In that same August 21, 2020, notice, the SCDE also gave the district notice of the State Superintendent’s intention to consolidate administrative and professional services under Proviso 1.85, and required submission of a shared services plan by October 5, 2020. A plan was submitted September 25, 2020, and amended September 28, 2020.
Meanwhile, Clarendon Three and Clarendon Four have worked with Clarendon One on tasks necessary to prepare for consolidation and on sharing to improve services and reduce costs. As part of those efforts and the shared services plan submitted September 28, 2020, on or about September 1, 2020, Clarendon One engaged the services of David Loadholt, an experienced school business official, to convert the districts to the same financial services software and to render financial services for the district.
In the course of converting the district’s software and performing financial services, Mr. Loadholt learned that Clarendon One had not paid withholding taxes since June 2020, or retirement contributions since May 2020. He advised Clarendon One Superintendent Barbara Champagne on October 6, 2020, and in an October 7, 2020, email to Superintendent Champagne, Mr. Loadholt reported the following liability totaling $1.35 million (without interest and penalties):
‘The retirement is closer to $800,000 bringing the total liability closer to $1,350,000. We will not know the exact figures until we start filing the reports and paying the liability and all penalties for Federal, State and PEBA.’