EDUCATION SERVICE DISTRICT

Press Release / September 22, 2009

Contact: Dave Novotney, 503-588-5330, dave.novotney@wesd.org

For Immediate Release

Willamette ESD Board finds substantial evidence to support allegations

SALEM - The Willamette ESD Board of Directors tonight directed their attorneys to inform Superintendent Maureen Casey that investigations have found "substantial evidence" to support employee allegations of fiscal improprieties and violation of the agency's personnel policies. The Board also asked their attorneys to provide counsel on appropriate disciplinary action, up to and including dismissal of Casey for cause. The Board is scheduled to meet, receive the legal analysis, and take action at 7 a.m. Friday.

The Board requested the investigations after two different complaints were filed by employees. Casey was placed on paid leave on June 25.

"I've read every word of the two reports. What I've read makes me sad and angry," WESD Board Chair Jack Stoops said. "At a time when WESD Board members and staff need to be focusing on educating our students and serving our school districts, we - along with parents and community members - instead are asking whether trust was misplaced." Willamette ESD provides special education, business services and other programs to 21 school districts in Marion, Polk and Yamhill counties.

"I understand that many people are frustrated by the amount of time it has taken to reach this point. You can count me as one of them," Stoops said. "Therefore, my desire to speak my mind tonight is tempered by the duty to protect WESD, its staff, and the students and schools we serve. But let me say this much. The board gets it. Our students, our staff and our districts deserve an ESD administration that is transparent, honest and kind. That is our goal and our promise."

Stoops said that Deputy Superintendent Dave Novotney will begin meeting with area superintendents and employee groups to discuss the Board's action. He also said that the Board intends to communicate with the employees who made the allegations, and to make the results of the investigations public.

In addition to its two investigations, the Board has also agreed to participate in a Secretary of State's audit of the ESD, which is already underway.

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For more background and information, please see the following documents:

• Statement from Willamette ESD Board Chair Jack Stoops

• Where was the Board of Directors?

• Where was Deputy Superintendent Dave Novotney?

• 2008-09 WESD Administrative Organizational Chart

Statement from Willamette ESD Board Chair Jack Stoops September 22, 2009

Tonight the board received the results of two investigations it requested. These investigations were conducted after employees alleged that Superintendent Maureen Casey violated Board personnel policies, and after alleged fiscal improprieties.

I've read every word of the two reports. What I've read makes me sad and angry.

At a time when WESD Board members and staff need to be focusing on educating our students and serving our school districts, we - along with parents and community members - instead are asking whether trust was misplaced.

Just like a board of directors of a private company, the WESD Board is by statute a policy -making board mandated with such duties as appointing and evaluating a superintendent, establishing goals for the ESD, adopting budgets and engaging a qualified audit firm. By policy, the superintendent is the chief executive officer. With a citizen volunteer board, the reliance on the superintendent is substantial and, until breached, trust is the key element of the Board and superintendent relationship. (For more information on this point, please see, "Where was the Board of Directors?") It is also important to note that both by policy and by practice, Deputy Superintendent Dave Novotney was excluded from the oversight of the Business Service operations. (For more information on this point, please see, "Where was Deputy Superintendent Dave Novotney? and the 2008-09 WESD Administrative Organizational Chart")

I understand that many people are frustrated by the amount of time it has taken to reach this point.

You can count me as one of them.

Not so long ago, personnel decisions were made at a different pace. But it is a different world today, and so the Board is challenged with balancing responsibilities to act with both prudence and haste. If we don't follow due process and the advice of our attorney, the Board would not only be irresponsible, but imprecise actions or imprudent words could result in legal consequences. The consequences of these missteps could literally take money out of critical WESD programs for students and schools.

Therefore, my desire to speak my mind tonight is tempered by the duty to protect WESD, its staff, and the students and schools we serve. But let me say this much. The board gets it. Our students, our staff and our districts deserve an ESD administration that is transparent, honest and kind. That is our goal and our promise.

Tonight we are moving forward. We have accepted the findings of these reports. The Board has directed our attorneys to inform Dr. Casey that we have substantial evidence to uphold most portions of the employee complaints. We have asked our attorneys to advise the Board on appropriate disciplinary alternatives, up to and including dismissal for cause. The Board plans to reconvene Friday at 7 a.m. to consider the legal analysis and take action.

In the meantime, we are committed to being accountable and transparent. Our intention is to provide information to the public as soon as possible while protecting resources dedicated to serving students and schools. So, tomorrow morning, Deputy Superintendent Dave Novotney will begin meeting face-to-face with superintendents of districts served by WESD, WESD union leadership and WESD employee groups to discuss tonight's action. Over the next two weeks, Deputy Superintendent Novotney and the Board will continue to work through the legal issues associated with this case. We must respond to the two employees who made the allegations. And, to the greatest extent we legally can, we must also make the investigation results public.

We ask for your continued patience and trust as we work through this very challenging time.

WHERE WAS THE BOARD OF DIRECTORS?

Just like a board of directors of a private company, the board of directors ofWESD is a policy making board, both by statute, ORS 334.125, and by WESD policy BBA. The Board is mandated to appoint a Superintendent, evaluate the Superintendent and establish goals for the ESD.

The ESD Board is required to oversee the ESD's financial affairs by authorizing, appropriating and adopting budgets, proposing tax levies and provide for the operation of the ESD in adopting, funding and implementing Local Service Plans in accordance with statute and policy, and engaging an audit firm on the municipal audit list to perform a financial audit in accordance with audit standards ..

By WESD policy BCD, the Superintendent is the chief executive officer who directs the execution of Board decisions and is authorized to implement procedures to effect the Board policies and direction. With a citizen volunteer board, the reliance on the Superintendent is substantial, and until breached the trust is the key element of the Board Superintendent relationship.

The WESD Board did specifically engage a listed financial audit firm, Boldt, Carlisle and Smith CPAs to perform financial audits of the WESD financial accounts annually. Unfortunately, the reports of the audit firm were not provided by the auditors, but by WESD personnel, who are no longer employed due to retirement. This is a lesson learned for this Board and all Boards-the need to have the outside eyes and a full explanation of all of the reports is an essential function of the Board function.

Additionally, the need to cross check and challenge the single source of information by other educators, such as an empowered deputy superintendent is essential to the oversight function of the Board.

Where was Deputy Superintendent Dave Novotney?

Under Willamette ESD Board Policy CB, the Superintendent is the Chief Executive Officer and has the responsibility for the supervision of all ESD programs, services and personnel. The Superintendent has the authority to delegate to other ESD personnel any powers and duties imposed upon the Superintendent.

The Superintendent and Board Policy CC, designated the administrative organization for the Willamette ESD (please see the attached 2008-09 WESD Administrative Organizational Chart). Specifically, the Superintendent kept supervisory duties over the Business Services Department, to the exclusion of the Deputy Superintendent Dave Novotney. Both by policy and by practice, the Superintendent excluded the Deputy Superintendent from the oversight of the Business Services operations.

It was not until the complainants approached Dr. Novotney, as the Human Resources Director, about their concerns was there any indication of accounting issues with Willamette ESD. When notified, Dr. Novotney initiated contact with the Board Chair, in accordance with Willamette ESD Board Policy GBNA and GBM.

EDUCATION SERVICE DISTRICT

Organizational Chart: 2008 .... 09

Dave Novotney, Ph.D.

Deputy Superintendent

Human Resources

Glen Fielding, Ph.D.

Curriculum,

Rick Hanson Instructional Services

Irene Fernandez Migrant Education Service

David McKay Project Solutions Group

Leslie Golden Information Services

Kathy Campbell Business Services

Tina L Garcia Region 16 Services

Ann O'Connell Special Programs