School board learns about Kahn's agreement

The Amity Board of Education received partial vindication for its financial arrangements with Kahn InterCorp after an independent auditing group recently released preliminary findings.

During a special meeting Monday evening, Mike O'Neil of the New Haven-based auditing firm RSM McGladry presented the company's preliminary numbers on the audit his company has conducted into the financial arrangement Amity had with Kahn InterCorp of Farmington.

Woodbridge Board of Finance Chairman Matthew Giglietti and former Board of Finance member Len Bell - now a member of the school board — questioned the arrangement the school board had and forwarded their doubts to Attorney General Richard Blumenthal, claiming numerous state statutes were violated. According to O'Neil, the arrangement was a lease.

O'Neil said his firm researched Kahn back to 1994 when it first entered into an agreement to purchase computer technology for the district. He said only Finance Director Vince Grignano signed the legal agreement.

"I think you could call it a lease - an installment lease," O'Neil said. "Bills were batched together and sent to Khan periodically. Then at the end of the year you figured out what you owed."

School Board member Greg Egnaczyk asked if any tires had been purchased. O'Neil said he had only personally reviewed half of the invoices but would check.

Orange resident Dennis Collesano expressed concerned for a $76,000 invoice from Valley Communications which had $38,500 and $25,000 listed as miscellaneous. Both Collesano and O'Neil agreed the invoice needed additional review. O'Neil promised to delve into it.

Collesano said he was dissatisfied over the way the technology upgrade was handled including the excessive purchase of office furniture and lack of foresight over the computer purchases. He also said he feels board members asked to resign deserve an apology.

"Someone made these purchases without the boards knowledge. We should at least vindicate those members asked to resign," Collesano said.

Last October, School District Finance Director Keith McLiverty told the Bulletin the board was not aware of the funds spent utilizing Khan.

"They had no idea of the items bought," McLiverty said.

McLiverty said Grignano — who signed all of the lease agreements since 1994 — had set up a separate fund on the Munis accounting system, which did not show in the general fund