FBI declines to investigate spending of Manatee school bonds

BRADENTON -- The 2009 sales tax bond documentation turned over to the FBI won't result in any action or criminal charges, according to Manatee County School District internal auditor Byron Shinn.

Shinn discussed the FBI bond review during Tuesday's Manatee County School Board meeting. Auditors from Shinn & Co. of Bradenton can now issue a final audit.

"We met with the FBI on two separate occasions and were informed no further action is contemplated by the FBI at this time," he said.

Shinn said the FBI did not open a formal investigation, instead conducting a review, which is why there is no written documentation from the feds.

Internal auditors will report on use of sales tax bond funds to the district Audit Committee in March. A final report may go before the board in April, Shinn said.

District officials are expected to turn over any new information discovered to the FBI. The August information handoff to the FBI was done in an abundance of caution, Shinn said.

School Board Chairman Bob Gause said he wants to know what information in the report triggered district officials to seek a bond review.

Internal auditors were trying to figure out how $8 million of a $45 million sales tax bond was spent without proper authorization. So far, auditors have accounted for approximately $5 million, leaving about $3 million improperly documented.

The auditors sent district information to be reviewed by Staff Attorney Mitchell Teitelbaum in the summer. He turned the information over to the FBI in August.

In 2009, three projects were approved through bond funding:

A Palmetto High School addition;

Work at Rogers Garden Elementary School; and

Modernizing the transportation and maintenance facility at the Matzke complex.

About $45.2 million was

available for the three projects, according to previous audits. Not all money was accounted for properly, which prompted the investigation.

Shinn representatives also presented audits of the human resources and payroll departments, the Jessica Lundsford Act, the Pell Grant program at Manatee Technical College and dual enrollment student program fees at Manatee Tech.

"As we go through these, I don't want it to be a numbing situation," Shinn said. "Our role is just to report to you and you do with it as you see fit."

The district is hampered by technological shortcomings, as well as the constant changes it has undergone in the last two years, Shinn said.

Board members voiced concern over issues raised in the audits, but Don Hall, deputy superintendent of operations, said this was to be expected as internal auditors scrutinize human resources and payroll activity.

"We've triaged and said we're going to fix the budget first," Hall said. "This year we're going back to human resources and payroll. We're doing the exact same thing we did last year. We're tearing them apart."

Hall said fixes are being put into place and cash flow is easier to control with a stabilized budget.

The board also approved:

Superintendent Rick Mills' request not to extend his contract past its end date in 2017; and

Adding rowing as a club sport.

Meghin Delaney, education reporter, can be reached at 941-745-7081. Follow her on Twitter @MeghinDelaney.

This story was originally published February 25, 2015 at 12:00 AM with the headline "FBI declines to investigate spending of Manatee school bonds."