Mar 4, 2016 By Susy Kelly skelly@heraldstandard.Com 6 min read

A performance audit of the Connellsville Area School District by the state auditor general highlights not just the unique financial difficulty facing the district, but some of the legal issues as well.

“We found that a former district superintendent repeatedly disregarded district policy by approving unsubstantiated overtime and compensatory time for the district’s former network administrator,” Auditor General Eugene DePasquale wrote in the report.

The report, released Thursday, also said a revolving door of superintendents — six have been hired for the post in five years — may have contributed to the district’s financial woes.

Phil Martell was most recently hired to fill the position in January. DePasquale questioned the manner in which Martell was hired, as well as the board’s reasoning behind choosing him.

DePasquale stated in the audit findings that CASD officials reported on Jan. 20 they were conducting a nationwide search for a new superintendent, and that it was just seven days later when the board voted to move Martell from business manager to superintendent with a five-year contract.

DePasquale said the Jan. 27 CASD board meeting was not properly advertised, in that the public was not made aware that the board would be voting on the superintendent position.

The meeting itself was advertised, but voting on Martell’s hiring was added to the agenda after the advertisement was made. Martell said the board opened the floor for public comment before taking action, and no one from the public spoke for or against it.

While the meeting may not have violated the letter of the Sunshine Act, DePasquale said it violated the spirit of the law.

Melissa Melewsky, media attorney for the Pennsylvania NewsMedia Association, said the law does not require advanced notice of which actions will be voted on at a public meeting, nor does it require an agenda.

“But, the public can benefit greatly from knowing in advance what an agency plans to discuss and act upon at public meetings,” Melewsky said. “Advanced access to this kind of information helps the public decide whether they want to attend a public meeting, and it helps those who cannot attend keep track of what’s happening.”

Martell said he took issue with DePasquale’s assertion that the board indicated it was conducting a nationwide search.

“He mischaracterized that,” said Martell. “It’s inaccurate and misleading.”

He said the board sought applicants, but there’s no way to compel more people to apply for the job. Further, he said nationwide human resource searches are costly and time consuming.

In June, shortly after Martell was hired as business manager for CASD, the Allegheny County district attorney began an investigation into whether Martell stole funds from West Mifflin School District when he was business manager there, a claim Martell has denied.

“I wouldn’t have chosen to take this job, and certainly the board wouldn’t have hired someone with criminal charges,” Martell said.

Martell said it was he who brought to former Fayette County District Attorney Jack Heneks’ attention the alleged theft of network equipment by district employee Patrick Maloy, and that policies and practices are being changed to make sure nothing like that happens again.

Martell said the revolving door, and its concomitant inconsistencies, stops with him.

“I’m here to stay,” Martell said. “The board made a commitment to me and I made a commitment to the school district.”

DePasquale’s audit also took to task former superintendent Dr. Dan Lujetic, who authorized payment to Maloy for unsubstantiated overtime in the amount of $2,500, as well as granting him compensatory time, which is against district policy.

The criminal charges Maloy is currently facing are for allegedly stealing $450,000 in computer equipment from the district that he said he needed to support a drug habit.

DePasquale recommended current county District Attorney Rich Bower review the overtime payment.

“As a result, we will be reviewing the audit and the comments, and making a decision on how to proceed,” said Bower.

The audit found that in June 2014, Maloy asked for an advance on his pay, three days after pay day.

A payroll specialist denied the request, saying advances are against district policy, the report states.

The next day, Maloy allegedly brought a calendar to the payroll specialist and asked to be compensated for overtime he had worked from January through May 2014. The specialist reportedly told Maloy the overtime would require approval and, if approved, would be paid on the next pay cycle.

Lujetic, the report states, provided the specialist with the approved sheets the following day, and directed the specialist to pay the overtime.

“In addition to retroactively approving overtime that supposedly had been incurred months earlier, the superintendent approved the overtime at a rate that was double the rate that should have been paid, assuming the overtime was validly worked,” DePasquale wrote.

“The total erroneously-calculated amount of overtime paid to (Maloy) approximated his bi-weekly salary, which was the amount requested as an advance in the same month the overtime was retroactively granted,” he added.

Lujetic also allegedly approved comp time for Maloy, which violated the policies of the technology department, even though DePasquale contends records show Maloy wasn’t at work on all the days listed.

Despite a policy requiring Maloy to sign in at each of the school buildings where he was doing work the audit found that between November 2013 and March 2015, he had never done so.

DePasquale’s report drew the attention of Sen. Pat Stefano, R-Bullskin Township, who met with him Thursday to talk about the findings.

“His report is very alarming,” said Stefano. “What I see is a lack of transparency.”

Stefano said he was already working on drafting legislation to boost transparency in other matters, but in light of the audit, he plans to add language addressing school districts.

A waiting period should be in place between the time when a governing entity announces something like the hiring of an executive and when the hiring decision goes before a board for approval, Stefano said.

“The taxpayers should have a chance to speak their voice,” said the senator.

Stefano encouraged the public to attend school board meetings and ask questions. All eyes are on CASD right now, he said, and there should a continuing level of scrutiny for public officials.

“They’re less likely to make these decisions when people are watching,” said Stefano.

As the problems in Connellsville come to a head, Stefano said, “It’s time to put our apathy aside.”