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Niekamp causes stir with motions seeking forensic audit of school finances, removal of law firm representing district
Melvin "Bud" Niekamp, left, and Steven Krause listen during a League of Women Voters forum in March 2009. (H-W File Photo)
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Published: 6/19/2009 | Updated: 6/27/2009

By HOLLY WAGNER
Herald-Whig Staff Writer

Bud Niekamp wants to be convinced that Quincy Public Schools is keeping close track of its money, and he isn't happy with the advice the district has received from its legal counsel.

The Quincy School Board had voted to go into executive session at its meeting Wednesday night when Niekamp announced he wanted to make some motions.

He asked the board to approve a forensic audit of the district's finances dating to the 2001-02 fiscal year. He also asked the board to replace Schmiedeskamp Robertson Neu and Mitchell, the firm providing the district's legal services.

President Glenn Bemis said the motions caught the board by surprise. Niekamp was told to go through proper channels, to discuss his concerns with the board president, and to have his motions posted on the agenda 48 hours in advance, as required by law.

"That's not the spot for bringing that up," Bemis said.

Niekamp has served on the School Board since 1989 and the Adams County Board since 1992. He said he rarely speaks out at board meetings "because I don't speak good English sometimes." He attributes it to the fact that he's hard of hearing.

But he said he has raised his concerns over the years "and it goes in one ear and out the other." He felt it was important to speak out "because we don't want to let the people down who trust us to make some changes."

Niekamp asked for the forensic audit to clear up complaints from Daniel Bastean that district Business Manager Richard Royalty has made budgeting mistakes over the years.

Niekamp said he had received more than 100 letters from Bastean, who has sent copies to Royalty, the teachers union, the Regional Superintendent, the School Board, the state's Attorney's office, the Attorney General's office, The Herald-Whig, and others.

Bastean, who operates a rock drill at Central Stone, said he taught himself about government auditing standards. "Anyone could do it," he said. "I would ask questions and they would give me wrong answers."

Royalty said he had met with Bastean to discuss his concerns, but the two could not reach an understanding. Bastean spoke at the March board meeting about what he termed Royalty's "budgeting mistakes," and in April, the district's auditor, Tim Custis of Gorenz and Associates, attended to speak in Royalty's defense.

However, Bastean did convince the board to backtrack to clear up a transaction from the 2004 budget. The board had referred to it as an interfund loan when in fact it was not paid back. The board went back into the records to clarify that the transaction was in fact a transfer of funds.

That Bastean caught that is enough to convince Niekamp that his other concerns might be valid. "The citizen may not be correct, but he's always given me proof that things aren't being done proper," Niekamp said. "If Royalty's right, I want to know that, too."

An audit may be expensive, but it might also recover some taxpayer money, Niekamp said.

Bemis estimated a forensic audit of that scope could take a year or two and cost close to $100,000. "Is now the right time?" he asked.

Bemis said the board would conduct an evaluation of Dennis Gorman, the lawyer who provides its legal counsel, the same as it would any of the district's employees.

"But replacing (the firm)? ... That's not going to happen on my watch," he said.

Niekamp said Gorman has represented the board since Niekamp joined it. Gorman is paid on an hourly basis rather than through a contract with a set fee per month. Over the years, Niekamp said, Gorman has given the board some bad advice.

For example, "paying teachers' salaries out of the Tort Fund, that was wrong," he said. "It's time for a change. Several citizens feel the same way."

Niekamp said he has been accused of dwelling on the past. But because of his many years on the board, he says he can see history repeating itself.

"We don't want to make the same mistakes in the future," he said. "We want to regain the people's trust."

Bemis said the board is facing enough challenges, what with looming deficits, rising class sizes, meeting curriculum demands and adjusting to uncertain state funding. Royalty will be retiring at the end of the year and the board must find a replacement.

"Transparency is important," he said. "But we need to have all seven pistons moving on this board" with the united goal of providing value to the district, students and staff.

-- hwagner@whig.com/221-3374



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