BOARD OF EDUCATION CINCINNATI, OHIO PROCEEDINGS

Transcription

1 August BOARD OF EDUCATION CINCINNATI, OHIO PROCEEDINGS SPECIAL MEETING August 23, 2010 Table of Contents Roll Call Recess into Executive Session Adjourn from Recess

2 August SPECIAL MEETING The Board of Education of the City School District of the City of Cincinnati, Ohio, met in special session pursuant to notice by the Treasurer in the Board Office at the Cincinnati Public Schools Education Center, 2651 Burnet Avenue, Monday, August 23, 2010 at 6:05p.m., President Reed in the chair. The pledge to the flag was led by President Reed. ROLL CALL Present: Members Bates, Bolton, Ingram, Nelms, Parker, White, President Reed (7) Member Parker arrived at 6:53 p.m. Superintendent Ronan was present. RECESS INTO EXECUTIVE SESSION Ms. Ingram moved and Mrs. White seconded the motion that the Board recess into executive session at 6:08 p.m. to consider Sale Of Property At Competitive Bidding; Employment Of A Public Employee Or Official; And Preparations For Conducting Or Reviewing Negotiations Or Bargaining Sessions With Public Employees Concerning Compensation Or Other Terms And Conditions Of Their Employment. Ayes: Members Bates, Bolton, Ingram, Nelms White, President Reed (6) Noes: None President Reed declared the motion carried. ADJOURN FROM RECESS The Board adjourned from Executive Session at 6:58 p.m. Jonathan L. Boyd Treasurer/CFO

3 August BOARD OF EDUCATION CINCINNATI, OHIO PROCEEDINGS REGULAR MEETING August 23, 2010 Table of Contents Roll Call Minutes Approved Presentations Hearing the Public TABLED - A Resolution Directing the Cincinnati Public Schools Administration to Contractually Prohibit Contractors on Facilities Master Plan (FMP) Projects from Working on Martin Luther King Jr. Holiday A Resolution to Transfer Property Located at Grover Avenue, Cincinnati, OH A Resolution Appointing an Official Delegate to Ohio School Boards Association 2010 Capital Conference A Revised Resolution Expressing an Intent to Award Construction Contracts for Main Bid Packages and Authorizing the President and the Treasurer to Enter into Said Contracts upon Compliance with All Conditions Precedent Related to Mt. Washington School Renovations PULLED - A Resolution Expressing an Intent to Award Construction Contract for Bid Package #8; Loose Furnishings and Authorizing the President and the Treasurer to Enter into Said Contract upon Compliance with All Conditions Precedent Related to Robert A. Taft High School Action Motion 128 Internal Auditor s Workplan FY Audit Committee Written August 12, Finance Committee Written August 18, Committee of the Whole Written August 18, Report of the Superintendent Revised Recommendations of the Superintendent of Schools 1. Certificated Personnel Civil Service Personnel Purchase Property At 1620 And 1630 Main Street, Cincinnati, Ohio For Rothenberg School Approval of the tentative agreement between the Cincinnati Board of Education and Local 232, Ohio Council 8, AFSCME, AFL-CIO

4 August PROCEEDINGS REGULAR MEETING August 23, 2010 Table of Contents (cont.) Report of the Treasurer 1. Agreements with Consultants Receipt of Grant from the Ohio Department of Education Receipt of Grant funds from the Ohio Department of Education Addendum #2 To Receipt Of Grant And Agreement With CAA-Head Start Federal Receipt of a Donation from Abitibi-Consolidated Corp Receipt of Donation from Lifetouch National School Studios Receipt of Donation from Xavier University Place Matters! Agreement with Project GRAD Cincinnati Agreement with ProSource, Inc Amendment to Agreement with Srisys, Inc Board Member Service Fund Receipts Payment for Legal Services from General Fund General Counsel s Office Payment for Legal Services from Building Fund 4 (LFI) Payment for Consultant Services from General Fund Treasurer s Office Agreement with Hanover Research Agreement with PSI Affiliates, Inc Agreement with Hamilton County Educational Service Center (HCESC) Agreement with Hamilton County Educational Service Center (HCESC) Award Of Purchase Orders PULLED - Award Of Contracts Loose Furnishings for R. A. Taft Information Technology High School Award Of Contracts Renovation of Mt. Washington School For Board Information 23. Agreements with Consultants Agreements with Consultants Late Request Other Business Assignment Adjournment

5 August REGULAR MEETING The Board of Education of the City School District of the City of Cincinnati, Ohio, met pursuant to its calendar of meetings in the Rosa E. Blackwell Interactive Learning Center at the Cincinnati Public Schools Education Center, 2651 Burnet Avenue, Monday, August 23, 2010 at 7:03 p.m., President Reed in the chair. The pledge to the flag was led by President Reed. ROLL CALL Present: Members Bates, Bolton, Ingram, Nelms, Parker, White, President Reed (7) Absent: None Superintendent Ronan was present. MINUTES APPROVED Mr. Parker moved that the minutes of the following meetings be approved without reading, copies of said minutes having been distributed to members and made available to the public and news media on August 23, Special Meeting August 9, 2010 Regular Public Meeting August 9, 2010 Mrs. Bates abstained. Passed viva voce. President Reed declared the motion carried. PRESENTATIONS 1. Elementary Initiative Results Mary Ronan, Superintendent 2. Teaching American History Grant Carolyn Pedapati, Curriculum Manager, Social Studies HEARING THE PUBLIC The following persons addressed the Board regarding the topics indicated: Dr. Odell Owens Marcia Futel Rolanda Smith Marche Denson Greg Landsman Dr. Ronald Jackson Cathy McNair Jane Keller Joy Roland-Oba Negotiations Negotiations Negotiations Negotiations Negotiations Negotiations Negotiations Negotiations Transportation

6 August HEARING THE PUBLIC (cont.) West Munzel Beth Munzell Ann Troyer Chris Burjer Peter Ashland Jennifer Schnizer Sharon Silver Brian Phalen Jennifer Hughes Time allotted for student lunch. Time allotted for student lunch. Time allotted for student lunch. Time allotted for student lunch. Time allotted for student lunch. Time allotted for student lunch. Time allotted for student lunch. Time allotted for student lunch. Time allotted for student lunch. The following Resolution was tabled until the September 13, 2010 Board Meeting. A RESOLUTION DIRECTING THE CINCINNATI PUBLIC SCHOOLS ADMINISTRATION TO CONTRACTUALLY PROHIBIT CONTRACTORS ON FACILITIES MASTER PLAN (FMP) PROJECTS FROM WORKING ON MARTIN LUTHER KING JR. HOLIDAY WHEREAS, the Cincinnati Public Schools (hereinafter called the School District ), County of Hamilton, Ohio is planning, bidding and awarding construction contracts as part of its Facilities Master Plan (FMP) and related to its Ohio School Facilities Commission (hereinafter called the Commission ) Accelerated Urban School Building Assistance Program (hereinafter called the Project ); WHEREAS, the Commission and School District FMP Project Construction Contracts currently recognize Martin Luther King Jr. Day on the third Monday in January as a legal holiday under General Conditions subparagraph and said Holiday is one of the holidays excluded from standard workdays on Commission and School District Projects generally under GC paragraph 6.1.3; and WHEREAS, some School District FMP Project Contractors have still worked on the Martin Luther King Jr. Holiday despite the fact that said Holiday is legal holiday and not a standard workday under GC paragraph and subparagraph NOW, THEREFORE, BE IT RESOLVED, by the Board of Education, that after careful consideration and evaluation of the information before it: Section 1: Subject to Commission approval, the Administration is hereby directed to include up front as part of the Contract Documents on new FMP Project Contractor Contract awards, and add to ongoing said Contractor Contracts as a Change Order, the contractual requirement that Contractors doing work pursuant to said awarded FMP Project Contracts must recognize Martin Luther King Jr. Holiday as a legal holiday and not a standard workday at no cost to the School District under GC paragraph and subparagraph and are prohibited from working on said Martin Luther King Jr. Holidays. Section 2. The Board of Education hereby finds and determines that all formal actions relative to the adoption of this resolution were taken in an open meeting of this Board of Education, and that all deliberations of this Board of Education and of its committees, if any, which resulted in formal action, were taken in meetings open to the public, in full compliance with applicable legal requirements, including Section , ORC. Section 3. This resolution shall be in full force and effect from and immediately after its adoption and shall supercede any prior resolution or act of this Board of Education, which may be inconsistent or duplicative with the provisions of this resolution. A. Chris Nelms

7 August A RESOLUTION DIRECTING THE CINCINNATI PUBLIC SCHOOLS ADMINISTRATION TO CONTRACTUALLY PROHIBIT CONTRACTORS ON FACILITIES MASTER PLAN (FMP) PROJECTS FROM WORKING ON MARTIN LUTHER KING JR. HOLIDAY (cont.) Mr. Parker moved and Mrs. Bates seconded the motion to table the Resolution Directing The Cincinnati Public Schools Administration To Contractually Prohibit Contractors On Facilities Master Plan (FMP) Projects From Working On Martin Luther King Jr. Holiday until the September 13, 2010 Board Meeting. Ayes: Members Bates, Ingram, Parker, White, President Reed (5) Noes: Bolton, Nelms (2) President Reed declared the motion carried. A RESOLUTION TO TRANSFER PROPERTY LOCATED AT GROVER AVENUE, CINCINNATI OH WHEREAS, the Board of Education of the City School District of the City of Cincinnati (the Board of Education ) owned real property known as the Swifton Primary School ( Swifton ) located at 5771 Rhode Island Avenue, Cincinnati OH and owns real property, a parcel, number 119-0A , located at Grover Avenue, Cincinnati OH (the Parcel ); and WHEREAS, RCCG Dominion Center, an Ohio not-for-profit corporation ( RCCG ), purchased Swifton on June 23, 2009; and WHEREAS, both a 2005 survey and a 2005 title exam utilized in the Sale did not include the Parcel, which comprised a portion of the Swifton site, and WHEREAS, the Board of Education has determined that the Parcel should have been transferred to RCCG; and NOW THEREFORE BE IT RESOLVED, that the Cincinnati Board of Education hereby approves the transfer of the Parcel to RCCG; and BE IT FURTHER RESOLVED, that the Cincinnati Board of Education President and Treasurer are hereby authorized, directed, and empowered, in the name and on behalf of the Cincinnati Board of Education, to take all actions necessary or appropriate to transfer the Parcel to RCCG; and BE IT FINALLY RESOLVED, that the Cincinnati Board of Education President and Treasurer are hereby authorized, directed, and empowered to execute, deliver, and record, in the name and on behalf of the Cincinnati Board of Education, any and all other instruments and documents as may be deemed by the President and Treasurer necessary or appropriate to transfer the Parcel, with such changes and additions as the President and the Treasurer executing the same shall approve. Melanie Bates Mrs. Bates moved and Ms. Bolton seconded the motion that the Resolution To Transfer Property Located At Grover Avenue, Cincinnati Oh be approved. Ayes: Members Bates, Bolton, Ingram, Nelms, Parker, White, President Reed (7) Noes: None President Reed declared the motion carried.

8 August A RESOLUTION APPOINTING AN OFFICIAL DELEGATE TO OHIO SCHOOL BOARDS ASSOCIATION 2010 CAPITAL CONFERENCE WHEREAS, the Constitution of the Ohio School Boards Association (OSBA) provides that membership in the OSBA shall be open to all public school boards in Ohio; and WHEREAS, each member board of education shall be entitled to appoint one of its members as a delegate to the annual meeting, with power to vote as an official delegate; NOW, THEREFORE BE IT RESOLVED, That the Cincinnati Board of Education appoints Vanessa Y. White as its official delegate and Eve Bolton as the official alternate to the OSBA 2010 Capital Conference. Catherine D. Ingram Ms. Ingram moved and Mr. Nelms seconded the motion that the Resolution Appointing an Official Delegate to Ohio School Boards Association 2010 Capital Conference be approved. Ayes: Members Bates, Bolton, Ingram, Nelms, Parker, White, President Reed (7) Noes: None President Reed declared the motion carried. REVISED RESOLUTION EXPRESSING AN INTENT TO AWARD CONSTRUCTION CONTRACTS FOR MAIN BID PACKAGES AUTHORIZING THE PRESIDENT AND THE TREASURER TO ENTER INTO SAID CONTRACTS UPON COMPLIANCE WITH ALL CONDITIONS PRECEDENT RELATED TO MT. WASHINGTON SCHOOL RENOVATIONS WHEREAS, the Board of Education of the Cincinnati Public Schools (hereinafter called the "Board of Education"), County of Hamilton, Ohio, approved a Detailed Estimate of Construction Cost and draft Construction Documents for Main Bid Packages (hereinafter called the "Bid Packages") related to Mt. Washington School Renovations (hereinafter called the portion of the "Project") and authorized the commencement of the bidding process, including the advertisement for bids, contingent on approval of the Construction Documents by the Ohio School Facilities Commission (hereinafter called the "Commission"), and all pursuant to applicable laws, including but not limited to, Sections 7.12, 9.31, 9.311, , , , , to , , and , ORC; WHEREAS, the Board of Education has complied with all prerequisites of entering into contracts for said Bid Packages, including, if applicable, any procedures for disposing of real property required by Section , ORC; WHEREAS, the Board of Education has appointed certain authorized representatives (hereinafter called the "Authorized Representatives") to act on its behalf during the planning, bidding, award and construction phases of the portion of the Project; WHEREAS, Turner/DAG/TYS (hereinafter called the "Construction Manager"), with the assistance of Moody Nolan, Inc. (hereinafter called the Architect ), and the Board of Education's Authorized Representatives, commenced the bidding process for said Bid Packages; WHEREAS, the Construction Manager, with the assistance of the Architect and the Authorized Representatives, held a Pre-Bid Conference for prospective bidders wherein prospective bidders were briefed on said Bid Packages;

9 August REVISED A RESOLUTION EXPRESSING AN INTENT TO AWARD CONSTRUCTION CONTRACTS FOR MAIN BID PACKAGES AUTHORIZING THE PRESIDENT AND THE TREASURER TO ENTER INTO SAID CONTRACTS UPON COMPLIANCE WITH ALL CONDITIONS PRECEDENT RELATED TO MT. WASHINGTON SCHOOL RENOVATIONS (cont.) WHEREAS, the Treasurer, on behalf of the Board of Education, with the assistance of the Architect, received sealed bids at the time and place established for the receipt of bids for said Bid Packages in the Notice to Bidders and opened and read aloud said bids immediately thereafter in compliance with paragraphs IB 3.1 and 3.2; WHEREAS, the Treasurer and Construction Manager, with the assistance of the Architect and Authorized Representatives, have tabulated the bids received and advised the Board of Education and the Commission on the acceptance or rejection of any or all bids, Alternates and budget considerations; WHEREAS, the Treasurer and Construction Manager, with the assistance of the Architect and Authorized Representatives, have reviewed all bids received for the Bid Packages and conducted a responsibility investigation of the apparent low Bidders in compliance with paragraph IB 3.5 and Sections , (A)(6) and , ORC, and any other authorizing provisions of law; and NOW, THEREFORE, BE IT RESOLVED, by the Board of Education that after careful consideration and evaluation of the information before it: Section1. Subject to the approval of the Commission, the Board of Education hereby accepts the recommendation of the Authorized Representatives, Construction Manager and Architect to award the Base Bids and any Alternates for said Bid Packages for the portion of the Project to the Bidders as provided below as the lowest responsible Bidders in compliance with paragraph IB 3.5 and Sections (A)(6) and , ORC, and any other authorizing provisions of law, contingent upon compliance with all conditions precedent to contract execution under paragraph IB 7.3: Bid Package Lowest Responsible Bidder #2; General Trades B.L. Spille Construction, Inc. Base Bid $6,900, Alternate: Non-Flat Ceiling System 87, Total $6,987, #3; Plumbing GM Mechanical, Inc. Base Bid $995, Alternate: None -0- Total $995, #4; Fire Protection Emerald Fire Protection, LLC $215, Alternate: None -0- Total $215, #5; HVAC Blau Mechanical, Inc. Base Bid $1,114, Alternate: None -0- Total $1,114,000.00

10 August REVISED A RESOLUTION EXPRESSING AN INTENT TO AWARD CONSTRUCTION CONTRACTS FOR MAIN BID PACKAGES AUTHORIZING THE PRESIDENT AND THE TREASURER TO ENTER INTO SAID CONTRACTS UPON COMPLIANCE WITH ALL CONDITIONS PRECEDENT RELATED TO MT. WASHINGTON SCHOOL RENOVATIONS (cont.) Section 2. Subject to the approval of the Commission, the Board of Education hereby authorizes the Construction Manager, on its behalf, to forward Notices of Intent to Award Contract for said portion of the Project in compliance with paragraph IB 3.7, with the appropriate Contract Forms, to the lowest responsible Bidders referenced in Section 1. The Construction Manager shall simultaneously notify the surety and agent of the surety of said lowest responsible Bidders of the intent to award pursuant to Section 9.32, ORC. Section 3. Subject to the approval of the Commission and Board of Education construction counsel, and upon compliance with all conditions precedent to Contract execution under paragraph IB 7.3, the Board of Education hereby authorizes the President and Treasurer to sign said Contracts. Section 4. Subject to the approval of the Commission, the Board of Education hereby authorizes the Treasurer to sign the Certificate of Funds, upon execution of said Contracts, and attach to each of said Contracts a copy thereof, along with a copy of this resolution. The Construction Manager is then directed to forward the executed Contracts to the Commission for approval. Section 5. Subject to the concurrence of the Commission, the Board of Education hereby authorizes the Construction Manager, at a time determined appropriate by the Construction Manager, after the Construction Manager's receipt of said Contracts signed by the Contractors, to forward a Notice to Proceed for said Contracts in compliance with paragraph IB 7.4. Section 6. Subject to the approval of the Commission, the Board of Education hereby authorizes the Treasurer, at the appropriate time and with the assistance of the Board of Education construction counsel, to prepare, and make available upon request, a Notice of Commencement pursuant to Section , ORC, prior to the performance of any work related to said Contracts. Section 7. This Board of Education hereby finds and determines that all formal actions relative to the adoption of this resolution were taken in an open meeting of this Board of Education; and that all deliberations of this Board of Education and of its committees, if any, which resulted in formal action, were taken in meetings open to the public, in full compliance with applicable legal requirements, including Section , ORC. Section 8. This resolution shall be in full force and effect from and immediately after its adoption shall supersede any prior resolution or act of this Board of Education, which may be inconsistent with or duplicative of the provisions of this resolution. Melanie Bates Mrs. Bates moved and Ms. Ingram seconded the motion that the Revised Resolution Expressing An Intent To Award Construction Contracts For Main Bid Packages Authorizing The President And The Treasurer To Enter Into Said Contracts Upon Compliance With All Conditions Precedent Related To Mt. Washington School Renovations be approved. Ayes: Members Bates, Bolton, Ingram, Nelms, Parker, White, President Reed (7) Noes: None President Reed declared the motion carried.

11 August Pulled from consideration. A RESOLUTION EXPRESSING AN INTENT TO AWARD CONSTRUCTION CONTRACT FOR BID PACKAGE #8; LOOSE FURNISHINGS AND AUTHORIZING THE PRESIDENT AND THE TREASURER TO ENTER INTO SAID CONTRACT UPON COMPLIANCE WITH ALL CONDITIONS PRECEDENT RELATED TO ROBERT A. TAFT HIGH SCHOOL WHEREAS, the Board of Education of the Cincinnati Public Schools (hereinafter called the "Board of Education"), County of Hamilton, Ohio, approved a Detailed Estimate of Construction Cost and draft Construction Documents for Bid Package #8; Loose Furnishings (hereinafter called the "Bid Package") related to the Robert A. Taft High School (hereinafter called the portion of the "Project") and authorized the commencement of the bidding process, including the advertisement for bids, contingent on approval of the Construction Documents by the Ohio School Facilities Commission (hereinafter called the "Commission"), and all pursuant to applicable laws, including but not limited to, Sections 7.12, 9.31, 9.311, , , , , to , , and , ORC; WHEREAS, the Board of Education has appointed certain authorized representatives (hereinafter called the "Authorized Representatives") to act on its behalf during the planning, bidding, award and construction phases of the portion of the Project; WHEREAS, Turner/DAG/TYS (hereinafter called the "Construction Manager"), with the assistance of Voorhis, Slone, Welsh & Crossland (hereinafter called the "Architect") and the Board of Education's Authorized Representatives, commenced the bidding process for said Bid Package; WHEREAS, the Construction Manager, with the assistance of the Architect and Authorized Representatives, held a Pre-Bid Conference for prospective bidders wherein prospective bidders were briefed on said Bid Package; WHEREAS, the Treasurer, on behalf of the Board of Education and with the assistance of the Architect, received sealed bids at the time and place established for the receipt of bids for said Bid Package in the Notice To Bidders and opened and read aloud said bids immediately thereafter in compliance with paragraphs IB 3.1 and 3.2; WHEREAS, the Treasurer and Construction Manager, with the assistance of the Architect and Authorized Representatives, have tabulated the bids received and advised the Board of Education and the Commission on the acceptance or rejection of any or all bids, Alternates and budget considerations; WHEREAS, the Board of Education has complied with all prerequisites of entering into a contract for said Bid Package, including, if applicable, any procedures for disposing of real property required by Section , ORC; WHEREAS, the Board of Education has complied with all prerequisites of entering into contract for said Bid Package, including, if applicable, any procedures for disposing of real property required by Section , ORC; and WHEREAS, the Treasurer and Construction Manager, with the assistance of the Architect and Authorized Representatives, have reviewed all bids received for the Bid Package and conducted a responsibility investigation of the apparent low Bidder in compliance with paragraph IB 3.5 and Sections , (A)(6) and , ORC, and any other authorizing provisions of law; and NOW, THEREFORE BE IT RESOLVED, by the Board of Education that after careful consideration and evaluation of the information before it:

12 August A RESOLUTION EXPRESSING AN INTENT TO AWARD CONSTRUCTION CONTRACT FOR BID PACKAGE #8; LOOSE FURNISHINGS AND AUTHORIZING THE PRESIDENT AND THE TREASURER TO ENTER INTO SAID CONTRACT UPON COMPLIANCE WITH ALL CONDITIONS PRECEDENT RELATED TO ROBERT A. TAFT HIGH SCHOOL (cont.) Section 1. Subject to the approval of the Commission, the Board of Education hereby accepts the recommendation of the Authorized Representatives, Construction Manager and Architect to award the Base Bids and any Alternates for said Bid Package for the portion of the Project to the Bidder as provided below as the lowest responsible Bidder in compliance with paragraph IB 3.5 and Sections (A)(6) and , ORC, and any other authorizing provisions of law, contingent upon compliance with all conditions precedent to contract execution under paragraph IB 7.3: Bid Package Lowest Responsible Bidder #8; Loose Furnishings Tom Sexton & Associates, Inc. Base Bid $195, Alternate: None Total $195, Section 2. Subject to the approval of the Commission, the Board of Education hereby authorizes the Construction Manager, on its behalf, to forward Notices of Intent to Award Contract for said portion of the Project in compliance with paragraph IB 3.7, with the appropriate Contract Forms, to the lowest responsible Bidder referenced in Section 1. The Construction Manager shall simultaneously notify the surety and agent of the surety of said lowest responsible Bidder of the intent to award pursuant to Section 9.32, ORC. Section 3. Subject to the approval of the Commission and Board of Education construction counsel, and upon compliance with all conditions precedent to Contract execution under paragraph IB 7.3, the Board of Education hereby authorizes the President and Treasurer to sign said Contract. Section 4. Subject to the approval of the Commission, the Board of Education hereby authorizes the Treasurer to sign the Certificate of Funds, upon execution of said Contract, and attach to said Contract a copy thereof, along with a copy of this resolution. The Construction Manager is then directed to forward the executed s to the Commission for approval. Section 5. Subject to the concurrence of the Commission, the Board of Education hereby authorizes the Construction Manager, at a time determined appropriate by the Construction Manager, after the Construction Manager's receipt of said Contract signed by the Contractor, to forward a Notice to Proceed for said Contract in compliance with paragraph IB 7.4. Section 6. Subject to the approval of the Commission, the Board of Education hereby authorizes the Treasurer, at the appropriate time and with the assistance of the Board of Education construction counsel, to prepare, and make available upon request, a Notice of Commencement pursuant to Section , ORC, prior to the performance of any work related to said Contract. Section 7. This Board of Education hereby finds and determines that all formal actions relative to the adoption of this resolution were taken in an open meeting of this Board of Education; and that all deliberations of this Board of Education and of its committees, if any, which resulted in formal action, were taken in meetings open to the public, in full compliance with applicable legal requirements, including Section , ORC. Section 8. This resolution shall be in full force and effect from and immediately after its adoption shall supersede any prior resolution or act of this Board of Education, which may be inconsistent with or duplicative of the provisions of this resolution. Eve Bolton

13 August ACTION MOTION 128 Internal Audit Plan FY WHEREAS, on February 23, 2009, The Cincinnati Board of Education hired an Internal Auditor to provide an independent and objective analysis of the business processes, procedures and activities of the District in order to identify and report to the Board on operational and financial risks that could adversely affect the operations and stated goals and objectives of the District; and WHEREAS, the Finance Committee and the Audit Committee met on August 12, 2010 and reviewed and agreed with the Internal Audit Plan for FY ; and WHEREAS, the Internal Audit Plan outlines internal audit engagements for the fiscal year. NOW THEREFORE BE IT RESOLVED, That the Cincinnati Board of Education accepts the Internal Audit Plan for FY and Internal Audit Engagements as outlined in the plan. See attachment 648 a.-648 i. Cincinnati Board of Education Ms. Ingram moved and Mrs. Bates seconded the motion that the Action Motion 128 Internal Audit Play FY be approved. Ayes: Members Bates, Bolton, Ingram, Nelms, Parker, President Reed (6) Noes: None President Reed declared the motion carried. Mrs. White had stepped out of the meeting for approximately 5 minutes and then returned to the meeting.

14 August a Cincinnati Public Schools Internal Audit Plan 2011 Fiscal Year Purpose: This document outlines the internal audit engagements to be included in the annual Internal Audit Plan (IAP) for Cincinnati Public Schools. A risk-based methodology was utilized to identity areas for inclusion in the IAP. The process used to identify potential areas for internal audit included the following: Interviews with District administrators; Input from Board and Audit Committee members; Observations made during completion of the fiscal year 2010 IAP; Review of Administrative Issues Board (AIB) Minutes; Review of prior years external audit reports and management letters 1 ; and Review of results of efficiency 2 and performance 3 audits. Audit Plan Completion: Internal audit engagements scheduled for completion during the 2011 fiscal year are listed on the following page. The intent is to complete all of the listed internal audit engagements during the fiscal year, with the understanding that the following events may impact the Internal Auditor s ability to complete the IAP: Theft; Fraud; External audit issues; Grant issues; and Unforeseen areas of risk as identified by the Board and Audit Committee. The internal auditor will report on IAP progress quarterly, and any significant deviation from the formally approved IAP will be communicated to the Audit Committee and Board of Education. 1 Independent audit reports and management letters for fiscal years 2009 and Business Operations Efficiency Review, K-12 Business Consulting, Inc., June Cincinnati City School District Performance Audit, Ohio Auditor of State, October 2008.

15 August b Fiscal Year 2011 Internal Audit Plan: The following internal audits and consulting reviews 4, listed in descending order of assessed risk, are scheduled for completion by the internal auditor during the 2011 fiscal year. 1. PNC Purchase Cards 2. Yellow Bus 3. Oracle User Access/Security* 4. Confirming Orders (ORC D Compliance) / Testing of Non-Payroll Disbursements 5. Testing of Payroll Disbursements 6. Fund 21* 7. Purchase Requisitions 8. Testing of Student Activities Disbursements and Receipts 9. Review of Draft CAFR* 10. Findings for Recovery Database (ORC 9.24 Compliance) 11. Professional Development 12. Services Procurement 13. Fixed Assets Inventory Process* 14. Treasurer s Update on Efficiency Review* 15. Treasurer s Update on Performance Audit* 16. FMP Review* 17. Board Office Credit Cards * Consulting Review 4 The Institute of Internal Auditors defines consulting services in its International Standards for the Professional Practice of Internal Auditing as advisory in nature, and generally performed at the specific request of an engagement client. The nature and scope of the consulting engagement are subject to agreement with the engagement client. Consulting services generally involve two parties: (1) the person or group offering the advice - the internal auditor, and (2) the person or group seeking and receiving the advice - the engagement client. When performing consulting services the internal auditor should maintain objectivity and not assume management responsibility. Internal Audit will not issue internal audit reports for consulting reviews. Instead, a memorandum outlining the objective and scope of the internal auditor s work and recommendations, if any, will be issued to administrators.

16 August c PNC Purchase Cards PNC Purchase Cards are issued to District administrators, school secretaries, school treasurers, and facilities/building operations employees. Purchase card holders as of April 15, 2010 totaled 247. Fiscal year-todate 2010 purchase card transactions as of May 11, 2010 totaled approximately $800,000 comprised of 8,394 individual transactions. Purchase cards are efficient and lower procurement costs by avoiding the need to process requisitions, purchase orders, and multiple invoices. Increased efficiency comes with increased risk, however, as card users are able to make purchases without prior approval. The lack of front-end controls makes it essential that back-end controls are functioning and effective. Purchase card transactions and controls were included in the fiscal year 2008 independent audit report as a significant finding, and as a management letter item for fiscal year The Internal Auditor s testing will be relied upon by the District s independent auditor, Caudill & Associates, for the fiscal year 2010 audit. The objectives of the internal audit are to determine that: Card holders are in compliance with District purchase card procedures; Purchase card transactions are for proper public purpose and allowable by District and State guidelines; and Monitoring of purchase card transactions, statement approval, and submission of itemized receipts is effective to ensure that card holders remain in compliance with purchase card procedures. 2. Yellow Bus The District outsources yellow bus transportation services, and entered into a five-year contract with First Student, Inc. for a cost not to exceed $91 million. The 2009/2010 school year was the first year of the contract. Yellow bus services represent a significant annual expense for the District, and it is important that controls surrounding the invoicing and payment for this service are in place and operating effectively. The objectives of the audit are to determine that: The District is paying only for transportation services actually provided; and Payments for transportation services are in compliance with the contract terms. 3. Oracle User Access/Security Consulting Review The District utilizes the Oracle Financial System for financial management, human resources management, and procurement. Access to the system is restricted and based on user roles. For example, an employee in the human resources department would be assigned a user role that

17 August d allows for access to the human resources functions in Oracle, but not to payroll or general ledger functions. Adequate segregation of duties and access controls mitigates the risk of fraud and unauthorized access to information. The District is contracting with a firm that offers subject matter expertise with regard to Oracle Financials and system access controls. To reduce costs and facilitate the review, the internal auditor will work with the consultant. The internal auditor will not issue an internal audit report or an opinion on the adequacy of internal controls related to financial system user access. The objective of the consulting review is for the internal auditor to assist the consultant in completing the agreed upon scope of work. The consultant s scope of work includes the following: Review and determine adequacy of Policies and Procedures for Security and Access Authorization; Determine access requirements for user roles through discussion with IT (Oracle Applications group) and Oracle users. User groups include HR, Benefits, Payroll, Accounting, Grants Administration, Auxiliary (non-public school procurement and accounting), Accounts Payable (AP), and Purchasing; Review Oracle user accounts and access roles to determine existing access levels. Document risks associated with the existing access levels and include recommendations for changes; Define Oracle User Roles and what access (Responsibilities, Menus, Functions or Screens) is required based on above requirements; Review and recommend if Personnel Action Notification (PAN) process is adequate to address security concerns; Determine required controls for access to Payroll/AP checks through review of current process and discussion with AP and Payroll supervisors; Review process for changes to vendor masterfile and review and approval of vendor masterfile edit reports; Review process for manual journal entries including reporting, review, and approval; Review security awareness among users and make recommendations for improvement; Review of procurement approval limits setup and Position Hierarchy with the Client Server System Technician; Discuss concerns and recommendations with Assistant Treasurer, Internal Auditor and Purchasing Director; Recommend how approval limit setups can be reviewed on timely basis and suggest a way to have better control over approval limit changes; Discuss process for exception handling for purchase orders (POs) or Requisitions approvals; Determine if users are able to bypass controls through issuance of direct purchase orders or other means and recommend mitigating controls; Review database level access available to CPS IT personnel; and Review access to Oracle Applications, production environment, and production files.

18 August e Confirming Orders (ORC D Compliance) / Testing of Disbursements A confirming order is defined by the District as a request to pay for items or services that have already been ordered directly and received without a district purchase order being issued. 5 The Treasurer issued a memo to all District employees during January 2008 prohibiting the use of confirming requisitions. 6 Although the Ohio Revised Code (ORC) does not prohibit confirming orders, it does require the issuance of a then and now certificate for payment of invoices less than $3,000, and Board approval for amounts greater than $3, The Treasurer issued a memo to all District employees during January 2008 prohibiting the use of confirming requisitions. Lack of compliance with ORC D was included as a fiscal year 2009 independent audit management letter item. The Internal Auditor s testing will be relied upon by the District s independent auditor for the fiscal year 2010 audit. The objectives of the internal audit are to: Determine that the District is in compliance with the requirements of ORC D; Identify confirming orders and departments and/or schools generating them; and Determine that processes are in place to prevent confirming orders. 5. Testing of Payroll Disbursements Payroll expenses totaled approximately $124.4 million during FY , a significant operating expense for the District. Given the significance of payroll expenditures, proper internal controls throughout the payroll cycle are critical to prevent fraud, errors, and regulatory non-compliance. The internal auditor s testing will be relied upon by the District s independent auditor for the fiscal year 2010 audit. The objectives of the internal audit are to ensure that: Payrolls are properly prepared, approved, and recorded; and Employees are paid only for periods actually worked. 6. Fund 21 Consulting Review Fund 21 is used by the District to record withholding and payment transactions related to benefits such as retirement and healthcare. 5 "Confirming Orders." Staffnet. Cincinnati Public Schools, n.d. Web. 12 May < 6 Ibid. 7 Ohio Revised Code; Section (D). 8 Cincinnati Five-Year Forecast Fiscal Year 2010, Cincinnati Public Schools.

19 August f The Treasurer s Office intends to review the procedures related to Fund 21 transfers and periodic account reconciliation. The Internal Auditor will review the Treasurer s Office findings for reasonableness and advise on internal control enhancements. The Internal Auditor will not issue an internal audit report or an opinion on the controls surrounding the processes related to Fund Purchase Requisitions The District s procurement cycle requires schools and department to submit purchase requisitions via the Oracle financial system. The requisitions must then be approved by the Treasurer s Office to ensure that funds are available and that the purchase is allowable. The requisition is then electronically forwarded to the Purchasing department who issue the purchase order (PO). Principals and central office administrators have voiced concerns that the procurement cycle is too slow. A procurement cycle that is perceived by users as being cumbersome, unreliable, and inefficient increases the risk that users will seek ways to circumvent the system. The objectives of the internal audit are to: Analyze purchasing transactions to determine average cycle times; and Make recommendations to administrators to make the procurement cycle more efficient. 8. Testing of Student Activities Disbursements and Receipts Schools throughout the District establish a variety of funds to account for cash receipts related to student activities such as clubs and athletics. The cash is collected by student activity sponsors and submitted to the school cashier or treasurer for daily deposit to the bank. Approximately $2 million in student activity fees are collected annually at schools throughout the District. Most of this is in the form of cash, which is susceptible to misuse and misappropriation. The independent auditor issued a management letter comment related to the collection and recording of athletic gate receipts during fiscal year The Internal Auditor s testing will be relied upon by the District s independent auditor for the fiscal year 2010 audit. The objectives of the audit are to determine that: Schools are making banks deposits within 24 hours of collection as required by District procedures, Ohio Auditor of State guidelines, and state regulations; Budgets for student activity funds are documented and maintained on file;

20 August g Documentation for fundraisers is in accordance with District procedures and maintained on file; and All moneys collected are properly accounted for through student activity funds as required by District procedures, Ohio Auditor of State guidelines, and state regulations. 9. Draft CAFR Consulting Review The District is required to issue a Comprehensive Annual Financial Report (CAFR) each fiscal year. The fiscal year-end closing process includes a great deal of activity by the Treasurer s Office and outside consultants that culminates in the compilation of a draft CAFR. The draft CAFR is then reviewed by the independent auditors as part of the annual audit. The objective of the consulting review is for the Internal Auditor to assist management by reviewing the draft CAFR for reasonableness prior to management giving the draft to the Independent Auditor. The Internal Auditor will be an additional set of eyes to review the draft, but responsibility for management review and sign-off on the draft remains with the Treasurer s Office. The Internal Auditor will not issue an internal audit report or an opinion on the accuracy of the draft CAFR or the controls surrounding the financial reporting process. 10. Findings for Recovery Database (ORC 9.24 Compliance) The Ohio Revised Code requires that prior to entering into contracts for goods and services in excess of $50,000 political subdivisions verify that suppliers do not have outstanding and unresolved findings for recovery prior to entering into contracts for goods and services in excess of $50,000. Findings for recovery are defined under ORC 9.24 as follows: Finding for recovery means a determination issued by the auditor of state, contained in a report the auditor of state gives to the attorney general pursuant to section of the Revised Code, that public money has been illegally expended, public money has been collected but not been accounted for, public money is due but has not been collected, or public property has been converted or misappropriated. The objective of the internal audit is to determine the effectiveness of procedures that were implemented during fiscal year 2010 to ensure compliance with ORC Professional Development The District contracts with third parties to provide professional development to teachers and administrators. Payments during fiscal year 2011 to the District s main provider of professional development, the Mayerson Academy, totaled approximately $5.5 million. The objective of the internal audit is to determine that payments to professional development providers are in compliance with contract terms. The internal audit will also review the necessity, appropriateness, and costeffectiveness of out-of-town training and conferences.

21 August h Services Procurement The Ohio Revised Code (ORC) does not require school districts to seek competitive bids for purchases of services. The objective of the internal audit is to determine the type and quantity of services procured by the District and to determine that efforts are in place to ensure that the District is obtaining reasonable pricing for these services. 13. Fixed Asset Inventory Process Consulting Review The District is implementing procedures for the physical verification of fixed assets. Administrators requested that the Internal Auditor provide advisory services as the procedures are developed. Development, approval, and implementation of the procedures remain the responsibility of administrators, and the Internal Auditor will not issue an internal audit report or an opinion on the adequacy of internal controls related fixed assets. 14. Treasurer s Update on Efficiency Review Consulting Review The consulting firm K-12 Business Consulting was contracted by the District to analyze its business operational efficiencies. The consulting review covered 13 areas: General Data and Analysis Health Insurance Program Prescription Drug Program Workers Compensation Program Financial Services Energy Usage Property, Fleet and Liability Insurance Transportation Operations Food Service Operations Acquisition and Purchasing Copier Program Acquisition and Purchasing Credit/P-Card Acquisition and Purchasing Supply Procurement Acquisition and Purchasing Telecommunication and Technology The consultant s report included 58 recommendations. 9 The Treasurer s Office has committed to the Board to provide periodic updates on the Administration s progress in addressing the report findings and recommendations. The Treasurer has requested that the Internal Auditor review for reasonableness the update report and supporting documentation. Preparation of the update document and its content remain the responsibility of 9 Business Operations Efficiency Review, K-12 Business Consulting, Inc., June 2008.

22 August i the Treasurer s Office, and the Internal Auditor will not issue an internal audit report or an opinion on the adequacy of internal controls related to items included in the document. 15. Treasurer s Update on Performance Audit Consulting Review The Ohio Auditor of State completed a performance audit of the District during The performance audit report dated October 14, 2008, included recommendations for the District to improve its overall operations, service delivery, and financial stability. 10 The Performance Audit Report identified 14 key recommendations in the areas of finance and strategic management; human resources; facilities; and transportation. The Treasurer s Office has committed to the Board to provide periodic updates on the Administration s progress in addressing the report findings and recommendations. The Treasurer has requested that the Internal Auditor review for reasonableness the update report and supporting documentation. Preparation of the update document and its content remain the responsibility of the Treasurer s Office, and the Internal Auditor will not issue an internal audit report or an opinion on the adequacy of internal controls related to items included in the document. 16. FMP Review The District issued a request for proposal during May 2010 for an independent review of the Internal Auditor s work on Facilities Master Plan (FMP) business participation, and for an independent review of FMP workforce participation. The Internal Auditor will not provide assurance or consulting services, but will act as a facilitator between administrators and the independent firm. 17. Board Office Credit Cards Cincinnati City School District Board members are issued credit cards for purchases related to their duties as elected school board officials. The Board member purchase cards are issued through the Greater Cincinnati Credit Union. The cards are used primarily for Board-related travel expenses. Payments during fiscal year 2010 to the Greater Cincinnati Credit Union for credit card charges totaled approximately $28,000. The objectives of the internal audit are to determine that credit card transactions are in compliance with state ethics guidelines, for proper public purpose, and substantiated with itemized receipts and/or invoices. 10 Cincinnati City School District Performance Audit, Ohio Auditor of State, October 2008.