As hard as it is to accept the District spending $75k right now on non direct services, I think it’s really important for there to be accountability for the millions gone during the Horton era.
100% accurate. And not only is accountability needed, but some learning for the Board and the community which is focused on the problems of D65 in a way that was never the case before.
Joking aside, I've worked with Big 4 and I've worked with BDO (they're #5 I think) and the BDO people I've worked with are excellent and at that price differental the decision makes itself.
Having helped prepare many professional services RFP responses, the BDO document is well done and the price seems reasonable for the proposed scope of work. Sure $75k seems like a lot right now, but dragging skeletons out of closets would go a long way toward enforcing accountability and building trust, both of which are in seriously short supply. Let’s not forget there are sitting board members who enabled this fiasco.
I agree that $75K is a lot right now but how can the District and the public ever move forward and trust start to be rebuilt without the band aid being ripped off and all the creepy crawlies being exposed to the light of day.
Tom, sorry if you’ve already addressed this, but will those documents made available to the accountant be made public or are there confidentiality restrictions? I’m sure there are some smart people who could have a lot of fun reviewing them. There is probably a lot of interesting information in them.
I don't think the public will see much besides the report at the end. They can probably deny a lot of FOIAs against that paperwork as being "predecisional"
Chris, one nuance that may be helpful is that Illinois FOIA treats many financial records as public by default. Section 2.5 covers records relating to the use of public funds, and Section 7(2) generally treats records held by contractors performing governmental functions, such as a forensic auditor, as district records. Draft opinions may be withheld, but much of the underlying financial and factual material is often still subject to disclosure.
I sure would like them to look at contracts over $15k. My guess is that they have buried a large number just below the public disclosure threshold to avoid scrutiny. Even though small in amount, they can add up and I’d encourage the consultant to look at those.
Yeah, during the Horton years here (and in Georgia too) they buried a lot of contracts in the <$25k (and subsequently <$35k after the law changed) limit to avoid disclosure to the board. For instance, in GA he ordered $20,000 worth of books from FOX news guy Gianno Caldwell and didn't have to report to the board.
If I was the auditor here, I would start with the $24,500 contracts. I can give them a list if they'd like.
BDO and Crowe are good firms and a Big 4 would likely cost more, though I’m impressed by Crowe’s high rates. In any case, the experience of the team and familiarity with schools and public entities is the most important criteria.
As hard as it is to accept the District spending $75k right now on non direct services, I think it’s really important for there to be accountability for the millions gone during the Horton era.
More than $20 million flew out the door during that period! We could really use that right now with these tax warrants
100% accurate. And not only is accountability needed, but some learning for the Board and the community which is focused on the problems of D65 in a way that was never the case before.
People who know, know BDO.
Joking aside, I've worked with Big 4 and I've worked with BDO (they're #5 I think) and the BDO people I've worked with are excellent and at that price differental the decision makes itself.
Having helped prepare many professional services RFP responses, the BDO document is well done and the price seems reasonable for the proposed scope of work. Sure $75k seems like a lot right now, but dragging skeletons out of closets would go a long way toward enforcing accountability and building trust, both of which are in seriously short supply. Let’s not forget there are sitting board members who enabled this fiasco.
I’m at the meeting now, they’re not going to decide tonight but seem to be leaning towards BDO.
They should. Just read both responses and BDO hit it out of the park. Looks like the ones we did at Accenture.
I agree that $75K is a lot right now but how can the District and the public ever move forward and trust start to be rebuilt without the band aid being ripped off and all the creepy crawlies being exposed to the light of day.
Tom, sorry if you’ve already addressed this, but will those documents made available to the accountant be made public or are there confidentiality restrictions? I’m sure there are some smart people who could have a lot of fun reviewing them. There is probably a lot of interesting information in them.
I don't think the public will see much besides the report at the end. They can probably deny a lot of FOIAs against that paperwork as being "predecisional"
Chris, one nuance that may be helpful is that Illinois FOIA treats many financial records as public by default. Section 2.5 covers records relating to the use of public funds, and Section 7(2) generally treats records held by contractors performing governmental functions, such as a forensic auditor, as district records. Draft opinions may be withheld, but much of the underlying financial and factual material is often still subject to disclosure.
I sure would like them to look at contracts over $15k. My guess is that they have buried a large number just below the public disclosure threshold to avoid scrutiny. Even though small in amount, they can add up and I’d encourage the consultant to look at those.
Yeah, during the Horton years here (and in Georgia too) they buried a lot of contracts in the <$25k (and subsequently <$35k after the law changed) limit to avoid disclosure to the board. For instance, in GA he ordered $20,000 worth of books from FOX news guy Gianno Caldwell and didn't have to report to the board.
If I was the auditor here, I would start with the $24,500 contracts. I can give them a list if they'd like.
BDO and Crowe are good firms and a Big 4 would likely cost more, though I’m impressed by Crowe’s high rates. In any case, the experience of the team and familiarity with schools and public entities is the most important criteria.