Cleburne [Texas] ISD has new policies and procedures in place to curb financial misspending, according to the district’s response to a Texas Education Agency report questioning the district’s use of more than $365,000 in federal education funds.

The district presented its response during a special called Tuesday meeting and must now wait at least 30 days while the TEA compiles its final report.

During the meeting Assistant Superintendent Mike Bailey summarized the district’s 754-page response, noting what has been changed to comply with TEA policy and what has been presented in the district’s favor.

The district’s response is posted at www.cleburne.k12.tx.us.

“What the TEA is looking for is not only our response but what’s been put in place to ensure that these problems don’t occur again,” Interim Superintendent Dr. James Warlick said.

New policies include adding a new full-time revenue fund clerk, reorganizing the district’s grant administrators, no federally-funded foreign travel without TEA and board approval and a pre-acquisition form for educators asking for items to be paid for with federal funds.

Bailey said the district’s response also included the proper documentation for almost half of the questionable amount.

“The total amount the district has submitted with documentation for and requests for the TEA to take consideration of was over $166,000,” Bailey said.

Bobby Padgett of Henslee Schwartz, LLP, assisted the district in formulating its response.

“The district really needs to take a look and make sure all these policies will be followed,” Padgett said.

Padgett said the biggest problem he found was that the district had policies in place to prevent the problems the TEA cited, but the policies were not being followed.

“It’s going to take a willingness to see that these policies are strictly followed,” Padgett said.

“It’s just a matter of knowing the rules and following the rules,” board member Donna Boles said.

Padgett, Warlick and Bailey all said there was no evidence of fraud or criminality found in the TEA’s report.

“And the TEA said the same thing,” Warlick said.

The TEA’s on-site investigation began in February 2007, when TEA auditors went to the district administration building to collect financial records and documents.

The investigation arose from a complaint by a member of the watchdog group Access Cleburne, Harold Gentry. Gentry sent a letter to the agency the previous year questioning the district’s use of Title I funds, travel and meal expenses for school board members and furniture purchases at CISD, among other financial uses.

The board also took no action on the consideration of adopting a teacher pay scale for the 2008-09 school year.

The board first looked at pay scales earlier this month, but decided to postpone on a decision to give the district more time to adjust increments and work out the best possible scale. On Tuesday, Madison proposed postponing again because newly hired Superintendent Dr. Ronny Beard told him he’d like to add his input to the decision.

Though the board made no decision, Madison reiterated that a teacher raise is a definite.

“Teachers will get a pay raise and it will be in the vicinity of 4 percent,” he said.

The board also canvassed and certified the results of the May 10 school board elections. The election saw Brad Allen and MJ Larrison taking the Place 1 and 6 seats, respectively. Madison also ran unopposed in the Place 2 spot.

The board also recognized the district’s all-county soccer students as selected by the Times-Review.