Le) State of Nete Jersey Curis Cusisre ‘Disarm oF Ebucstion ‘ancemer PO DEX sI0 Kin Guansavo. ‘ees, NY 08625. 0500, inant H yee Aus (Me. Dominic Miler, Board President Li Board of Education S Hunter Stost Lodi, NI 7544 Dear Mr. Miller SUBJECT: Ladi Public Schools _Legal Services Review (OFAC Cass HINV.130-17, ‘The Department of Education, Office of Fiscal Accountilty and Compliance (OFAC) complied review of the process and methodology uilized by the Lodi Public Schools (Distr to award Kgl services. AS a rel ‘tthe reviow, the OFAC has identified sees with employee hiring practices, The ses of noncompliance are ‘detiled inthe attache por of Examination. Please provide copy ofthe rept ach board mem. Utilizing the process outlined inthe attached “Procedures for LEAJAgeney Response, Corrective Action Plan and Appeal Proces.”the District is eguied, pursuant 10 NLA. 6A:23A-5.6, to puslcly review and Jiscys the findings in this report a a public bow meting no later that 30 days afer recep he report. Within 0 {ys ofthe public meeting, he hoor must adopt a resolution centiying thatthe findings were discus in Dblie meeting and uppeoving a Corrective Action Pin (CAP) to addres the Sues raised in the tpt i Sulbmit aa appeal of any Findings in dispute. A copy ofthe resolution and the approved CAP ano appeal must he sen! to thilfice within 10 days of adoption by the Booed Direct your response wo my alten, Also, pusuunt 1 NJ.A.C. 64:234-5.6(), you must post the findings of the report and the Discs cuccive section plan on your District's website Should you have any questions, please contact Manager, Investigations Unit, Sie Hor an ad Opera npr Prine 8STATE OF NEW JERSEY DEPARTMENT OF EDUCATION OFFICE OF FISCAL ACCOUNTABILITY AND COMPLIANCE, iv ONS UNIT ODI PUBLIC SCHOOLS LEGAL SERVI EW OFAC CASE IN REPORT OF EXAMINATIONLODI PUBLIC SCHOOLS LEGAL SERVICES REVIEW INVESTIGATIVE SUMMARY. (On August 2, 2017, the New Jersey Department of Education, Office of Fiscal Accountability sand Compliance (OFAC), recsived a complaint expressing concerns regarding the Lodi Board of Ediueation’s (Boatd) legal fees. In August 2017, the OFAC investigator initiated an investigation into the concems and conferred with individuals thought to have knowledge of the allegation. The investigator also reviewed relevant documents provided by the Lodi Public Schools (District) including Board minutes, purchase orders, payments, Board policy, employee contracts and legal services" invoices. ‘The investigation disclosed that tke Board employs an in-house attorney and also contracted with ai outside law Firm for special services. In Joly 2015, the Board approved a three-year contract hiring Alisa Nunno DiChiars, Esquire (Counsel), a an employee to provide general counsel services to the Board and on behalf ofthe Board, The annal Salaries for Counsel are listed as follows: + 2015-2016 $63,131.00 + 2016-2017 $64,394.00 + 2017-2018 $65,682.00 ‘The contract states: ‘Mrs. Nuno DiChiara will perform all ordinary legal services which will Inctude amtendance and representation at every other regular meeting, as well as meetings at whick the Board requires assistance of counsel; research, consultation and rendering of opinions on any and all legal questions confronting the Board and selected staff members . . . representations at all grievance and arbitration proceedings; legal drafting or review of legal documents, notices, contracts, and proposed polices. Mrs. Nunno DiChiara reserves the right to request additional fees for extraordinary services 10 be rendered over and above the annual salary which ‘encompass protracted ligation or protracted contractual representation. ‘The coniruct does not address work location, work days, work hours, sick leave, vacation leave ‘or any other employee henefits. Other employee contracts provided by the District reference: detailed job description, work week, daily hours, specific amount of sick and vacalion leave, health benefits, etc. Also, the contract does not clearly define the amount of hours Counsel is expected to work for the annual salary she is receiving. According to the District's Business Administrator, Mrs. DiChiara does not report to work atthe Disirict and performs her duties offsite. In comparison to other District employees, Mrs DiChiara, as an employee, does not receive tenure, health benefits, annual evaluations and sick or vacation leave. Mis. DiChiara does not report 10 a supervisor at the District and is not ‘committed 1 Disrict work schedule