re: Audit reveals numerous issues at Uhigh

If it comes out that the superintendent was allowing this, he needs to go too. He may have been getting kick backs himself. Time to clean house.

May want to press the pause button until all of the facts come out. If you don’t know that the superintendent is already gone you obviously don’t know enough about this to be deciding whose heads should roll

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What if it turns out that the principals had all these things cleared by their superiors at LSU and followed instructions of the director of the school and the dean of the college of education?

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Maybe those individuals need to go as well..

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Actions were taken by ULS employees to circumvent University policy. The two ULS principals took actions which, if fully realized, would have resulted in the redirection of ULS student payments for aftercare from ULS to a private company, Cub Care, LLC, that the two principals were to jointly own. These actions were prompted by a dispute with the University management regarding the University’s disapproval of proposed additional compensation for administrative activities performed by the principals related to the ULS aftercare program operated during the 2016-2017 academic year.

Prior to the start of the aftercare program for the 2016-2017 academic year, the two principals received salary increases effective July 2016 related to after-hour duties required to maintain the school’s extracurricular and curriculum-related activities totaling $16,269 for the Secondary Principal and $22,173 for the Elementary Principal. In October 2016, after the program had been running for two months, ULS administration submitted requests to pay additional compensation related to the program, which included $1,500 a month for 10 months to the principals. However, LSU Human Resource Management (HRM) disapproved the additional compensation requested for the principals because the additional duties described in the request were already an expectation of their job duties.

Discussion regarding increases to the two principals’ pay continued among ULS and the University until August 2017 when an increase of $15,000 to each Principal’s annual base salary was approved with an effective date of July 1, 2017. HRM determined that no retroactive payment for the first year of the aftercare program was allowable. However, the principals continue to maintain that they are owed $15,000 each for the first year of the program.

Subsequent to HRM’s disapproval of the ULS principals’ additional compensation payments for the 2016-2017 academic year on October 26, 2016, and continuing until September 1, 2017, the principals took actions that appear to represent an attempt to circumvent University management’s disapproval and University policy. The principals initiated the establishment of a private business, Cub Care, LLC, which they intended would own and operate the aftercare program at ULS and to which student payments would be redirected beginning in the 2017-2018 academic year. The principals took the following actions related to Cub Care, LLC:

- Reserved the business name “Cub Care, LLC” with the Louisiana Secretary of State’s Office
- Obtained an Employer Identification Number from the IRS in the name of “Cub Care, LLC”
- With the assistance of the Superintendent’s Office, drafted and distributed to parents of students instructions on registering for aftercare with Cub Care, LLC, along with a Cub Care, LLC contract directing payment to “Cub Care, LLC” and authorizing Cub Care, LLC to charge participant credit cards for the duration of the 10-month contract period
- Withheld participant payments from deposit into a University account to ensure that they (the principals) would get paid
- The Secondary Principal invoiced ULS for “services” he provided as though he were a vendor. As noted, the University had previously disapproved additional compensation for the “services” included on the invoice.

Upon becoming aware on September 1, 2017, that the principals were withholding from deposit aftercare collections for August and September pending the resolution of the compensation matter, the College of Human Sciences & Education Assistant Dean directed that the principals provide all program documentation and process all aftercare program funds into the proper University account.

Records maintained by ULS related to aftercare program operations were incomplete, including documentation of all program participants and payments received. Additionally, spreadsheets used to track participant payments (received or outstanding) contained errors and, therefore, the accuracy could not be relied upon. As a result, the LSU Office of Internal Audit was unable to verify whether all students were reflected, payments were received in full, and funds were deposited into the appropriate accounts

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So after receiving $30-35k in pay raises, they started an independent company and awarded themselves a no-bid contract. Then, when they got called out by the university, they submitted shoddy payment records.

This looks like it could get interesting.

Wade Smith with the very timely retire.

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Wade Sims with the very timely retire.

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Wade Smith

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Wade Sims with the very timely retire.

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Dude..

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Dude..

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Not the first time he's made that mistake either.

According to this report from 2013, U-High self-reported that $6.7 million of their operating budget came from state funds, while $4.2 million came from tuition and fees.

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What if it turns out that the principals had all these things cleared by their superiors at LSU

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I’m a bit confused but maybe I’m not reading the audit correctly. The audit says....

“Prior to the start of the aftercare program for the 2016-2017 academic year, the two principals received salary increases effective July 2016 related to after-hour duties required to maintain the school’s extracurricular and curriculum-related activities totaling $16,269 for the Secondary Principal and $22,173 for the Elementary Principal....However, LSU Human Resource Management (HRM) disapproved the additional compensation requested for the principals because the additional duties described in the request were already an expectation of their job duties.”

Did they get raise #1 and then were told “No” by LSU HR Department when they asked for more $$?

Then they were given another raise? From the Audit....

“Discussion regarding increases to the two principals’ pay continued among ULS and the University until August 2017 when an increase of $15,000 to each Principal’s annual base salary was approved with an effective date of July 1, 2017. HRM determined that no retroactive payment for the first year of the aftercare program was allowable. However, the principals continue to maintain that they are owed $15,000 each for the first year of the program.”

So HR tells them “No” again?

Then the principals decide to open up there own LLC after being given two significant raises.

“Subsequent to HRM’s disapproval of the ULS principals’ additional compensation payments for the 2016-2017 academic year on October 26, 2016, and continuing until September 1, 2017, the principals took actions that appear to represent an attempt to circumvent University management’s disapproval and University policy.”

Then the principals withhold payment to ULS/LSU because they wanted more money?

“Withheld participant payments from deposit into a University account to ensure that they (the principals) would get paid.”

Maybe I am reading this wrong but...it looks like they got raise 1 and are told that is for the extracurricular stuff (aka Aftercare) then get raise 2, then open up an LLC for more $$?

Sucks to suck. Side note his kid is a douche bag as well.