Audit Findings

• TUSD has shuttered nearly two dozen schools over the last few years, many under-capacity campuses remain. The closure of nine elementary schools and two high schools, none of which were identified, would save $30 million over five years.
• The elimination of 130 of 300 portable buildings, would create a savings of $2.5 million. Auditors noted the excess portables are located at under-capacity schools. 
• About $960,000 can be saved over five years by implementing an energy management plan, which would identify specific energy conservation measures, implementation costs and potential energy savings needed to reach potential cost savings.

PERSONNEL

• Eliminate 16 finance staffers, starting in the 2015-2016 school year — after the implementation of a new software system that will replace the existing error-prone, paper-driven systems in human resources, payroll and benefits, reducing the workload. The reduction in staff will generate a savings of $2.4 million.
• Eliminate two vacant positions in human resources, for a savings of more than $168,000.
• Eliminate two staff assistant positions in the Governing Board office by maximizing the use of available technology for a savings of $657,566.
• A savings of $486,000 could be generated by eliminating 25 of the 130 existing bus monitors for routes standard routes that do not serve special needs or preschool children.
• Eliminate five transportation router positions and increase, by 2, the number of router/analysts, who are more highly skilled and perform more complex tasks, creating a savings of $727,815.
• Conduct an audit to verify that all dependents receiving benefits are eligible. On average, about 8 percent of dependents are found to be ineligible, which would generate a savings of $783,000, including the cost of the audit.
• Auditors also addressed the strained custodial staff, which has been significantly reduced in the name of budget cuts — far below what industry standards would dictate. As a result, cleaning standards have been relaxed. To provide higher cleaning standards with the existing budget, TUSD should consider outsourcing, a recommendation that has previously been shot down by the governing board. Should the district maintain that stance, significant investments need to be made, including the creation of eight full-time supervisors at a cost of $1.9 million; spending $650,000 on equipment; and hiring 40 full-time custodians at an expense of $5.5 million.

TRANSPORTATION

• By implementing state-of-the-art routing and scheduling software to optimize routing efficiency, and scheduling transportation for students who intend to ride the school bus, TUSD could generate a savings of $6.3 million
• Renegotiating labor agreements to pay drivers and monitors for actual time worked would bring in $1.9 million.
• Reduce the budgeted number of mechanics from 21 to 19. There are only 16 mechanics now, so there would be no reductions. The elimination of the two budgeted positions would bring about $552,700 in savings.

OTHER AREAS

• TUSD could save nearly $33,000 by discontinuing the printing of hard copies of its benefits handbook, which is available online. Additionally, by reducing the amount of paper-based employee records and moving to a digitized system, a savings of $35,000 could be achieved.
• Increasing the number of students who eat meals prepared by the schools would generate a savings of about $3.8 million. Higher participation rates result in an increase in federal reimbursements revenues. Higher participation also allows schools to realize economies of scale and lower the overall cost per student.
• Federal guidelines allow the allocation of certain costs to the Food Service Fund, like those necessary for proper and efficient administration of the food program – including utilities, trash removal, and janitorial services. TUSD allocates almost $500,000 per year in indirect costs to the food service operation, but the auditors believe about $1 million of additional M&O Fund expenditures relate to the operation of kitchens and cafeterias at TUSD schools. The total impact of the reallocation would be $5.8 million.

INVESTMENTS

The audit team also made several suggestions that would require investments to achieve a higher level of efficiency, including:

• The creation of an internal audit function at a cost of $1.3 million;
• The implementation bar codes and scanners to track assets, costing $50,000;
• Improving the hiring process at an expense of $320,000;
• Spending $45,000 to improve the preventative maintenance program;
• Investing $9.2 million to replace school buses, among other suggestions.