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Human Resources

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									Parma City School District                                                    Performance Audit


Human Resources
Background
Organizational Chart

The following section summarizes the performance review of Parma City School District’s (PCSD)
human resources and the operations of the human resources department (HRD). For purposes of the
performance audit, the personnel responsible for benefits administration are considered a part of the
HRD although they are under the supervision of the treasurer’s office.

•        The chart below provides an overview of the HRD’s organizational structure and staffing
         levels.

                           Human Resources Department




Organization Function

Human Resources                                                                              3-1
Parma City School District                                                    Performance Audit


The human resources department (HRD) and the business manager are responsible for coordinating
the activities and programs for the recruitment and selection of employees, administering benefits,
monitoring compliance with employment standards (criminal record background check and teacher
certification requirements), facilitating employee performance evaluations, administering and
monitoring the district’s grievance policies and procedures, conducting disciplinary hearings,
negotiating and administering labor contracts, maintaining job descriptions, maintaining employees’
personnel files and placing substitute teachers and selected substitute classified employees.

Summary of Operations

All Parma City School District (PCSD) employees are categorized as either certificated or classified
staff. Certificated staff includes principals, teachers, counselors, therapists, librarians and
psychologists. Classified staff includes educational assistants, secretaries, maintenance and
custodial employees, bus drivers, food service employees and other miscellaneous employees.

The assistant superintendent of human resources reports to the superintendent and manages all of
the department’s primary functions for certificated personnel. These functions include but are not
limited to negotiating and administering the Parma Education Association’s (PEA) union contract,
recruiting and hiring certificated employees, administering personnel policies, preparing and
maintaining certificated job descriptions, ensuring timely completion of certificated evaluations and
managing the teacher transfer process.

The business manager reports to the superintendent and spends approximately 30 percent of his time
performing human resources functions for classified employees. These functions include negotiating
and administering the Ohio Association of Public School Employees (OAPSE) union agreement,
preparing and maintaining job descriptions, hiring classified employees, ensuring timely completion
of evaluations, and managing the classified employee transfer process.

Currently benefits administration is a responsibility of an account clerk reporting directly to the
treasurer. However, the related responsibilities are included in the human resources section for
consistency and comparative purposes among the peer districts.




Staffing


Human Resources                                                                              3-2
Parma City School District                                              Performance Audit

Table 3-1 represents current HRD staffing for PCSD.

                             Table 3-1: Human Resources Staffing
             Position                                    # Staff     # of FTEs

             Assistant Superintendent, Human Resources     1            0.9
             Business Manager                              1            0.3
             Account Clerk (Benefits)                      1            1.0
             Certificated Supervisor                       1            1.0
             Classified Supervisor                         1            1.0
             Executive Secretary                           1            1.0
             Clerk                                         3            3.0

             Total                                         9            8.2
            Source: HRD




Financial Data

Table 3-2 presents the HRD’s actual expenditures for FY 1996-97 and FY 1997-98 and the budget


Human Resources                                                                      3-3
Parma City School District                                                                                      Performance Audit

for FY 1998-99.

                             Table 3-2: Budget - Human Resources Department
                                                       Actual                    Actual                   Budgeted
           Appropriation Account                       1996-97                   1997-98                   1998-99

         Salaries1                                          $296,961                 $284,488                   $306,233

         Fringe Benefits1                                       83,216                  76,286                     82,549

         Purchased Services                                        N/A                   3,408                             0

         Materials and Supplies                                    N/A                      497                      3,560

         Equipment                                                 N/A                   2,684                      1,000

         Substitute Teachers                                       N/A              1,256,264                  1,304,675

         Total                                              $380,177              $1,623,627                 $1,698,017
     Source: Treasurer’s office
     1
      Includes salary and benefits for the classified supervisor and the general clerk reporting to the business manager
     N/A - District was unable to identify actual costs




Customer Satisfaction Survey

A Customer Satisfaction Survey was distributed to a random sample of 290 PCSD employees. The


Human Resources                                                                                                                3-4
Parma City School District                                                            Performance Audit

purpose of the survey was to obtain employees’ feedback and perceptions of employee relations and
human resources/personnel issues. Responses were received from 134 employees, for a response
rate of about 46 percent.

The survey solicited responses to 20 statements concerning human resources functions, procedures
and policies. The respondents’ overall rating of the 20 statements was 3.55 which is a slightly above
average response in that 5.00 represents the highest level of satisfaction, 3.00 represents a neutral
response and 1.00 represents the lowest level of satisfaction.

Respondents demonstrated an above average level of satisfaction regarding awareness of duties
required by job descriptions and the accuracy of the job descriptions reflecting actual daily routine
with overall average responses of 4.49 and 3.91 respectively.

The clerical staff indicated dissatisfaction with the effectiveness of job training with an average
response of 2.80.

Respondents’ level of satisfaction regarding evaluations as a valuable means of staff development
and a means of timely and relevant feedback appeared to be positive as indicated by responses of
3.47 and 3.52 respectively. Administrators and clerical employees expressed some level of
dissatisfaction with the evaluation form as indicated by an average response of 2.92 and 2.80
respectively.

Teachers demonstrated a positive level of satisfaction toward the qualifications and effectiveness
of substitutes and toward the effectiveness of the current substitute system with an average response
of 3.74 and 3.18.

District employees in each of the various categories demonstrated satisfaction with the procedures
regarding insurance benefits with an overall average response of 3.83. Respondents demonstrated
a positive level of satisfaction in response to the question regarding district employee satisfaction
and morale with an overall average of 3.52.

The respondents’ overall evaluation of the timeliness and types of services provided by the human
resources department was an average of 3.61. The chart on the following page details the results
of all statements included in the customer satisfaction survey.


                                                      Food                        Cust. /   Educat.   Weighted
                                             Other
      Human Resources Attribute   Teachers           Service   Admin   Clerical   Maint.    Assts.     Avg.

  1) I am aware of the duties       4.48     4.38     4.67     4.73     4.40       4.14      4.75       4.49
     required by my job


Human Resources                                                                                       3-5
Parma City School District                                               Performance Audit

     description.                   4.08   3.56   4.00   3.40   3.80   4.00   4.00    3.91

  2) My job description
     accurately reflects my         3.59   3.53   4.67   3.29   3.50   4.14   2.75    3.57

     actual daily routine.          3.36   3.33   5.00   3.50   2.80   3.86   3.25    3.40
  3) Our department could
                                    3.45   3.80   3.67   3.07   3.40   3.86   3.33    3.47
     effectively maintain
     productivity in event of       3.53   3.67   3.67   3.29   3.00   3.86   3.33    3.52

     short term absence; cross      3.42   3.40   4.00   2.92   2.80   3.86   3.25    3.37
     training has been
                                    3.28   3.20   3.33   3.08   3.00   3.43   2.67    3.23
     implemented.
  4) Staff training is effective.
                                    3.74   3.21   3.33   3.54   3.40   3.60   2.75    3.60
  5) Evaluation process is a
     valuable means of staff        3.18   2.71   3.00   3.14   3.80   2.75   2.25    3.10
     development.                   3.28   3.88   3.00   2.55   3.25   3.00   3.00    3.23
  6) Evaluation process
     provides timely and
     relevant feedback.             3.84   3.38   4.00   3.60   2.80   3.86   3.00    3.70
  7) The instrument by which        3.42   3.54   4.00   3.36   3.00   3.50   1.75    3.37
     staff members are
                                    3.60   3.69   2.50   3.80   3.20   3.50   2.50    3.56
     evaluated is effective.
  8) Management responds            3.87   3.29   2.50   4.29   4.00   3.71   4.00    3.83
     and acts on                    3.80   3.33   3.50   3.75   3.25   3.20   3.33    3.68
     recommendations made
                                    3.49   3.31   3.33   3.62   3.25   2.60   3.67    3.44
     in evaluation sessions.
  9) District’s employee            3.35   3.36   3.33   3.50   3.25   2.60   2.33    3.31
     substitutes are qualified
     and effective.                 3.66   3.56   4.00   3.64   3.25   3.60   2.33    3.61
  10)             Current
     substitute system is quite     3.60   3.56   3.67   3.00   3.60   3.57   3.50    3.52
     effective in placing
     substitutes.
  11)             I am aware of
     few lapses in
     certificate/licenses due to
     an oversight of the
     human resource
     department.
  12)             I am satisfied
     that I am informed of
     changes in policies &
     procedures.

Human Resources                                                                      3-6
Parma City School District                                                             Performance Audit

  13)             The district’s
     overall recruitment
     process is effective.
  14)             The district’s
     procedures regarding
     job posting and hiring
     are effective.
  15)             I am satisfied
     with the procedures
     regarding insurance
     benefits.
  16)             Current
     grievance procedures are
           fair and effective.
  17)             Current
     discipline procedures are
           fair and adequate.
  18)             Current
     follow-up procedures for
           dismissal and
     discipline are adequate.
  19)             I am satisfied
     with overall
     effectiveness of the
     district’s current HR
     management policies and
     procedures.
  20)             I feel that
     overall district
     employees satisfaction
     and morale is positive.
 Overall Average                      3.60     3.48     3.66      3.45     3.34     3.53    3.09    3.55

 Number of responses received          84       16        3       15        5         7      4      134

           Scale - 5-Strongly Agree, 4-Agree, 3-Neutral, 2-Disagree, 1-Strongly Disagree


Performance Measures

The following is a list of performance measures that were used to review PCSD’s human resources
coupled with the functionality typically performed by a human resources department (HRD):

Human Resources                                                                                    3-7
Parma City School District                                                       Performance Audit


•   Clearly defined roles, responsibilities, accountabilities and authorities of key participants in the
    affairs of personnel administration
•   Appropriate allocation of resources in relation to workloads
•   Appropriateness of human resources system for retention and utilization of critical personnel data
•   Adequacy of systems and procedures for compiling candidate information
•   Assessment of staffing classifications and respective ratio to total full time equivalents
•   Assessment of the allocation of the ratio of direct instructional personnel to district educational
    support personnel
•   Appropriateness of staff levels and mix
•   Analysis of teachers’ work day as defined by the union contract versus actual work day worked
•   Assessment of number of instructional minutes taught per teacher, class sizes and staffing
      ratios
•   Assessment of implementation of new legislation
•   Assessment of total FTE employees in comparison of the ratio of total salaries per classification
    to total district salaries
•   Assessment of utilization and compensation for supplemental pay and stipends
•   Assessment of salary schedule and maximum step structure
•   Assessment of W-2 wages in correlation to salary schedules
•   Utilization of paid leaves
•   Appropriate use of substitute personnel
•   Assessment of employee benefit costs and administration including workers’ compensation
•   Assessment of contract administration (collective bargaining) and contractual issues
•   Accuracy/completeness of job descriptions
•   Assessment of procedures to document proper qualifications and certification of candidates
•   Assessment of teacher certification process
•   Appropriateness of training programs for staff involved in the interview and selection process
•   Assessment of a comprehensive staff development program available for all employees
•   Effectiveness of employer/employee relations program regarding grievances and disciplinary
    actions
•   Assessment of performance appraisal system
•   Efficiency/effectiveness of recruitment efforts including turnover rates




Findings/Commendations/Recommendations
Organizational Issues

F3.1      Table 3-3 illustrates that PCSD’s human resources FTE staffing levels are the second

Human Resources                                                                                 3-8
Parma City School District                                                                 Performance Audit

           lowest when compared to the peer districts.

                        Table 3-3: Comparison of HRD Staff by Position - FTEs
                                         Parma             Canton          Dayton            South-Western

       Administrators                             1.2               1.0             4.01                1.0

       HRD Staff Member                           7.0            6.31           15.0                  10.01

       Total                                      8.2               7.3         19.0                  11.0

       FTE Regular Employees                1,759.0           1,516.1         3,316.9               1,988.6
   Source: Preliminary FY 1997-98 EMIS Profile
    1
      Includes vacancies


F3.2       Table 3-4 presents the ratio of full-time equivalent (FTE) employees per HRD staff. The
           ratio of PCSD employees assigned to the HRD staff is 214.5:1. PCSD has the highest
           amount of employees per personnel staff member when compared to peer districts.

                              Table 3-4: FTE Employees Per HRD Staff
                                            Parma           Canton         Dayton            South-Western

       Total HRD FTE Employees                       8.2            7.31        19.01                  11.01

       FTE Regular Employees                     1,759.0       1,516.1        3,316.9                1,988.6

       Ratio                                     214.5:1       207.7:1        174.6:1                180.8:1
   Source: Preliminary FY 1997-98 EMIS Profile
   1
    Includes vacancies


F3.3       The business manager has indicated that the 30 percent of his time currently spent
           performing human resources functions for classified employees may be better utilized if
           spent performing other operational functions. Additionally, the assistant superintendent
           of human resources currently responsible for human resources functions for certificated
           personnel has indicated consolidating human resources functions for both certificated and
           classified employees would allow for a higher and more consistent level of benefits for all
           district personnel.

R3.1       In order to increase consistency in procedures performed across employee groups and to
           more appropriately align human resources functions, PCSD should consolidate and realign
           all human resources functions. This will allow the assistant superintendent of human
           resources to have full human resources responsibilities and allow the business manager to
           more effectively manage the operational side of the district.


Human Resources                                                                                         3-9
Parma City School District                                                   Performance Audit

        Financial Implication: Because no additional staff would be required to realign the HRD,
        no financial implication would be recognized for this recommendation.

F3.4    In 1986, PCSD contracted with Block Development, a computer programming company,
        to create a Human Resources Information System (HRIS) and to upgrade the system in
        June 1998. The system is used to track applicant information, certification data, employee
        evaluations, base salaries, certificated employee leave usage and substitute information.
         However, the system is not integrated with the payroll system nor is it used to track
        grievances, disciplinary actions or exit interviews. The HRIS does not have a position
        control feature that would enable the district to define the budgeted organizational
        structure in terms of specific positions and would prevent the district from hiring more
        employees than budgeted. The district is currently tracking supplemental pay manually.

        The district is currently using the Uniform Staff Payroll System (USPS) which is state
        software. The policy of the Ohio Department of Education (ODE) relative to state
        software such as USPS is that no one may alter data structures used by state software with
        software not supported by the ODE. This policy is to maintain data integrity within the
        state software systems. Therefore, the district’s HRIS, that is not software supported by
        the ODE, cannot directly interface with USPS.

R3.2    PCSD should consider creating a program which would compare certain data from the
        USPS to the same data in the HRIS. The program should be able to create a “mismatch”
        report which would identify any discrepancies between the two systems. Additionally, the
        district should work together with other school districts using state software and approach
        the ODE, as a group, about the feasibility of creating a HRIS as part of the USPS. An
        integrated HRIS and payroll system provides the district with the tools to effectively and
        efficiently manage workload drivers; eliminates the need for duplicate databases and the
        time spent maintaining and reconciling them; reduces the amount of staff needed to
        maintain the information; and provides immediate access to all employee information.




R3.3    In order for the HRIS to further meet the HRD’s critical business needs, the system should
        be upgraded to measure the following key areas:

        •      Position control
        •      Grievances
        •      Disciplinary actions
        •      Supplemental pay
        •      Exit interviews

Human Resources                                                                            3-10
Parma City School District                                                                         Performance Audit


Staffing/Compensation Analysis

F3.5    The district’s total FTEs were divided into six classifications of personnel as defined in
        Table 3-5. These classification are used for further assessments in F3.6 and F3.7.

                      Table 3-5: Personnel Classifications and Positions Descriptions
              Classification               Position Descriptions

              Administrative Employees     Superintendent, Asst Supt, Admin Asst, Prin, Asst Prin,
                                           Sup/Mgr/Dir, Treas, Asst Treas, Coordinators, Planning, Admin
                                           Interns, Curriculum Specialist

              Teachers                     Remedial Specialists, Teachers, Secondary Tutors, Adult Ed
                                           Teachers, Visiting Teacher
              Pupil Services Employees     Counselors, Librarian/Media, Psychologist, Speech Hearing
                                           Therapists, Head Start/Spec Ed, Nurses, Interpreters, Social
                                           Workers, Parent Mentors, COTA
              Support Services             Operative, Laborer, Custodians, Food Service, General
                                           Maintenance, Mechanics
              Other Classified Employees   Attendance Office, Monitors, Clerical, Teaching Aides,
                                           Library/Media Aides, Public Relations, Bookkeepers,
                                           Purchasing Agents, Library/Media Technicians
              Technical                    Computer Operator, Computer Programmer




Human Resources                                                                                                3-11
Parma City School District                                                                                         Performance Audit

F3.6            Table 3-6 illustrates the ratio of six classifications of personnel to the district’s total
                number of FTE employees and the percentage of total employees in each classification for
                each of the peer districts.

            Table 3-6: Breakdown of Total FTE Employees and Percentage of Total Employees Classification
    Classification           Parma                        Canton                        Dayton                       South-Western

                               # of       % of Total       # of         % of Total          # of      % of Total      # of      % of Total
                               Emp.       Employees        Emp.         Employees           Emp.      Employees       Emp.      Employees

    Administrative               73.0            4.2%         74.7             4.9%          195.0          5.9%        93.5           4.7%

    Teachers                    838.4           47.7%        876.0            57.8%         1,761.9        53.1%      1,109.7         55.8%

    Pupil Services               72.1            4.1%         66.8             4.4%          264.0          8.0%        66.8           3.3%

    Support Services            290.1           16.4%        199.5            13.2%          498.0         15.0%       338.1          17.0%

    Other Classified            483.4          27.5%         290.3            19.1%          598.0         18.0%       375.5          18.9%

    Technical                     2.0            0.1%          8.8             0.6%           0.0 1         0.0%          5.0          0.3%

    Total                     1,759.0         100.0%       1,516.1           100.0%         3,316.9      100.0%       1,988.6        100.0%
1
    Employees providing technical support are currently provided by an outside contractor


                Table 3-6 illustrates an analysis of the total FTEs categorized as instructional personnel
                versus support services personnel. PCSD has the highest percentage of other classified
                FTEs as indicated by the bolded number above when compared to the peer districts. Other
                classified employees include monitors as defined in Table 3-5. As indicated in F3.15,
                PCSD has significantly more monitors than the peer districts. As defined in the Parma
                Educational Association (PEA) contract, PCSD teachers are not required to perform
                additional supervising duties thus requiring the district to employ numerous monitors to
                fulfill such duties.




Human Resources                                                                                                                      3-12
Parma City School District                                                                     Performance Audit

F3.7        Table 3-7 presents employees categorized by instructional personnel as compared to
            educational support personnel. Included in the instructional personnel classification are
            teachers and pupil services employees while educational support personnel include
            administrative, support services, other classified and technical employees.

           Table 3-7: Ratio of Direct Instructional Personnel to District Educational Support Personnel
   Classification      Parma                  Canton                   Dayton                   South-Western

                         # of    % of Total   # of Emp.   % of Total    # of      % of Total      # of     % of Total
                        Emp.     Employees                Employees     Emp.      Employees      Emp.      Employees

   Direct
   Instructional
   Personnel             910.5        51.8%       942.8        62.2%    2,025.9       61.1%      1,176.5        59.2%

   District
   Educational
   Support
   Personnel             848.5        48.2%       573.3        37.8%    1,291.0       38.9%       812.1         40.8%

   Total               1,759.0      100.0%      1,516.1      100.0%     3,316.9      100.0%      1,988.6        100.0%


            As illustrated in Table 3-7, 910.5 or 51.8 percent of PCSD’s total FTEs make up the direct
            instructional personnel. When compared to the peer districts, PCSD has the lowest
            percentage of direct instructional personnel. Although Table 3-7 indicates that more than
            50 percent of total employees are categorized as direct instructional personnel, Table 3-6
            illustrates only 47.7 percent of total employees are actually teachers. Additionally, Table
            3-7 illustrates that 48.2 percent of total employees are categorized in the district
            educational support personnel category which is the highest among the peer districts by
            7.4 percent to 10.4 percent.




Human Resources                                                                                                  3-13
Parma City School District                                                                         Performance Audit

F3.8           Table 3-8 presents the staffing levels of FTEs per 1,000 students enrolled for PCSD
               and the peer districts.
                                     Table 3-8: FTE Staff per 1,000 Students Enrolled
                                                                                        South-          Peer District
       Category                           Parma          Canton       Dayton            Western           Average

       ADM                                      13,116     12,560         25,972            17,347              17,249

       Administrators:
       Central                                     0.3        0.3              0.01               0.2               0.2
       Site Based                                  2.5        2.8               2.9               2.4               2.7
       Supervisor/Manager/Dir.                     1.6        2.7               3.0               2.2               2.4
       Other                                       1.3        0.3               0.5               0.8               0.7

       Professional Education:
       Curriculum Specialists                      0.0        0.0            0.9               0.0                  0.2
       Counselors                                  1.7        1.9            1.1               1.4                  1.5
       Librarian - Media                           1.1        0.4            0.5               0.3                  0.6
       Teachers - Elem and Sec                    62.0       67.4           66.0              61.2                 64.6
       Others                                      2.1        2.3            1.9               2.7                  2.3

       Professional - Other                        2.4        2.9              8.8                2.1               4.1

       Technical:
       Computer Operator                           0.2        0.7              0.0                0.1               0.2
       Computer Programmer/Analyst                 0.0        0.0              0.0                0.2               0.1
       Others                                      0.6        1.4              0.7                0.0               0.7

       Office/Clerical:
       Clerical                                    8.7        6.3            9.0               5.5                  7.4
       Teaching Aides                              5.3        5.1           11.4              13.7                  8.9
       Library/Media Aides                         1.9        0.0            0.0               0.0                  0.5
       Others                                      1.5        0.9            0.4               0.5                  0.8

       Crafts/Trades                               1.9        0.9              2.3                2.1               1.8

       Transportation                              6.1        3.0              3.0                6.1               4.6

       Laborer - Groundskeeping                    0.0        0.0              0.1                0.0               0.0

       Custodial                                   8.7        6.5              8.0                5.1               7.1

       Food Service                                5.4        5.4              5.6                6.2               5.7

       Service Work - Other                       19.1        9.5              1.5                2.0               8.0

       Total                                     134.4      120.7          127.6             114.8                125.1
   Source: Preliminary FY 1997-98 EMIS Profile

    Notes: 1) Figure appears to be incorrect.




Human Resources                                                                                                         3-14
Parma City School District                                                      Performance Audit

        PCSD has the highest FTEs in six categories as indicated by the bolded numbers above
        when compared to the peer districts and has the highest FTEs overall. In addition, the
        average FTE staff per 1,000 students enrolled for all districts which have had a
        performance audit performed to date is 116.0 FTEs. PCSD exceeds this average by
        approximately 16.7 percent. Because of the district’s current financial situation, the
        district will be forced to make difficult decisions regarding the district’s operating costs.
         Table 3-8 indicates several areas where the district could potentially reduce staff.

F3.9    PCSD has approximately 1.3 FTEs per 1,000 students in the other administrator
        classification. PCSD ranks highest when compared to the peer district average of 0.7 FTEs
        per 1,000 students. Included in this category are seven teachers enrolled in the
        administrative internship program (see F3.97 for more detail on the internship program).
         Without the seven administrative interns, PCSD would be in-line with the peer districts
        in the other administrative classification. Therefore, no reduction in other administrators
        is recommended.

F3.10   PCSD has approximately 1.1 FTEs per 1,000 students in the librarian classification. PCSD
        ranks highest when compared to the peer district average of 0.6 FTEs per 1,000 students.
         In addition, a comparison of the ratio of total librarians to total number of school buildings
        indicated PCSD is the highest with a ratio of 0.76 librarians per building when compared
        to the peer district average of 0.37 librarians per building. For example, South-Western
        City School District maintains 28 buildings and currently only has five librarians.
        Additionally, PCSD employs 29 library aide/technicians as further detailed in F3.11.
        Furthermore, Ohio Administrative Code (OAC) section 3301-35-03 sets minimum
        standards for educational service personnel. It provides for a district wide average of a
        minimum of five full time equivalent (FTE) educational service personnel for each 1,000
        pupils in the district’s average daily membership (ADM). Included in the educational
        service personnel category are visiting teachers, counselors, librarians, nurses, art, physical
        education and music teachers. PCSD currently averages approximately 6.1 FTE
        educational service personnel employees per 1,000 pupils when compared to the minimum
        FTE requirement of 5.0 FTEs.

R3.4    In order to achieve the peer district FTE average of 0.6 FTEs librarians and 0.37 librarians
        per building and to be more in line with the OAC minimum requirement of 5.0 FTE
        educational service personnel per 1,000 students, PCSD could possibly reduce seven
        librarian positions.

        Financial Implications: Assuming an average salary of $52,715 for a librarian and benefits
        constitute 30 percent, reducing seven librarian positions would create an annual savings
        of approximately $479,709.
F3.11   PCSD has approximately 1.9 FTEs per 1,000 in the library aides classification. The peer

Human Resources                                                                               3-15
Parma City School District                                                     Performance Audit

        districts coded library aides in various other EMIS categories for a peer district average
        of 1.6 FTEs in the library aides classification. The HRD indicated the district strives to
        staff at least one library aide at each school building and realizes that additional costs are
        incurred by staffing library technicians at this level. However, PCSD currently employs
        29 library aides/technicians but only maintains 21 buildings.

R3.5    PCSD has 0.3 library aides per 1,000 more than the peer districts. Continuing to maintain
        this level of library aides costs the district $56,963 annually in salary and benefits.
        Because of PCSD’s pending financial situation, the district might consider reducing library
        aides. In order to achieve the peer district FTE average of 1.6 library aide FTEs, PCSD
        could possibly reduce three library aide positions.

        Financial Implications: Assuming an average salary of a library aide is $14,606 and
        benefits constitute 30 percent, reducing three library aide positions would create an annual
        savings of approximately $56,963.

F3.12   PCSD has approximately 1.5 FTEs per 1,000 students in the other office/clerical
        classification. Included in this classification is 1.1 FTE account clerks and payroll clerks
        per 1,000 students. However, the peer districts code the account clerks and payroll clerks
        in the office clerical classification as opposed to the other office/clerical classification.
        Additionally, PCSD has 12 FTE clerical positions which are paid with federal funds.
        Combining the account and payroll clerks and removing the 12 federally funded positions,
        leaves PCSD with approximately 9.0 FTEs per 1,000 students in the clerical classification
        which is the highest when compared to peer district average of 7.8 FTEs. Further analysis
        indicates that the peer districts averaged approximately six office/clerical positions in each
        high school. However, PCSD averaged 12 office/clerical positions in each high school.

R3.6    In order to achieve the peer district FTE average of 7.8 FTEs, PCSD could possibly reduce
        15 clerical positions. The district should consider reducing these positions at the high
        school level.

        Financial Implications: Assuming an average salary of $19,936 for a clerical position and
        benefits constitute 30 percent, reducing 15 clerical positions would create an annual
        savings of approximately $388,752.




F3.13   PCSD has approximately 1.9 FTEs per 1,000 students enrolled in the crafts/trades
        classification which is not the highest when compared to the peer districts. However,

Human Resources                                                                               3-16
Parma City School District                                                  Performance Audit

        multiple subclassifications are included in the crafts and trades category including
        transportation mechanics. Further analysis in the transportation section of the
        performance audit report indicates PCSD may be overstaffed in bus mechanics. See the
        transportation section of the report for recommendations and financial implications.

F3.14   PCSD has approximately 8.7 FTEs per 1,000 students enrolled in the custodial
        classification which includes custodians and cleaners and is the highest when compared
        to the peer district average of 7.1 FTEs. The facilities section of the performance audit
        report conducts a more detail assessment of PCSD’s custodial staff and responsibilities.
         See the facilities section of the report for further analysis and recommendations.

F3.15   PCSD has approximately 19.1 FTEs per 1,000 students in the other service work
        classification. Included in this classification is monitors. Because monitors and
        educational assistants perform the same functions in most school districts and are coded
        accordingly, an additional analysis comparing total monitors plus total educational
        assistants was performed. This analysis indicated that PCSD has the highest FTEs with
        approximately 19.4 FTEs per 1,000 students when compared to the peer district average
        of 15.0 FTEs. Because the PEA contract does not require teachers to perform additional
        supervisory duties such as lunch and bus duty, the district must hire numerous monitors
        to perform these functions.

R3.7    In order to achieve the peer district FTE average of 15.0 FTEs in the monitor and
        educational assistant classifications, PCSD could possibly reduce 57 monitor positions.

        Financial Implications: Assuming an average salary of $4,434 for a monitor and benefits
        constitute 30 percent, reducing 57 monitor positions would create an annual savings of
        approximately $328,559.




F3.16   Table 3-9 compares the number of FTEs as classified in Table 3-6 to the number of
        administrators responsible for supervising and coordinating the staff for PCSD to the peer
        districts.

Human Resources                                                                           3-17
Parma City School District                                                           Performance Audit


                               Table 3-9: Comparison of FTEs to Administrators
                                                                                   South-        Peer
                                              Parma       Canton      Dayton       Western      Average

  Average Daily Membership                       13,116     12,560       25,972       17,347       17,249

  Administrators                                   73.0       74.7        173.0         93.5        103.6

  TOTAL FTEs                                    1,686.0     1,441.4      3,143.9      1,895.1      2,041.6
  (Excluding Administrators)

  FTE per Administrator                            23.1       19.3         18.2         20.3         20.2
Source: Preliminary FY 1997-98 EMIS Profile


           Table 3-9 indicates PCSD has the lowest number of administrators when compared to the
           peer districts. The table also indicates PCSD has approximately 23.1 FTEs per
           administrator which is the highest when compared to the peer district average of 20.2.




F3.17      Table 3-10 summarizes the average workday of an elementary teacher as defined in the
           PEA contract. The table indicates that approximately 15 minutes per day are undefined
           in the contract. The district indicated that elementary teachers are actually in the
           classroom for 265 minutes even though the contract indicates 250 minutes of student

Human Resources                                                                                    3-18
Parma City School District                                                                                     Performance Audit

         contact time. The district has attempted to renegotiate the contract language to reflect
         actual student contact time of 265 minutes. However, the issue has not been resolved to
         date.

                         Table 3-10: Analysis of Elementary Teacher Workday
                        Description of Activity                                       Per PEA Contract

            Length of Regular Teaching Day as                       7 hours and 15 minutes or 435 minutes
            Defined by Contract

            Duty free lunch                                         50 minutes

            Planning Time (before and after school)                 60 minutes

            Additional planning time during art,                    Approximately 35 minutes per day
            music and gym

            Student supervision before and after                    5 minutes before lunch and 5 minutes after lunch
            lunch

            Student contact time1                                   300 minutes less approximately 35 minutes per day
                                                                    with scheduled specialists and 15 minutes per day
                                                                    for student arrival time for a total of 250 minutes
                                                                    student contact time

            Student arrival time                                    15 minutes

            Total minutes defined in contract                       420 minutes

            Balance of minutes not defined                          15 minutes

            Length of Student Day                                   6 hours or 360 minutes, including lunch and recess
         Source: PEA contract
         1
           Although the contract indicates 250 minutes of student contact time, the district has indicated that actual student contact time for
          elementary teachers is 265 minutes. The balance of minutes not defined assuming 265 minutes student contact time would be 0
        minutes.




F3.18    The PEA contract contains language stating the work day for secondary teachers will not
         exceed 465 minutes, including a duty-free lunch period. The contract stipulates the daily
         workload for middle school teachers is five regular class periods, one academic
         assistance/individual instruction period, two conference/planning periods and one lunch

Human Resources                                                                                                                      3-19
Parma City School District                                                                               Performance Audit

           period. The contract stipulates the daily workload for high school teachers is five
           instructional or supervisory periods, two conference/planning periods and one lunch
           period. The middle schools have nine 42-minute periods scheduled per day and the high
           schools have eight 48-minute periods per day.

                                 Table 3-11: Analysis of Teachers’ Work Day
                                    Middle School              High School               Average                 Average
    Description of Activity         per Contract               per Contract            Middle School            High School

   Length of Regular
   Teaching Day as Defined         465 minutes or 7          465 minutes or 7         465 minutes or 7        465 minutes or 7
   by Contract                     hours/45 minutes          hours/45 minutes         hours/45 minutes        hours/45 minutes

   Pre-defined Periods Specified in Contract or Based on District Practice

   Regular class                Maximum 5 teaching or     Maximum 5 teaching or
   periods                      supervisory periods or    supervisory periods or         210 minutes            240 minutes
                                     210 minutes               240 minutes

   Duty-free lunch              1 period or 42 minutes     1 period or 48 minutes        42 minutes             48 minutes

   Conference/Planning          2 periods or 84 minutes   2 periods or 96 minutes        84 minutes             96 minutes

   Academic Assistance          1 period or 42 minutes          25 minutes               42 minutes             25 minutes

   Hall passing time                  27 minutes                32 minutes               27 minutes             32 minutes

   Homeroom                           5 minutes                    N/A                    5 minutes                 N/A

                                55 minutes split before                             55 minutes split before
   Before &after school            and after school             24 minutes             and after school         24 minutes

   Total Pre-defined
   Minutes Specified or              465 minutes                465 minutes              465 minutes            465 minutes
   Actual Average Minutes

   Balance of Minutes Not
   Defined                             0 minutes                 0 minutes                0 minutes              0 minutes

   Length of Student Day             410 minutes                416 minutes              410 minutes            416 minutes
  Source: PEA contract




           Table 3-11 details the teachers’ workday and indicates that PCSD teachers are fulfilling
           their contractual obligations in terms of the teacher workday. However, when compared
           to the peer districts, it appears PCSD’s total secondary teachers teach the lowest number
           of instructional minutes. Additionally, PCSD’s middle school teachers teach
           approximately 20 percent less than the average number of instructional minutes taught by
           the school districts which have had performance audits conducted to date. Furthermore,

Human Resources                                                                                                           3-20
Parma City School District                                                                        Performance Audit

        PCSD teachers are the highest paid when compared to the peer districts and are not
        required to perform additional supervisory duties without additional compensation unless
        it is part of their regular schedule of five periods. The low number of instructional minutes
        taught by secondary teachers indicates an inefficient utilization of the district’s largest
        expense which directly correlates to the current financial condition of the district as further
        detailed in the financial section of the performance audit report.

F3.19   Table 3-12 illustrates the number of traditional high school and middle school teachers and
        the number of instructional minutes taught and periods per day spent teaching for FY
        1998-99. The following high level analysis does not take into consideration the curriculum
        provided by the district.

                          Table 3-12: Teachers per Instructional Period - FY 1998-99
                          Middle School Teachers                           High School Teachers

               Teaching             # of                        Teaching           # of
               Minutes            Periods       # of Teachers   Minutes          Periods       # of Teachers
                per Day           per Day                        per Day         per Day

                  84                        2              0      96                       2              2

                  126                       3              4      144                      3              3

                  168                       4             10      192                      4             28

                  210                       5             84      240                      5            123

                  252                       6             11      288                      6              5

                 Total                                   109     Total                                  161
           Source: 1998-99 Master teaching schedules


F3.20   Table 3-12 above shows that 20 percent or 33 of the traditional high school teaching staff
        teach less than 240 minutes per day or the equivalent of four or less periods per day which
        is less than defined in the PEA contract. Approximately 125 periods are actually being
        taught by the 33 traditional high school teachers. If each of the 33 teachers were required
        to teach five periods per day, the district could possibly reduce eight high school teaching
        positions. If each of the 161 high school teachers were required to teach an additional
        period, in place of one of their two conference/planning periods, the district could possibly
        reduce 32 teaching positions.
F3.21   Table 3-12 above also shows that 13 percent or 14 of the middle school teaching staff
        teach less than 210 minutes per day or the equivalent of four or less periods per day which
        is less than defined in the PEA contract. Approximately 52 periods are actually being
        taught by the 14 middle school teachers. If each of the 14 teachers were required to teach
        five periods per day, the district could possibly reduce two middle school teaching
        positions. If each of the 109 middle school teachers were required to teach one additional

Human Resources                                                                                                3-21
Parma City School District                                                     Performance Audit

        period, in place of one of their two conference/planning periods, the district could possibly
        reduce 19 middle school teachers.

R3.8    The PEA contract stipulates that the daily workload for secondary teachers includes five
        regular teaching or supervisory periods and two conference/planning periods.
        Additionally, teachers are currently not required to cover non-teaching supervisory duties
        in excess of the five periods previously mentioned. Thirty-three high school and 14 middle
        school teachers teach less than five periods per day. If all teachers were required to teach
        a minimum of five periods per day, PCSD could possibly reduce 10 secondary teaching
        positions. If all secondary teachers received one conference/planning period instead of
        two and teachers were required to teach six periods per day, the district could possibly
        reduce 51 secondary teaching positions.

        Financial Implications: Based upon PCSD’s adjusted five year forecast, the district is
        facing financial difficulties. Because of PCSD’s expected financial deficit, the district will
        need to reduce operating costs. See the financial systems section of the performance audit
        report for more detail on the projected deficit. One possible area PCSD could consider
        would be to reduce teaching positions at the secondary school level. However, reductions
        should not be in excess of those needed to balance the budget. Maximizing the number
        of periods taught per teacher to concur with the PEA contract, the district could possibly
        reduce 10 secondary teaching positions. Assuming the average salary of a secondary
        teacher is $46,614 and benefits constitutes 30 percent of the salary, this reduction would
        create an annual savings of $605,982. If all secondary teachers were required to teach six
        periods per day, the district could possibly save $3,090,508 by allowing staffing levels to
        decrease through attrition or a reduction in force or by redirecting secondary teaching
        resources to the elementary level.




        Another option PCSD could consider in lieu of staff reductions might be redirecting
        teaching resources to enhance educational programming. Additional course offerings
        could be added with no additional personnel costs to the district by utilizing existing
        teachers and increasing instructional minutes taught per teacher. As indicated in F3.24,
        PCSD has a high student/teacher ratio at the elementary level. Fully utilizing secondary
        teachers would enable the district to reduce operating costs which would allow the district
        to hire additional elementary teachers thereby reducing the student/teacher ratio at the

Human Resources                                                                               3-22
Parma City School District                                                      Performance Audit

           elementary level. However, areas of teacher certification should be assessed prior to any
           reductions in positions or addition of course offerings.

F3.22      Ohio Admin. Code Section 3301-35-02 provides guidelines for educational programs. The
           OAC provides general guidance for topics of study including career education, citizenship
           and human relations. However, AM. Sub. S.B. 55 revises the minimum course
           requirements necessary for graduation after September 15, 2001. The total number of units
           that must be taken in grades nine through twelve increases from 18 to 21 units. The
           district has revised its graduation requirements accordingly. AM. Sub. S.B. 55 reduces the
           number of elective units that count toward the required number for graduation and
           increases the required units of English language arts, mathematics, science and social
           studies. For the 1999 graduating class, the district requires 18 units of study for
           graduation. The district has phased in an increase in the required units of study for
           graduation over the next two years with 21 units being required for students graduating in
           2002.

F3.23      Table 3-13 presents a review of the middle school FY 1998-99 master teaching schedules
           which revealed 16 traditional periods with 15 or less pupils. These classes do not include
           any special education or vocational classes. Examples of classes with 15 or less pupils
           include art, computer science, math, choir, science and metals.

                   Table 3-13: Middle School Teaching Periods with 15 or less Pupils
 Number of Students       5 or     6        7       8   9   10      11     12     13     14      15
                          less

 Number of Periods         0       0        0       0   0    1      0      1       1     11      2
Source: FY 1998-99 Master teaching schedule - HRD




           Table 3-14 presents a review of the high schools’ FY 1998-99 master teaching schedules
           which revealed 25 traditional periods with 15 or less pupils. These classes do not include
           any special education or vocational classes. Examples of classes with 15 or less pupils
           include US history, world history, art, advanced art, computers, honors biology, chemistry,
           honors chemistry, Latin, French, English, honors English, honors algebra, earth science,
           social studies and accounting. The district has indicated that several of these classes are
           English as a second language. Classes offered at one PCSD high school are not required
           to be offered at the other high schools in the district.

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Parma City School District                                                                                   Performance Audit


                      Table 3-14: High School Teaching Periods with 15 or less Pupils
 Number of Students        5 or         6          7           8        9           10       11        12      13         14      15
                           less

 Number of Periods            0         0          0           0        0           3        0           0     4          7       11
Source: FY 1998-99 Master teaching schedule - HRD


F3.24      Minimum standards for elementary and secondary education provide for a ratio of teachers
           to pupils on a district wide basis of at least one full time equivalent classroom teacher per
           25 pupils in average daily membership. A building ratio less than 25 to one potentially
           increases the number of teaching positions. Table 3-15 illustrates the student/teacher ratio
           of traditional students to traditional teachers in the elementary schools is 23.2:1.
           Additionally, the district’s student/teacher ratio in the elementary schools exceeds the
           average for all schools having a performance audit conducted to date by approximately
           10.5 percent. Am. Sub. H.B. 650, effective FY 1999, requires that each district with a
           Disadvantaged Pupil Impact Aid (DPIA) index of greater than 1.00 must use a portion of
           their DPIA money to implement all day kindergarten. A portion of the remaining DPIA
           money must be used to implement the “third grade guarantee.” The third grade guarantee
           consists of increasing the instructional attention given to each pupil in kindergarten
           through third grade by reducing the ratio of students to instructional personnel, extending
           the length of the school day, or extending the length of the school year. H.B. 650 also
           specifies that districts must first ensure a ratio of instructional personnel to students of no
           more than 15:1 (in kindergarten and first grade) in all buildings, before they can spend
           DPIA money for activities to increase instructional attention in any other building.

           Although PCSD’s DPIA is less than 1.0, maintaining a 23.2:1 ratio at the elementary level
           indicates PCSD may have a shortage of elementary teachers. Requiring secondary
           teachers to teach more instructional minutes would reduce operating costs and allow the
           district to focus on maintaining a lower elementary student/teacher ratio by hiring
           additional elementary teachers.


                                            Table 3-15: Elementary Staffing Levels
                                            Average Daily          Non-Special           Non-Special          Student/
                                            Membership              Education             Education           Teacher
                   Building                    (ADM)                 Students              Teachers             Ratio

           Elementary Totals                           6,356                6,252                  270                   23.2
          Source: EMIS class database


F3.25      Table 3-16 illustrates the staffing levels at the middle and high school buildings for FY
           1998-99. The student/teacher ratios are representative of the number of traditional

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Parma City School District                                                                  Performance Audit

          students which excludes special education students to the number of traditional teachers
          which exclude special education, vocational education and traveling/itinerant teachers.

                              Table 3-16: Middle School and High School Staffing Levels
                                        Average Daily    Non-Special     Non-Special          Student/
                                        Membership        Education       Education           Teacher
                   Building                (ADM)           Students       Teachers             Ratio

         Middle Schools:
         Greenbriar                               761              746                 46                16.2
         Hillside                                 530              513                 29                17.7
         Shiloh                                   681              681                 41                16.6

         Middle School Totals                    1,972           1,940             116                   16.7

         High Schools:
         Normandy                                1,119           1,101                 52                21.2
         Parma Senior                            1,468           1,448                 73                19.8
         Valley Forge                            1,642           1,621                 73                22.2

         High School Totals                      4,229           4,170             198                   21.1
        Source: EMIS class database


F3.26     Traditional student to traditional teacher class size ratios in the middle and high schools
                                                                                              average
                                                                                              16.7:1
                                                                                              and
                                                                                              21.1:1
                                                                                              respect
                                                                                              ively as
                                                                                              illustrat
                                                                                              ed in
                                                                                              Table
                                                                                              3-16.
                                                                                              Averag
                                                                                              e class
                                                                                              sizes
                                                                                              less
                                                                                              than
                                                                                              minimu
                                                                                              m
                                                                                              standar
                                                                                              ds will
                                                                                              require
                                                                                              more
                                                                                              teachin

Human Resources                                                                                                 3-25
Parma City School District   Performance Audit

                                         g
                                         positio
                                         ns for
                                         the
                                         same
                                         number
                                         of
                                         student
                                         s.
                                         Current
                                         ly,
                                         PCSD
                                         maintai
                                         ns     a
                                         16.7:1
                                         student
                                         /teache
                                         r ratio
                                         which
                                         results
                                         in 38
                                         additio
                                         nal
                                         middle
                                         school
                                         teachin
                                         g
                                         positio
                                         ns.
                                         Also,
                                         maintai
                                         ning a
                                         21.1:1
                                         ratio at
                                         the
                                         high
                                         school
                                         level
                                         results
                                         in 23
                                         additio

Human Resources                          3-26
Parma City School District   Performance Audit

                                         nal
                                         high
                                         school
                                         teachin
                                         g
                                         positio
                                         ns.
                                         Contin
                                         uing to
                                         maintai
                                         n levels
                                         which
                                         exceed
                                         minimu
                                         m
                                         standar
                                         ds will
                                         cost
                                         PCSD
                                         approxi
                                         mately
                                         $3,696,
                                         490
                                         annuall
                                         y     in
                                         teacher
                                         s’
                                         salaries
                                         and
                                         fringe
                                         benefit
                                         s. This
                                         financi
                                         al
                                         implica
                                         tion
                                         was
                                         calcula
                                         ted
                                         prior to
                                         any

Human Resources                          3-27
Parma City School District                                                                           Performance Audit

                                                                                                                        staff
                                                                                                                        reducti
                                                                                                                        on as a
                                                                                                                        result
                                                                                                                        of
                                                                                                                        recom
                                                                                                                        mendat
                                                                                                                        ion
                                                                                                                        R3.8.




F3.27         Table 3-17 compares the average salary of each classification to the peer districts for FY
              1997-98. Table 3-17 indicates that PCSD has the highest average salaries among the peer
              districts in the administrative, professional education and other professional categories, as
              indicated by the bolded numbers. The salaries average between 7 and 15 percent higher
              than the peer district averages.

                                           Table 3-17: Average Salary by Classification
                           Parma                 Canton                Dayton             South-Western         Peer Average

                      #          Avg         #         Avg         #          Avg         #         Avg        #         Avg
                     FTEs       Salary      FTEs      Salary      FTEs      Salary 1     FTEs      Salary     FTEs      Salary

 Official/Admin.        73.0    $62,576        74.7   $56,807      170.0    $51,793        93.5    $62,086     102.8    $58,316

 Prof/ Education      878.4      45,203       905.0    40,447     1,825.9       35,258   1,139.7    41,982    1,187.3    40,723

 Prof/Other             32.1     47,426        37.8    43,661      229.0        28,738     36.8     40,751      83.9     40,144

 Technical              10.0     31,552        25.8    23,512       17.0        25,345       5.0    40,601      14.5     30,253

 Office/Clerical      228.5      18,292       154.4    16,464      540.0        19,161    340.3     18,224     315.8     18,035

 Crafts/Trades          24.0     33,219        12.0    28,561       61.0        34,880     36.0     31,318      33.3     31,995

 Transportation         78.6     15,755        37.7    17,893       79.0        25,884    106.0     18,086      75.3     19,405

 Laborer                 0.0          0         0.0          0        3.0       38,858       0.0          0       0.8     9,715

 Custodian            113.8      17,085        81.9    20,021      207.0        25,779     89.0     26,012     122.9     22,224

 Food Service           70.7       8,898       67.9       5,683    146.0        13,579    107.1     13,488      97.9     10,412

 Other Service        249.9        8,213      118.9    15,218       39.0        12,546     35.2      7,713     110.8     10,923
Source: Preliminary 1997-98 EMIS Profile
1
  Per 1997 W2 report



Human Resources                                                                                                         3-28
Parma City School District   Performance Audit




Human Resources                          3-29
Parma City School District                                                           Performance Audit

F3.28   Table 3-18 illustrates total FTEs and salaries presented in Table 3-17 but have been re-
        categorized into the ratio of six classifications of personnel as defined in Table 3-5 and
        further compares the ratio of total salaries per classification to total district salaries.

 Table 3-18: Breakdown of Total FTE Employees and Percentage of Total EMIS Salaries by Classification
                                      # of            % of Total      Total          % of Total
             Classification         Employees         Employees      Salaries         Salaries

        Administrative                      73.0              4.2%      $4,568,052                8.0%

        Teachers                           838.4             47.7%      37,610,670            66.0%

        Pupil Services                      72.1              4.1%       3,622,702                6.3%

        Support Services                   290.1             16.5%       4,709,360                8.3%

        Other Classified                   483.4             27.4%       6,455,514            11.3%

        Technical                            2.0              0.1%          59,354                0.1%

        Total                            1,759.0            100.0%     $57,025,652           100.0%
        Source: Preliminary FY 1997-98 EMIS Profile


        When PCSD’s ratio of administrators to total FTEs are compared to their respective salary
        ratio, administrators make up 4.2 percent of total staffing. However, administrators’
        salaries account for eight percent of total salaries. PCSD’s average salary for professional
        education is approximately 10 percent higher when compared to the peer district average.
         As reflected in Table 3-18, teachers, who are included in the professional/educational
        category in Table 3-17, make up 47.7 percent of total FTEs. However, teachers’ salaries
        account for 66 percent of total salaries.

R3.9    PCSD’s secondary teachers are provided with two planning periods and an extended lunch
        hour which provides for additional planning time as further explained in F3.18.
        Additionally, PCSD teachers are not required to perform additional supervisory duties.
         In total, there are approximately two and one-half periods per day where secondary
        teachers are not teaching or performing supervisory duties. The peer districts average
        between one and one and one-half periods of planning time per day. Furthermore, PCSD
        teachers are the highest paid among the peer districts and 9.7 percent higher than the peer
        district average for FY 1997-98. PCSD teachers also have the second highest average
        salary at $45,429 just behind Cincinnati City School District at $46,695 when compared
        to the total school districts having a performance audit conducted to date. Such schools
        include Columbus City Schools, Akron City Schools, Toledo City Schools, Cincinnati City
        Schools, Lorain City Schools, Elyria City Schools, Springfield City Schools and Hamilton
        City Schools. However, within Cuyahoga County, PCSD’s starting salary for teachers
        with a bachelor’s degree ranks 29th lowest of the 33 school districts. Also, PCSD’s
        maximum salary for a master’s degree ranks 21st lowest of the 33 school districts. Because

Human Resources                                                                                          3-30
Parma City School District                                                   Performance Audit

        of PCSD’s current financial situation, the district should negotiate changes that would
        allow the district to redistribute teachers’ workload and reduce unnecessary operating
        costs. PCSD should pursue the following options:

        •      The district should require teachers to teach, at a minimum, an additional period
               rather than receiving two planning periods.
        •      PCSD should require teachers to perform supervisory duties in place of one of the
               two planning periods which would reduce the number of monitors needed.
        •      Additionally, the district should reduce the cost of living adjustment (COLA) for
               teacher salaries at the end of the current contract period (August 1, 1999). The
               negotiation of a reduction in the COLA would be a first step in equalizing the
               difference between the wages for PCSD teachers and the peer districts and also the
               current compensation inequities between teachers and PCSD’s classified personnel.


        Financial Implication: Based upon PCSD’s adjusted five year forecast, the district is
        forecasting significant deficits in future years. Because of PCSD’s pending financial
        deficit, the district will need to reduce operating costs. As indicated in R3.7, requiring
        teachers to perform supervisory duties would save PCSD approximately $328,559 in
        monitor salaries.

        Because teacher salaries and benefits are the greatest expense to the district, implementing
        a reduced COLA for PCSD’s teachers for FY 1999-00, FY 2000-01 and FY 2001-02 and
        assuming employee staffing remains consistent, a cost avoidance of $739,039, $768,601
        and $1,191,146 respectively in wages and salaries would be achieved. In addition, a cost
        avoidance of approximately $221,712, $230,580 and $357,344 respectively in benefits
        (calculated at 30 percent of salaries) would be achieved. The total accumulated cost
        avoidance achieved by the district over the three year contract period would be
        approximately $3,508,421.

F3.29   As indicated in Table 3-18, pupil services personnel, who are categorized as
        professional/other in Table 3-17, make up 4.1 percent of total FTEs. However, pupil
        services personnel salaries account for 6.3 percent of total salaries.

        As illustrated in Table 3-17, PCSD’s transportation, custodian and food service
        employees’ salaries are less than the peer district average. These salaries range between
        15 and 25 percent less than the peer district average. Additionally, Table 3-18 reflects the
        support services classifications, which includes transportation, custodian and food service
        employees, makeup 16.5 percent of total FTEs. However, support services salaries only
        account for 8.3 percent of total salaries. The results of the respective staffing to salary
        ratios indicate PCSD may have a compensation inequity among the individual employee

Human Resources                                                                             3-31
Parma City School District                                                          Performance Audit

           classifications.

R3.10      PCSD should perform a comprehensive compensation analysis for all employees to
           determine the true costs and value of all components of compensation. The analysis
           should include external market comparisons to derive at appropriate wage structures.
           Additionally, an analysis to determine the reasonableness of the district’s average salaries
           including supplementals and overtime should be performed.

F3.30      The Ohio Public Expenditure Council, October 1997, issued a report that stated that the
           average salary paid to Ohio’s classroom teachers was $38,945 for FY 1996-97. Table 3-
           19 indicates that PCSD’s average teaching salary of $45,429 is the highest among the peer
           districts and greater than the state average teaching salary per the Ohio Public Expenditure
           Council report by approximately 14 percent. Average teachers’ salary among peer districts
           will be affected by cost of living adjustments (COLA), experience and educational
           attainment. Table 3-19 adjusts the teachers’ salary for COLA and also provides
           information concerning educational attainment and total years of experience. PCSD
           teachers have the highest average years of experience and the highest number of teachers
           with a masters degree which correlates with the district having the highest average
           teaching salary. However, Table 3-20 indicates that PCSD has the highest average
           teaching salary for teachers with a masters degree and above when compared to the peer
           districts.

                                   Table 3-19: Average Teachers’ Salary
                                                                                    South-Western
                                               Parma         Canton     Dayton

        Average Teaching Salary                  $45,429      $41,188   $39,478 2         $42,237

        COLA Salary 1                            $44,087      $43,505     $39,048         $41,430

        Average Years of Experience                   15.3       14.4        15.3            12.6

        % Non-Degree                                   0.0        4.0         1.1             0.1

        % Bachelors Degree                            18.5       25.3        37.0            31.3

        % Bachelors Degree +150                       26.7       35.9      12.4 3            23.5

        % Masters and Above                           54.8       34.8        49.5            45.1
        Source: Preliminary FY 1997-98 EMIS Profile
        1
          Per 1995 composite index
        2
          Per district records




Human Resources                                                                                 3-32
Parma City School District                                                                           Performance Audit

F3.31          Table 3-20 indicates PCSD has the second highest beginning bachelors salary, the highest
               bachelors and masters salaries at step five on the salary schedule, the second highest
               maximum masters salary and the highest Ph.D. maximum salary when compared to the
               peer districts. Table 3-20 also indicates that PCSD teachers reach the maximum step on
               the salary schedule after 14 years. In addition, teachers receive longevity increases in three
               year increments starting at 17 years of experience.

                                           Table 3-20: Teachers’ Salary Schedule
                                                                                                Ph.D. or           # of
                          Bachelors      Bachelors      Bachelors       Masters      Masters    Doctorate       Steps in
                          Beginning       Salary        Maximum         Salary      Maximum     Maximum        Salary Step
          District         Salaries       5th Step       Salary 1       5th Step     Salary 1    Salary 1       Schedule

     Parma                   $26,467        $33,190         $50,683     $37,160       $59,457      $68,971    14 steps plus
                                                                                                               longevity at
                                                                                                               17,20,23,26,
                                                                                                             29,32,&35 years

     Canton                    25,596        29,179          43,289      32,763        48,920       57,111    13 steps plus
                                                                                                              longevity at
                                                                                                                18,21,26

     Dayton                    27,535        30,032          44,515      32,896        49,231       52,467     20 steps plus
                                                                                                             longevity at 20th
                                                                                                                    step

     South-Western             26,083        33,125          48,619      36,516        56,861         N/A        24 steps

     Average                 $26,420        $31,381         $46,777     $34,834       $53,617      $59,516

 Source: FY 1998-99 salary schedules
 1
  Maximum salaries are calculated after longevity increments have been applied
 N/A - South-Western does not have a salary step above the masters maximum salary




F3.32          Although PCSD’s average teaching salary per EMIS for FY 1997-98 was $45,429, a

Human Resources                                                                                                       3-33
Parma City School District                                                                  Performance Audit

        review of the 1997 calendar year W-2 report for full-time teachers reflected actual salaries
        paid to teachers ranged from $25,192 to $71,745 with approximately 42 percent of teachers
        receiving more than $50,000 for the year. Table 3-21 represents the range of actual
        teacher salaries based on the W-2 report for 1997.

                        Table 3-21: Comparison of Teacher Salaries per 1997
                         W-2 Report to FY 1997-98 Base Salaries per EMIS
                                                                   # of Teachers per
                                      Salary Range                 1997 W-2 Report

                          $70,000-72,999                                                2

                          60,000-69,999                                                46

                          50,000-59,999                                              263

                          40,000-49,999                                              215

                          30,000-39,999                                              155

                          25,192-29,999                                                51

                          Total                                                      732
                        Source: Payroll department - 1997 W-2 report


F3.33   Part of the difference between the average salary per EMIS and actual salaries per the W-2
        report is due to supplemental pay. The PEA contract, which identifies the various
        supplemental pay activities, states that PCSD teachers are only required to teach or
        supervise five periods per day and states that any teacher who teaches more than five
        periods per day receives supplemental pay for the additional teaching load. In addition,
        a teacher who performs additional student supervision, such as study halls or bus duty,
        shall receive additional supplemental pay. In addition to PCSD teachers having the highest
        average teacher salary and PCSD teachers teaching the lowest number of instructional
        minutes when compared to the peer districts, Table 3-22 indicates the district paid
        $436,450 to teachers for an additional teaching load and $97,694 for student supervision.
         The total amount of supplemental pay paid to employees for FY 1997-98 was $1,229,518.
         However, the district currently has no performance measures in place to track
        effectiveness in determining if continuation of the supplemental activity is warranted.




                                   Table 3-22: Supplemental Pay for FY 1997-98

                                  Supplemental Type                    Amount Paid



Human Resources                                                                                         3-34
Parma City School District                                                                         Performance Audit

                             Additional teaching load                                $436,450

                             Student supervision                                       97,694

                             Department heads                                          66,657

                             Cluster heads                                             88,013

                             Athletic coaches                                         325,108

                             Music directors                                           82,684

                             Other                                                    132,912

                             Total                                                $1,229,518
                             Source: Payroll department


R3.11   As reflected in Table 3-22, additional compensation is provided through supplemental pay
        paid to teachers for duties performed. PCSD should consider implementing performance
        measures to track the level of effectiveness of the programs which initiate the additional
        compensation. Another option the district could consider would be to reduce the number
        of planning periods and utilize the time to perform supervisory duties. See R3.9 for further
        explanation.

F3.34   Table 3-23 is presented to demonstrate the salaries applicable to local districts who could
        possibly compete with PCSD in the recruitment of teaching positions due to their local
        proximity. PCSD’s average teachers’ salary is higher than North Olmsted’s average
        teachers’ salary even though North Olmsted teachers have more years of experience and
        more teachers with a masters degree or above.

                                Table 3-23: Surrounding District’s Average Teachers’ Salary

                                                          Parma              Berea              North Olmsted

           Average Teaching Salary                           $45,429             $42,049                $45,121

           Average Years of Experience                            15.3               14.6                  16.2

           % Non-degree                                            0.0               11.9                   0.0

           % Bachelors Degree                                     18.5               25.8                  15.5

           % Bachelors Degree +150                                26.7               26.6                  24.3

           % Masters and Above                                    54.8               35.7                  60.2
         Source: Preliminary FY 1997-98 EMIS Profile




Substitutes


Human Resources                                                                                                   3-35
Parma City School District                                                                    Performance Audit

F3.35   Table 3-24 indicates that PCSD spent $1,009,100 on substitute teachers for FY 1997-98.
                                                                 Because the district does not
                                                                separately budget or account
                                                                for classified substitutes costs,
                                                                the district was unable to
                                                                determine the total cost spent
                                                                on classified substitutes. The
                                                                treasurer      indicated      all
                                                                classified substitutes were
                                                                charged to the same object
                                                                code as supplemental pay even
                                                                though the Uniform School
                                                                Accounting System (USAS)
                                                                requires two separate object
                                                                codes for these expenditures.
                                                                 The transportation department
                                                                was able to provide substitute
                                                                bus driver costs for FY 1997-
                                                                98.

                     Table 3-24: Substitute Payments for FY 1997-98
                                Classification                         Amount Paid
                       Teachers                                                  $1,009,100

                       Secretaries/Clerical                                            N/A

                       Educational Aides                                               N/A

                       Custodial/Maintenance                                           N/A

                       Transportation                                               45,574

                       Food Service                                                    N/A

                       Total                                                     $1,054,674
                     Source: Treasurer’s department
                     N/A - not available - district was unable to provide data


R3.12   Without identifiable, accurate substitute cost information, management cannot make
        informed decisions pertaining to the district’s employee resources. PCSD should budget
        and account for various classified substitutes in accordance with USAS which would
        provide administrators with essential information needed to manage and control employee
        leave usage and substitute costs.


Human Resources                                                                                           3-36
Parma City School District                                                                                 Performance Audit




F3.36         Table 3-25 compares PCSD and the peer districts’ substitute costs and procedures. This
              information will be used in numerous findings when assessing substitute costs.

                                 Table 3-25: Comparison of Substitute Costs
                             Parma                     Canton                        Dayton                      South-Western

 Auto/Manual
 Substitute                  Manual                    Manual                      Automated                         Manual
 Placement

 Daily Cost of         1-30 days - $76/day               $56/day            Substitutes hired before         Substitute Pool - $70/day
 Teacher              31-60 days-$101/day        $62/day for a core sub            July 1, 1995              Regular Sub - $63.00/day
                                                     st
 Substitutes          61+ days - $144/day      At 61 day, paid according   without 4 year certificate:           Half-day Sub - $35
                      plus eligible for full    to training & experience            $86.78/day                16 - 30 days - $75/day
                             benefits            on salary schedule plus      with 4 year certificate          31-60 days - $80/day
                                                         benefits                   $90.27/day                    At 61st day, paid
                                                                              Substitutes hired after         according to training &
                                                                                   July 1, 1995                 experience on salary
                                                                            without 4 year certificate         schedule plus benefits
                                                                                     $72/day
                                                                              with 4 year certificate
                                                                                     $75/day
                                                                           At 61st day, paid according
                                                                             to salary schedule plus
                                                                                     benefits

 Hourly Rate for                                                                   $8.14/hour
 Bus Drivers              $10.61/hour                 $9.85/hour               $7.00/hour (trainee)                $11.72/hour


 Hourly Rate for                                 $6.00/hour - clerical                                         Clerical - $6.50/hour
 Clerical & Aides          $6.50/hour            $5.50/hour - monitor              $8.26/hour                   Aides - $6.00/hour

 Hourly Rate for      $6.00/hour - cleaners                                   $6.85/hour (custodial)
 Maintenance                  only                    $7.00/hour           At 61st day receive benefits1            $9.25/hour
                                                                                No substitutes for
                                                                                   maintenance

 Hourly Rate for                                                                    $6.00/hour
 Food Service              $5.50/hour                 $5.50/hour           At 61st day receive benefits             $6.00/hour
Source: HRD




Human Resources                                                                                                               3-37
Parma City School District                                                             Performance Audit




Certificated Substitutes

F3.37    PCSD uses daily and long-term substitute teachers to cover for teacher absences. Daily
         substitutes are paid $76.00/day. After 30 days in the same position, the daily rate increases
         to $101.00/day. A long-term substitute is defined as a substitute who works in the same
         position for 61 or more days. On the 61st day, the substitute receives $144.00/day and is
         eligible for full benefits.

F3.38    In FY 1997-98, PCSD utilized 813.4 FTE teachers who were contracted to teach 178 days
         (school year) for a total of 144,785 school days requiring a teacher. Table 3-26 shows
         approximately 7.2 percent of total teaching days for FY 1997-98 were taught by a
         substitute teacher. The table also illustrates that of the ten periods defined, five periods
         had eight percent or more of available teaching days taught by a substitute teacher which
         is indicated by the bolded numbers.

                      Table 3-26: Substitute Teachers Report for FY 1997-98
                                                                                         % of Total
                        Teaching                                                          Teaching
                          Days      Total                                   Total           Days
                          Per      Teaching   Elementary    Secondary     Substitute     Requiring
          Month          Month      Days 1    Substitutes   Substitutes     Days         Substitutes

        Aug/Sept’97           23     18,708         382.0         420.4        802.4            4.3%

        Oct’97                22     17,895         642.5         624.9      1,267.4            7.1%

        Nov’97                16     13,014         550.0         485.5      1,035.5           8.0%

        Dec’97                15     12,201         452.5         467.5        920.0            7.5%

        Jan’98                18     14,641         581.0         488.0      1,069.0            7.3%

        Feb’98                19     15,455         664.0         586.9      1,250.9           8.1%

        Mar’98                22     17,895         791.5         644.5      1,436.0           8.0%

        Apr’98                16     13,014         561.5         507.9      1,069.4           8.2%




Human Resources                                                                                        3-38
Parma City School District                                                                                            Performance Audit

              May’98                      20           16,268            683.5              643.3           1,326.8               8.2%

              June’98                      7            5,694            120.0              123.1            243.1                 4.3%

              Total                      178         144,785            5,428.5            4,992.0         10,420.5                7.2%
            Source: Human Resources Department
             1
               Number of teachers multiplied by number of teaching days per period



F3.39            Table 3-27 illustrates the number of leave days used by teachers for FY 1997-98 thus
                 requiring either a substitute or another staff member to cover for the absence.

                        Table 3-27: Total Leave Days Taken per Teacher - FY 1997-98
                          #                 #                #               #              Total
                         Sick            Personal           Prof.          Other            Leave           Number               Average
                        Days              Days             Days            Days              Days              of               #of Days
                        Taken             Taken            Taken           Taken            Taken           Teachers           per Teacher

        Teachers           7,693               1,123              402          1,811             11,029               881                 12.5
      Source: HRD


F3.40            Table 3-28 illustrates the average number of sick, personal, professional and other leave
                 days taken, per teacher, for FY 1997-98.

                              Table 3-28: Average Number of Leave Days Taken per Teacher
                                 Parma                      Canton                     Dayton                 South-Western

                          # of       Average            # of        Average        # of     Average          # of           Average      Peer
                         Days          Per             Days           Per         Days        Per            Days             Per       District
                         Taken       Teacher           Taken        Teacher       Taken     Teacher         Taken           Teacher    Average 2

    Sick Leave             7,693               8.7       6,568           6.9      14,704             7.9      7,252              5.7             6.8

    Personal Leave         1,123               1.3       1,508           1.6         441             0.2      2,160              1.7             1.2

    Prof. Leave              402               0.5       1,440           1.5       3,748             2.0      1,769              1.4             1.6

    Other Days 1           1,811               2.1         81            0.1       1,050             0.6        194              0.1             0.3

    Total                 11,029           12.6          9,597          10.1      19,943          10.7       11,375              8.9             9.9

    # of Eligible
    Teachers                     880.6                          946.0                  1,868.0                    1,276.0
1
  Other days include jury duty, school business leave and days off without pay
2
  Peer district average excludes PCSD


F3.41            PCSD’s teachers averaged 8.7 sick days per teacher in FY 1997-98. Table 3-28 illustrates
                 PCSD’s teachers averaged 1.4 days or approximately 19 percent more sick leave than the
                 peer group average. Table 3-28 also indicates that PCSD teachers averaged 12.6 leave

Human Resources                                                                                                                           3-39
Parma City School District                                                                   Performance Audit

        days taken per teacher which equates to teachers being out of the classroom approximately
        seven percent of the time. The average percent of leave taken by the peer districts is 5.5
        percent. In addition to the increased cost of substitute teachers, excessive leave creates
        interruptions in the flow of teachers’ curriculum and may have an impact on the quality
        of education provided to students. Data provided by the Bureau of Labor Statistics
        indicates that 12 month government workers average 4.7 sick days per person in 1997
        which is lower than the peer group average and significantly lower than PCSD’s teacher
        average.
F3.42   The assumptions used for the following statistics are based on the average daily substitute
        rate of $76.00 per day. PCSD teachers, who are provided 15 days of sick leave per year,
        averaged 8.7 days of sick leave per teacher or approximately $582,253 for total substitute
        salaries in FY 1997-98. In FY 1997-98 teachers averaged 1.3 days of personal leave per
        teacher or approximately $87,003 for total substitute salaries. PCSD’s union agreement
        allows three days of professional leave days per teacher up to a maximum of 800 days per
        year. In FY 1997-98, PCSD’s teachers averaged 0.5 days of professional leave or $33,463
        for total substitute salaries. PCSD teachers averaged 2.1 days of other leave or
        approximately $140,544 for substitute salaries. Using the leave as defined above,
        $843,263 could have been spent on substitute teachers. This estimate is conservative
        because it does not consider the increased rate for long-term substitute teachers. PCSD
        actually spent $1,009,100 on substitute teachers in FY 1997-98.

R3.13   PCSD spent $1,009,100 on substitute teacher payments for FY 1997-98. Contributing to
        this expense was sick days used by all employees. If PCSD would reduce the amount of
        sick leave taken, it would reduce additional administrative time, enhance the quality of
        education by eliminating interruptions in the flow of teachers’ curriculum and would
        reduce the overall substitute costs incurred as shown in Table 3-29 below. Reducing sick
        leave taken by four days would bring PCSD in line with the average taken by 12 month
        government workers of 4.7 days as reported by the Bureau of Labor Statistics.
             Table 3-29: Annual Savings Calculated for Reduction in Usage of Teacher’s Sick Leave
                                                        Annual Savings Calculated at

                                        Sick leave                Sick leave               Sick leave
                                     reduced by 1 day          reduced by 2 days       reduced by 4 days

           Teachers                      $66,926                   $133,852                $267,704


        Financial Implication: Reducing the number of sick days taken by each teacher by one day
         would save PCSD approximately $66,926 annually in substitute costs. Reducing the
        number of sick days taken by each teacher by two days would save PCSD approximately
        $133,852 annually in substitute costs. Reducing the number of sick days taken by each
        teacher by four days would save PCSD approximately $267,704 annually in substitute
        costs. The financial implications may be greater depending on use of long-term substitutes

Human Resources                                                                                            3-40
Parma City School District                                                              Performance Audit

        whose salaries are considerably higher and who receive benefits.




F3.43   The district has indicated substitute teachers are difficult to find. PCSD uses the following
        approaches to find substitutes:

               •                Placing advertisements in local newspapers
               •                Advertising at local colleges and universities
               •                Posting available positions on all schools’ bulletin boards
               •                Sending notices with employee paychecks
               •                Questioning applicants for full-time teaching positions if they are
                                willing to substitute

F3.44   When a qualified substitute is not available to cover for an absent teacher, the principal will
        ask another teacher to cover the class and the teacher is compensated at a rate of $21.17
        per class which is significantly higher than the peer districts as reflected in Table 3-30.
         The district could not identify the total cost paid to teachers in FY 1997-98 to cover a
        class when a substitute could not be placed.

                       Table 3-30: Rates Paid for Teachers to Fill in for Substitutes
                   Parma              Canton                Dayton              South-Western

              $21.17/hour         $18.67 per period        $13.00/hour           $15.22/period
                                 (Maximum of three                             Split Session Rate -
                                  periods - $56.01)                                 $20/period


        The customer satisfaction survey included two questions regarding the district’s substitute
        teacher process. Results indicated teachers are satisfied with the quality, effectiveness and
        availability of substitutes.

R3.14   PCSD’s hourly rate to cover for teacher absences is significantly higher than the peer
        districts. PCSD should include the rates paid to fill in for substitutes as part of the
        comprehensive compensation study as recommended in R3.10.

Classified Substitutes

F3.45   Classified positions that require substitutes are typically filled by casual/short-term
        substitutes. Casual/short-term substitutes are paid an hourly wage based upon the

Human Resources                                                                                       3-41
Parma City School District                                                                                  Performance Audit

            classification of employees as shown in Table 3-25. On the 21st day in the same position,
            the rate increases to the base rate on the salary schedule. On the 81st day in the same
            position, the rate increases to step one of the salary schedule. The substitute rate does not
            increase higher than the step one salary. Benefits are not provided to casual/short-term
            substitutes at any time.

F3.46       Table 3-31 illustrates the number of days of leave used by PCSD’s classified staff for FY
            1997-98 which could have required either a substitute or another staff member to cover for
            the vacancy.

                                Table 3-31: Classified Personnel Days Taken FY 1996-97
                               # of      # of         # of             # of         # of                 # of          Average
                               Sick      Vac        Personal           Prof.        Other    Total      Emp.         # Total Days
                              Days      Days         Days             Days          Days     Leave       per          Taken per
         Classification       Taken     Taken        Taken            Taken        Taken1    Taken      Class.        Employee

        Clerical/Office          888        328           199              13           52     1,480          129            11.5

        Educational
        Assistants               620            0         141              36           23       820           67            12.2

        Custodial/
        Maintenance            1,467        563           252              14           75     2,371          120            19.8

        Food Service             527            0             87               6       122       742           68            10.9

        Transportation           946        123           155              10          370     1,604           84            19.1

        Other
        Classified             1,509         82           293              23          283     2,190          196            11.2

        Total                  5,957      1,096         1,127             102          925     9,207          664            13.9
    Source: Staff Attendance Reports
    1
      Other days include jury duty and days off without pay


F3.47       Table 3-32 illustrates the average number of leave days taken per employee category for
            FY 1997-98.

                       Table 3-32: Average Days Leave Taken FY 1997-98 - Classified Personnel
                                    Average          Average #               Average #        Average #             Average #
                                  # Sick Days       Vacation Days          Personal Days     Professional           Other Days
             Classification          Taken            Taken 1                 Taken          Days Taken              Taken 2

          Clerical/Office                   6.9                    11.3                1.5              0.1                  0.4

          Educational
          Assistants                        9.3                     0.0                2.1              0.5                  0.3

          Custodial/
          Maintenance                      12.2                    12.2                2.1              0.1                  0.6




Human Resources                                                                                                                  3-42
Parma City School District                                                                                         Performance Audit

         Food Service                         7.8                  0.0                      1.3                0.1                1.8

         Transportation                      11.3                 12.3                      1.8                0.1                4.4

         Other                                7.7                  9.1                      1.5                0.1                1.4
        Source: Staff Attendance Reports
        1
          Calculated based upon eligible employees
         2
           Other days taken includes jury duty and days off without pay


F3.48         Table 3-33 presents FY 1997-98 substitute costs for classified employees assuming an
              average daily substitute rate as defined in Table 3-25 and an average number of total leave
              days taken per employee as established in Table 3-31 for each employee classification.
               As noted in F3.35, the district was unable to identify total classified substitute costs,
              therefore, an analysis comparing estimated substitute costs to actual substitute costs could
              not be performed.

                                 Table 3-33: Classified Personnel Substitute Costs FY 1996-97
                                            Avg # Total         Hours          Substitute         # of Employees     Estimated
                                            Days Taken           per             Rate                Included        Substitute
                     Classification        per Employee          Day           per Hour              in Group          Cost

             Clerical/Office 1                        11.5               7.5        $6.50                    129              N/A

             Educational Assistants                   12.2               6.5        $6.50                     67          $34,535

             Cleaners 2                               25.9               8.0        $8.50                    105          184,926

             Food Service                             10.9               3.5        $5.50                     68           14,268

             Transportation                           19.1               6.0       $10.61                     84          102,136

             Total                                                                                                       $335,865
         Source: Staff Attendance Reports
         1
           PCSD only uses clerical substitutes for long term positions
         2
           Substitutes are only used for cleaners




Human Resources                                                                                                                     3-43
Parma City School District                                                                     Performance Audit




F3.49         Table 3-34 compares the average number of sick days taken by PCSD’s classified staff to
              the peer districts for FY 1997-98.

                              Table 3-34: Average Number of Sick Days Taken FY 1997-98
                             Parma               Canton               Dayton            South-Western

                    # Sick     Average      # Sick   Average     # Sick    Average    # Sick       Average
                    Days         Per        Days       Per       Days        Per      Days           Per       Peer
                    Taken      Employee     Taken    Employee    Taken     Employee   Taken        Employee   Average

 Clerical             888             6.9      876         7.5     2,928       12.3       720           4.9        7.9

 Educational
 Assistants           620             9.3    1,926         8.4     3,745       11.7     2,260           6.4        9.0

 Cust/Maint          1,467           12.2      874         8.2     2,838       11.9     1,372           8.4       10.2

 Food Service         527             7.8    1,019         6.1     1,337        8.0       971           6.0        7.0

 Transportation       946            11.3      734        12.9     2,315       10.6     1,089           8.0       10.7

 Other
 Classified          1,509            7.7       81         3.8       428       13.4            0        0.0        8.3

 Total               5,957            9.0    5,510         7.9    13,591       11.3     6,412           6.7        8.7


              Table 3-34 indicates that PCSD classified employees averaged 9.0 sick days during FY
              1997-98. Educational assistants, custodian/maintenance and transportation employees
              utilized nine or more days of sick leave in FY 1998-97. PCSD’s classified staff used the
              second highest average number of sick days when compared to the peer districts. In
              addition, South-Western City Schools and Hamilton City Schools’ classified employees
              averaged only 6.7 and 6.6 days per employee which is approximately 34 to 36 percent less
              than PCSD’s classified employees. The classified staff provides critical resources to the
              educational process by providing the following services:

              •     Functioning as a support resource to staff and students
              •     Providing a clean and secure environment
              •     Ensuring nutritious lunches
              •     Transporting students in a safe and timely fashion
              •     Fulfilling additional functions as required by curriculum and/or other district needs

Human Resources                                                                                               3-44
Parma City School District                                                                          Performance Audit


        Because excessive sick leave limits the district’s resources, daily routines are disrupted and
        can weaken the quality of education. In addition, the district incurs significant financial
        expenditures through the use of substitutes or overtime.



R3.15   The classified employee population averaged 9.0 sick days per person in FY 1997-98
        which is higher than the peer district average and substantially higher than the average
        taken by 12 month government workers for 4.7 days as reported by the Bureau of Labor
        Statistics. Assuming full utilization of substitutes by the district, if PCSD would reduce
        the amount of sick leave taken, it would reduce additional administrative time, enhance the
        quality of education by eliminating interruptions in the flow of work and reduce the overall
        substitute costs incurred as shown in Table 3-35.

         Table 3-35: Annual Savings Calculated From Reductions in Classified Sick Leave Usage
                                                                 Annual Savings Calculated at
                      Employee
                     Classification              Sick leave               Sick leave               Sick leave
                                              reduced by 1 day         reduced by 2 days        reduced by 5 days

             Clerical 1                                       N/A                     N/A                     N/A

             Educational Assistants                        $2,831                   $5,662                 $14,155

             Custodial/Maintenance 2                        2,592                    5,184                  12,960

             Food Service                                   1,309                    2,618                   6,545

             Transportation                                 5,347                   10,695                  26,735

             Total Savings                                $12,079                  $24,159                 $60,395
         1
             PCSD only uses clerical substitutes for long term positions
         2
             PCSD only uses substitutes for cleaning positions


        Financial Implication: Reducing the number of sick days taken by each employee by one
        day would save PCSD approximately $12,079 annually in substitute costs. Reducing the
        number of sick days taken by employees by two days would save PCSD approximately
        $24,159 annually in substitute costs. If PCSD could further reduce sick leave taken by five
        days, the district would save approximately $60,395 annually in substitute costs.

R3.16   Although PCSD currently has a HRIS which can provide management with detailed
        information, the district does not have an automated substitute calling system. PCSD
        should define requirements to select and implement an automated substitute calling system
        that will meet the district’s needs. The implementation of an automated substitute
        placement system should be integrated with the payroll system and the HRIS. An

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Parma City School District                                                   Performance Audit

        automated substitute placement system will improve operations in the following areas:

        •      Extent of Automation: There is functionality that a substitute placement system
               offers that is not available with a manual substitute placement operation. For
               example, such a system can record instructions from the absent teacher that are
               automatically played for the substitute who accepts the position.

        •      Availability of Data: An automated substitute placement system will provide
               management with reports concerning substitute placement rates, absenteeism and
               other useful information. Furthermore, the system can generate reports to respond
               to unemployment compensation claims by substitute personnel.

        •      Future Improvements: For an additional investment, such a system can be interfaced
               with payroll to reduce manual payroll processing and can be expanded to
               accommodate non-teaching substitute placement such as substitute school clerks.

        •      Site-based Management: An automated substitute placement system will call
               substitutes based on a prioritized roster established by each school.

        Financial Implication: Several additional benefits of a computerized substitute system
        may include an efficient method of contacting qualified substitutes that will reduce the
        time spent by district personnel in obtaining substitutes; an overall reduction in employee
        sick time; and a convenient reporting system that will improve management’s access to
        substitute data. The estimated costs associated with implementing a teacher substitute
        system include approximately $60,000 in software and hardware and ongoing technical
        support and technology upgrades would be approximately $3,000 in annually.

Benefits Administration

F3.50   The administration of benefits is shared between the HRD and the payroll department
        which reports to the treasurer’s office. The HRD is currently responsible for new employee
        orientation and distributing benefit information packets to employees. The treasurer’s
        office is responsible for processing enrollment additions and changes, reconciling carrier
        coverage records and working with the payroll department to ensure corresponding payroll
        deductions are processed properly. In addition, the administration of health, dental, vision
        claims and tax-sheltered annuities are handled by an account clerk in the treasurer’s
        office. The account clerk reports to the treasurer.

F3.51   The district has an insurance committee that is composed of four members appointed by
        the president of the Parma Education Association (PEA), four members appointed by the
        superintendent and one representative from each of the OAPSE local chapters. The

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Parma City School District                                                                     Performance Audit

        committee meets monthly and monitors all benefit plan costs including claims, reviews
        benefit expenditures for efficiency and effectiveness and reviews utilization studies. The
        committee does not have decision making authority and can only make advisory
        recommendations to the board of education regarding benefits. The board is ultimately
        responsible for approving changes in benefits.
F3.52   The insurance committee has contracted for consulting services on an as needed basis with
         Willis Cooroon, Incorporated, an independent consulting firm. Willis Cooroon provides
        the following services: assisting the district in determining the most effective health
        insurance strategies, preparing reports regarding insurance issues, attending insurance
        committee meetings, assisting the district in dealing with insurance carriers and advising
        the district as to the appropriateness of the existing premium. The last report was issued
        in May 1998, and indicated that no alternative medical plan could match the price or the
        level of service the district is currently receiving.

F3.53   All full-time certificated employees are eligible to receive health care benefits. Most
        certificated employees are considered full-time if they work 37.5 hours or more per week.
         Certificated employees hired before FY 1994-95 and who work 50 percent or less of a
        full-time position are required to contribute 50 percent of the monthly premium in order
        to receive full benefits. Part-time employees hired in or after FY 1994-95 are required to
        contribute towards their health insurance costs based on a percentage of their assignment
        level. Table 3-36 is an example illustrating the percentage of the premium that the board
        will pay is in direct proportion with the workload of part-time employees hired in or after
        FY 1994-95. The district currently has 11 part-time employees who were hired after FY
        1994-95 and are required to contribute based on their workload.

                                     Table 3-36: Example of the Contribution Scale for
                                  Part-time Certificated Employees Hired After FY 1994-95
              Hours Worked                % of Full-Time           % of Premium Paid    % of Premium Paid
              During Day                   Workload 1                by Employee             by Board

              6 hours per day                            86%                      14%                  86%

              5 hours per day                            71%                      29%                  71%

              4.5 hours per day                          64%                      36%                  64%

              3 hours per day                            43%                      57%                  43%
          1
              Assumes a full-time teacher works 180 days a year.


C3.1    PCSD has successfully implemented a graduated benefit scale designed to prorate the
        contributions required by part-time certificated employees. Part-time employees who wish
        to have medical coverage are required to contribute towards the premium costs based on
        the percent of a full-time schedule that each employee works which helps reduce insurance
        costs to the district.

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Parma City School District                                                    Performance Audit




F3.54   Classified employees receive benefits based on the hours worked per week. Those
        employees working more than 30 hours a week are eligible to receive single or family
        coverage paid by the board. Those employees working more than 20 hours but less than
        30 hours a week are eligible for single coverage benefits at the board’s expense and may
        elect family coverage and contribute the difference between the family and single plans.
         Employees who work less than 20 hours a week may voluntarily participate in the board’s
        insurance plans at their own expense.

F3.55   The district currently utilizes three healthcare plans: Medical Mutual which is a traditional
        plan and only offered to certificated staff, Super Med Plus which is a PPO plan, and
        Kaiser Permanente which is a HMO plan. Full-time employees enrolled in the Super Med
        Plus plan (PPO) are not required to contribute towards the cost of the premium. Those
        individuals who elect family coverage through Medical Mutual (Traditional Plan) are
        required to pay $50 towards the monthly hospitalization premium. However, effective
        January 1, 1999, those employees who elect family coverage under Medical Mutual will
        be required to pay the full difference in the premiums between the traditional family
        coverage and the comparable Super Med Plus family coverage. The board will continue
        to pay the total cost of single health coverage under the Medical Mutual plan. Any
        employee may elect the Kaiser Permanente health plan (HMO) in lieu of the above health
        plans and be charged the difference between the premium rates for the Super Med Plus
        medical and dental plans and the cost of the HMO plan. According to a report completed
        by SERB (see F3.56), 28 percent of employers offer insurance coverage through an HMO.
         The SERB study also identified the average monthly medical premium for single and
        family coverage as $177.84 and $447.34 respectively. The single and family premiums
        for the Super Med Plus plan is substantially lower than the averages identified in the SERB
        study. The district indicated the PPO premiums are established based on prior claims and
        due to favorable claim experience, the district was able to negotiate the favorable premium
        rate. Table 3-37 identifies the amount paid by employees and the amount paid by the
        board for each medical plan during FY 1997-98.




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Parma City School District                                                                 Performance Audit




                                   Table 3-37: Health Plan Cost Obligations
                                                                                     Kaiser         Kaiser
                                     Medical       Super Med       Super Med       Permanente     Permanente
                                     Mutual-       Plus (PPO) -    Plus (PPO) -     (HMO) -        (HMO) -
                                    Certificated   Certificated     Classified     Certificated    Classified

        Full-time Employees

        Monthly Single Plan Rate         $155.59         $108.92        $108.92         $172.87       $172.87

        % paid by employee                   0%              0%              0%            18%           20%

        $ paid by employee                    $0              $0             $0          $31.24        $34.11

        $ paid by employer               $155.59         $108.92        $108.92         $141.63       $138.76

        Full-time Employees

        Monthly Family Plan Rate         $416.07         $291.25        $291.25         $469.87       $469.87

        % paid by employee                  12%              0%              0%            23%           24%

        $ paid by employee                $50.00           $0.00           $0.00        $107.76       $113.97

        $ paid by employer               $366.07         $291.25        $291.25         $362.11       $355.90


F3.56       A report on the Cost of Health Insurance in Ohio’s Public Sector was completed by SERB.
             Based on the 1997 study, almost 64 percent of the responding employers required their
            employees to pay a portion of the cost of a family premium. Fifty-one percent required
            their employees to share the cost for the single plan. The average monthly employee
            contribution is $19.81 for single and $57.23 for family. These rates amount to 11 percent
            of the cost of a single plan and 13 percent of the monthly family premium. Other findings
            from the study include the following:

            •        Estimated cost of medical and other health care benefits will average $5,170 per
                     covered employee in 1997.
            •        Monthly medical insurance premiums currently average $177.84 for single coverage
                     and $446.26 for a family plan.
            •        Average total monthly cost of employee health care benefits stands at $216.08 and
                     $512.35 for single and family coverage, respectively.
            •        Approximately 88 percent of public employers offer some level of dental coverage,
                     46 percent provide a vision plan and 93 percent offer life insurance.
            •        Dental coverage costs an average of $26.21 a month for single and $45.56 a month
                     for family. The cost of optical insurance averages $7.61 for single and $14.65 for
                     family coverage.

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Parma City School District                                                                                  Performance Audit

                •       Twenty-eight percent of employers offer insurance coverage through an HMO.
                        Forty-three percent contract at least some health services through a provider
                        network.
F3.57           Table 3-38 provides certain details about health care information. Each of the peer
                districts requires contributions from employees depending on the type of coverage and the
                plan chosen by the employee with the exception of Canton City School District which does
                not require an employee contribution for single or family coverage.

                                                   Table 3-38: Health Care Costs
                                                                      Monthly
                                          Monthly         Full        Premium     Full   Monthly    Full-Time      # of
                                          Premium        Time            For     Time    Premium      Emp.      Employees
                                         For Single      Emp.           Emp.     Emp.       For       Share      In Each      Self-
      School            Provider(s)         Plan         Share         + one     Share    Family                   Plan      Insured

    Parma           Medical Mutual/
                    (Traditional)
                    certificated            $155.59          $0           N/A      N/A    $416.07     $50.00      147/151         No

                    Super Med
                    Plus/(PPO)
                    certificated            $108.92          $0           N/A      N/A    $291.25         $0      109/549         No
                    classified              $108.92          $0           N/A      N/A    $291.25         $0      112/445         No

                    Kaiser
                    Permanente 1
                    /(HMO)
                    certificated            $172.87     $31.24            N/A      N/A    $469.87    $107.76           2/7        No
                    classified              $172.87     $34.11            N/A      N/A    $469.87    $113.97          8/11        No


    Canton          Traditional -           $170.82          $0           N/A      N/A    $471.24         $0       18/0/22       Yes
                    North American
                    Benefits1

                    PPO - Ohio              $162.91          $0           N/A      N/A    $449.41         $0    381/0/894        Yes
                    Health Choice1

                    HMO - Aultcare1         $143.55          $0        $272.65      $0    $437.55         $0      33/25/53        No

    Dayton          United Health           $170.91     $25.63            N/A      N/A    $432.62     $64.89    479/1,006         No
                    Care 1                              $34.18                                        $86.52     278/263

                    Anthem - Blue           $174.88     $26.23            N/A      N/A    $441.72     $66.26     278/482          No
                    Cross & Blue                        $34.98                                        $88.34     99/140
                    Shield 1

    South-          United Health           $169.45          $0           N/A      N/A    $447.34    $146.33     1,135/697        No
    Western         Care1
1
    Prescription plan is included in medical benefits premium costs


                The customer satisfaction survey included a question asking if employees were satisfied
                with procedures regarding insurance benefits. The survey results concluded the majority
                of the recipients are satisfied in this area.

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Parma City School District                                                                              Performance Audit



F3.58            Table 3-39 provides certain details about health care information for two surrounding
                 districts. The two surrounding districts are self-insured and only Berea requires
                 contributions towards health care coverage.

                                Table 3-39: Surrounding District’s Health Care Costs
                                                Monthly
                                                Premium           Full         Monthly                    # of
                                                  For            Time          Premium    Full-Time    Employees
                                                 Single          Emp.            For      Employee      In Each        Self-
        School              Provider(s)           Plan           Share          Family     Share          Plan       Insured

    Parma               Medical Mutual/
                        (Traditional)
                        certificated              $155.59                $0     $416.07       $50.00       147/151             No

                        Super Med
                        Plus/(PPO)
                        certificated              $108.92                $0     $291.25           $0       109/549             No
                        classified                $108.92                $0     $291.25           $0       112/445             No

                        Kaiser Permanente 1
                        /(HMO)
                        certificated              $172.87             $31.24    $469.87      $107.76           2/7             No
                        classified                $172.87             $34.11    $469.87      $113.97          8/11             No


    Berea               Medical Mutual 1          $150.06                $0     $404.02       $12.12       348/565         Yes

    North Olmsted       Medical Mutual            $105.66                $0     $271.33           $0       172/423         Yes

                        Kaiser Permanente         $153.99                $0     $406.51           $0         10/13             No
1
    Prescription plan is included in medical benefits premium costs




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F3.59      Certain benefits affect the overall cost of medical plans. Table 3-40 compares some key
           benefits that are considered when comparing benefits to cost when choosing a medical
           plan.

                                   Table 3-40: Key Medical Plan Benefits
                                     Parma                    Canton                  Dayton                   South-Western
                                 Medical Mutual           North American         United Health Care           United Health Care
                                  (Traditional)         Benefits (Traditional)   Anthem - Blue Cross               (HMO)
                              Super Med Plus (PPO)       Ohio Health Choice         & Blue Shield
                                 Kaiser Permanente             (PPO)
                                     (HMO)                AultCare (HMO)

          Office                     80/20               Traditional - 70/30        $5.00 co-pay                $5.00 co-pay
          Visits                   $10 co-pay               PPO - 90/10             $5.00 co-pay
                                  100% covered             HMO - 100%

        Employee                 $100 S/$200 F          Traditional - $75/$150      No deductible               No deductible
         Annual                   Network - $0             PPO - $75/$150           No deductible
        Deductible             Non-network - $250             HMO - $0
                                     None

     Prescription Plan                No                         Yes                     Yes                         Yes
        Included?                     No                                                 Yes
                                      Yes

 Need to Choose Primary               No                   Traditional - No              Yes                         No
        Physician                     No                      PPO - No                   Yes
                                      Yes                    HMO - Yes

        Maternity                   100%                  Traditional - 70%       First visit - $5.00,              100%
                            100% network / 70% non-          PPO - 90%                   100%
                                   network                 HMO - 100 %                   100%
                                    100%

     Well Child Care            $500 max per year          Traditional - No         $5.00 co-pay                $5.00 co-pay
                            $10 co-pay network/70% or         PPO - No              $5.00 co-pay
                              $500 max non-network           HMO - Yes
                                      100%

  Inpatient Hospital Care      100% - 730 days max        Traditional - 70%             100%                        100%
                             100% network/ 70% non-          PPO - 90%                  100%
                                    network                 HMO - 100%
                            100% - No daily maximum




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F3.60       Table 3-41 shows the average premiums paid for both single and family dental plans.
            While the three peer districts are all self-insured, Dayton City School District is the only
            peer that requires employee contributions. PCSD offers two dental plans neither of which
            requires a contribution.
                                                Table 3-41: Dental Insurance
                                                           Month
                                                            Cost      Full       Month     Full-        Number
                                                            For      Time         Cost     Time         Enrolled:
                                                           Single    Emp.         For      Emp.          Single/          Self-
             School              Provider(s)                Plan     Share       Family    Share         Family          Insured

             Parma         Canada Life
                           Assurance/certificated           $26.00        $0      $66.37      $0             258/707          No

                           Super Med
                           Plus/classified                  $20.05        $0      $60.14      $0             126/478          No

             Canton        Professional Claims              $19.56        $0      $53.83      $0            336/1,095         Yes
                           Management

             Dayton        Mutual Health                    $20.36    $1.44       $47.90   $3.38            842/1,760         No
                           Medical Mutual
                           of Ohio                          $11.15    $1.12       $31.83   $3.18               48/96          Yes

             South-        Coresource                       $47.52        $0      $47.52      $0               1,834          Yes
             Western


F3.61       Table 3-42 shows the dental coverage comparisons for two surrounding districts. Both
            peer districts are self-insured and only Berea Schools requires full-time employees to
            contribute towards the monthly family plan premium
                   Table 3-42: Surrounding District’s Dental Insurance Coverage
                                               Monthly                         Monthly                          Number
                                               Cost for       Full-time        Cost for    Full-Time            Enrolled:
                                                Single        Employee         Family      Employee              Single/         Self -
    School             Provider(s)               Plan          Share            Plan        Share                Family         Insured

  Parma         Canada Life
                Assurance/certificated            $26.00             $0           $66.37              $0           258/707           No

                Super Med Plus
                /classified                       $20.05             $0           $60.14              $0           126/478           No

  Berea         Medical Mutual                    $25.77             $0          $104.97           $35.75          622/293           Yes

  North         Medical Mutual                    $15.43             $0           $41.12              $0            182/436          Yes
  Olmsted




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Parma City School District                                                                                  Performance Audit


F3.62   Table 3-43 indicates that the district is currently offering two vision plans. The certificated
        staff were insured through Medical Mutual while the classified staff were insured through
        Super Med Plus. The certificated plan was $3.84 less per person and provided employees
        with the option of family coverage. However, during spring negotiations the district
        rectified this situation by only offering vision benefits through Medical Mutual effective
        June 1, 1998.

                                             Table 3-43: Vision Insurance

                                                                                                         # of
                                              Monthly      Full-Time       Monthly       Full-Time      Emp In.
                                              Cost for     Employee        Cost for      Employee        Each          Self
             School        Provider(s)         Single       Share          Family         Share          Plan        Insured

            Parma       Medical
                        Mutual
                                     1
                        certificated              $6.79             $0       $15.63              $0      264/711          No

                        Super Med Plus
                                                                                     2              2
                        classified              $10.63              $0         N/A            N/A            588          No

            Canton      North American            $2.99             $0         $9.03             $0     318/1,058         Yes
                        Benefits

            Dayton      N/A                        N/A            N/A           N/A            N/A           N/A         N/A

            South-      Vision Service            $4.48             $0       $12.97              $0     400/1,434         Yes
            Western     Plan
        1
            Classified employees enrolled in the Kaiser Permanente health plan are provided vision benefits through Medical Mutual.
        2
            The Super Med Plus plan does not offer dependent coverage.

C3.2    Consolidating the district’s two vision plans to one plan decreases the amount of time
        utilized to administer the plans, therefore reducing administrative costs. Additionally,
        larger enrollment numbers may enable the district to qualify for quantity discounts.




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Parma City School District                                                                                             Performance Audit


F3.63           Table 3-44 shows the average premiums paid for both single and family vision plans for
                the two surrounding districts. As indicated below, North Olmsted City School District
                does not provide vision insurance to its employees.
                                Table 3-44: Surrounding District’s Vision Insurance
                                                   Monthly                        Monthly                                # of
                                                  Premium         Full-Time       Premium        Full-Time             Employees
                                                  for Single      Employee       for Family      Employee               In each        Self
       School              Provider(s)               Plan          Share            Plan          Share                  Plan        Insured

    Parma            Medical
                                         1
                     Mutual/certificated                $6.79             $0          $15.63              $0               264/711        No

                     Super Med
                                                                                             2               2
                     Plus/classified                   $10.63             $0           N/A             N/A                     588        No

    Berea            Medical Mutual                     $4.96             $0          $17.37           $6.77               542/339        Yes

    North            Vision insurance is not               N/A          N/A             N/A             N/A                   N/A        N/A
    Olmsted          offered.
1
    Classified employees enrolled in the Kaiser Permanente plan are provided vision benefits through Medical Mutual.
2
    The Super Med Plus plan does not offer dependent coverage.

F3.64           Table 3-45 shows the average premiums paid for both single and family prescription
                insurance plans. Only the Kaiser Permanente plan includes prescription coverage within
                the hospitalization/medical coverage at PCSD. Prescription coverage is included with
                hospitalization/medical coverage for each of the peer districts and none require employee
                contributions.

                                               Table 3-45: Prescription Insurance
                                                Cost/Mth         Full-Time         Monthly          Full-Time             # of
                                                per Emp.         Employee          Cost for         Employee             Emp In        Self
      School             Provider(s)             Single           Share            Family            Share              Each Plan    Insured

    Parma           Medical Mutual
                    certificated                     $32.71                $0           $70.86                    $0      251/704         No

                    Super Med Plus
                    classified                       $29.84                $0           $64.65                    $0      110/437         No

                    Kaiser Permanente
                    certificated                Included in              N/A              N/A                    N/A         N/A          No
                    classified                  health plan              N/A              N/A                    N/A         N/A          No


    Canton          Included in health                 N/A               N/A              N/A                    N/A         N/A         N/A
                    plan

    Dayton          Included in health                 N/A               N/A              N/A                    N/A         N/A         N/A
                    plan

    South-          Included in health                 N/A               N/A              N/A                    N/A         N/A         N/A
    Western         plan



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Parma City School District                                                                                         Performance Audit


F3.65             Table 3-46 shows the average premiums paid for both single and family prescription plans
                  for the two surrounding districts.

                                     Table 3-46: Surrounding District’s Prescription Insurance
                                                 Monthly Premium               Monthly           Number            Full-Time
                                                    for Single               Premium for        Enrolled:          Employee              Self
         School           Provider(s)                  Plan                  Family Plan      Single/Family         Share              Insured

      Parma           Medical
                      Mutual/certificated                           $32.71         $70.86             251/704                  $0            No

                      Super Med Plus
                      /classified                                   $29.84         $64.65             110/437                  $0            No

                      Kaiser Permanente
                      certificated               Included in health plan                N/A               N/A                 N/A            No

                      classified                 Included in health plan                N/A               N/A                 N/A            No

      Berea           Medical Mutual             Included in health plan                N/A               N/A                 N/A           N/A

      North           Medical Mutual                                $30.47         $75.99             182/436                  $0            No
      Olmsted


F3.66             Table 3-47 compares PCSD’s FY 1997-98 average yearly total insurance costs to the peer
                  districts. The table indicates that PCSD’s average insurance cost per employee of $4,675
                  is the highest when compared to the peer districts. Additionally, PCSD’s annual insurance
                  cost per employee is the third highest when compared to all the school districts who have
                  received a performance audit to date. PCSD’s annual insurance cost per employee is
                  substantially higher than the peer districts’ because employees enrolled in the traditional
                  plan and HMO plans are only required to contribute a minimal amount of the monthly
                  premium and employees enrolled in the PPO plan are not required to contribute towards
                  the monthly premiums. In addition, the district’s premium rates for dental family plans are
                  substantially higher than the peer districts’.

                                     Table 3-47: Yearly Total of All Insurance Costs - FY 1997-98
                                                                                                 Life                               Annual Cost
                      Health Care           Dental        Prescription         Vision         Insurance                                per
       School           Costs               Costs            Costs             Costs            Costs            Totals             Employee 1

    Parma               $6,368,621          $756,263         included in        $94,392          $121,237        $7,340,513               $4,675
                                                          hospitalization

    Canton              $4,954,537          $609,036          $441,827 2        $70,320           $78,178        $6,153,898               $4,288
                                                                3
    Dayton             $10,250,165       $1,157,668                             N/A              $245,116       $11,652,949               $3,805
                                                                3
    South-              $4,443,342          $988,710                           $244,232          $116,845        $5,793,129               $3,098
    Western
1
    Does not include life insurance costs
2
    Prescription costs 1/98 through 6/98; coverage 7/97 through 12/97 included in health care costs



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Parma City School District                                                                                     Performance Audit
3
    Included in health care premiums
F3.67           Table 3-48 indicates PCSD’s fringe benefit expenditures for certificated personnel are
                slightly higher than the peer district average and approximately equal to the statewide
                average for benefits in proportion to total operating expenditures. Fringe benefit
                expenditures for classified personnel are greater than both the peer district and statewide
                averages for benefits in proportion to total operating expenditures.
                    Table 3-48: Fringe Benefit Expenditures as a Percentage of Total Operating Expenses
       Expenditure                                                                                            Peer              State
       Breakdown                       Parma           Canton           Dayton       South-Western           Average           Average

       Certificated                    12.9%           14.3%            10.0%              11.6%             12.2%               13.0%
       Benefits

       Classified                      5.3%            4.5%             4.6%               4.1%               4.6%               4.2%
       Benefits
       Source: Preliminary FY 1997-98 EMIS Profile

F3.68           Table 3-49 indicates PCSD’s fringe benefit expenditures for certificated employees appear
                to be consistent with the statewide average and less than the surrounding peer district
                average for benefits in proportion to total operating expenditures. Fringe benefit
                expenditures for classified personnel are higher than both the peer district and statewide
                averages.
                                        Table 3-49: Fringe Benefit Expenditures as a
                               Percentage of Total Operating Expenses - Surrounding Districts
              Expenditure                                                         North             Peer                State
              Breakdown                        Parma            Berea            Olmsted           Average             Average

              Certificated                     12.9%            18.0%            13.9%             14.9%               13.0%
              Benefits

              Classified                       5.3%             4.9%              1.7%               4.0%               4.2%
              Benefits
             Source: Preliminary FY 1997-98 EMIS Profile

F3.69           PCSD provides term life insurance to all certificated employees who work 12.5 or more
                hours per week. All eligible employees are provided with $50,000 of life insurance.
                Classified employees who work 30 or more hours are provided with $30,000 of life
                insurance. Classified employees who work between 20 hours but less than 30 hours per
                week are provided with $20,000 of life insurance coverage.




F3.70           According to Table 3-38, PCSD’s HMO plan through Kaiser Permanente appears to be

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        more costly than the traditional plan through Medical Mutual. However, the premium
        under Kaiser Permanente includes the cost of the prescription plan while the traditional
        plan does not. By adding the cost of the prescription plan under Medical Mutual to the
        health care premium, the traditional plan becomes the most expensive costing $188.30 and
        $486.93 a month for medical and prescription coverage under the single and family plans
        respectively. Furthermore, these rates are approximately 33 percent and 34 percent greater
        than the comparable coverage offered through the PPO plan. The traditional plan, which
        is only offered to certificated employees, currently has 147 individuals enrolled in the
        single plan, and 151 in the family plan.

R3.17   PCSD’s average benefit cost per employee is $4,675 compared to the peer district average
        of $3,967 and the district has the second highest certificated fringe benefit expenditures
        as a percentage of total operating expenses and the highest classified fringe benefit
        expenditures as a percentage of total operating expenses when compared to the peer
        districts. Effective January 1999, certificated employees electing the family traditional
        plan must contribute the difference between the traditional plan monthly premium and the
        monthly premium for the Super Med Plus family plan. During the past open enrollment
        period, 117 employees currently enrolled in the traditional family plan elected a different
        plan due to the new requirement effective January 1999. Since PCSD currently offers two
        other more efficient health care plans, the district should discontinue providing the costly
        traditional plan. Employees enrolled in the traditional plan should be enrolled in the PPO
        plan that is currently offered. Willis Cooroon, the district’s insurance consultant, indicated
        a 20 percent savings is a reasonable assumption when determining the anticipated savings
        of discontinuing the traditional plan. Implementing this recommendation would require
        future negotiations.
        Financial Implications: Assuming employees enrolled in the traditional plan as of January
        1999 switched to the PPO plan and assuming a 20 percent savings in premium rates, PCSD
        would save approximately $55,173 annually by eliminating the traditional health care plan.
         Assuming employees enrolled in the traditional plan as of January 1999 switched to the
        PPO plan and assuming the current PPO premiums stay the same, PCSD would save
        approximately $136,468 annually.

F3.71   The district currently offers separate dental plans for certificated and classified employees
        although the coverage for both plans is fairly consistent. However, the Canada Life
        monthly premiums (offered only to certificated employees) are approximately 10 percent
        to 30 percent higher than the Super Med Plus premiums. Canada Life issued a refund in
        the amount of $41,517 for the policy year ending May 31, 1998.

R3.18   PCSD should consider consolidating the two dental plans offered into one dental plan for
        all employees. Consolidating the dental plans into one plan would reduce administrative


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        costs and potentially provide the district with a quantity discount. Implementing this
        recommendation would require future negotiations.

        Financial Implications: Assuming employees currently enrolled in the Canada Life
        Assurance plan were to enroll in the Super Med Plus dental plan, the district would save
        approximately $79,000 annually.

R3.19   PCSD currently requires employees enrolled in the HMO plan to contribute the difference
        between the HMO monthly premium and the PPO monthly medical and dental premiums.
         Certificated employees enrolled in the traditional plan must contribute $50 a month
        towards the family plan monthly premium. In addition, certificated employees hired in or
        after FY 1994-95 and work less than full-time are required to contribute based on their
        workload. PCSD does not require full-time employees to contribute towards the monthly
        premium for the dental and vision plans. Classified employees working between 20 and
        30 hours per week are eligible for single coverage benefits at the board’s expense and must
        pay the difference between the single and family plans if the family plan is elected.

        In addition to R3.17 and R3.18, if PCSD would change employee contributions to be
        consistent for all employees enrolled in all medical and dental plans, the overall insurance
        expenses would be reduced as shown in Table 3-50. Requiring employee contributions
        for all employees would assist the district in controlling benefit costs.
                                Table 3-50: Annual Savings Resulting from
                             Increased Employee Contributions for Insurance
                                                      Annual Savings Calculated at

                                                10%              15%                 20%

                Single Plan - Medical             $35,900           $60,984            $86,070

                Family Plan - Medical            $373,410          $578,575           $783,784

                Single Plan - Dental               $9,239           $13,859            $18,478

                Family Plan - Dental              $85,519          $128,279           $171,038

                Total Annual Savings             $504,068          $781,697          $1,059,326


        Financial Implication: Requiring a 10 percent contribution from all employees for medical
        and dental benefits would save PCSD approximately $504,068 annually. Increasing the
        contributions to 15 percent would save PCSD approximately $781,697 annually.
        Increasing the contributions to 20 percent would save PCSD approximately $1,059,326
        annually.
R3.20   In addition to requiring employees to contribute a larger percentage towards the monthly
        premium, PCSD should consider establishing an employee plus one enrollment option in

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        addition to the single and family plan options. This enrollment type facilitates lower
        premiums for employees with only one dependent thus reducing family plan enrollments
        and may reduce the overall insurance expense to the district and to the employee.

F3.72   PCSD offers employees who separate employment continuous medical benefits in
        compliance with the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA)
        put into law by the federal government in 1986.

F3.73   PCSD pays 4.5 percent of each administrators’ portion of STRS or SERS. The
        administrators’ portion of STRS paid by the board for FY 1997-98 was approximately
        $145,501 and the administrators’ portion of SERS paid by the board for FY 1997-98 was
        approximately $12,493. Table 3-17 indicates that PCSD administrators are the highest
        paid when compared to the peer districts. Included in the average administrator salary per
        EMIS is the salary for administrative interns. As indicated in F3.97, administrative interns
        receive their regular teaching salary. When the average administrator salary is recalculated
        excluding the administrative interns, PCSD has the highest average administrator salary
        out of the eight schools which have had a performance audit conducted to date, averaging
        $66,092 in salaries.

R3.21   Based upon PCSD’s adjusted five year forecast, the district is forecasting significant
        deficits in future years. Because of PCSD’s expected financial deficit and the fact that
        PCSD administrators have the highest average salary when compared to the peer districts,
        the district should consider eliminating payment for the administrators’ portion of SERS
        and STRS when the administrators contract is subject to renewal. See the financial
        systems section of the performance audit report for more detail on the adjusted five year
        forecast.

        Financial Implication: The district would save approximately $157,944 annually as a
        result of eliminating the employee portion of administrators’ retirement contributions
        which equates to 4.5 percent per administrator.




Workers’ Compensation

F3.74   During 1995 and 1996, PCSD was enrolled in the premium discount plan administered by

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        the Bureau of Workers Compensation. In 1997, the district achieved a credit rating and
        resigned from the premium discount plan, choosing to join the Ohio Schools Council
        group rating plan which provided lower premiums.

        The Division of Safety and Hygiene which has been in existence since 1923 strives to
        prevent accidents in order to keep workers’ compensation claims from increasing. The
        division offers the following services: safety consultations, ergonomic analysis and
        industrial hygiene and engineering. In addition, the division also offers many resources
        for employers and employees, which include safety training, publications, a videotape
        library and a reference library. These services are offered at no additional cost to
        employers.

R3.22   Accident prevention is an effective way to keep workers’ compensation costs from rising.
         The district should continue to work with the Division of Safety and Hygiene in order to
        maintain their current experience rating with BWC. Additionally, working with the
        Division of Safety and Hygiene enables the district to continue to participate in the group
        rating plan.

F3.75   Table 3-51 illustrates workers’ compensation benefits for the four peer districts in 1997.
         PCSD has the second highest number of medical claims filed and the second lowest
        number of total lost time claims filed per employee. Lost time claims are defined as the
        number of workers’ compensation claims exceeding eight days of leave. Generally, these
        types of claims are the most taxing on the system and consequently drive premium costs
        up. The experience modifier is based upon factors such as the number of total claims in
        any previous time period, the severity of those claims and the extent to which lost time
        claims went into effect.




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                 Table 3-51: Peer District Comparison of Workers’ Compensation Benefits for 1997
                                       #            Lost
                                    Medical         Time                                         Premium
                      Total         Claims         Claims     Claims/                              Cost/       Experience       Retro
                    Employees       Allowed        Allowed   Employee              Premium       Employee       Modifier        Rating

  Parma                   1,759              65          6             0.040         $501,356         $285              0.70       No

  Canton                1,516.1              64         16             0.053         $654,500         $431              1.26       Yes

  Dayton                3,316.9          133            50             0.055        $3,418,233      $1,031              2.38       No

  South-                1,988.6              43          8             0.026         $682,641         $343              0.65       No
  Western

  Group Avg             2,145.2              76         20             0.044        $1,314,183        $523
 Source: Bureau of Workers’ Compensation



F3.76       Table 3-52 indicates that PCSD’s medical and lost time claims, as well as the district’s
            experience modifier, have fluctuated over the last three years. The district has attempted
            to control workers’ compensation costs by participating in the Ohio Schools Council, a
            group rating plan which was administered through Anthem Comp Services. Anthem
            provided the following services to the district: claims administration, benefit charge
            control, experience rating analysis and consultation services. The group rating plan
            provided the district an estimated savings of $64,743 in 1997 and $59,428 in 1998.

                                       Table 3-52: Workers’ Compensation Statistics
                          Medical Claims            Lost Time                   Experience          Actual            Experience
                            Allowed               Claims Allowed               Premium Costs     Premiums Paid         Modifier

        1995 1                          49                     19                     $558,459         $552,941                 0.66

        1996 2                          54                         9                  $751,667         $589,698                 1.28

        1997 3                          65                         6                  $501,356         $124,060                 0.70
            Source: Bureau of Workers’ Compensation
            1
              In 1995, PCSD received a rate adjustment of $5,518
            2
              In 1996, PCSD received a dividend credit of $146,455 and a rate adjustment of $15,514
            3
              In 1997, PCSD received a dividend credit of $378,017 and an early payment discount of $1,279. In addition, PCSD received a 75
              percent BWC rebate in the amount of approximately $938,000


F3.77       The district does not have a formal board approved job transition program which would
            identify less physically demanding jobs for injured workers to perform while they recover
            from work related injuries. However, the supervisor of the classified staff has been using
            an informal job transition policy. On an individual basis, the classified staff supervisor
            attempts to identify and assign duties that injured employees may be able to perform.




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C3.3       PCSD is commended for creating transitional work for injured employees. Implementing
           intermediate work not only improves the quality of life for the injured worker but also aids
           in containing costs for the district.

R3.23      PCSD should create and provide a formal job transition program. Furthermore, this
           program should be board approved and be implemented district-wide. The program should
            identify less physically demanding jobs for injured employees to perform while they
           recover from injuries. In addition, PCSD should actively promote early return to work
           practices which is an effort to keep employees from being absent from the workplace for
           extended time periods. By reducing the number of workers’ compensation claims and the
           corresponding length of claims, the district could effectively decrease its premium
           amounts.

Contractual Issues

Certain major contractual issues which have been assessed and compared to the peer districts in
addition to neighboring districts are illustrated in the following pages. Because contractual issues
directly affect the district’s operating budget, many of the major contractual issues have also been
assessed to show the financial implication to the district. The implementation of any of the
following contractual recommendations would require union negotiations.

F3.78      Table 3-53 compares the number of bargaining groups for each of the peer districts.

                    Table 3-53: Comparison of Organized Labor Environment
                                      Parma           Canton         Dayton         South-
                                                                                    Western

        # of Bargaining Groups           6               5              8               2




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F3.79    Table 3-54 shows that PCSD has six primary collective bargaining units.

                                         Table 3-54: Union Membership
                                                                                      # of Members and
                                                              Union                      % Enrolled
                        Classification                       Affiliation                 FY 1997-98

        Teachers                                 Parma Education Association (PEA)            874/100%

                                                  Ohio Association of Public School
                                                        Employees (OAPSE)
        Food Service                                         Local 404                         73/100%
        Transportation                                       Local 695                         92/100%
        Secretarial/Clerical                                 Local 160                        294/100%
        Cleaners                                             Local 756                         84/100%
        Custodial/Maintenance                                Local 122                         73/100%

        Total Union Employees                                                                     1,490
        Source: Payroll Department


F3.80    Teachers and classified employees hired by the district are required to join the union or pay
         a fair share fee. Currently, 86 or six percent of eligible employees pay fair share fees.

F3.81    The PEA union agreement expires August 31, 1999 and the OAPSE agreement expires on
         January 31, 2001. Due to a difference of opinion as to when the OAPSE agreement was
         ratified, the district spent the period between March 1998 and September 1998 re-
         negotiating the OAPSE contract. A brief summary of the events that took place follows.
          On March 7, 1998, OAPSE ratified the original contract, but later determined there were
         problems with the vote. On March 24, OAPSE notified the board of the need for a second
         ratification vote. Although the board was aware that OAPSE had objections to the original
         agreement, they still adopted the contract on March 26. On March 29, OAPSE
         representatives voted against ratifying the contract because representatives felt the
         agreement did not fairly represent their position, and requested the district make various
         modifications. The district originally did not allow these modifications, to which OAPSE
         responded by filing three unfair labor practices with the State Employees Relations Board
         (SERB). On September 16, 1998, before SERB could make a ruling, the district allowed
         amendments to the agreement which appears to have settled the issue. See the financial
         systems section of the performance audit report for details on the financial/legal
         implications of these negotiations.




PEA - Contractual Issues
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F3.82       Table 3-55 compares some key PEA contractual issues between PCSD and the peer
            districts.

                                                Table 3-55: PEA Contractual Issues
      PEA
     Section             Description                     Parma                 Canton                Dayton            South-Western

 Section 7.03    Student contact time in            Middle School -        Middle School -        Middle School -      Middle School -
                 minutes?                           210 minutes per          Five teaching      235 minutes per day   5 teaching periods
                                                          day                periods (200          High School -           with two
                                                     High School -        minutes) with two     290 minutes per day       supervisory
                                                    5 periods or 240       planning periods                              periods (240
                                                    minutes per day         High School -                                  minutes)
                                                                             Six teaching                               High School -
                                                                             periods (300                                 5 teaching
                                                                          minutes) with 1.5                             periods with a
                                                                          conference periods                              supervisory
                                                                                                                      period or six class
                                                                                                                      periods maximum
                                                                                                                        (282 minutes)

 Section 7.03    Length of Work Day                  Elementary               Elementary         Grades K-12 = 7       Grades K-4 = 7
                                                      7 hours 15          7 hours 20 minutes      hours and 25        hours 5 minutes
                                                       minutes             Middle and High           minutes           Grade 5-6 = 7
                                                   Middle and High              schools                                    hours
                                                       schools            7 hours 30 minutes                          Grades 7-8-9 = 7
                                                      7 hours 45                                                      hours 10 minutes
                                                       minutes                                                        Grades 10-11-12
                                                                                                                        = 7 hours 10
                                                                                                                          minutes

 Section 32.01   Maximum Class Size                   Grades 7-12          Grades 9-12 - No         K-1 - 25:1           K-5 - 26:1
                                                   District will strive     more than 156           2-3 - 27:1           6 - 8 - 25:1
                                                   for a 30:1ratio for     students per day         4-6 - 29:1           9-12 - 27:1
                                                                                                    7-8 - 32:1
                                                                                                    9-12 - 35:1

 Section 6.02    # Contract days                          184                    185                   200                   185
                 # of Instructional Days                  178                    178                   178                   178
                 # of In-service Days                      6                      7                     7                     7
                 # of Paid Holidays                        0                      0                    15                     0

 Section 24.03   Maximum # of Sick Days                Unlimited             Maximum of            Maximum of             Unlimited
                 Accrued                                                      265 days             250 days max

                 Sick leave incentives?
                                                           N*                     N*                    N*                   N*

 Section 21.02   Maximum # of sick days            Less than 14 years      Accumulated sick     Maximum 180 sick      Maximum of 285
                 paid out at retirement and %       of service with               leave:          days paid out at    days accumulated
                 of payout.                        district - 120 days     0-120 days - 25%     25% for a maximum       but unused sick
                                                    paid out at 25%                 +            payout of 45 days     leave paid out at
                                                    for a maximum           >121 - 215 -20%                           33% which equals
                                                   payout of 30 days         if 215 days are                              a maximum
                                                                             accumulated at                           severance payout
                                                     Hired prior to       retirement then two                         of 95 days at the
                                                    5/1/96 and 14+        additional days are                          daily rate of pay


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      PEA
     Section                  Description                Parma                 Canton                 Dayton             South-Western
                                                     years of service     given for severance
                                                      with district -       which equals a
                                                    Maximum of 60           maximum of 51
                                                    days plus 10% of             days
                                                     sick days above
                                                         240 days

                                                    Hired after 5/1/96
                                                    and 14+ years of
                                                       service with
                                                    district - 360 days
                                                     paid out at 25%
                                                     for a maximum
                                                    payout of 90 days

 Section 21.01        # of Years of Service             Eligibility            Eligibility           Eligibility            Eligibility
                      Required for Severance Pay      requirements        requirements under    requirements under        requirements
                                                       under STRS                STRS            STRS + 5 years of        under STRS
                                                                                                service with district

 Section 27.01        # of Personal days &           3 days/year; an         3 days/year,       1 day/year; at least       3 days/year
                      explanation required?           explanation is      written report must   2 days notice; paid     unrestricted paid
                                                    required in some       be filed 3 days      out at end of year if    leave, one day
                                                        instances           prior to leave             unused           advance request
                                                                               except for         + 4 emergency
                                                                             emergencies        leave days/year not
                                                                                                      paid out

 Section 26.01        Sabbatical/Professional               Yes                  Yes                   Yes                     N*
                      leave; Requirement to          One school year       One school year       Two school years              N*
                      return?Compensated?              upon return.          upon return.          upon return.                N*
                                                    No compensation         Difference of         Difference of
                                                      but receive full        teacher’s /           teacher’s /
                                                    insurance benefits     substitute salary     substitute salary

 Section 2.08         # of Association Leave        75 days with pay       50 days with pay     100 days with pay            60 days -
                      Days                                                                                              Equal to 5% times
                                                                                                                         the total number
                                                                                                                        of members in the
                                                                                                                          bargaining unit

 Section 4.05         # of Days to File Grievance        15 days               15 days                30 days               15 days


                      Notice of separation                 N*                     N*                    N*                     N*
                      required?

 Section 33.04        Cost of Living Increase per       1% - 8/96             4% - 7/98               3% - 7/98            3% - 1/97
                      each year of contract             2% - 1/97             3% - 7/99               3% - 7/99            3% - 1/98
                                                        3% - 1/98             4% - 7/00               3% - 7/00            3% - 1/99
                                                        2% - 8/98
                                                        2% - 1/99

 Section 4.01         Past Practice Clause                 Yes                    N*                    N*                     N*
 N* - nothing stated in contract


F3.83        All PCSD employees are granted 15 days of sick leave annually and can accrue an

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        unlimited number of sick days. PCSD employees may use accrued sick time for illnesses
        of family members instead of using the provisions as established by the Family and
        Medical Leave Act of 1993. Teachers absent more than 15 consecutive days are required
        to submit a physician’s statement and classified employees who are absent more than 10
        consecutive days are required to submit a physician’s statement. In FY 1997-98, PCSD
        teachers averaged 8.7 sick leave days per teacher and classified employees averaged 9.0
        sick leave days per employee.

R3.24   The PEA contract implies that assigned physician statements may be required if a teacher
        is absent for more than 15 consecutive days. As indicated by the high use of sick leave by
        teachers and classified employees, administrators need to be able to better manage the use
        of sick leave. To better monitor and manage the use of sick leave the contract should
        require an employee out sick for three or more consecutive days to provide a physician
        statement prior to the employee returning from the leave.

F3.84   PCSD teachers may be granted up to four full years of long-term parental leave and
        classified employees may be granted up to two years of long-term parental leave. This
        policy allows for more leave time than the Family and Medical Leave Act of 1993 which
        provides for leave up to twelve weeks per year.

R3.25   Excessive long-term leave provided by the district precludes the district from effectively
        recruiting and planning future staffing needs. Because the Family and Medical Leave Act
        of 1993 provides for a reasonable amount of time off, PCSD should consider limiting the
        amount of parental leave granted to be in accordance with the Family and Medical Leave
        Act of 1993. Furthermore, if additional leave time is required, district employees should
        be required to utilize accumulated sick leave in lieu of extending leave without pay.

F3.85   Severance pay is granted to PEA members eligible to retire under the State Teachers
        Retirement System. The contract does not specify a certain date when employees must
        notify the district of their intention to retire. This prevents the district from accurately
        identifying staffing needs for the following school year. Members retiring with less than
        14 years of service receive 25 percent of accumulated unused sick days up to a maximum
        of 120 days. Members hired before May 1, 1996 and retiring or resigning with 14 or more
        years of service receive a maximum of 60 days and members receive an additional 10
        percent of accrued and unused sick days above 240 days. This severance policy does not
        encourage members to accumulate sick leave above 60 days. Table 3-28 indicates that
        PCSD teachers had the highest average sick leave usage per teacher when compared to the
        peer districts. The district recently negotiated a change in the severance policy which
        states that members hired after May 1, 1996 and retiring with 14 or more years of service
        will receive 25 percent of accumulated unused sick days up to a maximum of 360 days for
        a maximum payout of 90 days.

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        There are currently 211 teachers and 25 administrators with 25 or more years of service.
         Under the existing severance pay policy, the payout for the 211 teachers would be
        approximately $3,708,653 and the payout for the 25 administrators would be $485,002.

R3.26   In order to more accurately identify staffing needs for the following school year, PCSD
        should establish a policy that requires employees to notify the district by March 1st of their
        intentions to retire the following school year. One option the district could consider would
        be to reduce the amount of severance pay if the employee does not notify the district by
        the specified date.

R3.27   An analysis of the peer districts illustrated that PCSD’s severance policy is generous and
        the district should re-negotiate the severance payout policy to lessen the financial impact
        to the district. The areas of the severance policy the district needs to address are the
        percentage of payout and the maximum number of days to be accumulated.

        One option PCSD could consider is the Ohio Revised Code 124.39 which provides a
        payout of 25 percent of accrued but unused sick leave credit, upon retirement, up to 120
        sick days (30 day payout), for persons with 10 or more years of service. A second option
        the district may consider would be to establish a maximum sick leave accrual of 240 days
        and cap the payout at 42 days (25 percent of the first 120 days and 10 percent of the
        remaining days) which is comparable to Springfield City Schools. Table 3-56 illustrates
        the cost savings resulting from implementation of either of these two options.




                Table 3-56: Cost Avoidance Resulting from Severance Payout Restructure
                                                         Payout Structures

                                                     Option 1       Option 2
                                                   Payout at 25     Maximum
                                     Current       Percent of 30   Payout of 42
                                      Policy           Days           Days        Cost Avoidance

        Sick Leave Payout Total                                                     $1,840,795 to
        Cost Avoidance                $4,193,655      $1,776,769     $2,352,860       $2,416,886


        Financial Implication: By renegotiating the provisions of the contract to limit severance
        payout for sick leave to 25 percent (maximum of 120 days) or maximum payout of 42

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        days, PCSD would achieve a cost avoidance between approximately $1,840,795 to
        $2,416,886 providing employees elected to retire upon eligibility.

F3.86   The PEA contract states that any sick leave earned and unused in prior employment in any
        governmental agency in Ohio may be transferred to the employee’s account at PCSD. It
        is the district’s practice to pay for these days at severance. Therefore, when an employee
        retires from PCSD, the district is not only paying for sick leave accumulated at PCSD, they
        are paying for sick leave accumulated at other agencies.

R3.28   Because PCSD has such a large number of sick days paid out at severance as indicated in
        F3.85, allowing teachers to transfer an unlimited number of sick days into the district
        enables the teacher to reach the 90 day maximum quickly and can be costly to the district.
         In order to control severance costs, the district could consider establishing a policy which
        limits the amount of sick days that can be transferred into the district or limits the amount
        of days eligible for severance. Another option could allow unlimited sick days to be
        transferred but restricts their use only as sick days.

F3.87   The PEA contract indicates that peer assistance can be used when a teacher has been
        identified with a specific deficiency. In addition, the contract also states that peer
        assistance can only be used with the consent of the teacher involved. The assistant
        superintendent of human resources indicated that peer assistance is often suggested when
        a teacher receives a poor assessment during the evaluation process. In some cases,
        teachers request peer assistance as additional support to improve teaching practices.

F3.88   The PEA agreement requires each school building to establish a building advisory
        committee (BAC) with the purpose of serving in an advisory capacity to the principal in
        matters relating to the administration of the building. The BAC consists of a maximum
        of eight faculty members and can include parents and students. However, none of the
        current BACs include parents or students. Administrators have indicated that BACs are
        usually effective although some BACs struggle with the concept of BACs and more
        training is needed.

R3.29   Because decision making responsibility affecting educational excellence should reside
        where it will have the most impact, with the principals and teachers interacting most
        directly with the pupils enrolled in PCSD, the district should consider continuing district
        wide development of the BACs. This could include providing training to all BACs and
        requiring a minimum term of two years to ensure consistency and continued growth of the
        project.

F3.89   The PEA contract stipulates a maximum of 75 days with pay for teachers on association
        business. The board will provide substitute teachers for the first 15 days and the

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               association will reimburse the board for substitute teachers used during the next 60 days.
                In addition, the PEA president is required to teach 60 percent of the day and to perform
               PEA duties for 40 percent of the day. The contract stipulates that the association will
               reimburse the board for 40 percent of the president’s annual salary plus retirement costs.

C3.4           Requiring the association to pay for substitute teachers needed to cover for teachers on
               association business compels the union to take ownership for approved association leave.
                In addition, requiring the union to pay for the time the PEA president spends performing
               union duties is a fair and equitable practice.

F3.90          A past practice clause is specified in Article 4.01(A) which states that a grievance is an
               alleged misinterpretation, misapplication or violation of a previously adopted policy or
               practice affecting wages, hours or conditions of employment. A past practice clause limits
               the ability of management to maintain a fluid and efficient administration by stripping its
               ability to manage district operations.

R3.30          Past practice clauses should be eliminated from the PEA contract. Past practices
               discourage changes for the duration of the contract and during subsequent negotiations.
                If a past practice was inefficient, it will continue unless it is negotiated within the new
               contract.




OAPSE - Contractual Issues

F3.91          Table 3-57 compares some key OAPSE contractual issues between PCSD and the peer
               districts.
                                            Table 3-57: OAPSE Contractual Issues
    OAPSE
    Section                Description               Parma           Canton        Dayton       South-Western

 Section 6.3       Evaluations required?             Yearly           Yearly       Yearly      Every 2 years but
                                                                                               may occur more
                                                                                                often as needed

 Section 8.1.4     Minimum call in hours paid        3 hours          3 hours      3 hours         2 hours


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   OAPSE
   Section              Description                  Parma                  Canton               Dayton            South-Western
                to employees for unscheduled
                emergencies? (Custodians)

 Section 11.2   Vacation time to accumulate     46 week employee:             260-day            12 month              12 month
                                                1-5 years - 4.5 days       employees:           employees:            employees:
                                                 6-7 years - 6 days      < 5 months - 0     0 - 9 mths = 1 day    1-8 years - .84 per
                                                8-10 years - 9 days             days           per month of        full month - (10
                                               11-12 years - 11 days   >5 months -5 days       employment                days)
                                                 13-15 years - 13.5    10 months to 5 yrs    1 year = 12 days      9-17 years - 1.25
                                                       days                  - 10 days      2 years = 13 days    per month (15 days)
                                                                         6-10 years -15     3 years = 14 days    18+years - 1.67 per
                                                52 week employee:               days        4 years = 15 days      month (20 days)
                                                1-4 years - 10 days      11-15 years-20      12 + years = 20           11 month
                                                5-6 years - 15 days             days               days               employees:
                                                7-8 years - 17 days     16 years-21 days                          1-8 years - .91 per
                                               9-10 years - 20 days    17 years -22 days       Less than 12        month (10 days)
                                               11-12 years - 22 days     18 years + - 23    month employees        9-17 years - 1.36
                                               13-15 years - 25 days       days + one        receive vacation    per month (15 days)
                                                                       additional day for     based on above     18+ years - 1.82 per
                                                                             each year      schedule prorated      month (20 days)
                                                                            thereafter,        according to            10 month
                                                                       maximum 30 days        months worked           employees:
                                                                                                                  .80 per full month
                                                                                                                        (8 days)
                                                                                                                        9 month
                                                                                                                      employees:
                                                                                                                  .89 per full month
                                                                                                                        (8 days)

                Sick leave incentive?                  N*                     N*            Yes - Employees              N*
                                                                                             who have less
                                                                                            than 12 years of
                                                                                            service and 120
                                                                                             days of unused
                                                                                             sick leave will
                                                                                             receive 5 extra
                                                                                            days of vacation

 Section 9.4    # of sick days to accumulate        Unlimited            260 days max         250 days max           Unlimited

 Section 13.1   Max # of Sick days paid out      20% - 0-50 days       25% - 0-120 days           25% of               33% of
                at retirement/ % of payout.     25% - 51-100 days       20% - 121-215       accumulated sick      accumulated sick
                                               30% - 101-150 days          days or an              leave           leave up to 285
                                               35% - 151-200 days          additional        Less than 5 yrs =           days
                                               40% - 201-250 days        payment of 19            0 days           For a maximum
                                                 For a maximum            days, for an       5-15 yrs. = max      payout of 95 days
                                                payout of 75 days       aggregate of 49          30 days
                                                                             days            15-25 yrs = max
                                                                                                 35 days
                                                                                              Greater than 25
                                                                                            yrs = maximum of
                                                                                                 40 days

 Section 9.7    # of personal days                 3 days/year            3 days/year          3 days/year           3 days/year

 Section 10.1   Holiday Leave                   11 holidays for 12      12 holidays for        12 holidays        9 holidays for 11
                                                 month employee           employees                                 and 12 month
                                               9 holidays for 9-11      working more                                 employees


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    OAPSE
    Section                  Description                Parma         Canton        Dayton           South-Western
                                                    month employee   than eleven                      8 holidays for
                                                                       months                       9 month employees

 Section 5.4        # of days to file a grievance      10 days        20 days        5 days              20 days

 Section 27         Labor-Management                     Yes            Yes           Yes            Yes; conference
                    Committee                                                                          committee

 Section 33         Cost of Living Increase per       2.2% - 2/98    4.0% - 7/98   4.0% - 7/98         4.0% - 7/97
                    each year of contract             2.5% - 2/99    3.0% - 7/99   1.5% - 1/99         3.0% - 7/98
                                                      3.0% - 2/00    3.5% - 7/00   3.5% - 1/00         3.0% - 7/99
N* - Nothing stated in contract


F3.92          In the current OAPSE agreement, the district negotiated a clause stating an employee’s
               qualifications for a promotion or job transfer consists of passage of the appropriate civil
               service test, the employee’s past performance based on written evaluations and the
               employee’s attendance record.




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C3.5    Considering attendance data and past performance when deciding whether to transfer or
        promote an employee provides administrators and supervisors with a valuable management
        tool. Managers can deny a request for a promotion based on an employee’s attendance
        history which reinforces the importance of attendance to employees. In addition, this
        clause allows a manager to promote the most qualified candidate for the position rather
        than promoting the most senior candidate.

F3.93   The OAPSE contract states that all new classified employees, except bus drivers, will serve
        a probationary period for the first 75 paid work days. The 75 day probationary period for
        bus drivers will begin after completion of the pre-employment training and licensing by
        the State Highway Patrol.

R3.31   A probationary period allows the management of PCSD to determine whether a newly
        hired employee conforms to the requirements of the position filled and permits the release
        of the employee. PCSD should consider extending the probationary period to provide the
        district with additional time to assess the potential employee and enhances the ability of
        the board to employ qualified, dedicated and hard-working personnel.

F3.94   The OAPSE agreement provides for a labor management committee to meet on a monthly
        basis with the intent of responding to both the board and employees’ concerns. Although
        administrators have indicated the committee is effective, classified employees have
        indicated the committee does not meet regularly and is not effective.

R3.32   An effective labor-management committee creates an avenue of open communication
        between employees and management, which has a positive effect on the general morale
        of the district, informs management of potential contractual problems and involves
        bargaining unit members in managerial discussion giving them a sense of contributing to
        district policy. In order for PCSD’s labor management committee to be effective, the
        committee should meet on a regular basis and create an environment where issues can be
        discussed and resolved.

F3.95   Both the PEA and OAPSE contracts contain detailed descriptions of the grievance process
        which include an informal step to be taken before the formal grievance process is started.
         The informal grievance procedure entails a discussion with the building principal or
        immediate supervisor in an effort to arrive at an informal solution to the problem. In the
        event the matter goes unresolved in the informal process, a formal grievance shall be filed
        as stipulated in the union contracts. The OAPSE agreement requires an informal grievance
        to be filed within 10 days and the PEA agreement requires an informal grievance to be
        filed within 15 days.

R3.33   In order to resolve grievance issues in a timely manner, the district should require all

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        grievances to be filed within 10 days of the act or condition which is the basis of the
        grievance. Establishing a maximum of 10 days to file grievances, precludes duplicate
        grievances from being filed as a result of an unresolved issue. Filing written grievances
        sooner should initiate prompt responses from all parties which can lead to more timely
        resolutions.

F3.96   Each spring, the district begins the staffing process for the following school year. Based
        on projected enrollment and known retirements and resignations the district usually
        implements an annual reduction in force (RIF) for instructional aides. Because the OAPSE
        contract requires the district to notify instructional aides by the last day of school if they
        will be needed for the following year, the district cannot wait until the beginning of the
        next school year to implement a reduction in force. ORC 3319.083 states a school district
        must notify a classified employee by June 1st of the district's intent to re-employ the
        employee for the following school year.

        Implementing a RIF each year, for minimal employees who are subsequently called back
        to work, is potentially costly to the district and may be unnecessary. The district has to
        remove the employee from the payroll system, discontinue the employee’s benefits,
        maintain a RIF list, pay unemployment benefits for the employees and process all
        necessary paperwork when the employee is called back to work.

R3.34   History has shown that educational assistants are usually recalled back during the course
        of the year. Because there are administrative and unemployment costs associated with the
        RIF procedure, PCSD should review the RIF policy to determine if it is cost effective to
        continue with this practice.




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Employment Issues

F3.97   PCSD has implemented a two-year administrative intern training program for teachers
        interested in becoming principals. Administrative interns agree to the following
        stipulations:

        ·      Administrative interns will be paid according to the current certificated teaching
               salary schedule.
        ·      The position includes a supplemental contract for 10 additional days of service
               beyond the school year.
        ·      All supplemental contracts held will be relinquished.
        ·      There will be no guarantee that interns will be returned to their prior teaching
               positions.
        ·      The intern will function as an administrator and will not be governed by the PEA
               contract.
        ·      There will be no guarantee that the intern will be selected as an administrator after
               completion of the two year program.

        Administrative interns experience the following activities: administering pupil discipline,
         preparing reports, participating in the budget process, assisting with staff development,
        participating in curriculum studies, evaluating teachers, reviewing testing procedures,
        reviewing compliance with state standards, evaluating and reviewing building emergency
        plan, participating in activities related to the opening and closing of school and other
        activities as assigned by principals.

C3.6    A comprehensive training program for administrators ensures better coordination of efforts
        and facilitates effective decision making within the district. Additionally, ongoing training
        fosters team building as well as providing a communication link for the execution of
        district wide goals.

R3.35   Over the next three years, PCSD could potentially lose 25 central office and building
        administrators due to retirements. In order to prepare for the loss of experienced
        administrators, the district should assess the quality of the leadership training program,
        identify strengths and weaknesses and implement necessary changes for improvement.
        Providing on the job training and developing future administrators will assist in providing
        a seamless transition and assure continuity in the daily operation of the district when
        current administrators retire.



F3.98   Job descriptions for all district personnel are kept on file in the HRD. The HRD has

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         indicated job descriptions are updated on an as needed basis and that all job descriptions
         have not been updated. The current contract with OAPSE establishes a job description
         review committee for the purpose of reviewing all job descriptions and recommending
         changes to the superintendent. The committee consists of three OAPSE members and two
         employees appointed by the superintendent. The committee will begin reviewing job
         descriptions in early 1999. Current job descriptions are important for the following
         reasons:

         •      Articulating job content to employees and supervisors
         •      Establishing individual performance expectations
         •      Providing criteria for recruitment and selection
         •      Avoiding legal liability - job descriptions should be appropriate and legally
                defensible

         The customer satisfaction survey included a question asking if employees had a job
         description and if their daily routines were consistent with their job descriptions. The
         survey results concluded the majority of the recipients knew their job description and their
         daily work routines were consistent with it.

R3.36    PCSD should continue to update all job descriptions. An update of current job
         classifications will provide PCSD with the foundation for establishing internal equity and
         external competitiveness with respect to the wide array of job positions. In addition to
         updating the job descriptions to adapt to changing times and environment, the HRD must
         be cognizant of the required compliance with ADA requirements.

F3.99    The assistant superintendent of human resources is responsible for ensuring that teachers
         are properly certified for the subjects being taught. The customer satisfaction survey
         included a question regarding any knowledge of lapses in certificate/licenses due to an
         oversight of the HRD. The survey results indicated recipients were not aware of lapses in
         certificates/licenses.

C3.7     A review of three percent of all teachers’ certificates revealed no lapsed certificates.

F3.100 In an attempt to professionalize the certificate/license renewal process, SB 230 was passed,
       effective September 1, 1998, which established a new system of teacher licensor which
        strengthens teaching programs at colleges and universities, requires successful
       performance of beginning teachers and intensifies professional development. With a
       renewable, five-year license system, the state will no longer award permanent certificates.
        To renew a license, a teacher must develop a professional development plan that is
       approved by a local professional development committee (LPDC). The LPDC will oversee
       and review professional development plans for course work, continuing education units,

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         or other equivalent activities. The LPDC can include teachers and administrators, but a
         majority of the members must be practicing classroom teachers. Any teacher holding a
         permanent certificate by September 1, 2003 is exempt from the new licensor rules.

C3.8     PCSD has created the Parma Local Professional Development Committee (the committee)
         and established the bylaws of the committee. The committee consists of nine voting
         members including five teachers and four administrators. During FY 1998-99, the
         committee will begin to work with teachers on developing individual professional
         development plans.

F3.101 The HRD maintains a log of all grievances but does not track the level the grievance was
       resolved. In 1997, the supervisor for classified personnel created a spreadsheet that
       identified each OAPSE grievance filed in FY 1996-97 and the level it was resolved. This
       spreadsheet has not been updated since 1997. Table 3-58 represents the number of
       grievances filed based upon information provided by the HRD.

                             Table 3-58: Estimated Grievances Filed
                                  Estimated Grievances      FY97

                               Grievances filed               30

                               Resolved at informal level     0

                               Resolved at level 2            7

                               Resolved at level 3            10

                               Intent to arbitrate filed      6
                               Source: HRD


         The customer satisfaction survey included a question asking if employees felt current
         grievance procedures are fair and adequate. The survey results indicated the majority of
         recipients felt grievance procedures were fair and adequate.

R3.37    Although the HRD does track grievances, the HRD should create a procedure to track and
         monitor all grievances filed and the final resolution of the grievance. The monitoring can
         be used to identify problems with the responsiveness of the administrator/departments at
         each step of the grievance process as well as identify other problems which may arise.


F3.102 Disciplinary actions are entered into employee personnel files, but are not tracked or
       monitored on a formal basis.


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R3.38    The HRD should create a procedure to track and monitor all disciplinary actions. The
         monitoring can be used to identify problems with the responsiveness of the
         administrator/departments at each step of the disciplinary process as well as identify other
         problems that may arise.

F3.103 The responsibility for completing employee evaluations on a timely basis belongs with the
       respective employee’s immediate supervisor. The HRD is responsible for tracking and
       enforcing the completion in accordance with the time requirements outlined in the various
       union contracts.

         The PEA contract stipulates limited contract teachers are appraised two times a year and
         continuing contract teachers are evaluated no less than once every three years. Classified
         employees are evaluated annually.

         If a teacher is determined to be having difficulties, the teacher is evaluated at least two
         times during the year and an individual plan of assistance is developed. The plan of
         assistance consists of a specific list of deficiencies which, if not corrected, might result in
          non-renewal.

C3.9     All classified employees and limited contract teachers are evaluated annually. Frequent
         evaluations improve an employee’s efficiency and effectiveness by providing an employee
         and supervisor the opportunity to discuss strengths and weaknesses and any other pertinent
         issues.

R3.39    Evaluations for all employees must be done a minimum of once a year. Frequent
         evaluations are important for the following reasons:

         •      Ensure employees receive clear feedback on areas for improvement and to surface
                and document disciplinary problems.
         •      Improve the quality of instruction provided to the students and bring about                professi
         •      Provide evidence about the quality of employees’ professional performance.
         •      Improve efficiency and effectiveness of the employees in carrying out the                  duties o
         •      Improve employee morale.
         •      Monitor an employee’s success and progress.

F3.104 PCSD has no exit interview process which would assist in identifying issues related to high
       turnover in specific positions, management styles of specific supervisors and employee
       concerns regarding specific district facilities/locations. The district experienced a six
       percent teacher turnover rate during FY 1996-97 and FY 1997-98.

         High turnover may offer some advantages to the district including the following:

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         •      New teachers may bring newer technology skills.
         •      New teachers may mean lower salaries and benefits.
         •      New teachers may bring additional learning techniques.
         •      New teachers may be interested in participating in supplemental activities.

         Disadvantages to high turnover may include the following:

         •      New teachers with specific fields of certification may be hard to find.
         •      If recruiting isn’t strong, finding a large number of teachers may be difficult.
         •      New teachers have a learning curve which may increase costs.
         •      New teachers’ productivity may be much less than that of an experienced teacher.

R3.40    PCSD should implement an exit interview process. Exit interviews are critical for the
         following reasons:

         •      Defining the reason for the turnover
         •      Establishing potential trends for future assessments
         •      Measuring employee morale
         •      Providing criteria for changes in future contractual issues

R3.41    PCSD should track turnover and monitor the reasons why employees leave the district.
          Monitoring reasons for separation of employment may identify specific issues which
         would allow the district to potentially change policies, procedures or future recruiting
         strategies.

F3.105 ORC 3319.01 and 3319.02 allow superintendents and administrators to be paid, upon
       separation, for vacation leave accrued and unused, not to exceed the amount that could be
       accrued within three years before the date of separation. PCSD is allowing the
       superintendent, deputy superintendent, assistant superintendent and certain classified
       administrators to accrue unlimited vacation time. Their employment contracts are silent
       as to whether vacation leave payment upon separation is limited to three years. In
       addition, the contracts are also silent concerning the number of work days to be used for
       calculating the per diem rates for the assistant superintendent and associate superintendent.
        The district’s legal counsel has indicated that the per diem rate should be calculated using
       234 days versus 260 days which increases the daily rate used to process the separation
       payment.

R3.42    Contracts for all district administrators should include provisions which limit the amount
         of vacation time that could be paid at separation and establishes the number of work days
         as referenced by the ORC . In addition, the current contracts should be reviewed to ensure

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         full compliance with the ORC before any separation payments are processed under these
         contracts. The board should establish a policy associated with the per diem rate issue
         which complies with the ORC and with the overall intent of employment contracts.




Financial Implications Summary
The following table summarizes the total estimated savings, cost avoidances and implementation
costs from the above recommendations. PCSD should consider the potential educational effect
certain recommendations may cause.




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                                                        Estimated Annual       Implementation         Cost Avoidance
                  Recommendation                          Cost Savings              Cost


 R3.4 - Establishing librarian staffing levels
 comparable to peer districts                               $479,709

 R3.5 - Establishing library aide staffing levels
 comparable to peer districts                                $56,963

 R3.6 - Establishing clerical staffing levels
 comparable to peer districts                               $388,752

 R3.7 - Establishing monitor staffing levels
 comparable to peer districts                               $328,559

 R3.8 - Maximizing instructional time per
 secondary teacher to concur with PEA contract              $605,982

 R3.8 - Maximizing instructional time per
 secondary teacher by reducing one planning period
 per day                                                   $3,090,508

 R3.9 - Implementing a reduced cost of living
 adjustment for teachers for three years                                                                $3,508,421

 R3.13 - Reduction of sick leave usage - teachers       $66,926 - $267,704

 R3.15 - Reduction of sick leave usage - classified     $12,079 - $60,395

 R3.16 - Implement Automated Substitute System                                    $63,000

 R3.17 - Eliminate traditional health care plan         $55,173 - $136,468

 R3.18 - Consolidate two separate dental plans into
 one plan                                                    $79,000

 R3.19 - Increasing percentage of employee
 contribution towards health care premiums            $504,068 - $1,059,326

 R3.21 - Reduce 4.5% administrators retirement
 pickup                                                     $157,944

 R3.27 - Cost avoidance achieved by
 implementation of reduced payout of sick leave for                                               $1,840,795 - $2,416,886
 severance payments

 Total                                                $5,825,663 -$6,711,310      $63,000          $5,349,216 -$5,925,307



Conclusion Statement
PCSD’s human resources department appears to effectively provide human resources services. The
HRD utilizes a HRIS which provides the department with many of the tools needed to manage
workload drivers although the system is not integrated with the district’s payroll system. An
integrated HRIS would eliminate the need for duplicate databases and the time spent maintaining

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and reconciling them; reduce the amount of staff needed to maintain the data; provide immediate
access to all employee information; and decrease the time and cost associated with processing
duplicate information.

Because of the district’s pending financial situation, PCSD will be faced with making difficult
decisions to reduce operating costs. An analysis of district staffing levels indicated possible areas
for reduction. PCSD may be overstaffed in the librarian, library aide, clerical, bus mechanic,
custodian and monitor positions and the district should consider staff reductions specifically in these
areas. By eliminating one of the two planning periods provided to teachers and maximizing the
number of periods taught per teacher to six periods per day, the district could possibly reduce
teachers at the middle and high school levels through attrition or a reduction in force or reallocate
teacher resources to enhance the quality of education.

The terms and conditions of the PEA contract contain several costly provisions which affect
management’s ability to manage. One clause, which has a significant financial impact to the district,
is the provision providing all secondary teachers with two planning periods per day in addition to
an extended lunch period. Because the PEA contract states that teachers are not required to perform
supervisory duties, the district has had to hire numerous school monitors to perform supervisory
duties. In addition to receiving two planning periods per day and not performing supervisory duties,
PCSD has the highest average teaching salary of the peer districts. Additionally, PCSD teachers
have the second highest average salary at $45,429, slightly behind Cincinnati City School District
at $46,695, when compared to the total school districts having a performance audit conducted to date
although PCSD’s teachers teach low instructional minutes and do not perform
supervisory/monitoring duties except through supplemental contracts. However, within Cuyahoga
County, PCSD’s starting salary for teachers with a bachelor’s degree ranks 29th lowest of the 33
school districts. Also, PCSD’s maximum salary for a master’s degree ranks 21st lowest of the 33
school districts. An analysis of W2's indicated that 42 percent of teachers receive a salary in excess
of $50,000. Additional salary analysis illustrates a potential compensation inequity among
employee classifications. Because PCSD needs to reduce operating costs, the district should require
teachers to perform supervisory duties and consider negotiating a reduced COLA for teachers for
the next contractual period.


PCSD’s average of 8.7 sick days per teacher was the highest when compared to the peer districts
during FY 1997-98. In addition, classified employees averaged 9.0 sick days per employee which
was the second highest when compared to the peer districts during FY 1997-98. Although the
district separately tracks substitute costs for teachers, the district does not separately track substitute
costs for classified employees. PCSD should aggressively manage and monitor the amount of leave
taken by all employees and track substitute costs by employee classification. In addition to
increased substitute costs, excessive time off creates interruptions in work flow and may have an
impact on the quality of education provided to students.

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For FY 1997-98, PCSD had the highest annual benefit cost per employee among the peer districts.
 Additionally, the district had the second highest certificated fringe benefit expenditures as a
percentage of total operating expenses and the highest classified fringe benefit expenditures as a
percentage of total operating expenses when compared to the peer districts. PCSD’s high benefit
expenditures can be attributed to the minimal employee contributions required for the traditional and
HMO plans, and no employee contribution for employees enrolled in the Super Med Plus plan. The
district has attempted to lower benefit costs by requiring employees enrolled in the traditional family
plan to contribute the difference between the traditional plan monthly premium and the Super Med
Plus family plan monthly premium effective January 1999. However, because the traditional plan
is significantly higher than the HMO and the PPO plans, PCSD could save approximately $55,000
to $136,000 annually if the district eliminated the traditional plan. Additional benefit savings could
be recognized if PCSD required consistent employee contributions towards all medical and dental
premiums.




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