Fox C-6 Auditee's Response Highlights from the May 2016 Missouri State Auditor's Report

It's been nearly a year since the scathing results of the Fox C-6 School District audit by Missouri State Auditor Nicole Galloway were released to the public.

So far, no criminal charges have been filed and it appears that no taxpayer dollars have been recovered since the audit was released on May 25, 2016.

The Fox C-6 School District website has a webpage dedicated to the 2016 Missouri State Audit. It contains a link to the 2016 Missouri State Audit and a short timeline of what's happened since a state audit was requested in August 2014.

The webpage includes a link to a letter from Jefferson County Prosecuting Attorney Forrest Wegge to the school board on June 2, 2016 informing the school board that he requested a "complete criminal investigation into the various allegations contained within said audit".

The webpage also includes a link to Forrest Wegge's July 14, 2016 press release stating that he was referring the investigation to the United States Attorney's Office for further investigation.

You can view the district's State Audit webpage here:
https://www.fox.k12.mo.us/about_us/state_audit


Auditee Responses
The State Audit Report includes Auditee's Responses from the Fox C-6 Board of Education and District Administration in response to the State Auditor's Recommendations.

Below are only a few highlights from the District's Auditee's Responses as found in the 2016 State Auditor's report:

"The Fox C-6 Board of Education and District Administration agree with this recommendation. Implementation of new procedures to accurately determine the rate of compensation for the Superintendent and properly adopt a Superintendent contract were in place by December 2014. These new procedures comply with the recommendation. 

The audit findings are critical of the $260,598 salary paid to Dianne Critchlow and other administrators during 2013-2014, including that Critchlow's salary was substantial when compared to Superintendents of other districts and was not properly documented. By comparison, the 2015-2016 salary for Dr. Jim Wipke of $175,000 is competitive for a district the size and complexity of Fox C-6 Schools and is properly documented.

The District believes that most of the irregularities regarding former Superintendent Dianne Critchlow's contracts identified by the audit findings resulted primarily from acts of Dianne Critchlow and acts or omissions of persons holding the post of Chief Financial Officer, namely James Berblinger, or his successor Mark McCutchen. Fox C-6 Board of Education expects staff to properly implement all Board decisions. The Board of Education disapproves both the acts or omissions that (1) increased Critchlow's compensation without Board action and (2) compensated Dianne Critchlow greater than provided within her approved contracts Critchlow, Berblinger and McCutchen are no longer employed by Fox C-6 Schools.

The Board of Education intends to consider the following actions:
(1) seek recovery of the unauthorized compensation paid to Dianne Critchlow, (2) notify the Public School Retirement System (PSRS) about the unauthorized compensation to determine whether correction or forfeiture of pension benefits being paid to Dianne Critchlow is warranted, and (3) submit the record of unauthorized compensation to the Jefferson County Prosecuting Attorney's Office to determine whether prosecution is warranted. 

The District is committed to maintaining full compliance with the recommendation."

...

"As teaching jobs continue to be scarce, and as Fox C-6 budgets continue to be strained, the school board has an even greater responsibility to make sure the most highly qualified people land the few jobs available. School board members and the Superintendent doing the hiring have a fiduciary responsibility to the community to hire the best talent for the money. Under these circumstances, it is completely justified for the District to maintain its new hiring practices and strong anti-nepotism policy, which exceeds the provisions of the Missouri Constitution.

The audit criticizes the District for failing to follow proper protocols in the hiring process and in sections 1.3 and 1.4 focuses on unauthorized and unwarranted job promotions by the former superintendent, Dianne Critchlow, of her husband Jamie Critchlow. These job promotions and rates of compensation were without Board approval according to the audit. The reported findings indicate $88,751 in excess compensation paid to Jamie Critchlow. After fringe costs are added, the cost to the District rises to approximately $102,900.

The Board of Education disapproves of both (1) Dianne Critchlow's apparent disregard of Board procedures and authority; and (2) enrichment of Dianne Critchlow's husband with District financial resources. Jamie Critchlow and Dianne Critchlow are no longer employed by Fox C-6 Schools.

The Board of Education intends to consider the following actions:

(1) seek recovery of the unauthorized compensation paid to Jamie Critchlow, (2) notify the PSRS about the unauthorized compensation to determine whether correction of pension benefits relating to Jamie Critchlow is warranted, and (3) submit the record of unauthorized compensation to the Jefferson County Prosecuting Attorney's Office to determine whether prosecution is warranted."

...

"The audit criticizes the District for failing to follow proper procedures and focuses on unwarranted job promotions for Mark McCutchen, Jamie Critchlow, and others. These job promotions were not approved by the Board and were often accompanied by unauthorized increased rates of compensation. The reported findings indicate $49,162 in excess compensation paid to Mark McCutchen. After fringe costs are added, the cost to the District rises to approximately $57,000. The Board of Education disapproves of: (1) Dianne Critchlow's apparent disregard for Board authority and (2) acts that compensated Mark McCutchen greater than provided within his contracts. Critchlow and McCutchen are no longer employed by Fox C-6 Schools.

The Board of Education intends to consider the following actions:(1) seek recovery of the unauthorized compensation paid to Mark McCutchen, (2) notify the PSRS about the unauthorized compensation to determine whether correction or forfeiture of pension benefits relating to Mark McCutchen is warranted, and (3) submit the record of unauthorized compensation to the Jefferson County Prosecuting Attorney's Office to determine whether prosecution is warranted.

Subject to the clarifications presented, the District is committed to full compliance with the recommendation."

...

"The audit findings indicate charges made to credit cards held by former Superintendent Dianne Critchlow and her administrative assistant appear to be questionable or improper use of District financial. The Board of Education disapproves of these questionable and improper purchases totaling $96,743 as a misuse of taxpayer funds. This constitutes a violation of the public trust. The District has previously demanded repayment from Dianne Critchlow for many questionable and improper credit card charge that constitute personal purposes, excessive expenditures, gifts of public property, and payments in violation of Missouri laws relating to conflicts of interest. Dianne Critchlow has failed to respond to District demands for repayment.

The Board of Education intends to consider the following actions:(1) seek recovery of the unauthorized improper and/or questionable charges made to credit cards assigned to Dianne Critchlow and her administrative assistant, (2) submit the record of improper and/or questionable credit card charges to the Jefferson County Prosecuting Attorney's Office to determine whether prosecution is warranted, and (3) in the event of a prosecution, notify the Public School Retirement System (PSRS), and/or the Public Educational Employees Retirement System (PEERS) about the potential need for correction or forfeiture of pension benefits."

...

"Dianne Critchlow and Jamie Critchlow appeared to have used taxpayer money for purposes that did not benefit the school district; made expenditures that were not properly documented, or constituted excessive expenditures, or gifts of public property; or in violation of Missouri laws relating to conflicts of interest. The Board of Education disapproves of any and all misuse of taxpayer funds.

The District is committed to full compliance with the recommendation."

MO State Rep Rob Vescovo Files Legislation to Prevent Abuse of Taxpayer Dollars

Missouri State Representative Rob Vescovo sent out a press release today announcing the filing of his first piece of legislation.

The Fox C-6 School District has been handing out cash rewards and paid vacations to some of our administrators for unethical behavior, for not following school policies and for bullying parents and patrons in our district.

Being rewarded for this type of behavior does NOT set a good example for a National District of Character!

Thank you Mr. Vescovo for bringing this problem to the attention of our state legislators! 

From the Office of Rep. Rob Vescovo 112th District

FOR IMMEDIATE RELEASE:

January 14, 2015

CONTACT: Rep. Rob Vescovo
573-751-3607

State Rep. Rob Vescovo Files Legislation to Prevent Abuse and Waste of Taxpayer Dollars

Legislation would prevent continued abuse of paid administrative leave


JEFFERSON CITY, Mo. – State Rep. Rob Vescovo wants to protect Missouri taxpayers from footing the bill for ineffective government employees who are placed on paid administrative leave for misconduct. Vescovo today filed HB 519 to end a practice he said is costing Missourians hundreds of thousands of dollars or more each year.

House Bill No. 519

“This is a non-partisan bill that will take aim at ending the ongoing problem of this wasteful practice of paid administrative leave for employees who should be terminated,” said Vescovo, R-Arnold. “This is a practice that would never go on in the private sector where employers would refuse to pay ineffective employees to not do their jobs. However, because there is too little accountability when it comes to how taxpayer dollars are utilized, we have seen this blatant misuse of taxpayer funds far too often in the public sector.”

Vescovo said issues with the Fox School District first drew his attention to the problem. It was in June of 2014 when Superintendent Dianne Critchlow and three other school administrators were placed on paid administrative leave. Vescovo noted that Critchlow made an annual salary of more than $260,000. He said the issue resurfaced again just a few weeks ago when the school district’s food services director, who was hired with an annual salary of $65,000 despite lacking the certifications and education necessary for the position, was also placed on paid administrative leave.

“Folks in my district are outraged by what has gone on here as their tax dollars have been thrown away to people who should have been fired, but instead have been paid to not work,” said Vescovo. “The unfortunate truth is that this goes on all over the state and the nation. As someone who believes in government accountability and sincerely wants to protect taxpayers from abuse, I am committed to doing all I can to bring this wasteful practice to an end here in our state.”

-###-

The Paper Trail Keeps Growing!

It's evident from the small amount of information that's been uncovered so far that every single credit card purchase made by several of Fox C-6's administrators on their district credit cards will have to be reviewed and scrutinized. The charges placed on the Discover card of other district employees will have to be reviewed as well. It's well documented that Dianne Critchlow used other district cards for purchase as well.

It's not just enough to look at a single charge from a hotel. Each of the charges on the hotel bill itself must be scrutinized as well. The Hard Rock Hotel invoices have charges for restaurants, ice cream, hot dogs and parking charged to their rooms.

You can review the charges from the Hard Rock Hotel invoices from the June 2013 Marzano Conference in Orlando using the link below. None of the meal charges and parking fees were documented in the Leader or on the recent You Paid For It! news story:

June 2013 Hard Rock Hotel Receipts

Federal Dollars For Professional Development
Title II Professional Development Funds can be used as "incentives" to train and recruit high quality teachers and principals. Fox used the "incentive" funds for fun getaways and everyday meals. Those seem like great incentives.

Professional development is how many of the charges were explained and we've been told there are explanations for every charge!

Just because there are explanations doesn't necessarily make them valid. I've been searching and reading documents concerning allowable and unallowable uses of Title II Professional Development funds. Food could be an incentive. But, I'm not sure that it truly qualifies as Professional Development when eating at McDonald's.

You can read more about Title II and Professional Development subgrants from the U.S Department of Education here:

Title II: Preparing Training and Recruiting High Quality Teachers and Principals 

More Demands for Repayment
Last Friday I was emailed a copies of more Demand for Repayment letters that were sent to former Fox C-6 superintendent Dianne Critchlow. One of them had a copy of a receipt from McDonald's for lunch that was purchased on Saturday April 5, 2014 while she was on Family Medical Leave. The McDonald's receipt was documented as Professional Development.

The demand letter from Fox's CFO had the following comment regarding the McDonald's receipt:

District records indicate that you were on FMLA during that timeframe. So, on a Saturday while you were on FMLA you supposedly engaged in a professional development activity that justified the purchase of food from McDonald's at District expense. Frankly, there is nothing believable about that scenario.

The above comment sums up a lot of what's been done and said by Dianne Critchlow while she was superintendent of Fox C-6. Many things were not believable. There is plenty of documentation to back that up.

September 30, 2014 Demand for Repayment Letter to Dianne Critchlow for Golf Tournament and McDonald's Professional Development Lunch

Every Credit Card Charge Must Be Reviewed

Because Critchlow shattered the trust of the taxpayers, we must look at each and every purchase to determine how much taxpayer dollars were used for her own personal use. Just looking at the April 2014 VISA statement included in the demand letter above, there are multiple charges that are questionable.

Why would Critchlow be shopping at Hobby Lobby with her District credit card while on FMLA?

I don't have the exact dates for her FMLA but it was only 2 days before the McDonald's meal which was documented as being purchased while she was on FMLA.

Critchlow went shopping at the South County Wireless Freedom store the day before she ate at McDonald's. What did she purchase there? Was it more cellular phone cases or spare batteries? We'll need to see that receipt as well.

Then you have to wonder what she purchased at Hobby Lobby and Walmart for more than $240+ dollars that were used for school. What are on those receipts?

Those purchases are similar to the ones at Target in December 2011 when she purchased the Nikon 1 digital camera, spare lens, battery and memory cards right before her daughter's wedding. There's really no telling as to how much taxpayer dollars were spent on personal use items.

The charges listed below are the charges that were listed on Dianne Critchlow's April 21, 2014 VISA card statement:

• 04/03/2014 - Hobby Lobby        - $89.14 (For what?)
• 04/04/2014 - Wireless Freedom - $79.19 (cell phone cases/batteries?)
• 04/05/2014 - Shell Oil                - $85.06  (Yukon has a 31 gallontank)
• 04/05/2014 - McDonald's           - $11.79 (Professional Development?)
• 04/11/2014 - Walmart                - $152.00 (Gift cards?)
• 04/14/2014 - Panera Bread        - $31.19 (More PDC?)
• 04/17/2014 - Shell Oil               - $45.37

Critchlow didn't make that many purchases on her district VISA card in April 2014 compared to other months. But, every receipt must be reviewed and scrutinized because trust has been lost and everything must be questioned.

Critchlow was quoted as saying that she welcomed an audit. Perhaps she thought a State Audit would be similar to a Dan Jones & Associates audit which just samples some data to see if things look OK. This State Audit report should be an eye opener compared to the 2002 audit.

Critchlow had already been informed by her Internet Service Provider in April 2014 that her name and address was being provided due to a law suit for libelous and derogatory comments that had been linked to computers in her home.

Everyone seems to be amazed as to how bold Critchlow was in her spending of taxpayer dollars for personal use. You get the impression that she thought that no one would ever see or review the credit card statements. She certainly wasn't supplying the credit card statements to the school board as required by District policy. She tried to charge me $170 to get copies of them per my April 2014 Sunshine Request knowing that I wouldn't pay for data that should have already been provided to the school board for free.

Have you found yourself shaking your head side to side lately in disbelief?

I think almost everyone has. Just watch someone when they start reading an article in the paper or on this blog or on the news to see if they do what so many have been doing lately of shaking their head in disbelief.

For more unbelievable information, check out Dianne Critchlow's Amazon.com orders that she had shipped directly to her house. The receipts are listed in the demand letter below:

October 3, 2014 Demand for Repayment Letter for Amazon.com Purchases

Below is a copy of the Demand for Repayment Letter sent to Dianne Critchlow for the After Football Game Party she threw for Administrators and charged to Professional Development:

October 2, 2014 Demand for Repayment Letter for Qdoba Mexican Grill Party Food!

It's going to take a long time to go through all of the receipts and recoup taxpayer money. What a waste of time!