TEXAS EDUCATION AGENCY

170! NORTH CONGRESS AVENUE * AUSTIN, TEXAS 78701-1494 * 512/463-9734 * FAX: 5 12/463-9838 MIKE MOSES
COMMISSION OF EiH'c-vrioN

May 21, 1999

Members of the Board of Trustees Mr. Paul Vranish, Superintendent Lone Oak Independent School District P. O. Box 38 Lone Oak, Texas 75453-0038 Dear Members of the Board and Mr. Vranish: This is in follow-up to the correspondence transmitting the investigative report from the Texas Education Agency ' s Division of School Governance to Lone Oak Independent School District (ISD). Subsequent to that transmittal, the district through letter dated April 13, 1999, informed the Agency of its agreement with the contents of the report. The letter competently delineated the thoughts of the board of trustees about the contents of the report. We commend both the board and the administration on the positive attitude taken regarding governance issues at Lone Oak ISD. The preliminary report transmitted to the district on March 31, 1999 is now the final report of the investigation. As indicated in the report, representatives from the Division of School Governance will be observing the board of trustees and the district's administration for the next three months. We look forward to receiving the documentation required in the report. Any questions can be directed to Ms. Brenda Rudd, chairperson of the School Governance visiting team, at (512) 463-9519. Sincerely,

Linda G. Mora, Associate Commissioner Accountability and School Accreditation cc: Joe T. Farmer, Executive Director Region X Education Service Center Neida Estringel, Coordinator Accountability Evaluations

TEXAS EDUCATION AGENCY

1701 NORTH CONGRESS AVENUE * AUSTIN, TEXAS 78701-1494 * 512/463-9734 * FAX: 512/463-9833 MIKE MOSES
COMMISSIONER OF EDUCATION

March 31, 1999 Members of the Board of Trustees Mr. Paul Vranish, Superintendent Lone Oak Independent School District P. O. Box 38 Lone Oak, Texas 75453-0038 Dear Members of the Board and Mr. Vranish: On March 4-5,1999, an investigative team from the Division of School Governance of the Texas Education Agency conducted a visit in the Lone Oak Independent School District (ISO). This investigation was in response to a governance-related complaint submitted to the Agency. The visiting team's investigative report is enclosed. The Agency is concerned about the allegations and the findings presented in the enclosed report. As a result of this investigation, the investigative team has recommended that specialists from the Division of School Governance observe and guide the actions of Lone Oak ISO on all matters involving governance for the next three months. The enclosed report is preliminary at this time and is presented for your review. It is the policy of the Division to provide school districts 12 working days in which to respond to the investigative team's findings before an investigative report becomes final:.. If the district disagrees with the report, the district may submit its specific objections in writing. The deadline for the district to complete and return the enclosed Receipt of Report is noted at the bottom of the form. The visiting team from the Agency appreciates the cooperation shown by you and your staff members during the visit. The board minutes and agendas requested by the team were provided in an organized manner, and Mr. Vranish and his staff are to be commended. Questions regarding this report can be addressed to BrendaRudd, chairperson of the visiting team, at (512) 463-9519. Sincerely,

Linda G. Mora, Associate Commissioner Accountability and School Accreditation Enclosure

INVESTIGATIVE REPORT

Lone Oak Independent School District P. O. Box 38 Lone Oak, Texas 75453-0038

Texas Education Agency Division of School Governance 1701 North Congress Austin, Texas 78701

Investigative Report Lone Oak Independent School District County-District Number: 116-906

Paul Vranish, Superintendent Mark Hoelting, President, Board of Trustees

Investigative Team: Date of Visit: Date of Report:

Brenda Rudd, Chairperson Imelda Martinez, Member March 4-5,1999 March 31,1999

Lone Oak Independent School District Investigative Report Page 1

Introduction and Procedures: An investigative'visit to Lone Oak Independent School District (ISD) was conducted in response to a written complaint against the district submitted to the Texas Education Agency by a community member. The investigative team, composed of staff members from the Agency's Division of School Governance, entered the district at approximately 9:00 a.m., March 4, 1999. The team conducted interviews over a two-day period with all members of the board of trustees, the superintendent, other school district employees, and the complainant. Documents examined by the team included school board agendas, minutes from school board meetings, and other items pertaining to the letter of complaint. Copies of the complaint and procedures for investigating governance complaints were provided to the district.

Allegations:

1. Some board members have heard citizen and employee complaints without on requiring that the complaint process be followed, and the board has acted ( those complaints during board meetings. 2. The board changed the discretionary spending limit of the superintendent 3. The board of trustees requested an itemized breakdown of all student activity funds and a line item budget from the athletic director. 4. The board of trustees requested copies of various billing documents. 5. The board of trustees requested to review the personnel files and credentials of recently hired employees and administrators.

Findings: 1. Some board members have heard citizen and employee complaints without requiring that the complaint process be followed, and the board has acted on those complaints during board meetings. The allegation is substantiated; however, prior to the on-site investigation, the Lone Oak ISD Board of Trustees recognized the importance of requiring that complainants follow board policy. Thus, no additional corrective action is required from the district

Lone Oak Independent School District Investigative Report Page 2

2. The board changed the discretionary spending limit of the superintendent. The allegation is substantiated, but no violation of law or policy occurred. Through interviews, the on-site investigative team learned that the Lone Oak ISO superintendent customarily had a discretionary spending limit of $10,000. Within the past two years and due to an oversight, that limit was exceeded on one occasion. After discovery of the mistake, the board voted to raise the discretionary spending limit to $25,000. Upon review of the minutes of meetings of the Lone Oak ISD Board of Trustees, the on-site investigative team learned that on October 19, 1998, the board then voted to "lower the discretionary spending limit of the superintendent from $25,000.00 to $7,500.00." During its December 14,1998 regular meeting, the board voted to limit the superintendent's discretionary spending limit to $10,000. A board of trustees has the authority to set a discretionary spending limit for its superintendent. However, board members should support the decisions made by the board as a whole; therefore, it is advisable that, once a policy is adopted by a board of trustees, each board member should accept and abide by the decision. When a board fails to stand behind its policy decisions and continues frequently to change such policies, the many changes can create a perception of inconsistency and disharmony. 3. The board of trustees requested an itemized breakdown of all student activity funds and a line item budget from the athletic director. The allegation is partially substantiated. The minutes of the October 19, 1998 regular meeting of the Lone Oak ISD Board of Trustees state that a motion was made "to approve a budget amendment to allocate $700 to Drill Team, $700 to High School Cheerleading, and $700 to Middle School Cheerleading, for a total of $2100 with the stipulation that the Athletic Director give the Board a line itemization of his current budget, including drill team, and Cheerleading line items." Although a point of order was called twice and the superintendent "advised that a budget itemization should be obtained.. .with an administrative directive and should not be part of a motion from the Board," the motion passed. The investigative team received no information to substantiate that itemization of all student activity funds was requested. Section 11.201(d)(5) of the Texas Education Code (TEC) states that a superintendent has the duty of "managing the day-to-day operations of the district as its administrative manager." Section 11.151(b) of the TEC states, "The trustees as a body corporate have the exclusive power and duty to govern and oversee the management of the public schools of the district." By its action on October 19, the Lone Oak ISD Board of Trustees directed the athletic director to provide a line itemization of his current budget. When a board of trustees issues a directive to a district employee, other than the superintendent, it does so in violation of state law and board policy.

Lone Oak Independent School District Investigative Report Page3

4. The board of trustees requested copies of various billing documents. The allegation is substantiated, but no violation of law or policy occurred. Through interviews, the on-site investigative team learned that individual board members have requested to see credit card statements. Board members have the right to seek information that will help them perform their duties as trustees. It is suggested, however, that board members exercise caution if requesting large amounts of documentation, bearing in mind the time required to accummulate the requested items. Such requests for documentation should be directed only to the superintendent who is the liasion between the board of trustees and district employees. If a board member requests various documents that do not appear to be for the purpose of helping that member perform his duty as a trustee, he may be perceived to be conducting a personal, unauthorized investigation. Board members should not perform investigations without authorization by the board as a whole. Further, it is noted that repeated requests for documentation can be indicators of governance problems within a district and can give rise to allegations of micro-management by a * board of trustees. Board members are cautioned to analyze their reasons for making requests for information to avoid the perception of interference in the day-to-day operations of the district. 5. The board of trustees requested to review the personnel files and credentials of recently hired employees and administrators. The allegation is substantiated in part, but no violation of law or policy occurred. Through interviews, the on-site investigative team learned that board members are interested in acquiring information about the individuals that the board hires and have requested some information about new employees. Information provided to the investigative team was insufficient to determine precisely what documentation was requested. The same dangers exist in this instance as are noted in Finding Number 4 above, and board members are again cautioned accordingly.

Additional Findings: 1. Board policy BE(Local) states, "Regular meetings of the Board shall be held on the second Monday of each month at 7:00 p.m." A review of the meetings of the board of trustees of Lone Oak ISD revealed that meetings have been held more often than one time each month and, in one instance, a meeting was characterized as an "Early Regular1' meeting. The on-site investigative team was provided no bpard policy that provides for a meeting so named. Policy allows for special or emergency meetings in addition to regular meetings. Care should be taken to appropriately characterize each meeting of the board of trustees.

Lone Oak Independent School District Investigative Report Page 4

2. Through interviews, the on-site investigative team was told by administrators that board members direct questions to them during meetings of the board of trustees of Lone Oak ISD. The team was told that board members do not direct their questions to the superintendent only. Board policy BJA(Local) states that the superintendent shall "Serve as liasion between the Board and staff." Board members must follow board policy and allow the superintendent to perform the duties assigned to him. Additionally, Robert's Rules of Order require that a member be recognized by the chair prior to speaking on a subject or, in this case, prior to asking questions. 3. Through interviews with administrators, the on-site investigative team learned that conflict exists between the board of trustees and the superintendent, and the conflict has angered some of the staff. As a result, more employees attend the board meetings. An administrator described the board meetings as "one huge filled room of tension." Another administrator indicated that the board members want to "have their finger in every pie." Another individual interviewed by the team stated, "It's out of control." The on-site investigative team was told that board members are letting their personal feelings interfere with their decisions and are placing those feelings ahead of the students of Lone Oak ISD. When conflict arises among members of a school board and the superintendent and the conflict is not resolved, instruction of the students is ultimately affected. The education of the students of Lone Oak ISD should be the foremost consideration in each and every decision made by the superintendent and the board of trustees. Each member of the board should examine his or her own motives prior to any action taken in the capacity of a board member of the district. 4. The on-site investigative team reviewed the minutes of meetings of the board of trustees of Lone Oak ISD and found that, since July 13, 1998, the board has held 18 board meetings. The progress of Lone Oak ISD and its students should be the main focus of board meetings. Agendas and board packets should be reviewed prior to meetings, and questions regarding items in the packet should be directed to the superintendent before the meetings so that during board meetings attention can be focused on the needs of students. Additionally, agendas should be reviewed by the superintendent and board president before they are posted so that only items that are appropriate for board consideration are placed on the agendas. Although no policy exists that precludes numerous board meetings, a board should strive to streamline its meetings by considering only those subjects over which it has authority provided in law. Recommendations: 1. Members of the board of trustees should be mindful of the possibility of perceptions of impropriety that can arise within a school district and should understand that such perceptions, whether warranted or unwarranted, can be detrimental to the functions of the board of trustees. Each member should make every effort to avoid providing opportunities for such perceptions of impropriety.

Lone Oak Independent School District Investigative Report Page 5

2. It is recommended that each member of the board of trustees of Lone Oak ISD and the superintendent be provided a copy of 21st Century Robert's Rules of Order and that each individual periodically review proper parliamentary procedure.

Required Improvement Actions: 1. Each member of the Lone Oak ISD Board of Trustees and the superintendent, as a group, must attend a team-building training session given by a registered provider within 60 days of the date of this report. Documentation of such attendance must be submitted promptly upon completion to the Texas Education Agency, Division of School Governance. 2. All members of the board of trustees and the superintendent must attend training that is designed to improve interpersonal relationships and communication skills. The training must be given by a registered provider and must be completed within 60 days of the date of this report. Documentation of attendance at the training must be submitted promptly upon completion to the Texas Education Agency, Division of School Governance. 3. All members of the board of trustees and the superintendent must attend board training which focuses on the duties and responsibilities of board members and superintendents. The training must be given by a registered provider and must be . completed within 90 days of the date of this report. Documentation of attendance at the training must be submitted promptly upon completion to the Texas Education Agency, Division of School Governance. 4. All members of the board of trustees and the superintendent must attend board training which focuses on the rules of parliamentary procedure. The training must be given by a registered provider and must be completed within 90 days of the date of this report. Documentation of attendance at the training must be submitted promptly upon completion to the Texas Education Agency, Division of School Governance. 5. Lone Oak ISD must submit copies of all board meeting agendas and minutes from meetings held within 90 days from the date of this report. The documentation should be sent to the Texas Education Agency, Division of School Governance.

Sanctions: Based on the findings detailed in this report, the investigative team recommends that specialists from the Division of School Governance closely observe and guide the Lone Oak ISD on all matters involving governance. It is further recommended that the district be required to provide, upon request of the Agency, any and all information pertinent to the follow-up activities resulting from this investigation.

Receipt of Report from the Division of School Governance The school district must complete this form by selecting only one of the two options as its response to the report of the most recent visit conducted by a team from the Division of School Governance of the Texas Education Agency. 1. The district agrees with the contents of the report. 2. The district disagrees with the contents of the report and is submitting those specific objections in writing. Failure of the school district to respond by the date specified below will be interpreted as the district's agreement with the report. The report shall then become final.

Name of School District

County-District Number

Signature of Superintendent

Date

Signature of Board President

Date

Any person who believes that the report has found him or her in violation of a law, rule, or policy may request an informal review under Section 39.076 of the Texas Education Code.

Return this form to:

Linda G. Mora, Associate Commissioner Accountability and School Accreditation Texas Education Agency 1701 North Congress Avenue Austin, Texas 78701-1494

On or before:

April 20. 1999