The Oyster Bay-East Norwich Board of Education put aside its agenda on an update on ESL and opened the floor to discussion at the Tuesday, Jan. 8 work session for the administration to explain the recent critical audit report and to give residents ample time to speak. Board President James Robinson said, "We are all neighbors and friends, some sit on the board, and are responsible to look at all the details and facts. We are not here to defend the administration - we are taxpayers ourselves. I know there is a lot of anger out there. I received numerous phone calls."

Dr. Harrington explained that the NYS Comptroller Office Audit report was done as part of a plan to audit all the schools in the state over a period of five years. She said she disputed the auditor's claim that the administration acted with "intent and manipulation" and that they tried to mask their financial condition. Dr. Harrington said at that time, they were on a contingency budget and were working to "move forward the present budget." They cut the Special Ed budget and tried to reinstate clubs and extra curricular activities for the students. That was where the money went, she said. There were three major areas of spending: The state mandates meant they needed better computers; their phone system needed updating; and in the middle of the school year they were getting requests from the administrators to purchase things. Dr. Harrington said the state audit report said the Interim Assistant for Business wrote 70 purchase orders in one day. "That's a fair question," she said. "We agree that proper purchase order procedure was not followed, they were not sent out - we had to get good bids - the best bids to be fiscally sound." She said, "Every penny was spent on where it was going on the purchase orders."

Dr. Harrington added, "Now we are in a very solid place financially and extraordinarily strong."

Another issue brought up by the auditors was the school computer data system which the Assistant for Business accessed with multiple titles. That issue was addressed, she said and some things were changed and a new process is being developed for a data disaster incident.

Dr. Harrington added, "At no time was there an accusation of fraud or theft."

Board president Robinson introduced Assistant for Business Sydney Freifelder who said the state auditors came with a list of purchase orders they wanted information about. She said she wrote the purchase orders at one time but didn't send them out because they were looking for better prices. When a better cost was found, the purchase order was liquidated and a new one written to a new vendor. There was an existing bid for computers to be purchased through BOCES but Dell advised them to wait for a better deal. They did and it enabled the district to get three computers for the price of two.

Mr. Robinson opened the meeting to questions, reminding them of the three-minute maximum for speakers. The first two on the list, James Mooney and Bob Thornton, gave their time to Grace Searby. The first speaker was a member of the school's audit committee, Todd Gershon who was critical of the Newsday article on the audit; and the state auditors.

He said the auditors never checked to see if the purchase orders were used saying they said it took too much time. He added the state committee people are not trained auditors. He agreed the purchase order procedure used at that time was wrong, but that the money was spent on the students. He added, "At any of the board meetings, only Grace Searby and myself are here. You should come out and listen and learn," he said to the very large audience.

Resident Anita McDougall said that the district didn't return the money and reduce the budget increase is unacceptable. She said if the budget had been reduced "We would have applauded the board."

Grace Searby held a sheaf of papers in her hands as she thanked the men for giving her their time. She was critical of Ms. Freifelder. Ms. Searby said she checked the district status reports monthly and questioned the figures. "I sent a letter to the previous auditor, who left the district.

She also questioned money put into a Capital Reserve Fund. (Later Mr. Robinson explained that voters gave the board permission to create the fund which allows them - with voter permission - to fund a needed project without having to pay interest. The fund has a maximum amount of $10 million.) She held up papers and said she had followed the encumbrances. [The district had copies of the encumbrance trail showing the funds set aside for a purchase and the purchase they were used for, each was for the same type of item on the document.]

Ms. Searby concluded "We have a school board that is totally unaccountable."

Chris Reynolds with five kids in school and on the PTA agreed the past procedures "could be better done" but said, the money went to the children. She added she was proud that Lynbrook School District visited Vernon to see what is being done here.

Lisa Rozier said Dr. Harrington and Ms. Freifelder had difficult jobs. "I accept your explanation and appreciate the great district for my two children and appreciate everything you've done."

Tammy Moore, a Roosevelt Elementary School PTA co-president with Chris Reynolds, said, they met with Dr. Harrington and got answers from her. "I hope we can come together and end this," she said.

Rosemary Colvin, said while the money wasn't misspent the question is that the procedures weren't normal. Usually purchase orders are created by the supervisor or school principal. She asked, "Why did Ms. Freifelder write 70 purchase orders? It is an unusual way to generate a request for materials." As a retired district teacher, she said, "I don't understand writing purchase orders without a price. That is an impossibility. They shouldn't have been created." She said, as with a child, the best thing for the board to say is - we did something wrong, someone did something wrong and it is not going to happen again. "It was not done in the proper way. It is not going to happen again. No one thinks you are robbers and crooks, but it was not the way to go."

Ms. Freifelder said she did use prices on the purchase orders - but they were the prices available. "My concern was they were not fair bids and so I waited to place them." Ms. Colvin answered the procedure is to wait for a bid before the purchase order is written.

Ms. Freifelder answered, "The administration submitted the supplies and materials they needed and I encumbered them in my office. It was my decision."

Laurie Cutler, a PTA vice president, said the intent was to benefit the children. "We are here to support Dr. Harrington."

Betsy Klipera said, "There was no intent to fraud, but there was a lack of fiscal responsibility and we deserve an apology." She added that she was very happy with the district. She said there were times when she talked to teachers and administrators and was disappointed and added, "Our district can always improve and I hope it does."

Richard Cameron, said, "People are sensationalizing an accounting mistake." He said the district is safe and fiscally responsible and added Dr. Harrington is capable of running a large district and has a good understanding of business.

Resident Frank Tesoro said, "I work with BOCES and we're looked at as one of the good North Shore districts. I'm hearing a lot of things both positive and negative.

He said however the perception has political affects. "Things like this take a long time to go away. It is form over substance and will be with us for awhile." He said it was the parting of the ways between the older taxpayers and the newer residents. "This is not going to help the children."

Mr. Robinson commented, "It will take time."

Sheila Lieber said she agreed with Mr. Cameron saying "It is not an either/or situation. You don't have to commend or vilify the board. The truth lies in the center but you can't make it go away unless they admit a mistake was made. It's a matter of perception." She added, "The real damage has been done and I love the district."

Generro Pasquale said he was disturbed by the Newsday article but said the state Comptroller's auditors did their job. He commented on the issue of unauthorized use and access to the district's computers which meant someone could initiate and conceal an inappropriate transaction. He said Ms. Freifelder's titles include: acting clerk, record access officer, record manager, purchasing agent, opens bids, publishes reports, purchases bonds and invests funds. "That is too much for one person."

Dr. Harrington explained that Ms. Freifelder's numerous duties was because, "It is customary in this district that one person wears many hats." Mr. Robinson added, "It is a challenge we've been struggling with."

As to his question about the computer system, she said they have been upgrading and now there are numerous safeguards in place.

John Palmer, Esq. a former assistant district attorney and 40 years as a trial lawyer, said, "The question is intent, intent, intent. But intent is subjective."

He asked, "Was the intent to hide the surplus so you can get a larger increase in the budget?" He added, "The problem of intent and that's what you are stuck with."

Barbara Sullivan Barry said the key is prompt and full disclosure. "Disclose the information to the taxpayers and everything is cool."

Harriet Dorfman said "I come to most board meetings and if more people came, there would be no surprises." She said there is "spin" on both sides.

Terri Greenfield asked why the school was called out for this audit. She said she was glad Newsday wrote the story to let people know about it, but asked, "Why were we called out." She said there is a lack of confidence in elected and administrative officials. "That's why you need to answer questions," she said.

Dr. Harrington answered Ms. Greenfield saying the state audit process is to help districts. She said other districts had problems too. In the case of Oyster Bay, the money was spent where it was supposed to go, on the students.

She said this district spent the money on the students. As for the need for Newsday, she said the full audit report was available on the school's Internet site before the Newsday article came out. Dr. Harrington said the district didn't wait for the news to hit the media but acted on the issues right away.

Jeff Kaiser said, "I confess the accounting proved wonky but it opened us to attacks and controversy. It is important not to confuse erroneous accounting procedures as venal. It is shameful and unconscionable to malign school officials who are trying to do their best. And the underlying motive was to get the best purchases for the dollar."

Mr. Robinson let the board answer some of the questions brought up.

Board member Robin Dando said they had received the state's audit report in October/November and talked about it at a board meeting. She answered comments about using the fund balance to reduce the budget, she said, "You can't take funds from one budget and reduce the next budget. It is not legal."

Mr. Robinson added that that year the district returned $500,000 to taxpayers.

In response to Ms. Searby's comment that the funds put into the Capital Reserve Fund should be made more public he said, "This community supported creating the fund." He said when the Vernon School needed a roof, the $1 million came from that fund. He said it was just like a homeowner's fund so that you are not hit with costs out of one budget season. The district can add up to $2 million a year to the fund with a cap of $10 million.

Ms. Dando urged residents to come to the board meetings to see where the money is going.

Trustee Donald Zoeller thanked people for coming. He said, "We need your criticism maybe more than your praise." He said he was glad no one walked out before the discussion was over. He added although things were not done correctly, "we have to address it."

Keith Kowalsky addressed Mr. Palmer's comment saying, "Was there intent to hide?" He invited people to look at the spread sheet on the purchase orders. "There was no intent to hide money," he said.

That was when things heated up as a senior citizen who defended Mrs. Searby and accused the board of "making faces" as she spoke.

Ms. Harrington said, "I don't recall all the figures but time and time again we have proved that Mrs. Searby's facts are not correct."

Mr. Robinson added, "Mrs. Searby has raised some terrific questions over the years, but not facts. Questions were raised. Do we agree? Sometimes yes, sometimes no."

Ms. Dando said, "We are one community. We are not here to degrade anyone."

Ms. Searby took the floor again. She said, "My figures are accurate. They don't give correct information." She said $27,000 per student is horrific. She added that Mrs. Dorfman was wrong and said, "You are getting a private tutor for your Russian student that costs the district $40,000."

Someone yelled out "Liar."

Mr. Robinson said, "This is our community and as a board we're trying, but this is what we're dealing with. We have to have a conversation without accusations. I've heard slanderous remarks coming out."

He said there were two more people on the list to talk and added, "I have no idea what's coming."

Mr. Dorfman said he was angry, not at the board but at Newsday for saying there was an outcry for the resignation of the administration and only one person was quoted, Mrs. Searby. She has done us all a disservice."

Mr. Dorfman said he has no difficulties with the teachers and added his son gets treated well, that there are small classes and good teachers. He added that property values are related to the school district and "Because of Mrs. Searby and the 'yellow journalism' of Newsday that's going to take a hit on the reputation of the school district." He said the first question homebuyers ask is about the schools. "If you take a hit you will pay for the degradation of the school district," he said.

Roxanne Moadel-Attie said she read the three stories in Newsday and read the report and spoke to administrators. She said other schools have four or five people to cover the work of the Assistant for Business. But she said the board has to have better communications. In relations to Mrs. Searby's comment on the per pupil cost she said, "Because it's a small district each student has a high value. We have more extra curricular activities here for students than do the bigger districts. It's a good thing."

Mr. Robinson said, "On behalf of the board, Roxanne, you are the reason we are here. You give some praise, some criticism and are clear and consistent and we appreciate the communication."

Dr. Harrington ended the meeting saying the original agenda was an update on the ESL program by Ms. Pollicano so that will be put on the agenda again.