State Auditor Finds No Fraud in Johnston School District; Says Problems Have Been Fixed

A review of Johnston school district practices found that it has not kept adequate minutes and employee contracts have not been signed by the board president at times, but those problems have been remedied, state authorities said Monday night.

The re-audit spurred several months ago after board member John Dutcher questioned some district practices found there were not sufficient minutes kept of many board actions over several years, and administrator and teacher contracts were sometimes signed after the person started work for the district. Another problem was the use of a stamp with the board president's signature, which is not valid.

The state auditor's findings on  practices prompted Dutcher to ask for two members and the superintendent to resign, while others hope to put the issue behind them.

"I think the board would be entirely appropriate in asking for the resignation of (Superintendent) Clay Guthmiller," Dutcher said. "In terms of the organization's function, when you begin from a place that your own superintendent isn't hired by a legitimate process and never had a legitimate contract."

He also asked board members Jill Morrill and Mike Farrell to resign, which they did not.

Neither Morrill nor Guthmiller made any comment Monday night.

Farrell responded to Dutcher by saying he would not resign from his position.

"I personally take ownership of the mistakes made during the time I've been on the board and I've never once backed away from that position," he said. "I was open and honest with the auditor's office during this entire process.

"I am not surprised in the least that the serious allegations made by Mr. Dutcher having no merit in the context in which he presented in the attack on the character of outstanding district employees, as well as past and present board members," Farrell added.

The re-audit, which was initiated by Dutcher in May 2011, covered the fiscal year 2010 and certain practices in earlier years. The review included board minutes, contracts and interviews with prior and present board members, and employees.

Susan Battani, CPA director for the state auditor's office, said the district had fixed the areas in question for the current fiscal year. And she said the state review found no evidence of fraud or collusion as Dutcher had charged.

A full report on the re-audit is available online.

Several of the problems surrounded poor record-keeping of board actions, something that appeared to be a long-standing practice in the district, Battani said.

Board member Greg Dockum, who was elected in September of this year, said the board had spent plenty of time on the re-audit and surrounding issues. It was time to move on, he said.

"We are a shining example of the way a district should be run," he said, noting the district has been recognized by the Iowa Association of School Boards.

Among Dutcher's recommendations were to hire legal representation for contract negotiations, select a new secretary for the board and re-examine the duties of the school board.

Dutcher also asked the board to reassign the title of associate superintendent to Bruce Amendt, executive director of academic services, so that Jim Casey, director of human resources and associate superintendent, can focus on human resources.

The board approved accepting the re-audit, but no other action was taken.