The School Board of Escambia County, Florida, convened in Special Workshop Meeting at 1:05 p.m., in the Board Room at the Administrative Building, 215 West Garden Street, with the following present:

Chairman: Dr. Elmer Jenkins

Vice Chairman: Dr. John DeWitt

Members:

Mr. Jim C. Bailey

Mrs. Barbara Morris

Mrs. Vanette Webb

School Board Attorney: Mr. Louis F. Ray, Jr.

Superintendent of Schools: Mr. Jim May

I. CALL TO ORDER

The workshop was called to order at 1:05 p.m. by Chairman Jenkins.

II. ITEMS FROM THE SUPERINTENDENT

1. PRESENTATION: STRATEGIC PLANING

Ms. Pam Shelden, Director of Comprehensive Educational Planning, gave a history on Strategic Planning noting that as a result of the School Improvement Accountability Act of 1991, the District went to school-based management. It was also determined that a long-range Strategic Plan was needed. In spring 1994, after research was done on planning models and fundamentals of Total Quality Leadership (TQL), the U.S. Navy offered to become partners with the District, offering the assistance of TQL facilitators to help develop a Strategic Plan. Chief Warrant Officer Tim Bowlin was the main facilitator, with three other facilitators from Corry Station. The Strategic Planning team was comprised of senior level staff, as well as Mrs. Barbara Morris, who was then Chairman of the School Board, and Mr. Bob Husbands, Executive Director, Escambia Education Association. Before the first meeting, the TQL administrators conducted an interview with stakeholders and brought back a needs assessment. A three-day retreat was held in October 1994 for the team to review the planning documents including Blueprint 2000, the District technology implementation plan, pupil progression plan, and the dropout prevention plan, with the idea to put them into one concise document. Based on the six core values that had been endorsed by the Board, the group developed a missions statement, a vision statement, guiding principles, and eight District goals. Since that time, the Strategic

Planning team has met monthly to update and revise the Strategic Plan. A comprehensive progress report on the plan was distributed to employees in May 1997. During this school year the team has explored the concepts of total quality including the Baldrige criteria and other aspects of an integrated management system. In September the team participated in a two-day workshop presented by the Pinellas Quality Council on integrating systems for high performance, and after a follow-up workshop in February, the team endorsed four Strategic Aims:

1) highest student achievement; 2) safe learning and working environment; 3) high performing workforce; and 4) efficient and effective system. A workshop was also held on customer relations. Additional training meetings will be planned, and a District-wide survey will be developed for gathering input from stakeholders. Community members who have experience in Total Quality Management (TQM) have also become involved and have offered assistance to the District.

Mr. May presented an overview of integrated management system concepts. He asked for input from the Board as to who our customers are and Board Members responded the students, and secondly, the parents. The number one requirement that the customers (students) have is student achievement, and the number two requirement is student safety. Mr. May stated that if everyone working in the District aligns what they do with these priorities, there are going to be some major changes occurring in this District. Mr. May stated that he was going to ask that the Board allow him to set up a workshop on these concepts for presentation to the Board.

Mr. Ted Kirchharr, Director of Facilities Planning, discussed the importance of transitioning from the old Strategic Planning document to the new (August of 1997) plan, noting that employees are now starting to relate these principles to what they do every day in their jobs in order to meet customer requirements.

Ms. Arlene Costello, President, Escambia Education Association, discussed how collaborative bargaining fits into the Strategic Aims to produce a contract that is conducive to high student achievement, safe learning and working environment, high performing workforce, and efficient and effective operations.

Ms. Cathy Fell, Special Teacher Aide at Holm Elementary School, distributed copies of the ESP Collaborative Progress Report. She advised that the ESP units are working together in a collaborative effort with the District to resolve problems and identify solutions for employees. She expressed that everyone's job affects students in some way, and high performing employees need training and safe working conditions and that, in turn, will help with student achievement and efficient operations.

Ms. Nelda Segers, Principal, Escambia High School, introduced three new members of the Strategic Planning team including Becky Palmer, Washington High School, Nicole Rayner, Escambia High School, and Karen York, Woodham High School. She stated that she presented these ideas to the faculty regarding alignment and the number one goal of high student achievement, and that customer relations workshops have been conducted with Educational Support Personnel.

Mr. Steve Marcanio, Principal, Allie Yniestra Elementary School, reported that he had attended a "Koalaty" Kids Conference earlier this month, and that the American Society for Quality and Koalaty Kids have formed an alliance working together to get quality concepts and quality ideas into schools, specifically the classroom, with an emphasis on student achievement. He stated that several schools which implemented these concepts (aligned with the Baldrige criteria), reported significantly higher test scores. Mr. Marcanio concluded by saying that it is essential to obtain business and community support to assist with the training aspects that go along with this program, and the District already has a good program in place with Volunteer and Business Partnerships.

Dr. Pam Elliott, teacher at N. B. Cook Elementary School, discussed the importance of the Baldrige criteria and aligning activities in the classroom with the emphasis on promoting highest student achievement.

The following individuals were present representing the business community: Mr. John Tice, Chamber of Commerce; Mr. Rick Dye, AmSouth Bank; Mr. Joe Ochsner, Solutia; Mr. Mike Saxon, Gulf Power; Mr. Doug Kinsinger, Chamber of Commerce; Mr. Ernie Conner, Gulf Power; and Mr. Jim McKinley, Excellence in Leadership. Mr. Tice commented that they have had the opportunity to be a partner through the world class school system, which is a program sponsored by the Florida Chamber, and embraces the tenants of supportive communities and that businesses can be partners in going forward with customer focus. Mr. Joe Ochsner, Plant Manager for Solutia, and Mr. Ernie Connor, Gulf Power, President of the Florida Sterling Council, also expressed support of strategic planning.

Dr. DeWitt expressed that he was all for this proactive approach and he spoke in favor of going forward with the workshop. Mr. May stated that if the Board believes this is important to the improvement of the public school system in Escambia County, he would request that the Board allow him to set up a workshop for the Board on the Pinellas TQM model.

Mrs. Morris stated that she had the ability to serve with this group and that there had been drastic change in terms of different groups combining their efforts and working toward the same outcomes and initiatives to take care of children.

Mrs. Webb expressed that she did not feel that this was really at the ground level, but had already been occurring, and she discussed concerns as to obtaining input from teachers, bus drivers, and parents in the decision-making process. She questioned how these concepts were going to translate to the classroom.

Ms. Segers stated that she had been through some of the training, and it is going to be incumbent upon the high school, middle school, and elementary school principals to rethink the entire curriculum. She stated that she had advised the faculty that all of her decisions will be filtered through the question "does this promote highest student achievement"; and "does this contribute to a safe learning environment," in addition to the four aims.

Ms. Costello expressed that contract negotiations and contract language address excellence in teaching, and utilization of Baldrige criteria in setting goals and objectives will filter down to the classroom, the students, parents, and the community.

Mr. May emphasized the importance of the decision-making process on the part of everyone in the School District in terms of asking the question "how will this affect student achievement."

2. PRESENTATION: JAG/JFG - TOMMY TAYLOR/CARL LEITERMAN

Mr. Tommy Taylor, Director, Applied Technology and Adult Education, presented a video regarding JAG (Jobs for American Graduates)/JFG (Jobs for Florida's Graduates), which is a school-to-work transition program for at-risk youth. The program is a joint effort between business, government, education, labor, and community leaders and has demonstrated a 30% improvement in employment for this at-risk population based on national results. There have also been positive results with reduced dropout rates, improved academic achievement, reduced absentee rates, improved graduation rates, and improved employment and postsecondary enrollment rates. Mr. Carl Leiterman, Applied Technology, stated that the Department of Education had asked that four counties (Escambia, Duval, Orange, and Dade) pilot the program, and there is $1,000,000 in the education budget (for the four counties) for the first year. There will be two job specialists, with one to be located at Escambia High School and one at Pensacola High School to work with 25 to 40 of the most at-risk seniors. The District has been awarded a grant (with $50,000 up front seed money), to hire the job specialists pending Board approval of the positions. The job specialists will need to be hired this May in order to start working with guidance counselors, dropout prevention staff, and the business and employment community to establish the whole matrix that embraces the program. Upon inquiry from Dr. DeWitt, Mr. Leiterman commented that the new technical high school would be a good program for these students, particularly those who are interested in postsecondary vocational training.

3. UPDATE ON DISTRICT RESPONSE TO AUDIT REPORT - PATRICIA WASCOM/SAM SCALLAN

Mrs. Patricia Wascom, Comptroller, advised that the Board approved the Auditor General's Audit Report last month. Copies of the audit were provided to Board Members, and audit findings were reviewed as follows:

1) Budget Administration - The response was that the District will monitor projected expenditures (primarily salaries and benefits) more closely to ensure that they are budgeted in the correct functions, and a policy will be submitted to the Board in accordance with Section 237.02(G).

2) Student Fees - The auditor was concerned regarding instances where schools were charging fees to students, and the response was that although the District concurred that there may have been instances of fees charged to students, to resolve the issue, we undertook a study last fall in which all of the schools were requested to provide a summary of any charges that they were making to students. It was noted that the Department of Education will provide help when guidance is needed as to whether it constituted a fee or not. We were in the process of conducting the study before the auditors brought it to our attention, and we hope to have it resolved within a month.

3) Federal Title I Grant Funds - The School District of Washington County, which is the District of record for their area consortium, made a check payable to one of the schools, and the school deposited it directly into the internal account.

There was no indication on the check that it was Title I, which was an unusual occurrence and should not happen again. A meeting was held with the principals to emphasize the importance of this.

4) School Advisory Councils - It was noted that a policy addressing this matter is on the Board Meeting agenda for April 28, 1998. The state requirement is that 100% of the members be appointed by their peers. Mrs. Morris commented that she had expressed comments at a previous meeting, but would note that the School Board would have the authority to appoint members if the principal does not have the capacity they need, because it is very difficult on the middle and high school levels to get people to attend the meetings due to the percentage of meetings they have to attend. Mrs. Webb commented that she felt that the proposed policy conflicts with the Statute of delegated board authority and fails to follow the School District policy regarding committees. Ms. Pam Shelden stated that the committee that developed the revision fell under the purview of the Superintendent's committees, and the Board Attorney reviewed the revised language, which would bring it into compliance with legislation.

5) Panhandle Area Management (PAM) Consortium - The Auditor General had cited the District concerning the fact that the consortium did not have a composition that met the State Board of Administration guidelines. In June a new resolution will be addressed concerning participation in the consortium for 1998/99 and will reflect the appropriate composition. Mrs. Morris commented that every consortium throughout the state has been cited based on how they were set up.

6) Capital Construction - The auditor had said that the District needed to do a better job of monitoring construction activities and reporting results to the Board, as well as documenting the monitoring process. Concerning the process of determining whether there were liquidated damages and whether or not to assess those, Facilities is cognizant of cutoff dates vs. substantial completion and is working with the Accounting Department to design management reports to present to the Board periodically, which will resolve these two issues. Mrs. Webb inquired concerning the status of the extension on the ROTC building at Tate High School. Mr. Kirchharr stated that the additional 33 days involved 15 days for weather delays, 3 days relative to bomb threats, and 15 days for additional site work, and that had come to the Board through the change order process. He advised concerning punch list items, that there is a new form this month indicating final payment and the school signs off on it, as well as the architect, project manager, and Facilities staff before coming to the Board. Mr. Kirchharr stated that the Facilities web site can be accessed and provides information on the status of projects and facilities.

7) Student Fees, School Age Child Care Program - The District has several District-operated after care programs at schools, and the Auditor General found that there was a lack of separation of duties as far as collecting fees from parents. Oftentimes parents were paying late, which is considered a credit to an individual and there were some other internal control weaknesses. The Finance Department is working with Applied Technology to improve the procedures and internal controls.

8) Systems Maintenance Control - The first finding dealt with system main control and criticism that the programmers had access to live programs when they were making changes to the system, and they were not being given a copy of the programs to be put into a kept region where it could be monitored for changes. The initial response was that due to the limited budget, limited system size, and limited staff, we were unable to comply with that; however, in working with Technical Systems and Management Information, they are in the process of converting the systems over and the goal is to have all of the programs moved into the test region in compliance with the auditor's recommendation by January 1, 1999.

The second finding dealt with access controls for on-line purchasing subsystem and the fact that we were periodically purging the names or identities of the persons who were requisitioning goods and materials in the schools. We were also purging the names of the persons who were receiving merchandise in the schools, and that was a weakness in the internal control. To resolve that, the Budget Department and Accounts Payable send out a weekly report to the schools, with a cover letter listing on-line activities. They ask the principal or someone independent of the person who keyed in that receiving report or requisition to verify that those were legitimate orders, and that they should sign and date that and keep it in the files. The auditor had found that those files were not adequately maintained, so to resolve this finding, the Internal Auditing Department will add that step to its internal audit to verify that the reports are being signed and kept. Upon inquiry from Mrs. Morris, Mr. Scallan advised that the primary concern of the auditor would relate to a case such as a smaller elementary school where the secretary issues a requisition and also keys in the receipt and there is no separation of duties. To correct that, a weekly requisition report and weekly receiving report will go to the school.

9) Year 2000 Compliance - This is a finding that the Auditor General issued to almost every School District in the State of Florida to emphasize the importance of Year 2000 compliance and the importance of having a written plan. The District itself has been involved, MIS predominantly, to ensure that the programs and system are Year 2000 compliant. Facilities and Maintenance staff have also been involved, and all contracts have been amended for compliance and all new contracts are compliant. The District has a team with MIS that will work to have a complete Comprehensive Year 2000 Plan for the District and that is in process.

10) Self Insurance Program - The first finding involved Employee Benefit Trust Fund Disbursement, specifically that the District was not independently reviewing prescription drug claims and Internal Auditing will now be doing that as part of the audit program for the District. The other portion of the audit finding related to a requirement for third-party administrators to receive a letter (SAS 70) on auditing standards, which says that the third-party administrator should have an independent review of their internal control to ensure that they are handling everything properly for anyone using their agency. The third-party administrator has advised that the District should receive the SAS 70 letter within the next month.

11) Risk Management Trust Fund Disbursements - It was noted that this was easily corrected, and the checks are now returned to (or taken to) the Revenue Department for disbursement.

Mrs. Wascom concluded that the District has a good system of internal control, and although there were audit findings, staff does take the audit findings very seriously, and we are in the process of correcting them. The Auditor General will follow up and we will advise as to the status and they will test for that. It was noted that each year the Auditor General looks at a comprehensive area and may specifically address a particular area.

4. PRESENTATION - REPORT ON ESCAMBIA HIGH SCHOOL FIRE DAMAGE

Mr. Joe Bernard, Risk Management, reported that the initial claim was thought to be $40,000, but after a thorough examination, the amount was increased to $100,000 in accordance with the State Fire Marshall. Staff had gone to the site immediately and reported a problem with asbestos abatement and that was cleared out. In Room 129 the heat had caused warping of the beams and weakness of the concrete. Dr. Epperson reported that a structural engineer had assessed the damage and indicated some possible weakening of the structure itself, and as a precautionary measure, steel shoring was put in. The structural engineer said there was no real cause for concern. There was damage to some of the concrete block work and that will be replaced. Work will begin at the end of the school year to restore Room 129 and Room 130, and those rooms are blocked off until repairs can begin. It was noted that the hallway and cafeteria and the main lobby area were cleaned up as well. Chairman Jenkins asked if there were any leads as to the people responsible. Mr. Bernard said that there are numerous leads, and they are following up. The Fire Marshall has issued a $2500 reward. Mr. May stated that he believed that the people who are responsible will be caught, and we are going to recommend restitution for the damages.

III. ADJOURNMENT

There being no further business to come before the Board, the workshop adjourned at 3:12 p.m.

Attest:

Approved: