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    Paycheck mistakes continue in L.A. Unified

    Ohanian Comment: This is what the Los Angeles Unified School District gets when it institutes a "technologocal upgrade." Does anyone have any confidence that their test score reports are any more accurate? And minimized in this report, plenty of staff have been underpaid--or not paid at all.

    Remember the June 12, 2007 story on this fiasco:


    Deloitte Consulting already has been paid about $55 million for its role in the creation and installation of a computerized accounting and payroll system known as Business Tools for Schools. That's a tidy chunk of the budget for hardware, software and training that, with overruns, may now cost the LAUSD roughly $132 million.

    The system was supposed to bring efficiency and flexibility to district payroll systems. Instead, it has created the dispiriting spectacle of teachers and other district employees slogging downtown to register complaints and make sense of their paychecks.

    Back in April, the waits for help averaged nearly five hours; about the only good news the district has to offer lately is that the wait times have fallen to just over two hours. Still, problems persist. Not surprisingly, as employees have missed mortgage and rent payments, concern has mushroomed into outrage. The breakdown has, one board member told The Times, "contributed to the worst demoralization and cynicism I've ever seen in this district."


    It is interesting to note where such outfits as Deloitte pop up in the news:

  • Richard J. Vierk, Treasurer, Partner in Charge, Tax Operations, Deloitte & Touche, is on the Board of Directors of the Public Education Network (PEN)

  • , In July 2004, after a new law allowed him to "sidestep the Orleans Parish School Board on many operational decisions, Superintendent Tony Amato launched work needed for the strategic plan when he brought in experts from Deloitte Touche Tohmatsu, a financial advisory company. The firm will analyze the human resources, information technology, payroll and financial departments to determine how efficiently, or inefficiently, they operate Aesha Rasheed in Times-Picayune

  • Deloitte & Touche does audit work for Harcourt Educational Measurement

  • Invited speakers at the 2006 U.S. Chamber of Commerce Education and Workforce Summit, appearing in this segment:
    Businesses need to engage in education reform now to ensure that we have a competitive workforce in the future. What modifications need to be made to the education system and how can businesses support the reforms?

    * Barry Salzberg, Managing Partner, Deloitte & Touche
    * Dan Katzir, Managing Director, The Broad Foundation
    * Moderator: Arthur J. Rothkopf, Senior Vice President and Counselor to the President, U.S. Chamber of Commerce

  • Partners with The Council for Excellence in Government (It was at one of the meetings of this group that Reid Lyon said he'd like to blow up college of education


  • This is just the tip of the proverbial iceberg, what I could find on my website.

    If one starts wandering in other directions, then there are lots of links under Homeland Security and so on.

    By Joel Rubin

    About 5,000 Los Angeles teachers and other employees are expected to receive inaccurate paychecks today, marking another month of persistent problems with a new computerized payroll system.

    Supt. David L. Brewer cautioned employees, who have so far been overpaid by $53 million, not to spend the money as the Los Angeles Unified School District prepares to recoup it.

    "My job is very simple: get people paid correctly and on time," Brewer said, speaking at a morning news conference. "And that's what I am trying to achieve. We clearly, clearly understand the frustration out there. . . . We are very close to getting this system corrected."

    As in past months, the vast majority of the mistakes are overpayments; about 300 others are underpayments, school district officials said. The number of errors this month showed no decline from the last two paydays.

    Brewer also vowed that by next month the district would reconcile how much money each of the tens of thousands of employees who have been overpaid owe the district. Amid widespread confusion and distrust over the amounts being tallied by the flawed computer system, district officials have been holding off on recouping those funds. At least 1,500 employees have been overpaid by more than $5,000, district documents show.

    With the end of the year approaching, Brewer and school board members have been under increasing pressure to rectify the overpayments before the district issues inaccurate income tax forms that would wreak havoc as employees try to file their state and federal taxes.

    To buy more time, the district is considering a plan to designate overpayments as no-interest loans that would not be counted as income, said David Holmquist, the district's interim chief operational officer.

    Brewer urged people who believe they have received too much pay: "Don't spend the money! Put it in an interest-bearing account, but don't spend the money."

    He added that district officials were continuing to work with union leaders to settle on how and when the money would be recouped.

    Brewer said he anticipated that the technological glitch at the root of the problem would be fixed before the next payday in November, but left open the possibility that it could take longer. Teachers and most all of the nearly 100,000 district employees are paid monthly.

    A key part of a comprehensive, $95-million technology upgrade, the payroll system has been hampered since it launched at the beginning of the year.

    As the scope of the problems became apparent, district officials acknowledged that the system had not been properly programmed to handle all the various assignments and pay scales in the district and that it had been rushed into operation without proper training for clerks and timekeepers.

    District leaders were caught unprepared. They scrambled to open emergency hotlines and help centers that were immediately overwhelmed with angry employees, while also struggling to identify the bugs in the complex software programs.

    "We didn't roll it out right," Brewer said. "Bottom line, we just didn't roll it out right."

    The repair efforts and delays to the next phase of the upgrade are expected to cost about $45 million.

    In recent months, the district has appeared to make headway on fixing some of the computer snafus and in improving how effectively it responds to the monthly wave of bad checks. Teacher union leaders, however, have continued to rail against Brewer and his staff for not acting more quickly. They have called on teachers to boycott some after-school meetings and threatened widespread walkouts during class time.

    Brewer declined to comment on the ongoing negotiations with Deloitte Consulting, the international firm hired to implement each part of the computer grade, over what, if any, blame the firm deserves for the breakdown.

    — Joel Rubin
    Los Angeles Times
    2007-10-05


    INDEX OF OUTRAGES

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