Agenda Package - 5-7-2012 Reg. Meeting

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G46 209 Fayetteville Street Mall ANN L. MAJESTIC THARRINGTON. P -o. tax "51 Raleigh, NC 27602 -1151 amajes lice that On gtonsmlth.com ATTORNEYS AT LAW September 20, 2011 Bill Tatum Finance Chair Lee County Board of Education 2511 Wellington Drive Sanford, North Carolina 27330 Dear Mr. Tatum You have asked me about a proposal by your county commissioners to conduct a "financial review" of the Lee County Schools. I have reviewed the Item Abstract for the upcoming September 19 commissioners' meeting relating to this topic. The abstract states that the County Manager and Commissioner Womack have reviewed the proposals received in response to an RFP and they are recommending that the commissioners approve Evergreen Solutions, LLC to conduct the "financial review of Lee County Schools and the performance audit of Lee County." Under state law, G.S. 115C- 429(c), the commissioners have the authority to call for "all books, records, audit reports and other information bearing on the financial operation of the local school administrative unit." Based upon this provision, I believe that the commissioners can request information required to conduct an independent financial review of the school district, and the school board would have a duty to provide these financial records. Judging by the Item Abstract for the September 19 meeting it appears that the commissioners are limiting thew proposed audit of the school district to a "financial review" as opposed to the proposed "performance audit" of the County. This is an appropriate and important distinction. The commissioners do not have the authority to conduct a general performance audit of the school district, as this exceeds the bounds of G.S. 1 I5C 429(c). While the information in the Item Abstract alone is reassuring, there are aspects of the supporting documentation that raise questions about the true purpose and scope of the proposed financial review of the school district. First, on the posted agenda the new business item on this subject is described as "consider bids for perfonrance audits for Board of Education and County Commissioners" — there is no distinction between the financial review of the schools and the performance audit of the county agencies. More telling is the Scoring Matrix prepared by Commissioner Womack The proposal by Ken Murray and Associates is criticized for "missing the thrust of the school financial review" because the focus is "purely on financial strategies." This raises questions about the intended scope of the proposed financial review. Likewise, the Cherry, Bekwt and Holland proposal is criticized for providing "no evidence of a complete public school review." This language suggests the proposed audit far exceeds a financial review. P 919.821.4711 F 919.829.1583 tharringtonsmith.com