuition tax receipts
• Technology matching funds
• State Division II funds
• State Division III equalization funds
• State Professional Development funds
• Technology block grant (0235)
• Technology funds (0831)
• CSCRP (Child Services Cost Recovery Project) funds
• Indirect costs (8910)

The committee inquired into the various financial reporting and management procedures used by the District. As a result of materials supplied by the staff and presentations by the current chief financial officer, the members of the committee felt they had a reasonable understanding of the nature of the current financial control policies. Ostensibly, the district follows the State Accounting Manual and, where applicable, federal funding requirements. What was not clear was the level of compliance or how the district measures compliance.

As a strategy of going forward in developing appropriate financial controls, it is time for the district to develop more pro-active, programmatic financial control mechanisms rather than relying on case-by-case directives that were, of necessity, reactive in nature. Accordingly, the committee recommends that the board begin developing an operating procedures manual that addresses a range of appropriate financial controls. The manual, which should be developed with the assistance and involvement of both the financial and operating staff, and under the direction and auspices of the board, should include:

• Day-to-day financial procedures employed in the district;

• A description and explanation of the financial reports used by the district (which shall follow the recommendations outlined in the budget process);

• Easy-to-understand procedures for the internal controls used in purchasing, requisitioning and approval of purchases;

• The internal controls for handling cash;

• A structure that outlines who has approval authority for any actions involving district funds, with appropriate controls, such as multiple signatures for transactions exceeding specified amounts;

• Procedures for establishing compliance with such policies;

• Such matters as gate receipts of district events and the purchase of small tools and supplies should receive special attention as procedures are written. While these represent a small percentage of district expenditures, by their nature, incorrect handling of such funds can have a disproportionate impact on the credibility of the district management;

• A code of conduct that clearly spells out such practices as use of district property for personal use, conflicts of interests, both real and apparent, and care and custody of district property.

As the Board of Education and administration take these steps to strengthen the district’s financial operations, they also have a unique opportunity to contribute to improving school budgeting and financial control procedures throughout the state.

To this end, we would suggest that the board seek an initiative to develop a model of excellence in financial management for the district. Such a project would involve borrowing successful concepts and procedures from other districts as well as examining national models for excellence in such matters. The objective of this effort should not be to mandate specific procedures, but rather to strive for excellence and avoid a reinvention of the wheel in the process.

The task force believes that such an initiative, especially if undertaken in collaboration with appropriate state associations or other school districts, would provide Brandywine with an opportunity to demonstrate its leadership and commitment to excellence in financial and fiduciary matters.

Conclusion

The task force commends the efforts of the Board of Education and the district staff for their efforts in the past year to address matters affecting school expenditures and their fiduciary roles. These have included the development of an inventory of major equipment, the various directives issued by the current financial officer and the convening of the task force. These are all steps that will serve the board and the district well in their pursuit of quality financial management. The recommendations of this committee are intended to be part of that pursuit.

We recognize that, in making our recommendations, we have presented the board with a comprehensive agenda. We realize it will take considerable time to implement these suggestions, and that there may be some recommendations that the board will choose not to pursue.

In conclusion, we would point out that it is important that the Board of Education focus carefully on those recommendations that it plans to adopt. We would recommend that the board commit to a timeline for implementation and to make periodic progress reports to residents of the district.

Further, in developing improved procedures, we urge the board to seek excellence in all respects, to adopt benchmarks against which to measure its performance, and to seek pragmatism as well as efficiency in all of its policies.

Financial Review Task Force

Committee Members

Co-Chair Stephan Lehm, P.E., P.L.S

Co-Chair J. Kent Riegel

Operating Budget

Chair Stephen Grimble

Vice President and University Treasurer, University of Delaware

John W. Collette

Executive Director, Delaware Foundation for Science and Mathematics

Education

Dr. Joseph K. Lees

JKLees Consulting Services

DuPont Co. (retired)

Dr. Dennis Loftus

School superintendent (retired)

Grace Messner

Cypress Capital Management (retired)

Building and Grounds (Capital Budget)

Chair Herbert L. Duffield, P.E.

President, Furlow Associates Inc.

Michael Berardi

President, Nason Construction

Edward Capodanno

Executive director, Associated Builders and Contractors

President, Claymont Community Center Board of Directors

Richard DiSabatino

President, EdiS

Financial Review

Chair Dr. James L. Spartz

Vice President for Academic Affairs, Wilmington College

Roger Levy

Vice President, Miller Furniture Industries

Council of Civic Organizations of Brandywine Hundred

Diana Moore

State auditor (retired)

John Wheeler

CPA, Wheeler, Wolfenden & Dwares, PA

Staff Liaisons

Victoria C. Gehrt, Ed.D.

Interim Superintendent

Donald C. Fantine Jr.

Assistant Superintendent of School Operations

Michael Shockley