ORANGE COUNTY PERSPECTIVE : No More School for Scandal

The Newport-Mesa Unified School District was stung badly when its then-chief financial officer embezzled $4 million and later went to prison as a result. It was a wake-up call, and many are still reeling from the shock of events a year ago.

Today, the district appears to be on the mend. More important, it seems to have learned some valuable lessons. It has taken steps to reform shaky financial procedures and brought in new top leadership committed to changes in management style.

The much publicized theft by Stephen Wagner was the largest embezzlement of school funds in state history. However, even with all the attention to the case, there was no guarantee that the district would identify and fix problems that had allowed a trusted employee free rein. It took resolve to ensure that such a thing would not be allowed to happen again.

Previously, the district lacked sufficient internal means of monitoring its various accounts to guard against theft. After firing Wagner, the district moved quickly to overhaul its financing and budgeting procedures. For example, an outside administrator now examines and processes all claims from the employee health and insurance funds, from which Wagner stole much of the money. No longer does any one person have complete control of those funds.

Moreover, the district now has a new superintendent, Cloyde McKinley Bernd, who has won early plaudits from parents and teachers for his accessibility, openness and enthusiasm. In June, Bernd replaced John W. Nicoll, who, citing ill health, retired in the thick of the scandal after having run the district 21 years.

A change at the top has enabled the district to start to improve its relationships with parents, many of whom were dissatisfied when the scandal broke; they had maintained that the district was run too rigidly and that their ideas were not welcome.

The district still is burdened with increased class sizes and reduced tax revenue funds, but its willingness to learn from past mistakes and to improve its management is noteworthy.