Fwd: Audit details spending at Broward Teachers Union

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Posted on Thu, Nov. 17, 2011

Audit details spending at Broward Teachers Union

By Figueroalfigueroa@...

As Broward public schoolteachers faced layoffs and furloughs over the past two years, their local union boss charged $128,600 in unexplained expenses to union credit cards and signed off on $25,000 in union checks made out to cash, according to an audit obtained Wednesday by The Miami Herald. On top of his $155,000 salary, Broward Teachers Union President Pat Santeramo, now the focus of two state investigations, had access to a $300 monthly expense account, a $600 auto allowance, and the use of a gas card with charges ranging from $175 to $250 a month, according to the audit. Conducted by the union’s national parent organization — the American Federation of Teachers — the audit uncovered two years of financial mismanagement, prompting local board members to vote Tuesday night to strip Santeramo of his powers, at least temporarily. A Dec. 7 board hearing is scheduled to determine if Santeramo will be removed from his position altogether. For now, the day-to-day operations of the 11,000-member union will be handled by an administrator to be appointed by the AFT on Friday. AFT is also paying for a financial manager to take over the union’s records. In an 11-page report that covers July 2009-June 2011, the auditors detail how the local union haphazardly reported expenses on union credit cards and used union dues to reimburse staffers and their relatives for campaign contributions. The organization also spent $710,000 more than its $9.4 million budget this year. Among the report’s other findings: • A dozen checks were made payable to cash, including $12,400 explained as an “organizing†expense, and two checks totaling $13,200 for “holiday gifts.†The union responded in the audit that the bulk of the $12,400 was spent in a campaign to give teachers $10 for every new union member they recruited. “No checks should have been made payable to cash,†the report said. “They should have been made to an individual, and proper documentation should be obtained. Accordingly, if funds are used for sign-up gifts, a list of those persons who signed up should add up to the check amount. The remaining cash should then be deposited into the checking account.†• Santeramo, has access to “unlimited accumulation of sick days and vacation time†— which as of June 30, 2011, amounts to $255,020. Other union staffers can cash in up to 20 sick days a year. “This is a generous benefit in light of the local’s current financial difficulties,†the report said. This year the Broward County School District had to cut 1,100 teachers’ jobs and cut programs to deal with a $190 million budget shortfall. • The union pays $106,859 to a local construction company for building maintenance at the union’s Tamarac headquarters at 6000 N. University Dr. A further $525 a month goes to service a small grassy lot in front of the building, and $1,044 a month is spent on cleaning. AFT spokesman said the union would not comment on the nature of BTU’s business practices or apparent lack of checks and balances. “We are sending a very confident financial manager who will implement sound accountable practices,†said. The audit came after complaints about the union’s finances in August from some members of the executive board. They approached both the AFT and the Florida Education Association, of which BTU is also a member. Separately, the Florida Elections Commission and Broward state attorney’s office have also launched investigations into whether Santeramo broke campaign finance laws in reimbursing campaign contributions. Santeramo’s attorney, Moskowitz, maintains that all of the allegations are “untrue.†The audit also flags $128,634 in credit card expenses, most lacking documentation to explain the charges. The AFT is allowing Santeramo to review the list of items to explain the business purpose of each and respond with documentation. “If the business purpose cannot be determined for charges, the AFT (and the IRS) would consider them a personal expense and request reimbursement,†according to the report. Auditors listed 12 recommendations for the local union to adopt, including establishing an audit committee and creating a policy manual that outlines a “conflict of interest policy, a whistleblower policy and a document-retention policy.†The AFT also recommends the union review all of its leases and contracts with third parties “to ensure that BTU is receiving what has been contracted for.†On Wednesday, Santeramo, who has led the union for the past 10 years, attended the union’s regularly scheduled steward meeting at Plantation High School, where he introduced Broward Superintendent Runcie, there to speak to the crowd of teachers.

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