Contents of TEA Report Revealed

April 11, 2008 - Cleburne ISD released the contents of the Texas Education Agency audit Friday, April 11 around 4:30 p.m. The report was released only in hardcopy. Harold Gentry, who filed the original complaint, immediately began analysis of the 156 page report.

The bottom line - TEA found that Cleburne ISD had misused $367,027.64 of the federal funds examined. Percentage wise 44.4% of the funds examined were misused.

In other words, CISD received $5,146,506.65 in federal grants for the years 2003-2007. Only $826,951.71 was examined. Of this, $367,027.64, or 44.4%, was misused.

TEA recommended an audit of all federal funds, appropriate administrative action, and enforcement action. TEA classified Cleburne ISD as high risk, which may result in TEA putting in place a monitor, conservator, and withholding federal funds.

It is our understanding that Cleburne ISD will have to pay back the misused funds. CISD has until May 11 to respond to the TEA findings.

Pertinent excerpts showing the TEA findings are here: Pages8thru11.pdf.

The key to understanding the sanctions and penalties outlined on page 11 can be found in these documents: 34CFR80.12, 34CFR80.43(a) and TEC39.131.

CISD has hired Dr. James Warlick as Interim Superintendent. Dr. Warlick has a phD in finance and.has had experience in other troubled districts. He is working with Texas Association of School Boards Organization (TASBO) consultant Tom Canby to go through the records and prepare a response to the TEA audit. Dr. Warlick, in a conversation with Alden Nellis, said that his job is to implement policies within the district which will correct the problems found by the TEA. He estimates this will take two months or so.

There has been some talk of doing a complete forensic audit of all fund expenditures, not just the federal funds addressed in the TEA report.

Former Superintendent Robert Damron was reassigned and stepped down as Superintendent at 12:07 a.m. April 1 after a 5 hour school board meeting. The TEA preliminary report was released to CISD on March 11.

The entire report can be downloaded from http://www.cleburnepolitics.com

Read Martha Deller's report in the Star-Telegram.