There has been a tremendous amount of press coverage and information that has been distributed to and by certain members of the public, so much of what we will share with you today is already known. Some of the documents that have been publicly discussed and reviewed, and some of the information that repeatedly has appeared in print has been incomplete, or in some cases inaccurate representations of what or how things actually occurred. In other instances, the motivations of individuals involved are capable of different interpretations. To put it simply, not everything that was done is in black and white, and there are competing shades of gray. There were some things that were done improperly. In other instances, there was human error, as well as honest mistakes made by hard working people trying to do their best for the Moore County Schools.
Background
In 1998, the Local Accountability Model was put in place in the Moore County Schools as part of an effort to improve local funding of the schools, and in response to a demand for greater accountability from the County Commissioners, business community, and several school board members serving at that time. The intent of the model was to have a method to track progress and improvement of the Moore County Schools, as compared with the top performing school districts in the state. At that time, as compared to today, there were fewer items for which comparative data was readily available to compare schools across the state. SAT scores were included in the model primarily at the request of others from outside the school system because they were perceived by many to be a well-recognized indicator of school quality, and because they are so widely reported. SAT average, the number of Schools of Distinction, the number of Schools of Excellence, and the drop out rate made up various portions of the formula by which the district tracked its progress and improvement. The SAT average currently accounts for 30% of the total formula.
In 1999, Dr. Russo was hired as Superintendent of the Moore County Schools to assist the Moore County Schools in its mission to become a top performer in the state and in the nation. The community was involved with the school system in the development of strategic plans, which led to the development of key work processes and detailed goals, all of which were designed to provide tangible measures of improvement. A portion of Dr. Russo’s contract for the 1999-2000 and 2000-2001 school years stated that he would be eligible for performance-based compensation, based on the attainment of challenging goals established each year by the Board of Education and the Superintendent. Included among the six initial performance goals was the goal to improve student performance, and one of the five components of that performance objective was improved SAT scores. The performance based compensation portion of Dr. Russo’s contract was eliminated in the 2001-2002 school year. Improving SAT scores was a primary goal of the school system as part of the Accountability Model that was in place before Dr. Russo arrived and that has remained in effect to this day.
In order to begin to address the aggressive improvement goals that were established, strategies were developed at each school. Included among those strategies were those designed to improve SAT scores. SAT scores were significantly higher in 1999-2000 than in the previous year. In analyzing the success, it was determined that the use of high school curriculum facilitators to improve SAT performance during that school year had produced effective strategies that had yielded solid results. The key elements in those strategies were: 1. having someone who is directly responsible and accountable for a school’s SAT scores; and 2. having a strategy for tracking and impacting each individual’s performance. Dr. Larry Upchurch and his staff, incorporated those strategies into a framework designed to generate continuous improvement in SAT performance. The high school component of the framework delegated responsibility to a project team at each high school that would have full responsibility and accountability given to the project team leader. The assistant superintendents for the three high schools would provide support and assistance, and would monitor the school team’s project through each school’s project team leader. The framework included various components and strategies that would allow for the collection and analysis of data relative to student performance and the effects of various improvement strategies. It included such items as SAT recognition programs, a process to advise and assist seniors and juniors about various strategies and decisions to improve their test scores and analyze their options, and to advise them about measures they can take to assure their success. The framework was required to include other components, such as advising students on appropriate course selection, review of PSAT scores, and counseling. At the same time, the State Board of Education approved the “multiple graduation courses of study,” requiring students to choose career paths that would also influence which tests (ASSET, SAT, ACT, or other) might be appropriate for them. Each high school was sent an “SAT monitoring log” from the central office to track in great detail student performance and preparation for the SAT. Within the required framework, each high school developed the specifics of their SAT improvement plan on their own, according to the site based management model adopted by the district.
SAT Score Improvement Programs
Keith Kremer was the Principal at North Moore High School during the 2000-2001 and 2001-2002 school years. When he arrived at North Moore, there was a program in place that awarded $150, $100, and $50 to the students who received the top three SAT scores in the school. The SAT incentive program was later expanded in order to encourage certain students to take the SAT, or to take it a second time. The North Moore SAT incentive program included:
Continuation of the $150, $100, and $50 awards to the students who received the top three SAT scores in the school;
Payment of the registration fee for some students who agreed to take the SAT a second time;
Payment of the registration fee for students who decided to take the ACT;
Those students who increased their score by at least 100 points were paid $1.00 for every point their score increased;
The Senior Class was offered a $5,000.00 incentive to put towards a Senior trip if they were able to reach an average SAT score of 1000 or greater (while the goal was reached, students were not able to arrange the trip, and a gazebo was constructed instead);
Students who administration thought would be successful on the SAT were sought out and encouraged to take the SAT; and
Saturday and after-school SAT preparation classes, tutorial sessions, and computer SAT preparation programs were offered.
Students at North Moore who wanted to take the SAT had an analysis done on their high school transcript. Courses taken, high school “track” (career, occupational, college/university, or college tech. prep.), grades received, PSAT test scores, and the SAT preparation courses that the student had completed, were included in the analysis. That analysis was then provided to Mr. Kremer, and he scheduled conferences with students to review their analysis. If Mr. Kremer felt that the student was inadequately prepared to take the SAT, or if his review of the analysis determined that the student would not be “successful” on the SAT, the student would be either strongly encouraged to take additional courses or SAT preparation classes, or “guided” towards the ACT or ASSET exam, depending upon their college goals. Mr. Kremer would also meet with some parents to discuss the appropriate option for their child. Mr. Kremer controlled the distribution of all SAT registration booklets at North Moore High School.
The SAT programs at Union Pines High School, and Pinecrest High School did not include cash incentives or awards, or payment of SAT registration fees.
Union Pines did not have an incentive program, but did have SAT preparation programs in place. Students were offered counseling on preparing for the SAT. Staff recommended to students that they complete certain coursework, such as Geometry, before taking the SAT. Some students were pulled from their regular classes to attend SAT preparation classes.
At Pinecrest, incentives included an SAT recognition breakfast, a special pin awarded to high scorers, and a certificate of achievement. Computerized SAT practice sites, training and tutoring sessions were available. A senior survey was distributed to determine post high school goals. The results of that survey were shared during a meeting between the student and a guidance counselor.
At Pinecrest High School, there was one student who apparently had a “deferral payment” made on his behalf to defer his taking of the SAT until after he had taken appropriate course work and preparation classes. We have uncovered no records to indicate that school system funds were used for this payment. While there have been rumors of possibly one other student also having been paid a deferral fee, we have been unable to substantiate that rumor.
At North Moore High School, during the 2000-2001 school year, three students received cash awards for the first, second and third highest scores on the SAT, in the amounts of $150, $100 and $50 each. During that same year, two students received SAT bonus awards for improving their scores, one in the amount of $100, and one in the amount of $200. During the 2001-2002 school year at North Moore High School, three students received point bonus awards in the amount of $110 each, and, again, three students received awards in amounts of $150, $100 and $50 for the first, second and third highest scores. Also at the end of the 2000-2001 school year, one student received a refund for his SAT registration fee, in the amount of $24. While there are conflicting explanations for why this student was refunded his SAT registration fee, it is a refund that should not have been made to reimburse a student for funds he had paid directly to take the SAT. This student was not prevented from taking the SAT, and could have chosen to do so, but may have been advised not to take it.
At North Moore and, for a lesser period of time at Pinecrest, SAT registration materials were not readily available. Access to them was restricted and guidance counselors were not allowed to hand them out. While students could not be prevented from registering online to take the SAT, their access to the materials should not have been limited.
The Board believes that certain decisions made at the school level with regard to SAT preparation programs were not based solely on the best interests of students, but based in part on the aggressive manner in which the district has approached the goal of improving SAT scores. It is not now, nor has it ever been the policy, intent or purpose of Moore County Schools to advise any student on the SATs except to that individual student’s benefit. Sometimes that advice may mean a student is advised NOT to take the SAT until certain math courses are completed or until a SAT prep course can be taken. We also recognize that the ASSET not the SAT is the test to be taken for students who plan to attend community college, and that the ACT is now widely accepted on even terms with the SAT. Either test may be appropriate for many students. While we are confident that many options were considered and that students benefited from the review and test preparation work, the computer programs, the course selection and counseling that emphasized improving SAT scores, we are also concerned that some decisions were made with greater regard for the impact on the school’s test scores than on the needs of an individual student.
“069” Money
At North Moore High School it was originally proposed and intended that the SAT incentive payments and SAT and ACT registration fees that were paid would come from discretionary funds under the control of the school principal. These include such things as the school’s general fund, student activity fund, and money from drink machines. These are local funds that are allowed to be utilized by the school principal to meet school needs.
As previously has been reported, some of the payments that were made to students at North Moore High School and payments that were made to the ACT and SAT for student registrations, from December of 2000 through March of 2002, initially were paid from the school’s general fund or student activity fund. The school then submitted a request to the central office to have the general fund account reimbursed by the school system’s state remediation funds, from program code 069.
Program report code account number “069,” commonly referred to by some in Moore County as STARS money, is earmarked for remediation programs in a school district. The purpose of 069 money as stated in the State Allotment Policy Manual is as follows:
“Provides funding to identify students likely to drop out and to provide special alternative instructional programs for these at-risk students. Also provides funding for summer school instruction and transportation, remediation, alcohol, and drug prevention, early intervention, safe schools, and preschool screening…”
The State Allotment Policy Manual contains 5 ½ pages and more than 175 individual account codes setting forth items for which 069 funds may be used. They range from various salaries to transportation services, from postage to supplies, periodicals, advertising, food, travel, equipment purchases, telephone, workshops, overtime pay, fuel, and even vehicle repair parts, grease and anti-freeze. They do not, however, include reimbursing the school’s fund for SAT incentive awards or for SAT and ACT registration fees, as was done at North Moore. The funds are intended for remediation purposes.
Before a check is written from the school’s account, a check request form is completed and submitted by the person making the request. Payment has to be approved by the principal before a check is written. When a check is written from a school’s general fund, a record of the payment and vendor, along with receipts and any back up information, is made by the school bookkeeper. If the school seeks reimbursement of those funds from another account, the school completes a Moore County Schools Check Request Form. The form includes spaces to record information about the requested reimbursement, including the amount of the check, the budget code applied to the expense, and the reason for the request. The check request form is completed at the school level and signed by the Principal.
The completed form, along with copies of receipts and other backup documentation is forwarded to the central office for review and approval. Once the request is approved, a check from the central office is printed and forwarded to the school.
During the 2000-2001 and 2001-2002 school years, most of the money that was used to pay for the SAT incentive program at North Moore High School came from monies that were first taken from the school’s general account and later reimbursed by the central office, using funds from program code account number 069. These payments included reimbursements for seven student incentive awards totaling $820, 12 different payments to either the SAT or ACT for registrations for 53 students in the total amount of $1,362, and the previously mentioned student refund in the amount of $24 for a total of $2,206. These amounts originally were paid from the school funds from December 20, 2000 through March 19, 2002, and reimbursed from program 069 monies to the school’s general fund based on refund requests that were submitted by the school from June 8, 2001 through March 20, 2002. The total amount of $2,206 was repaid by North Moore High School to the Moore County Schools on August 12, 2003, and these funds were refunded by the school system to the State on August 19, 2003, through the State’s prior year adjustment process for both school years. Four other payments for SAT incentives (totaling $410) were made from the school’s general fund at the end of the school year. By then, the school’s 069 money for the year had been spent, so no reimbursement was requested from the central office.
In late July, at the administration’s request, an audit was conducted by our outside independent auditor to review monies that had been paid out of the North Moore High School general account for the SAT program and reimbursed by the central office using “069” money. That audit determined the funds that have since been reimbursed to the state, in the amount of $2,206.00.
During the investigation and review of documentation in connection with this matter, it was discovered that there were additional items that were inaccurately classified and paid from 069 funds, other than the SAT incentive payments made to students. Refreshments and pizza for Saturday SAT tutorial sessions and preparatory classes were also reimbursed through the 069 account. In addition, rewards for North Moore High School’s “Citizen of the Month” were reimbursed through the 069 account. Neither of these was an acceptable expenditure of 069 funds. As a result, a review was undertaken of all 069 funds used in the high schools for fiscal years 2001, 2002 and 2003, and we are in the process of determining what items are still in question and what adjustments are yet to be made.
The program and account codes and the items for which they may be used are complicated, and, under the best circumstances, mistakes may be made. Mr. Kremer directed and approved the requests for payments from North Moore High School’s general funds, and the requests for reimbursement from program 069 funds. The school treasurer filled in the account codes and submitted the requests for reimbursement to the central office, and those requests were routinely approved in the finance office. The requests should not have been made for payment from 069 funds, the 069 budget code should not have been used in the forms that were submitted, and the finance office should not have approved payment from those funds. Each of the individuals involved in this process made mistakes, and we are preparing to add and improve safeguards that will minimize the chances of similar problems occurring in the future.
Dr. Peccia requires the bookkeeper at every school attend annual training that includes classifying expenditures by school code. The Financial Services Department of the central office has a manual that it updates annually and reviews with staff and bookkeepers. The Finance Department is assessing and revising its procedures and quality control measures to improve oversight in this area. Dr. Peccia will be expected to report on these procedures to the Board in the near future.
Requests Made Under the North Carolina Public Records Law
In February, 2003, the State released its annual school Report Card. The Report Card showed that the Moore County Schools had made significant gains, and that test scores had improved. Moore County Schools determined that we had risen to seventh in the state under our Local Accountability Model.
Shortly thereafter, a series of newspaper articles and letters to the editor appeared, concerning increased scores and the fairness and validity of using the SAT as a measure of the Moore County Schools’ success. Many people consider the SAT a crucial measuring stick when comparing school systems. At the time these articles were written this was an educational policy debate about which reasonable people could have differing views. It remains a policy matter for the Board to consider, and we intend to address that matter in the very near future.
In April of this year, the Public Information Office received an inquiry from the press regarding the source of funds used to support the North Moore SAT Incentive Program. That incentive program was not continued during the 2002-03 school year, after Mr. Tylavsky became principal. In response to that inquiry, Mr. Tylavsky was asked to gather information. He did so and supplied that information to Dr. Donna Peters, who, at the time, was Assistant Superintendent. Dr. Peters received a document from Mr. Tylavsky listing the source of funds used to make the payments as STARS money or summer school remediation money. This document was delivered to Dr. Peters on May 1, and shortly thereafter the information was supplied to the Public Information Office to respond to the press inquiry. There was not an investigation conducted by Dr. Peters regarding these matters. Prior to receiving this information, Dr. Peters had been under the impression that school discretionary funds were used to make the payments. While those funds in fact were used to make the payments for the SAT Incentive Program, some were later reimbursed from 069 monies. Dr. Peters recalls sharing this information with Dr. Russo in early May; Dr. Russo does not recall when this conversation occurred.
In July, Dr. Russo advised this Board that he was looking into concerns regarding monies used to fund the SAT Incentive Program at North Moore High School. At that time, the Board was told that state remediation money, along with local school funds had been used to pay for the program. After the July 28 Board meeting, at the beginning of August, Dr. Russo was away for several days on school business. On August 7, Dr. Russo confirmed to the Board, in writing, that state and local funds had been used for this project. He also advised that it had been his previous understanding from Dr. Peters that the North Moore incentive program was paid for with school discretionary funds. Dr. Peters has confirmed that that had been her previous understanding as well, prior to receiving the summary sheet from Mr. Tylavsky in early May. The August 7 memo was provided to a citizen who had requested information about this. That memo was delivered to him on August 11.
It has been suggested in the press and by some individuals that the August 7 memo was a deliberate attempt to mislead the Board. Dr. Russo has indicated that it was his intent to provide clarification when he specifically added a phrase to a previous draft of the letter, indicating that it had been his understanding through Dr. Peters that the funds for the program had been from school discretionary accounts. The immediately preceding sentence already makes clear that both state and school funds were used for the program. The phrase in question, according to Dr. Russo, verifies what had been his earlier understanding. The Board was not mislead by this statement. The Board previously had been advised in July about the problem, and the August 7 memo itself makes clear that state funds were used and, consequently, an audit had been requested.
Thereafter, there were a number of public record requests to which the school system was asked to respond. Much of the material requested was from prior years, following changes in administration at all three high schools and in the central office. In addition, the manner in which some requests for public records were worded caused some concern. Several requests did not ask for particularly identified records. Rather, they required school officials to search records to determine which documents contained information responsive to the requests. Some of the records requested also contained confidential student information, which is not public record. Dr. Russo has stated that he did not want any documents released in response to a public records request unless the documents were both correct and did not mislead the public. That is not the standard in North Carolina. If there is a pending public record request, even incorrect documents or drafts of documents must be provided if they are responsive to and included within the records request. Mistakes were made in providing certain documents and in responding to these requests.
One of the procedures that will be put in place as a result of the investigation is staff development at all levels in the district to make sure everyone understands their responsibility under public records requests. In addition, the Moore County Schools will refine procedures for employees in responding to public records requests or questions from the press.
We are very disappointed at some of the actions taken by several of our employees and former employees, and by the lack of oversight exhibited in some instances. The Board has taken personnel action to address several concerns with Dr. Russo. The Board is also going to ensure that the entire issue of using the SAT tests as part of the Accountability Model, uses of 069 funds and public records requests and responses are handled appropriately, and that safeguards are in place for the future.
The Board regrets that the many great successes and legitimate, significant gains we have made in recent years have been somewhat overshadowed in recent weeks by these issues. These actions have damaged the reputation and credibility of several individuals in the school system and have left a negative impression with many in our community. The Board is also fully aware of concerns that have been expressed relating to pressures brought on by management style and the testing programs. These concerns are being addressed with integrity, in a manner we hope will be fair to all.
We remain fully committed to moving our system to even greater heights, in the best interests of all of our children.
