In a 4-3 vote Friday, the Bettendorf School Board accepted a separation agreement for Maxine McEnany, the district’s director of financial and business services.
She was instrumental in getting the Iowa state auditor to review the district’s finances for the 2013-2014 fiscal year. While nothing criminal came out of the reaudit, the state did find several ethical issues for the district to address.
On a 6-1 vote, the board also accepted McEnany's resignation.
According to the separation agreement, McEnany will receive a one-time payment of $367,000. The payment is not for wages and will be divided into three separate checks:
• One check will go to McEnany in the amount of $74,628.37.
• A second check will be made to Newkirk Zwagerman, PLC, the law firm that represented McEnany, in the amount of $122,371.63.
• The third check will be made payable to BARCO Assignments, LTD, which handles structured settlements, in the amount of $170,000.
Beginning April 21, 2017, McEnany will receive a structured payment in the amount of $750 per month guaranteed for 10 years with the final payment coming March 21, 2027. Beginning April 21, 2027, she will receive a structured payment of $1,220 per month guaranteed for 10 years with the final payment occurring on March 21, 2037.
McEnany did not attend Friday's meeting.
School board member Pepper Trahan, who voted against accepting the resignation, said McEnany had done a great job for the district, and had save the district "so much money over the years."
Trahan praised McEnany's work to ensure the ethical spending of the district's money.
Board member Paul Castro called the vote, "a sad day for Bettendorf." He praised McEnany's work to ensure the district was spending money wisely and properly.
Castro added that he is considering tendering his resignation to the school board.
The separation agreement signed by McEnany and school board president Gordon Staley, prohibits both sides from elaborating on any portion of the agreement and from making any disparaging comments.
McEnany contacted state auditor’s office after the public accounting firm Bohnsack & Frommelt issued a report that cited "significant deficiencies in internal control over financial reporting" in the audit for the fiscal year ending June 30, 2014. The report cited concerns that included:
• Insufficient segregation of duties over the receipts process.
• Insufficient segregation of duties over the payroll process.
• Insufficient segregation of duties over the cash disbursement process.
• Three negative accounts in the Student Activity Fund as of June 30, 2014.
• A variance in the basic enrollment data certified to the Iowa Department of Education.
The reaudit by the state focused on potential conflicts, business relationships and travel policies dating from July 1, 2013, through June 30, 2014, with some topics from July 1, 2014, through June 30, 2015. Among other things, the reaudit found:
• A district employee (Bettendorf High School principal Jimmy Casas) worked outside Bettendorf as a professional speaker and used district resources. The employee also frequently traveled for his speaking engagements, hired acquaintances for in-service training provided at the district (Bettendorf High School), and received hotel reward points while traveling on district business and using a district credit card.
• Two district administrators traveled to a conference sponsored by a district vendor. The vendor paid the conference registrations and lodging expenses for the two. The district determined the vendor was a "restricted donor."
• The number of professional leave days for 21 administrators in fiscal year 2015 ranged from 5.5 days to 42.5 days. Eight administrators used 20 or more days. The number of professional leave days appeared to be excessive for some employees.