Education board chair improperly signed contract to study school grades, NC audit says
State Board of Education Chairman Eric Davis signed a $30,822 contract in violation of state board policy, according to a new audit released Tuesday.
In November 2019, Davis signed a contract with the Southern Regional Education Board to study potential changes in how North Carolina public schools are evaluated. The contract drew a complaint from then-Superintendent Mark Johnson that was substantiated by State Auditor Beth Wood, who said in her new audit that Davis is not allowed under state board policy to sign contracts.
During a March 2020 state board meeting, Johnson had complained that the contract had been signed without his prior knowledge. The Southern Regional Education Board waived the contract so no money was paid.
State board contracts must be approved by the state superintendent and chief financial officer at the state Department of Public Instruction. Only the superintendent or their designee is allowed to sign contracts.
“As a result, there is an increased risk that the Department of Public Instruction (Department) could be obligated to a contract that is not in its best interest,” according to the audit. “Per the Chairman, the violation occurred because he was unaware of the approval requirements. Per State Board policy, neither the State Board nor the Chair can sign a contract.”
The audit recommends that Davis “review and adhere to policies and procedures for contracts to ensure all proper approvals and signatures are obtained.”
In its response letter to the audit, state board vice chairman Alan Duncan says they agree the contract was signed without the proper approvals. Duncan says they’ve taken corrective action so this doesn’t happen again.
Conflict of interest concerns raised
The legislature had asked the state board to study potential changes to a system that gives schools an A through F grade based largely on their performance on tests. The study didn’t result in any changes.
Johnson had raised concerns because then-state board member JB Buxton had done consulting work with SREB in the past. Those concerns are not mentioned in Wood’s audit.
But according to WBTV, the Charlotte Observer’s media partner, emails show both Davis and Buxton were in touch with the president of SREB about the project before the contract was signed.
Buxton told WBTV he had assumed that the services SREB would provide would be part of North Carolina’s membership in a 16-state compact with the organization.
“There was no conflict of interest in reaching out to them because this type of service is what SREB regularly provides to its member states,” Buxton said in his statement to WBTV.
Buxton resigned from the state board to focus on his new position as president of Durham Technical Community College.
Johnson left office at the end of 2020 after having unsuccessfully run for lieutenant governor.
Gov. Roy Cooper recently nominated Davis to a new term on the state board. The General Assembly will vote on the nomination.
