Having taken an extra week to refine its wording, Lehighton Area School District’s board of directors on Monday night unanimously approved the letter it will send the Carbon County District Attorney’s office to request a criminal investigation into the district’s dealings with the National Education Foundation.

“We have concern that the law may have been broken considering that public funds are involved in this matter,” the letter states. “Please take the appropriate steps in assigning the task of investigation to the proper authorities.”

Monday’s motion passed by a 6-0 vote. Directors Nathan Foeller, Brian Shaner and Kerry Sittler were not in attendance.

The letter was copied to the Pennsylvania State Police.

LASD spent more than $3 million for what was supposed to be a “no-cost” contract to create Science, Technology, Engineering, and Math academies at its three schools around 2016.

The contract with NEF was the subject of a state auditor general’s report in 2020, chastising the district for getting nothing in return for its money.

“I think it’s great that you’re going to the district attorney to seek accountability of what took place in the district and what was discovered in the auditor general’s report,” former board member David Bradley said.

Background

In 2014, the district applied for the Qualified Zone Academy Bond program from the Pennsylvania Department of Education and was approved for $8.5 million to support construction of a new elementary school and renovations to its middle and high schools. The district applied for another QZAB in 2016 and was approved for $6.8 million. To comply with the requirements of the QZAB program, the district partnered with NEF, which pledged to give it the required 10% of the bond proceeds as an in-kind donation.

Lehighton entered into additional agreements with the private company in conjunction with the QZAB bonds. District officials and board members didn’t realize these agreements cost the district more than $3 million, the auditor general’s report stated. The agreements stipulated that the private company would assist the district in setting up STEM programs and provide the district with services, stipends and rewards.

“The district failed to monitor the agreements,” the 2020 auditor general’s report states, “to ensure that it received goods and services in accordance with the agreements. With regard to the 2016 agreement for which it paid $1.36 million, the district did not receive any of the agreed upon services, stipends, rewards, etc.”

The letter

“A relationship was created between LASD and NEF in order for the district to participate in a Qualified Zone Academy Bond program,” the district’s letter states. “A secondary relationship with contracts, which cost the district approximately $3 million dollars was added to the primary relationship. It is not understood why this was done nor if these contracts were required to support the QZAB effort.”

Of particular concern to current board members are stipends that were paid to 12 district administrators for the implementation of the programs at different times during the contract.

“The work that was to performed for these stipends was to the benefit of NEF and not the district,” the letter to the district attorney states. “The stipends were for a director to implement the system. However, testimonials and case studies were written for NEF by multiple staff members.”

The current board also submitted attachments that show the stipends dispersed and the amount of stipends that was part of the implementation plan.

“In the 2017-18 year, $20,575 of stipends were dispersed, yet $17,000 were planned for,” the letter states.

Director Jeremy Glaush said the letter and all of the attachments included along with it would give investigators “a running start” should they decide to look into the matter.

More issues

During public comment Monday night, Bradley urged the current board to look into money he said was moved from a post employment benefits account to be used for payment of athletic stadium renovations.

“No legal action was taken by the board to support that transfer,” Bradley said.

Board President Joy Beers said that would not be included in the letter to the district attorney as to not confuse issues with the NEF matter, but didn’t rule out looking at it in the future.

“We are planning to look into other matters and I think what Mr. Bradley is referencing can wait until a later time,” Beers said.