NEWPORT BEACH : School District Hires 1st Internal Auditor

In a move to help the Newport-Mesa Unified School District fine-tune its future budgets, board trustees have hired an analyst who will become the district’s first internal auditor.

Michael Fine, the chief budget administrator for Hughes Missile Systems in Pomona, who oversees a $230-million budget, will begin his new job with the district Nov. 10.

The district found itself in financial trouble earlier this year because of lower-than-expected property tax revenue, which prompted layoffs of dozens of employees. Officials then decided to hire an auditor to scrutinize finances in the $90-million school budget.

“I decided months ago to have an in-house auditor to take the budget apart and redo it, to strengthen our budget control,” Supt. John W. Nicoll said.

Fine was not hired to replace Stephen A. Wagner, the director of business support services in charge of finance who is under criminal investigation in connection with the diversion of at least $57,000 in funds to a company he co-owns, Nicoll said.

The board took action Tuesday to fire Wagner.

“Michael Fine’s appointment is not connected to anything,” Nicoll said. “He’s going to help me make long-range budget projections.”

Fine, 32, of Riverside was chosen by the district’s personnel commission from a field of 46 applicants about two months ago. He will be paid an annual salary of $55,896.

It is “pure coincidence” that Fine was hired after Tuesday night’s decision to fire Wagner, board members said. Wagner may appeal the dismissal to the personnel commission, which could overturn the board’s decision. If not, he will lose his job Nov. 10.

In an interview Wednesday, Fine said: “I don’t have an appreciation of what the situation is yet. This is all new to everybody, and I’m excited to be going to the district because my interest is in working in education.”

In other action, trustees on Tuesday appointed 14 people to a newly formed budget advisory committee. Two people will represent each of the seven zones covering schools in Newport Beach and Costa Mesa. Their task will be to provide board members with suggestions on budget priorities and advise them on any budget concerns they feel should be addressed.

The committee is made up of people with a broad representation of backgrounds, Trustee Edward H. Decker said. Included are school volunteers, business owners, accountants and Costa Mesa Police Chief David L. Snowden.