Financial Disclosure Info Lacking on State Board of Education Members

Two state Board of Education members never filled out conflict-of-interest forms during their tenure, a review by the state comptroller’s office found, despite a board policy that requires disclosure to help guard against ethics lapses and ensure transparency.

In a review of disclosures submitted from 2006 through August 2009, auditors found that two members had not completed forms at all. One served for nine years without ever filling out a disclosure form.

The ethics forms are aimed at revealing whether board members or their families have financial stakes in companies licensed by the board or department.

The findings were detailed in a wide-ranging state audit of the state Board and Department of Education by the comptroller’s office. The audit criticized inspections of pre-K and other child care providers, poor handling of students’ identifying information that allowed some of it to be made public, and the process for verifying information submitted by local school districts.

In reviewing the board’s ethics forms, auditors found one form that was rendered useless because the signature was illegible, and there was no line on the form to print the filer’s name.

Auditors recommended the board require members and staff to complete the ethics forms on an annual basis and keep the forms on file for at least three years. In its response, the board agreed.

Other highlights:

  • In late 2008, a state contractor, Public Consulting Group, posted student data including dates of birth and Social Security numbers to a website that could be accessed via a Google search; in some cases, parents’ information was also made public. The data was removed about three months later, after a Metro Nashville Public Schools employee stumbled on the information. The audit says Public Consulting Group provided identity theft and credit monitoring services to the students and their parents, communicated the issue to the national credit bureaus, and implemented new policies to keep the problem from recurring. When news of the security breach broke in April 2009, a principal for the company expressed regret, telling WSMV Channel 4, “We take full responsibility for this incident, and we formally express our sincere apology to the students and parents of Metro Nashville Public Schools.”
  • Department staff were also faulted for poor control of personal information. Student names and Social Security numbers were included in two PowerPoint presentations available on the department website for about two years. Though one was removed immediately after auditors raised the issue, the second presentation was still available six months later. According to the audit, the department paid for credit monitoring services for the affected students and their families.
  • The department’s process for inspecting child care programs was weak, and recordkeeping was inconsistent, the audit found. Auditors became concerned after spot-checking files for three facilities kept at the central office in Nashville and finding that some inspection reports were missing in all three. They moved on to district offices, where they reviewed files for 110 programs and found inconsistencies in the forms and in the way they were filled out. Also puzzling were 10 annual inspection forms that were dated as completed on a weekend. According to the audit:

“The auditors questioned whether the inspections were as thorough as intended by the legislature. We also questioned certain activities in one field office. We referred our concerns to the appropriate staff at the Department of Education and submitted our work to the State Attorney General’s Office for further review.”

In its response, the department said it had developed new training and switched to an electronic system of inspections.

  • Auditors said the department should create a centralized system for verifying compliance information submitted by local school districts.
  • The board did not submit notices of vacancies to the Secretary of State for any of the seven board vacancies that occurred from 2006 to 2009, hindering the state from announcing open appointments, auditors found.
  • Auditors said the department should develop a formal plan to address teacher shortages. Even though the department responded to the criticism by producing a plan, staff later said that little had been done with it because of lack of funding. The plan apparently became obsolete before it could be used or implemented.