Report 2017-104 Recommendation 3 Responses

Report 2017-104: Montebello Unified School District: County Superintendent Intervention Is Necessary to Address Its Weak Financial Management and Governance (Release Date: November 2017)

Recommendation #3 To: Los Angeles County Office of Education

To ensure that Montebello takes the steps necessary to prevent state intervention and regain its positive financial certification, the county superintendent should evaluate the necessity of executive positions and adjust executives' salaries based on an analysis of the number and cost of executives in comparable districts.

Annual Follow-Up Agency Response From September 2023

One position remains vacant on MUSD's executive cabinet, superintendent. Since the termination of the superintendent in 2021, MUSD continues to operate with an interim-superintendent, contracted through a private third-party firm; the contract term of the interim superintendent extends into FY 2023-24. The interim-superintendent previously served as the former LACOE-appointed fiscal advisor to MUSD. The District has not indicated as to when they will begin recruitment of a permanent superintendent. MUSD's Personnel Commission and the District's Governing Board are in disagreement as to the appointment of the inter-superintendent, whether he is serving as in this capacity or as the District's administrative officer, and the validity of his appointment given his lack of an administrative credential. The Personnel Commission and the District have yet to resolve these issue. Given the District has yet to indicate as to when they plan on recruiting for a permanent superintendent, our response is deemed not implemented.

California State Auditor's Assessment of Annual Follow-Up Status: Pending

Annual Follow-Up Agency Response From October 2022

One position remains vacant on MUSD's executive cabinet, superintendent. In March 2021, MUSD terminated their superintendent and entered into a two-year agreement with an interim superintendent; the interim superintendent previously served as the former LACOE-appointed fiscal advisor to MUSD. The District has not indicated as to when they expect to begin recruitment of a permanent superintendent and has extended the term of the interim superintendent for an additional year, until June 30, 2023.

Although MUSD has eliminated the position of assistant superintendent of business services and replaced the position with a chief financial officer, there are concerns as to the process by which this individual was selected and appointed to this position. Originally, this specific individual did not qualify for the position of assistant superintendent of business services because he lacked the educational and experience requirements. On Tuesday, October 5, 2021, the personnel commission discussed the potential issuance of a Notice of Violation against MUSD for the appointment of the assistant superintendent of business services. Consequently, MUSD's governing board eliminated the position and reclassified the position to chief financial officer. Although the chief financial officer's education and experience requirements were lower than that of the assistant superintendent of business services, the position saw in increase in pay and the same individual was hired into the position of chief business official. Even though the LACOE-appointed fiscal advisor requested the eligibility list, the request was ignored by MUSD's interim superintendent and the personnel commission.

All other key positions have been filled: Director Risk Management, Director Transportation Services, Director Procurement and Logistics, and Assistant Superintendent Human Resources. Because MUSD continues to employ an interim superintendent, LACOE deems this action step as partially implemented.

California State Auditor's Assessment of Annual Follow-Up Status: Pending

Annual Follow-Up Agency Response From October 2021

Two positions are vacant on the District's executive cabinet, Superintendent and Assistant Superintendent of Business Services. In March 2021, the District terminated their Superintendent and entered into a two-year agreement with an Interim Superintendent; the Interim Superintendent previously served as the former LACOE-appointed Fiscal Advisor to the District. The District has not indicated as to when they expect to begin recruitment of a permanent Superintendent.

The District continues to employ an Interim Assistant Superintendent of Business Services; the current contract with the Assistant Superintendent does not contain a "sunset clause", allowing the position to be filled indefinitely by the interim. Therefore, on Tuesday, October 5, 2021, the Personnel Commission will discuss a Notice of Potential Violation - Assistant Superintendent of Business Services.

As of this update, other key positions remain vacant, Director Risk Management, Director Transportation Services, and Director Procurement and Logistics. In addition, the three-member Personnel Commission continues to operate with two Personnel Commissioners, and an interim continues in the position of Director, Classified Personnel.

California State Auditor's Assessment of Annual Follow-Up Status: Pending

Annual Follow-Up Agency Response From October 2020

The district maintains certificated and classified staffing levels similar to those of FY 19/20. The district has yet to hire an Assistant Superintendent of Human Resources and is currently without a Director of Classified Personnel, subsequently delaying the implementation of a study of its workforce; the district has contracted with a consultant to study it's Nutrition Services department. Contracts were renewed for the Assistant Superintendents of Educational Services and Educational Programs. Salary ranges are comparable to that of similar size districts. The district is in contentious negotiations with CSEA. LACOE has recommended Montebello cease placing certificated administrators on special assignments in classified administrative positions, which the district has begun to implement. Due to key vacancies in certificated and classified personnel, the district is unable to conduct a staffing analysis to assess possible overstaffing due to refilling positions previously vacated as a result of an early retirement incentive. The district continues to be reluctant to curtail spending to compensate for declining enrollment.

California State Auditor's Assessment of Annual Follow-Up Status: Pending

Annual Follow-Up Agency Response From October 2019

The District has made permanent appointments for the Assistant Superintendent, Educational Services and Assistant Superintendent of Student Services. They have appointed an Interim Assistant Superintendent of Business Services and still have a vacancy for the Assistant Superintendent of Human Resources. The District Superintendent oversees the human resources function and many business services functions. Executive salaries have not been adjusted with one exception. The salary for the Assistant Superintendent of Business Services was adjusted downward. The District Personnel Commission and Governing Board have been resistant to filling senior leadership vacancies.

California State Auditor's Assessment of Annual Follow-Up Status: Pending

1-Year Agency Response

While the district has evaluated various executive positions within the district, key positions remain vacant and the previous governing board prevented the district from hiring key personnel. LACOE has provided the district with additional fiscal expert assistance to address these issues.

California State Auditor's Assessment of 1-Year Status: Pending

6-Month Agency Response

While a Fiscal Advisor currently is assigned to the District, key leadership positions remain unfilled. The district is currently recruiting for a Cheif Business Official. Expected to have a new CBO by June 2018. Director of Fiscal Services has just been hired with a start date of May 4, 2018.

California State Auditor's Assessment of 6-Month Status: Pending

LACOE should ensure that it evaluates the necessity of executive positions and adjust executives' salaries based on an analysis of the number and cost of executives in comparable districts.

60-Day Agency Response

District under the guidance of a Fiscal Advisor who will implement the above recommendations. Will provide information under separate email cover.

California State Auditor's Assessment of 60-Day Status: Pending

All Recommendations in 2017-104

Agency responses received are posted verbatim.