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www.elpasotimes.com/ci_12260049?source=most_viewed

Audit by YISD finds former schools
chief violated state law
El Paso Times
Posted: 04/30/2009 12:00:00 AM MDT
By Zahira Torres

EL PASO -- An internal audit by the
Ysleta Independent School District found
that former superintendent Hector
Montenegro violated state law by
accepting thousands of dollars in
honorariums from companies that work
with the district and that he allegedly
double-billed for meals with community members and trustees.

Montenegro said Wednesday that he would not talk about the
findings.

The audit, which will be used in an ongoing investigation by the Texas
Education Agency, pointed to two direct violations of either state law or of
Montenegro's contract.

The audit found that Montenegro accepted $19,154 in honorariums from
companies that included district vendors after the law was changed in May
2007 making such honorariums illegal.

In addition, the audit found he charged the district $2,688 for meals and other
expenses that should have been covered by his monthly discretionary expense
allowance for meals and entertainment.

The former superintendent earned $230,367 annually, received a discretionary
expense allowance of $700 a month, a $500-a-month cell-phone stipend and
an allowance of $1,200 monthly for in-district travel. He also lived in a district
home and did not pay rent, insurance, taxes, utilities, landscaping
maintenance or repairs.

Montenegro, who was reached by phone Wednesday night, said he would not
discuss the audit or honorariums he received from vendors after the law
changed.

"I don't even know if that is accurate," Montenegro said. "I haven't seen the
audit, so I am not able to respond to that."   Montenegro started at Ysleta on
March 2003 and his contract ended Jan. 31, 2008.

Montenegro resigned in July as superintendent of the Arlington Independent
School District after he came under fire for travel expenses and for accepting
honorariums from companies, such as the HOPE Foundation and
Advancement Via Individual Determination (AVID), that worked with the
Arlington district. He resigned without a buyout, and the district agreed not to
pursue legal action against him, but it has sued the HOPE Foundation.

At Ysleta, a separation agreement reached with Montenegro does not allow the
district to sue him for findings in the audit. The audit also looked at money
spent for programs that were initiated or expanded during Montenegro's
tenure, travel and credit-card expenses and the amount of time he spent away
from the district.

The Texas Education Agency, though, will determine whether to reprimand
Montenegro after it completes an investigation into allegations against him.

The agency requested the audit as part of the investigation. On Wednesday,
officials would not comment further.

A letter from the agency to the district that was obtained by the El Paso Times
said that the documents were needed "to determine whether enforcement
actions are warranted against Mr. Montenegro's Texas educator credentials."

The agency can suspend or revoke his credentials if the investigation,
including the audit, finds violations.

The audit said Montenegro charged the Ysleta district 33 times in one year for
expenses that should have been covered by his discretionary expense
allowance.

Those charges included sending flowers on behalf of his family to a funeral,
lunches with board trustees and meals with principals and graduation
speakers.

Expenses that were not questioned by the audit but were paid by the district
include $40.88 for work-related calls and Internet service during a personal trip
to Las Vegas, a $2,435 dinner for 25 people with AVID administrators, $331 for
district staff to eat during a HOPE conference and $432.95 for iPod shuffles for
AVID students.

From January 2004 to January 2008, Montenegro took 221 trips mostly to
conferences or speaking engagements that were funded by the district or
organizations.

The audit analyzed the 90 trips he took between Jan. 1, 2007, and Jan. 31,
2008.

The audit said that the district paid $577 for Montenegro's travel to speaking
engagements and that organizations, which included the Hope Foundation,
paid a total of $7,517 for his travel and expenses.

The audit shows that Montenegro accepted at least $6,000 in honorariums
from the HOPE Foundation after the law changed in 2007. The company
developed two programs -- Failure is Not an Option and Engaging Every
Learner -- that he introduced to the district.

Books and other materials for the HOPE Foundation programs at Ysleta have
cost the district $197,915, said the audit.

Ysleta district officials said they have not examined the remaining honorarium
payments thoroughly enough to identify which organizations or groups may
have business with the district or solicited work.

The other honorariums included $4,500 from the Arizona School
Administration, $900 from the DuPage Regional Office of Education and
$2,500 from Lewisville High School.

Montenegro has said in past interviews that he donated honorariums to a
scholarship foundation at the district. He donated $12,000 from his paycheck
between September 2006 and January 2008.

In addition, the audit found that Montenegro attended 32 conferences a year at
a cost of $34,120 to the district. Other organizations that included AVID, which
has a program that Montenegro expanded, also paid travel costs and
expenses of up to $2,380.

The AVID program has cost the district nearly $4.2 million since 2003,
according to the audit.

Zahira Torres may be reached at ztorres@elpasotimes.com; 546-6156.
A few thoughts about
school audits in general.
By Peyton Wolcott
May 5, 2009

First, not all audits are created
equal.  

There are the audits
mandated by law but may in
fact only be rubber stamps
done on the cheap and not
designed to find anything;
these are the audits that allow
questionable trustees to tell
their community, "Look, we're
clean, the audit absolved us."

States such as New York,
following the scandals in
Roslyn and other Long Island
school district, are doing
periodic reviews of school
districts; because the schools
are locally run, all the state
auditor can do is make
recommendations.

Here in Texas we had some
very effective audits under the
leadership of then-Comptroller
Carole Keaton Strayhorn and
manager Betty Ressell; they
sent teams of auditors into
schools then gave districts
timelines for bringing about
the recommended changes.  

As regards outcomes, the
most effective one for the one
I lobbied Carole for during
2001 was one of my
daughter's school district;
while the district didn't really
follow many of the guidelines,
the superintendent and
assistant superintendent had
resigned within ten business
days of her announcement.  
So in those terms, yes, it was
effective, but not in the way
people usually think it might be.

There are other sorts of audits
-- curriculum, energy, etc. --
but these are essentially
moneymakers for those
performing them and I do not
recommend them.  

Then there are the gotcha
specific purpose audits such
as the one at right; it's a
shame the then-board did not
have sufficient courage to
order such an audit while the
superintendent was still
employed there.
Hector Montenegro (far left) at TASA
reception, Austin.
------------------------------------- COMMENTS (23) AS OF 043009 / 8:30 PM -----------------------------------

AJF
El Paso, TX
Reply »
|Report Abuse |#1 15 hrs ago
This audit demonstrates a connection with the high levels of performance and the culture
of high expectations for students and
staff in the Ysleta ISD. High performance systems don't happen by chance; it takes an
investment like in any other business.  
Hire Local
El Paso, TX
Reply »
|Report Abuse |#2 12 hrs ago
Hecotr Montenegro wasn't even from El Paso and he ripped off the Ysleta School Disrtict?
Next time hire local, that way the
money stays in El Paso.  
Just an Old El Pasoan

Joined: Tue Apr 7

Comments: 18

Apo, AE
Reply »
|Report Abuse |#3 12 hrs ago
AJF, are you kidding? Can you say "kick backs?"  
I have a suggestion
Stillman Valley, IL
Reply »
|Report Abuse |#4 11 hrs ago
Anybody doing anything this dishonest and avoiding paying taxes must be a member of
the Obama thugs in Washington DC.

Hang him high so that others will know what is in store for them  
Moe
El Paso, TX
Reply »
|Report Abuse |#5 10 hrs ago
Another example of what is in it for me. What kind of morons would allow a buy out
contract without the ability to sue for the
return of monies. Go figure, McNabb could work here.
The sad part of all this is the normal that children's education is always last and the
administrator boon doggles the school
board and laughs all the way to the bank at tax payers expense.  
steve
El Paso, TX
Reply »
|Report Abuse |#6 9 hrs ago
Hire Local wrote:
Hecotr Montenegro wasn't even from El Paso and he ripped off the Ysleta School Disrtict?
Next time hire local, that way the money stays in El Paso.  you are exactly correct. The
board was sooooooooooo in love with montestealer i mean montenegro that they forgot
who they  are supposed to service, the kids. Montenegro is such a two faced bandido. you
cheat and liar. this will also happpen in SISD,  all board members are croonies in my
book.   Yep-the original
Austin, TX
Reply »
|Report Abuse |#7 9 hrs ago
Obama thugs...that's funny....I guess you'll be waterboaring him next..but that's not why I'm
here.
So the bottom line question is...did the students in the district benefit from the programs
that were introduced? Did they regress? Did they excel?  Is there "another" plan to scrap
everything that was done and start over with their "own" programs...  see they cycle??
anyone?? cycle?? anyone??  Don't muddy the waters by co-mingling 2 seperate issues:
did he take monies that he shouldn't have and did the programs
help the students.... Don't get stuck on the language in the story that the programs "cost"
the district X number of dollars because I can assure you  the next "innovative" programs
introduced are going to "cost" the district X number of dollars because those programs
belong  to someone else...cost of doing business.  
steve
El Paso, TX
Reply »
|Report Abuse |#8 7 hrs ago
Yep-the original wrote:
Obama thugs...that's funny....I guess you'll be waterboaring him next..but that's not why I'm
here.
So the bottom line question is...did the students in the district benefit from the programs
that were introduced? Did they
regress? Did they excel?
Is there "another" plan to scrap everything that was done and start over with their "own"
programs...
see they cycle?? anyone?? cycle?? anyone??
Don't muddy the waters by co-mingling 2 seperate issues: did he take monies that he
shouldn't have and did the programs
help the students....
Don't get stuck on the language in the story that the programs "cost" the district X number
of dollars because I can assure you
the next "innovative" programs introduced are going to "cost" the district X number of
dollars because those programs belong
to someone else...cost of doing business.
You are blind the students are the victims in the end, i don't care if its a penny or more
money, no integrity on your or
montestealers part.  

steve
El Paso, TX
Reply »
|Report Abuse |#9 7 hrs ago
AJF wrote:
This audit demonstrates a connection with the high levels of performance and the culture
of high expectations for students and
staff in the Ysleta ISD. High performance systems don't happen by chance; it takes an
investment like in any other business.
Its strange that this internal audit comes up after Montenegro leaves.....hmmmm funny, just
like the audit in gadsden was
done, after their superintendent leaves, someone in the yisd c.y.a. montenegros
behind......  
YISD community member
El Paso, TX
Reply »
|Report Abuse |#10 6 hrs ago
steve wrote:
<quoted text>
Its strange that this internal audit comes up after Montenegro leaves.....hmmmm funny, just
like the audit in gadsden was
done, after their superintendent leaves, someone in the yisd c.y.a. montenegros behind......
Internal audits are standard practice for administrative staff at certain levels. Every time a
principal leaves a school they have
an exit audit. Why would it have been any different to do one on Hector Montenegro? I
wonder where the accounting staff was
during all this. If in fact he broke the law why was this information not reported to the
board, TEA, and El Paso Police at the
time?

And let’s be clear..... This guy left the district only after he could see that he was not going
to get a free ride any longer from the
new board members that were elected. Board members that didn’t follow him blindly, they
questioned his actions. So instead
he left and as is normal procedure they ran an audit.

Funny thing is this paper has endorsed one of the people responsible for the time period in
which the majority of his took
place. Andy Ramirez and Hector Montenegro were golfing buddies?  
steve
El Paso, TX
Reply »
|Report Abuse |#12 5 hrs ago
YISD community member wrote:
<quoted text>
Internal audits are standard practice for administrative staff at certain levels. Every time a
principal leaves a school they have
an exit audit. Why would it have been any different to do one on Hector Montenegro? I
wonder where the accounting staff was
during all this. If in fact he broke the law why was this information not reported to the
board, TEA, and El Paso Police at the
time?
And let’s be clear..... This guy left the district only after he could see that he was not going
to get a free ride any longer from the
new board members that were elected. Board members that didn’t follow him blindly, they
questioned his actions. So instead
he left and as is normal procedure they ran an audit.
Funny thing is this paper has endorsed one of the people responsible for the time period in
which the majority of his took
place. Andy Ramirez and Hector Montenegro were golfing buddies?
Excellent point you make, but the internal audits are different from the outside audits
school districts are required to do when
they hire a auditing firm. red flags were there but no one spoke up.....  
steve
El Paso, TX
Reply »
|Report Abuse |#13 4 hrs ago
i have a new name for montenegro, its montestealer  
FEDUP
El Paso, TX
Reply »
|Report Abuse |#14 3 hrs ago
"Reprimand"?
Hell, throw the book at Mr. Montenegro!
This corrupt former YISD duperintendent should be forced to return all the money he
received and stole from the district when
he left for greener pastures!
This pig should be in jail!!!
Mr. Montenegro and his ilk are nothing but unethical corrupt pigs that know how to game
the system for their own personal
gain! These pigs are only looking out for themselves, and not as they would have you
believe with crocodile tears, "for the
children,"!
Taking personal days and then collecting on top of that from the district and those
companies that clearly have them in their
back pockets! What a racket!
Our idiot elected school boards pretend like they see nothing and know nothing and let
these mendacious characters get
away with stealing taxpayer money!  
steve
El Paso, TX
Reply »
|Report Abuse |#15 3 hrs ago
FEDUP wrote:
"Reprimand"?
Hell, throw the book at Mr. Montenegro!
This corrupt former YISD duperintendent should be forced to return all the money he
received and stole from the district when
he left for greener pastures!
This pig should be in jail!!!
Mr. Montenegro and his ilk are nothing but unethical corrupt pigs that know how to game
the system for their own personal
gain! These pigs are only looking out for themselves, and not as they would have you
believe with crocodile tears, "for the
children,"!
Taking personal days and then collecting on top of that from the district and those
companies that clearly have them in their
back pockets! What a racket!
Our idiot elected school boards pretend like they see nothing and know nothing and let
these mendacious characters get
away with stealing taxpayer money!
you are so right......  
GoodOlBoy
El Paso, TX
Reply »
|Report Abuse |#16 3 hrs ago
Not my boy Hector...  
SWB
El Paso, TX
Reply »
|Report Abuse |#17 1 hr ago
Run for the school board, get elected and fix the problems.
FEDUP wrote:
"Reprimand"?
Hell, throw the book at Mr. Montenegro!
This corrupt former YISD duperintendent should be forced to return all the money he
received and stole from the district when
he left for greener pastures!
This pig should be in jail!!!
Mr. Montenegro and his ilk are nothing but unethical corrupt pigs that know how to game
the system for their own personal
gain! These pigs are only looking out for themselves, and not as they would have you
believe with crocodile tears, "for the
children,"!
Taking personal days and then collecting on top of that from the district and those
companies that clearly have them in their
back pockets! What a racket!
Our idiot elected school boards pretend like they see nothing and know nothing and let
these mendacious characters get
away with stealing taxpayer money!  
Yep The Original
El Paso, TX
Reply »
|Report Abuse |#18 1 hr ago
steve wrote:
<quoted text>
You are blind the students are the victims in the end, i don't care if its a penny or more
money, no integrity on your or
montestealers part.
You need to read my reply again...where I clearly stated that there were 2 questions to be
answered: did he take monies
illegally and if so, he has to be held accountable for that; second, did the children in the
school district regress under the
programs that were introduced or did they make academic improvements...separate and
distinct questions that need to be
answered.

There should be a checks and balances process in place during the tenure so that any
questions regarding monies can be
answered then and there, not after the fact because their isn't a thing anyone can do
about it now....

So a bundle of tax payers money was spent to conduct this additional audit to what end?

So Steve....you and I should run for the school board to make sure this never happens
again, what say you?  
steve
El Paso, TX
Reply »
|Report Abuse |#19 1 hr ago
Yep The Original wrote:
<quoted text>
You need to read my reply again...where I clearly stated that there were 2 questions to be
answered: did he take monies
illegally and if so, he has to be held accountable for that; second, did the children in the
school district regress under the
programs that were introduced or did they make academic improvements...separate and
distinct questions that need to be
answered.
There should be a checks and balances process in place during the tenure so that any
questions regarding monies can be
answered then and there, not after the fact because their isn't a thing anyone can do
about it now....
So a bundle of tax payers money was spent to conduct this additional audit to what end?
So Steve....you and I should run for the school board to make sure this never happens
again, what say you?
I cant run for a school board position because i am an school administrator  
steve
El Paso, TX
Reply »
|Report Abuse |#20 1 hr ago
the person who wrote an exit audit from school principals thats just made up sorry  
John Wayne
El Paso, TX
Reply »
|Report Abuse |#21 1 hr ago
steve wrote:
the person who wrote an exit audit from school principals thats just made up sorry
It depends on the reason the Admin is departing. I know several who were audited.  

steve
El Paso, TX
Reply »
|Report Abuse |#22 1 hr ago
John Wayne wrote:
<quoted text>
It depends on the reason the Admin is departing. I know several who were audited.
an internal audit means nothing the formal audit what counts!!!!!!!!!!  
Yep The Original
El Paso, TX
Reply »
|Report Abuse |#23 1 hr ago
I cant run for a school board position because i am an school administrator...

the person who wrote an exit audit from school principals thats just made up sorry....what??

hmmmmmmm..........red flag LOL  
Former YISD Teacher
Chicago, IL
Reply »
|Report Abuse |#24 56 min ago
We need to stop being victims to the powers that be and start taking control of our tax
dollars.
The only problem is we have a family to feed and bills that need to be paid. I've seen it
time and time again. As soon as we start asking questions,administrators start to black
balling us.The only suggestion I have is that maybe Dr. Natalico can give the new Super's
a class on ethics and grace.  
YISD audit: Irregularities provide lesson
El Paso Times Staff
Posted: 05/01/2009 12:00:00 AM MDT

Controversy swirling around Hector Montenegro, former
superintendent of the Ysleta Independent School District,
should be intensely troubling to district officials and
particularly to district taxpayers.

An internal audit found that Montenegro violated state law
by accepting honorariums from companies working with
the district. The audit also alleges that he double-billed for
meals with both community members and school-board
trustees.

Montenegro's contract with the YISD ran from March 2003
to Jan. 31, 2008. In July 2008, he resigned as
superintendent of the Arlington Independent School
District after problems with travel expenses and --
surprise! -- honorariums.

There are also a lot of raised eyebrows at the terms of the
contract Montenegro had with the YISD. For example, item
No. 17 on the internal audit's superintendent contract
summary said: "In-District Residence: District should
purchase a single family residence up to $320,000 for Mr.
H.M. District responsible for all insurance, taxes, utilities,
landscaping, maintenance and repairs."

Pretty sweet deal.

Add to that such perks as $500 per month for a cell
phone, $1,200 for in-district travel and other benefits.

Montenegro had no comment about the audit.

The contract for the YISD's new superintendent, Michael
Zolkoski, is a lot less lavish and seems much more
practical.

But the Montenegro episode should be a lesson for all
school districts, their officials and taxpayers. Hiring a
superintendent is not -- or should not be -- the equivalent
of anointing a potentate. Superintendents should be paid
for their leadership and responsibilities, but what really
counts is results. That's how a superintendent should be
evaluated and remunerated.

The Montenegro mess also is a reminder that there must
be constant accountability on the part of the
superintendent.

The superintendent's job is to improve the district's quality
of education and to produce well-educated students. His
or her purpose is not to set up a perk-and-benefit system
for self-enrichment at taxpayer expense.

The school districts' taxpayers/constituents should
demand consistent and constant accountability from their
elected and appointed officials. And trustees in El Paso
County's nine school districts should keep constituents
and education foremost in their minds when choosing a
superintendent and in all other activities that involves
spending taxpayer money.
Above and below, scenes from an Ysleta ISD
promotional video used by Hector Montenegro in talks
around the United States promoting his "Miracle of Ysleta."
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