October 18, 2005

1
Orleans Parish School Board Accounting, Human
Resource and Financial Management Plan and
Implementation Status Report 6
October 18, 2005
2
Table of Contents

• Section Page
• Executive Summary 2
• Working Group Updates
• Financial Management Accounting 3
• Human Resources Payroll 7
• Procurement Inventory Management 15
• Information Technology 18
• Facilities Maintenance 25
• Dispute Analysis and Forensics 30
• Appendix A Detailed Workplans from Response to
  RFP
• Schedule A Financial Reporting 35
• Schedule B Accounting Records
  37
• Schedule C Internal Controls
  40
• Schedule D - Budget Control, Allowable Cost and
  Cash Management
  42
• Schedule E Human Resources
  46
• Schedule F Payroll
  55
• Schedule G Procurement
  61
• Schedule H Risk Management
  67

3
Executive Summary

• As families have begun to resettle on the West
  Bank/Algiers and other parts of New Orleans, the
  AM team has continued its progress in preparing
  up to 8 schools to be ready for opening in
  mid-November to welcome these students home.
• Key highlights of the past two weeks include
• Open enrolment of over 2,700 children to date.
• Emergency repairs and work orders for 10 schools
  (including Lusher Lusher Extension) to mitigate
  further damage from weather.
• Enlisted over 120 National Guard and 60 firemen
  from around the country to clean, repair and
  rejuvenate these 8 schools.
• Issued RFPs for general contracting, custodial
  maintenance, HVAC and EPA firms. Additional
  RFPs for food and transportation services are
  pending.
• Developed the infrastructure model for the
  financial, operational HR IT needs of these 8
  schools including
• Estimated cashflows that scale with enrolment
• HR recruiting staffing criteria
• IT software, hardware and personnel needs to
  support 8 schools
• Turnkey operation outside the classroom in the
  critical service areas of payroll, food,
  transportation, security, facilities
  maintenance, etc.
• In the weeks ahead, AM has commenced developing
  a longer-term strategy for the rebuild and
  restoration of the entire public school district.
  This will include
• completing the initial project scope assessments
  on every building,
• moving forward with the process we have developed
  to maximize claims both from Insurance providers
  and FEMA, and
• aligning this broader school system rebuilding
  effort not only with the cashflows associated
  with construction payouts and claims
  reimbursement, but with the City of New Orleans
  own rebuilding efforts (demographic study,
  projected re-enrolment, return of tax base and
  essential services).

4
Financial Management Accounting

• Summary of Activities
• In the last two weeks of the Alvarez Marsal
  engagement with the Orleans Parish School Board,
  the
• Finance Accounting Group focused on the
  following activities
• Updated cash flow forecasts based on material
  changes caused by the post-hurricane environment.
• Made critical payments to external parties,
  including bond payments due September 1, 2005 and
  payments to vendors essential to operations.
• Met with federal, state and local officials, to
  project revised funding requirements and begin
  estimating revised revenues.
• Continued coordination and work with FEMA and
  insurance companies to begin preparing claims and
  address documentation and procedure requirements.
• Continued recording accounting activity in an
  off-line system and made necessary preparations
  to restore operations to the Districts
  information systems.
• Continued identifying amounts for special revenue
  claims reimbursement and continued developing and
  implementing interim special revenue procedures.
• Summary Commentary
• Given the enormous changes for the New Orleans
  Public Schools as a result of Hurricane Katrina,
  the
• finance and accounting team is working to respond
  to the new financial scenario facing the
  District. We
• have updated the projection of cash flow for
  material changes that are already known and are
  focusing
• on quantifying the remaining uncertain factors
  that will influence the Districts finances.
  These include
• operational changes, revised revenue forecasts,
  new capital requirements, and insurance and FEMA

5
Financial Management Accounting (cont.)

• Key Accomplishments
• Cash
• Continued to modify weekly cash flow forecast for
  material changes caused by the post-hurricane
  environment.
• Obtained bond counsel opinion and Board approval
  supporting the use of existing capital project
  funds (over 15 million) to fund liquidity needs
  for the school building repair efforts and/or
  funding of related debt service.
• Funded September 1, 2005, bond obligations and
  bond insurance obligations coordinated the
  payments and provided financial and operational
  updates to bond trustees and bond insurers.
• Continued communicating financial and operational
  updates to other key external constituencies
  related to the finances of the District,
  including bankers and bond counsel.
• Continued identifying school-based bank accounts
  (student activity fund accounts) listed under
  the school boards tax identification number
  froze all transactions in identified accounts to
  ensure security of these funds during immediate
  post-disaster timeframe.
• Monitored daily cash receipt and disbursement
  transactions in each of the Districts bank
  accounts.
• Accounts Payable
• Continued processing critical payments to vendors
  necessary for essential activities.
• Segregated pre-hurricane payables from
  post-hurricane liabilities for go-forward
  accounting purposes.
• General Fund Budget
• Continued developing preliminary projections of
  school and other operating expenses based on
• Revised school year
• New enrollment assumptions, including data from
  call center registering residents intent to
  return

6
Financial Management Accounting (cont.)

• General Accounting
• Continued recording accounting activity in an
  off-line system until the Districts information
  systems are fully operational.
• Continued to support payroll team in payroll
  reconciliation efforts.
• Continued analyzing and revising chart of
  accounts, including disabling of inactive values,
  to improve the accuracy and usefulness of
  accounting data in the go-forward systems
  environment. Identified accounts not being used
  to prevent future input of data to them.
• Continued analyzing cross validation business
  rules in the Oracle system to improve the
  accuracy and usefulness of accounting data in the
  go-forward systems environment.
• In process of posting July and August
  transactions against the revised chart of
  accounts to identify exceptions/errors.
• Developed plan to hire two temporary accounting
  staff to perform account reconciliation and
  monthly closing.
• Special Revenue Accounting Claims
• Continued identifying amounts for claims
  reimbursement from the July and August NOPS
  Special Revenue payroll file.
• Continued establishing interim procedures for
  grant purchases.
• Continued establishing procedures for hiring
  employees to be funded by grants.
• Continued identifying discrepancies in the LDE
  approved budgets to the listing of available
  grant funds that had been provided by LDE.
• Performed research and/or prepared documentation
  related to a variety of grants and programs
  (Success for All, Direct Instruction, Education
  Station, TANF, others)
• Met with LDE to discuss special revenue
  implications to NOPS from the application
  approved by the OPSB for an association of West
  Bank charter schools.
• Organizational / Administrative / Project
  Management / Crisis Management
• Continued to coordinate with FEMA representatives
  to determine the procedures, timing, and scope
  for federal claims related to hurricane damage.
• Coordinated with insurance carriers to collect on
  policies for hurricane damages began preparing
  claims and addressing insurers requirements to
  expedite initial payments of claims.

7
Financial Management Accounting (cont.)

• Work Planned For Upcoming Weeks
• Revise weekly cash flow forecast based on the
  financial impact of the application approved by
  the OPSB for an association of West Bank charter
  schools.
• Analyze refinancing options for existing debt to
  determine any potential savings.
• Develop construction budget based on analysis of
  properties and information provided by
  contractors.
• Transfer post-hurricane accounting data into
  Oracle from off-line system.
• Close open, pre-hurricane accounting periods.
• Continue to meet with federal, state and local
  officials to articulate anticipated funding
  requirements of the District in FY 2005-6.
• Assess anticipated revenue streams from the
  federal, state and local governments in order to
  determine the Districts ability to pay its
  obligations on a go-forward basis meet with
  state and local officials to develop ad valorem
  and sales tax projections.
• Finish identifying and freezing all student
  activity bank accounts.
• Complete revisions and clean-up to the chart of
  accounts and cross validation accounting rules in
  Oracle system.
• Identify additional finance department personnel
  needs and recruit temporary and permanent
  employees as appropriate, including two temporary
  accounting staff to perform account
  reconciliation and monthly closing.
• Continue to research missing approved grants and
  attempt to gain copies of the budgets from the
  LDE.
• Continue to establish interim processes for
  claims submissions, grant purchases, and employee
  hiring to be funded by grants.
• Finalize the research, processing, and or
  documentation related to a variety of special
  revenue grants and programs.

8
Human Resources and Payroll
Summary of Commentary In the past two weeks, the
HR/Payroll Working Group supported the HR/Payroll
needs of both the Proposed Algiers Charter School
Administration (ACSA) and New Orleans Public
Schools (NOPS). Our key HR efforts were focused
around General Employee Communications and
Coordination, Staffing, Benefits Retirement,
and General HR Operations/Activities. Our key
efforts for Payroll were focused around the
payroll reconciliation, payroll processing, and
the future payroll operations.
Additionally, both HR and Payroll are evaluating
strategic outsourcing alternatives as part of a
fully integrated back office outsourcing
solution. Our Progress Over the Past Two
Weeks In HR, related to General Employee
Communications and Coordination, we continue to
maintain and monitor the call center to locate
NOPS employees, disseminate information and
respond to post Katrina questions.
Additionally, we continue to respond to and
process NOPS employment verification requests,
mortgage requests, resignations, etc. Our
Staffing efforts focus on monitoring and
analyzing the Student and NOPS Employee
Indication of Interest numbers daily to
determine our student and employee population and
subsequent staffing needs. Additionally, we are
executing on proposed ACSA and NOPS staffing
plans to include selecting Principals for
proposed ACSA, drafting personnel policies for
proposed ACSA, drafting a staffing process for
proposed ACSA, drafting job descriptions for both
instructional and non-instructional positions for
proposed ACSA, drafting resignation process for
NOPS Schools, and developing recruiting and
on-boarding process. Finally, we developed an
Employee Verification Form for those
NOPS employees brought back to ensure clarity and
agreement on salary, benefits, position, title,
location, deductions, etc. Our Benefits
Retirement activities include working with the
Unemployment Insurance Division of the Louisiana
DOL to provide and receive the necessary
information required for eligibility and
reporting purposes. We are working with the State
Retirement Agencies to assist NOPS employees who
are interested in retiring, entering/exiting DROP
or requesting refunds of prior contributions. We
also met with UTNO representatives to discuss the
continuation of insurance coverage for NOPS
employees. Additionally, we are working with
Coventry to reconcile the September October
medical benefit invoices and to design an
alternative healthcare plan for NOPS employees on
Disaster Leave. We are also exploring benefit
plan options for proposed ACSA. We have worked
with Coventry to develop a catastrophic health
insurance option for employees on disaster leave,
which has now been approved by the board.
Finally, we are coordinating Workers Compensation
payments with our TPA and working to create a
process for meeting our statutory obligations.
9
Human Resources and Payroll (cont.)
Summary of Commentary (cont.) Our general HR
Operations/Activities include determining our
ongoing HR data management/system requirements
for NOPS and reviewing strategic HR Data
management/administration outsourcing opportunitie
s for both proposed ACSA and NOPS. As part of
our ongoing HR data management review, we have
begun to develop of new table structures (i.e.,
job coding, job titles, job classifications,
etc.) for NOPS. Finally, we are developing
personnel policies to govern proposed ACSA and
reviewing the existing NOPS HR policies for
changes/amendments. We calculated estimated
vacation and sick leave liabilities for all NOPS
employees. Additionally, we continue to collect,
communicate, and pursue organizations and
individuals who have offered assistance and
donations for NOPS so that we can be prepared
to accept their donations of books, desks, funds,
etc. In payroll, we are completing our payroll
reconciliation process between the NOPS Estimated
payroll and Actual payroll and developed the
process to distribute and communicate
underpayments to employees via Western Union.
We are developing plans and processes for the
future payroll systems at both NOPS and proposed
ACSA. Through engaging the services of ADP, we
developed a short term, interim, payroll
processing and disbursing solution for NOPS.
Additionally, we began the process of reconciling
and closing the Oracle Payroll System and working
with ADP to print 2005 W2s and the filing of
payroll tax returns subsequent to the last Oracle
based payroll. Finally, we are evaluating
new risk environment, developing revised payroll
controls and reviewing the existing deduction and
earning elements for NOPS payroll.
10
Human Resources and Payroll (cont.)

• Summary of Activities
• Human Resources
• General Employee Communications and Coordination
• Continue to maintain and monitor call center to
  locate NOPS employees, disseminate information
  and respond to questions. Maintaining a record of
  the calls and responses.
• Continue to update AM-NOPS website to increase
  communication to parents, students and employees
  of NOPS (i.e., Frequently Asked Questions,
  current press releases and important information
  for NOPS parents and employees).
• Continue to update the NOPS call center and
  website Frequently Asked Questions daily based
  on anticipated and repeat employee questions.
• Continue to respond to and process NOPS
  employment verification requests, mortgage
  requests, resignations, etc.
• Identify and select additional communication
  resources including churches and commercial
  establishments (i.e., like Wal-Mart and
  Winn-Dixie).
• Staffing
• Monitoring and analyzing Student and NOPS
  Employee Indication of Interest numbers daily
  (web-based hard copy) to garner an
  understanding of those NOPS Parents and Employees
  who would like to return, given the opportunity.
• Met with UTNO and PANOPSI to develop staffing
  plans.
• Executing on proposed Charter School and NOPS
  staffing plans.
• Selected Principals for proposed Charter Schools.
  
• Drafting personnel policies for proposed Charter
  Schools.
• Drafting staffing process for proposed Charter
  Schools.
• Drafted resignation process for NOPS Schools.
• Developed recruiting and on-boarding process.
• Developed Employee Verification Form for those
  NOPS employees brought back to ensure clarity and
  agreement on salary, benefits, position, title,
  location, deductions, etc.

11
Human Resources and Payroll (cont.)

• Summary of Activities (Cont.)
• Human Resources
• Benefits Retirement
• Currently working with the Louisiana DOL
  Unemployment Insurance Division to provide and
  receive the necessary information required for
  eligibility and reporting purposes.
• Continue to work with unemployment TPA, Temple
  Resource Management, to determine the appropriate
  level of assistance they can provide as a result
  of the Disaster Leave determination for NOPS
  employees.
• Working with the State Retirement Agencies to
  assist NOPS employees who are interested in
  retiring, entering/exiting DROP or requesting
  refunds of prior contributions.
• Met with UTNO representatives to discuss the
  continuation of Insurance coverage for NOPS
  employees.
• Working with Coventry representatives to
  reconcile the September October invoices.
  Working with Coventry to design an alternative
  healthcare plan for NOPS employees on Disaster
  Leave.
• Coordinating Workers Compensation payments with
  our third party administrator, Hammerman
  Gainer. Working to create a process for meeting
  our statutory obligations and manage cash flow.
• General HR Operations/Activities
• Currently reviewing HR Data management/administrat
  ion outsourcing opportunities.
• Developing job descriptions for all proposed
  Charter School jobs.
• Developing personnel policies to govern proposed
  Charter Schools.
• Calculated estimated vacation and sick leave
  liabilities for all NOPS employees.
• Continue process to determine ongoing HR data
  management/system requirements. Including the
  development of new table structures (i.e., job
  titles, classifications, benefits, etc.).
• Continue to collect, communicate, and pursue
  organizations and individuals who have offered
  assistance and donations for NOPS so that we can
  be prepared to accept their donations of books,
  desks, funds, etc.

12
Human Resources and Payroll (cont.)

• Summary of Activities
• Payroll
• Located payroll employees and updated contact
  information.
• Completed reconciliation process between
  Estimated payroll and Actual payroll.
• Developed process to distribute and communicate
  underpayments to employees via Western Union.
• Worked with Coventry benefits provider and HR
  staff to develop move ahead plans for the month
  of September concerning employee benefits.
• Continuing to work with Western Union on payroll
  funds disbursement.
• Beginning the process of developing plans and
  procedures for perfecting FEMA related claims as
  they pertain to payroll costs.
• Developed plans and procedures for the filing of
  payroll tax returns subsequent to the last Oracle
  based payroll.
• Developed RFP for Outsourced Payroll/HR vendors.
• Developing plans and processes for the
  go-forward payroll system and department.
• Worked with ADP to develop a short term, interim,
  payroll processing and disbursing solution.
• Implemented the ADP PC/PW payroll system.
• Began the process of reconciling and closing the
  Oracle Payroll System and working with ADP to
  print 2005 W2s.
• Collected and stored necessary Oracle system
  payroll data.
• Developing plans and processes to facilitate the
  opening of schools and additions of returning
  personnel to payroll system by 11/01/2005.
• Evaluating new risk environment and developing
  revised payroll controls.
• Developing new payroll time entry processes.
• Performing general payroll clean-up activities.
  

13
Human Resources and Payroll (cont.)

• Work Planned For Upcoming Weeks
• Human Resources
• Continue to maintain and monitor call center to
  locate NOPS employees, disseminate information
  and respond to questions.
• Continue to monitor and update NOPS website to
  increase communication to parents, students and
  employees of NOPS (i.e., Frequently Asked
  Questions, current press releases and important
  information for NOPS parents and employees).
• Continue to monitor and analyze Student and
  Employee Indication of Interest via web-based
  hard copy forms.
• Execute on Principal, Teacher and non-teacher
  recruiting and staffing plan for proposed Charter
  Schools and non-Charter, NOPS schools.
• Develop, as required, HR related internal and
  external communications including press releases,
  website communications, FAQs, and call center
  scripts.
• Continue to collect and communicate with donor
  organizations and individuals who have offered
  assistance and donations for NOPS.
• Populate Employee Verification form for those
  NOPS employees who are brought back to ensure
  confirmation, clarity and agreement on salary,
  benefits, position, title, location, deductions,
  etc.
• Continue to develop agreements with external
  stakeholders to post job opportunities outside of
  the Parish in an effort to support NOPS employees
  in securing employment while they are on Disaster
  Leave.
• Continue to verify and process NOPS resignations,
  employment verification requests, mortgage
  requests, etc.
• Continue process to determine ongoing HR data
  management/system (position control) requirements
  including strategic outsourcing opportunities.
• Continue to work through Unemployment Insurance
  to confirm NOPS employees eligibility for
  Unemployment instead of Disaster Unemployment
  Assistance. Work with the agency to provide and
  receive the necessary information required for
  eligibility and reporting purposes.
• Revise TRMs (unemployment TPA) proposed
  contract, to reduce the amount of our state
  reimbursement.
• Continue implementing procedures for assisting
  NOPS employees who are interested in retiring or
  had questions about DROP or retirement service
  credit.
• Continue to responded to questions from the
  Retirement agencies regarding employee status and
  develop scripts for the various retirement
  agencies to response to questions from NOPS
  employees.
• Work with Coventry to finalize a plan to provide
  continuing healthcare coverage to impacted
  employees. Develop a plan to re-enroll
  employees into the catastrophic plan. Reconcile
  potential participant discrepancies related to
  the non-completion of the open enrollment process.

14
Human Resources and Payroll (cont.)

• Assist with the development of a benefit
  structure for the proposed Algiers Charter
  Association employees.
• Determine which non-healthcare coverages (i.e.,
  dental, vision, life, etc) to continue,
  eliminate, or amend for NOPS employees on
  Disaster Leave.
• Work with UTNO regarding the provision of
  benefits to members through the Health Welfare
  Fund, including Coventry and FBMC/FARA benefits.
• Continue to coordinate Workers Compensation
  payments with our third party administrator,
  Hammerman Gainer. Create a process for meeting
  our statutory obligations and manage cash flow.
• Finalize staffing, hiring and on-boarding process
  for NOPS and non-NOPS employees.
• Develop NOPS organization charts.
• Payroll
• Continue to located payroll employees, update
  contact information and respond to payroll
  questions.
• Reconciliation process between Estimated payroll
  and Actual payroll. Expected completion by
  10/7/2005.
• Continue to work with HRIT and IT resources to
  bring up an operating Oracle instance and
  production environment.
• Process bi-weekly payroll for employees brought
  back.
• Finalize plans and procedures for perfecting FEMA
  related claims as they pertain to payroll costs.
• Finalize plans and procedures for the filing of
  payroll tax returns subsequent to the last Oracle
  based payroll.
• Continue to develop plans and processes for the
  go-forward payroll system and department to
  include decision regarding earning and deduction
  elements.
• Refine the ADP PC/PW payroll system, interim,
  payroll processing and disbursing solution.
• Reconcile and close the Oracle Payroll System and
  working with ADP to print 2005 W2s.
• Collect and store necessary Oracle system payroll
  data.
• Continue to evaluate new risk environment and
  developing revised payroll controls.

15
Human Resources and Payroll (cont.)

• Payroll
• Work with ADP to stand up the proposed Charter
  Schools payroll system.
• Continue developing proposed Charter School
  payroll processes and procedures.
• Continue to develop proposed Charter Schools risk
  environment and control procedures.
• Develop time and attendance tracking and
  reporting system.
• Develop earnings and deduction elements for
  proposed Charter Schools.

16
Procurement
Summary Commentary Over the past two weeks, the
main focus of the Procurement Working Group,
among other things, has been to draft, solicit
and analyze informal Requests for Proposals
(RFPs) concerning the repairing and reopening
of the WestBank/Algiers schools as well as the
two Lusher Schools. To that end, we have been
focusing in many areas. The department drafted,
distributed and received Requests for Proposals
in the areas of General Contracting (GC)
services and Environmental Services. A total of
23 packages were sent to both national and local,
Louisiana firms for GC services, based on a
specific scope designed by the Facilities and
Maintenance Groups, with a cursory review
conducted by FEMA representatives.
Procurement received two responses with a third
bidder proposing work on 4 of the initial 10
sites. A total of 17 packages were sent to both
national and local, Louisiana firms for
Environmental Assessment services. The scope of
these services entailed the assessing the air
quality for mold and other hazardous materials
for the 10 sites and ensuring that when opened
these schools would be safe for all
students, teachers, parents, etc. The scope
also included proposing on a plan to remediate
effected areas. Procurement received six
responses. Procurement also drafted, distributed
and received Requests for Proposals for
Custodial/Janitorial services and HVAC repair
services on a monthly basis beginning in
November, 2005 through August, 2006. Out the 6
and 8 packages that went out respectively for
Custodial and HVAC, we received 5 and 4
responses, respectively. Similarly to the CG and
Environmental proposals, these were distributed
to both national and local, Louisiana firms. The
analyses, selection and execution of these
contracts will be completed in the next couple of
weeks. A committee of AM representatives and
NOPS representatives will recommend a choice to
Bill Roberti and Dr. Watson, with input from both
FEMA representatives and the States Legislative
Auditor. Another challenge that the Procurement
Group faced over the past two weeks pertained to
the development and design of purchasing
procedures going forward. We are currently
working Finance and IT with the input from other
departments to solidify those processes and
procedures. In the meantime, until budgets are
established, Procurement is accounting for all
purchases manually with approvals being done by
both AM and NOPS personnel. Obviously, for the
time being, these items have been minimal both in
volume and in nature. Over the next several
weeks, we anticipate having a much clearer view
of the direction in which the Purchasing function
will evolve.
17
Procurement (cont.)

• Key Accomplishments
• Drafted, distributed and received RFPs for
  General Contracting Services.
• Drafted, distributed and received RFPs for
  Environmental Assessment Services.
• Drafted, distributed and received RFPs for HVAC
  Services.
• Drafted, distributed and received RFPs for
  Janitorial Services.
• Conducted research and held various discussions
  with the States Child Nutrition Officials in
  reviewing options related to food service at
  Algiers schools.
• Assisted the Transportation Department in
  assessing and reviewing transportation of
  students anticipated to attend the Algiers
  schools.
• Assisted the IT department in the recovery of IT
  assets from 3510 General DeGualle.
• Arranged to have the elevator temporarily
  repaired for the move of the server racks.
• Arranged to have movers at the site on October 14
  to execute the move and transport the servers to
  the hosting facility.
• Arranged to have a service provide labeling of
  all wires as they are unplugged from the De
  Gualle site and properly plugged back in at the
  hosting facility.
• Assisted in other arrangements at the hosting
  facility.
• Sent out notifications to all capital projects
  contractors alerting them that their respective
  contracts with the District have been terminated
  due to Hurricanes Katrina and Rita.
• Worked extensively with Lushers principal in
  assisting her with emergency repair work and
  clean-up of Lusher elementary and Lusher
  extension.
• Commenced initial discussions with various office
  supply vendors in setting up Strategic Sourcing
  Arrangements to supply the Algiers schools with
  office supplies and school supplies.
• Created interim contract management system.
  Compiled contracts executed to date.

18
Procurement (cont.)

• Work Planned for Upcoming Weeks
• Assist in the selection of a GC contractor then
  work on contract process.
• Assist in the selection of an Environmental
  contractor then work on contract process.
• Assist in the selection of a HVAC contractor
  then work on contract process.
• Assist in the selection of a Custodial/Janitorial
  contractor then work on contract process.
• Distribute and receive bids on Transportation
  RFP.
• Draft, distribute and receive bids on Food
  Service RFP.
• Develop a Security plan for the Algiers school
  and then draft, distribute and receive bids on
  Security services, if necessary.
• Continue to work with Finance, IT and others in
  refining Purchasing process and procedures.
  Begin drafting revised policies for Board
  approval, including approval levels, bidding
  procedures, etc.
• Begin the assessment and design of an Inventory
  Management system.
• Continue discussions with various office supply
  vendors in setting up Strategic Sourcing
  Arrangements to supply the Algiers schools with
  office supplies and school supplies.

19
Information Technology

• Summary Commentary
• Supporting Financials, HR and Payroll systems
• We continued production support of Oracle. We
  executed final IBM Disaster Recovery contract
  through 10/26/05 to insure Oracle production
  support. We are negotiating with Oracle to
  migrate the Oracle production support to an
  Oracle hosting environment for a bridge solution
  until a replacement system is put into
  production. We completed the final payroll
  reconciliation and processed the Pre-Katrina
  true up file to Western Union for employee
  payroll distribution. We continued to use Oracle
  for queries and reporting for payroll, employee
  questions, Accounts Payable and General Ledger on
  a daily basis. We continued to support daily
  operations including systems backup and restore
  procedures and insuring that off-site backups at
  Iron Mountain are up to date. We are developing
  an RFP for new enterprise Financials, HR and
  Payroll systems for the proposed Algiers Charter
  School Association including the identification
  of candidates, preparation of the RFP and
  scheduling of product demonstrations.
• Re-establishing the Student Information Systems
  capabilities
• We recovered the SASI student information system
  and restored 5 years of NOPS student history. We
  are continuing to enter pre-registration intent
  to return student information. We conducted a
  meeting with the state Department of Education
  regarding the printing of transcripts for
  students in different parishes of the state.
• Re-locating NOPS Data Center to Cox
  Communications facilities in New Orleans
• We conducted an RFP with 3 WAN vendors to support
  the migration of the NOPS network gear and
  selected Cox Communications based on no charge,
  location and service level. We identified
  required IT assets to be moved to Cox including
  network, telecommunications, application servers
  (SASI and Winsnap), website and email servers.

20
Information Technology (cont.)

• Summary Commentary (cont.)
• Managing the E-Rate Process
• We are responding to the E-Rate Selective Review
  Information Request with USAC, Universal Service
  Administrative Company-School Libraries
  Division (SLD) for year 8. The responses will be
  submitted to SLD during the week of 10/17 with
  anticipated approval shortly there after. We are
  developing IT Plan for year 9 E-rate filing for
  submission by November 1, 2005.
• Establishing Post-Katrina Distance Learning
  capabilities
• We developed distance learning plan for the
  proposed Algiers Charter School Association for
  graduating seniors. We scheduled video
  conferencing demonstration to review best
  practice video field trip with Bell South. We
  are planning for point-to-point video
  conferencing connectivity between the 2 Algiers
  senior high schools which will enable cost
  effective teacher-student ratios for critical
  courses.

21
Information Technology (cont.)

• Summary of Activities
• Supporting Financials, HR and Payroll systems
• Continued production support of Oracle
• Executed final IBM Disaster Recovery contract
  through 10/26/05 to insure Oracle productions
  support
• Negotiating to migrate Oracle production support
  to external hosting environment for a bridge
  solution until a replacement system is put into
  production
• Completed final payroll reconciliation and
  processed Pre-Katrina true up file to Western
  Union for employee payroll distribution
• Continued to use Oracle for queries and reporting
  for payroll and employee questions on a daily
  basis
• Continued to support Finance on Oracle for
  Accounts Payable and General Ledger on a daily
  basis
• Continued to support daily operations including
  systems backup and restore procedures, insuring
  that off-site backups at Iron Mountain are up to
  date
• Developing RFP for new enterprise Financials,
  Procurement, HR and Payroll systems for Algiers
  Charter School Association
• Identified several leading K12 software vendors
• Communicated with the National Public Charter
  School organization regarding charter school
  technology solutions
• Drafted RFP and business requirements for
  distribution to candidates
• Completed presentation and demonstration of ADP
  Enterprise as a HR/Payroll solution
• Scheduled product demos for 2 proven K-12
  candidates to take place during the week of 10/17

22
Information Technology (cont.)

• Summary of Activities (cont.)
• Re-establishing the Student Information
  Systems capabilities
• Recovered the SASI student information system
• Restored 5 years of NOPS student history
• Continuing to enter intent to return student
  information
• Re-locating NOPS Data Center to Cox
  Communications facilities in New Orleans
• Conducted an RFP with 3 WAN vendors to support
  the migration of the NOPS network gear
• Selected Cox Communications, our current data
  network and telephone carrier, based on no charge
  use of their data center facility for as long as
  we need it
• Identified required IT assets to be moved to Cox
• Network and content filtering
• Telecommunications
• Application servers (SASI and Winsnap)
• Website servers
• Email servers
• Managing the E-Rate Process
• Responding to the E-Rate Selective Review
  Information Request with USAC, Universal Service
  Administrative Company-School Libraries
  Division (SLD) for year 8.

23
Information Technology (cont.)

• Summary of Activities (cont.)
• Establishing Post-Katrina Distance Learning
  capabilities
• Developed distance learning plan for the proposed
  Algiers Charter School Association for graduating
  seniors.
• Scheduled video conferencing demonstration to
  review best practice video field trip with Bell
  South.
• Planning for point-to-point video conferencing
  connectivity between the 2 Algiers senior high
  schools. This will enable cost effective
  teacher-student ratios for critical courses.

24
Information Technology (cont.)

• Work Planned For Upcoming Weeks
• Support Financials, HR and Payroll systems
• Production support of Oracle
• Finalize move from IBM Disaster Recovery site to
  a 3rd party hosting environment
• Minimize production interruptions to users during
  the transition from IBM Disaster Recovery site to
  Oracle hosting site
• Provide continued production support of Oracle
  applications on a daily basis
• Developing RFP for new enterprise Financials,
  Procurement, HR and Payroll systems for proposed
  Algiers Charter School Association
• Complete and distribute RFP to candidates
• Develop evaluation checklist for scoring the
  candidates
• Conduct any additional product demonstrations and
  follow-up on information requests of the
  candidates
• Conduct reference checks on the software
  finalists
• Re-establishing the Student Information Systems
  capabilities
• Continue to enter intent to return student
  information to assist in the analysis of the
  potential student base
• Continue to support the re-opening of the
  proposed Algiers Charter School Association
  schools in November and January
• Complete move to NOPS Data Center to Cox
  Communications facilities in New Orleans
• Move NOPS IT assets to Cox Communications Data
  Center
• Test and confirm operations of NOPS IT assets
• Network

25
Information Technology (cont.)

• Work Planned For Upcoming Weeks (cont.)
• Continue to Manage the E-Rate Process
• Complete response to the E-Rate Selective Review
  Information Request with USAC, Universal Service
  Administrative Company-School Libraries
  Division (SLD) for year 8
• Complete IT Plan for year 9 E-rate filing and
  submit to the SLD by November 1, 2005
• Establish Post-Katrina Distance Learning
  capabilities
• Distribute distance learning plan for the Algiers
  Charter School Association for graduating seniors
  
• Plan detailed point to point video conferencing
  capability between the Algiers High Schools

26
Facilities and Maintenance
Summary Commentary Over the last two weeks, the
Facilities Maintenance and Construction
Management teams have focused on two key
activities, including developing/supporting the
request for proposals (RFPs) to support HVAC,
Environmental, Custodial and General Contracting
services, and continuing to perform site
inspections while developing/awarding contracts
for emergency repair work. The RFPs for the
HVAC, Environmental, Custodial and General
Contracting services were distributed on Monday,
October 3rd to approximately 45 vendors.
Responses were received on Wednesday, October
12th. The content of the RFPs had been collected
through prior site inspections and through the
use of leveraging aspects of contracts that had
previously existed, i.e. defining scope and
expectations of what was required. From a
duration perspective, the contracts focused on
getting the 8 West Bank and 2 Uptown schools
repaired and ready to open. Plus, with the
exception of the environmental services, the RFPs
included a support phase through the end of
August 2006. By the end of this time period, it
is our expectation that another, longer term RFP
would be developed and distributed to various
vendors. It is anticipated that the number of
schools would increase under the future contract
as more students return to the district. On
Monday, October 17th, a team will convene to
review and recommend the preferred providers for
HVAC, Environmental, Custodial and General
Contracting services. It is our expectation that
we will negotiate a contract that allows the
vendor to begin work as early as Monday, October
24th. In addition to the current list of 8 West
Bank schools that we plan to re-open in November
and the 2 Uptown schools that we plan to repair
by January 1st, we understand that 3 Recovery
Schools (Capdau, Green and Sophie B. Wright) are
to be repaired by January 1st as well. We will
create separate RFPs to support the needs of
these schools, rather than asking vendors to
recast their proposal and cost estimates by
incorporating these newly identified sites.
27
Facilities and Maintenance (cont.)
Summary Commentary (cont.) Our second focus
over the last two weeks has been the continuation
of performing high-level inspections that allow
us to identify emergency repairs. As of the end
of the day on Friday, October 14th, the team has
completed approximately 50 site inspections and
identified the required emergency repairs. These
50 site inspections are in addition to the
original 21 site inspections that had been
performed by the Council of Great City Schools.
The result of the inspections has been the
creation and distribution of emergency repair
RFPs. Our process has been to group emergency
repair RFPs into manageable sizes, i.e.
approximately 10-15 schools, and separating roof
repair from securing windows and doors. As we
complete site inspections for each grouping of
schools, we have crafted and distributed these
RFPs to various local vendors. Each bid process
has been competitive as 4 vendors are typically
included in the bid process. Responses to the
most recent emergency repair RFP is expected to
be received by Monday, October 17th at 3PM.
28
Facilities and Maintenance (cont.)

• Key Accomplishments
• Met with the Finance Team on Tuesday, October 4th
  to aid in estimating the cost of emergency repair
  work and likely outcomes of the RFP process.
• Completed and distributed RFP packages to support
  the need for the General Contractor, including
  waste removal, Environmental, Custodial Services,
  and HVAC services. The RFPs focus on providing
  services to get the schools ready to re-open in
  November and to provide support through August
  2006 until a longer term outsourced solution can
  be implemented.
• Conducted Pre-Bid site visits with the General
  Contractors, Environmental, Custodial and HVAC
  bidders.
• Received bid responses from suppliers in the
  General Contracting, Environmental, Custodial and
  HVAC areas on Wednesday, October 12th.
• Provided contracted plumbing services (Blue
  Flash) to address issues at Landry, which is
  currently being utilized by the National Guard,
  FEMA and the Red Cross.
• Expanded scope of emergency repair services by
  Crown Roofing to address issues at Lusher.
• Prepared various schedules for opening schools
  for the Friday, October 7th Board Meeting.
  Schedules highlighted the impact of FEMA efforts
  and the 30-day negotiation and contract approval
  process that currently exists within the
  district.
• FEMA project officers developed their Project
  Worksheets for the 8 schools that are to be
  opened in November. They utilized the detailed
  content that the AM / NOPS team members had
  developed as their basis.
• Facilities Maintenance team oriented a new,
  free of charge team member. Neil Christie, AM
  European Practice, will be with the team for a
  two week time period, beginning Monday, October
  10th Friday, October 21st. Neil is focused on
  performing the next level of inspections for the
  other 95 schools. The outcome of his efforts
  will drive the creation of RFPs to perform
  emergency repairs for these facilities.
• Adjusted and communicated changes to the General
  Contracting RFP based on progress of general
  cleaning being provided by the National Guard.
• Developed a draft version of the timing for
  re-opening all NOPS schools. The listing
  separates schools being opened in January 2006,
  September 2006, September 2007 and September 2008
  and beyond. High-level reviews of the
  approximate 100 schools were performed, but
  further detailed inspections will be required, as
  well as performing a demographic study, before
  the list and schedule is finalized.

29
Facilities and Maintenance (cont.)

• Key Accomplishments (cont.)
• Performed follow-on inspection at Eisenhower and
  Rosenwald to confirm whether emergency repairs
  were required prior to awarding contract to a
  General Contractor. We decided to include the
  Rosenwald roof repair within the emergency repair
  RFP, but we will not fix the Eisenhower leaks as
  they are minimal and the structure is acceptable
  until the General Contractor repairs.
• Three (3) Recovery Schools, Sophie B. Wright,
  Green and Capdau, were identified to be opened on
  January 1, 2006. The team immediately
  re-inspected the sites to confirm the ability to
  repair by the end of the calendar year. A
  separate RFP will be created to support the
  repairs for the 3 Recovery Schools versus
  changing the original RFPs that were distributed
  on Monday, October 4th.
• Documented list of contracts that have been
  executed to date in support of Board request to
  see monthly status reports relative to contracts.
• Developed an emergency repair RFP to support
  repairs at Landry, Tubman, McD 32, Schwartz,
  NOCCA Old, Rabouin, Andrew Jackson, McD 15, NOCCA
  Live Oak, NO Free, Wright, Benjamin Franklin,
  Crossman, Clark and the West Bank Bus Garage.
• Developed an emergency repair RFP for roofing to
  support repairs at Landry, Tubman, McD 32, McD
  15, NOCCA Live Oak, NO Free, and Rosenwald.
• Work Planned for Upcoming Weeks
• Review proposals from HVAC, Environmental,
  Custodial and General Contracting suppliers.
• Negotiate and award contract to suppliers for
  HVAC, Environmental, Custodial and General
  Contracting services.
• Establish management and status reporting process
  to oversee supplier progress.
• Continue to perform emergency repair inspections
  at remaining schools within the district.
• Create emergency repair bids where appropriate.
• Award Emergency Repair and Emergency Roof Repair
  contracts.
• Award locksmith contract suppliers to re-key
  locks at the 13 West Bank schools.
• Develop and distribute RFP package to support
  necessary repairs at 3 Recovery Schools,
  including Sophie B. Wright, Green and Capdau.
• Perform detailed assessment of fire alarm and
  intercom systems to determine needs.

30
Facilities and Maintenance (cont.)

• Issues, Comments and Other
• The team needs to relocate to New Orleans to more
  effectively oversee the work on the schools.
• The use of keys to provide access to schools has
  proven to be cumbersome as we attempt to support
  the needs of various groups, including school
  inspections, FEMA walk-throughs, Insurance
  Reviews, cleaning by the National Guard, etc. We
  have begun to remedy this issue by having called
  vendors to obtain unit prices. Our initial focus
  will be the re-keying of the 13 West Bank sites.

31
Dispute Analysis and Forensics
Summary Commentary In the past two weeks, the
Dispute Analysis and Forensics group has worked
to develop a conceptual framework for the
insurance claim and FEMA claim process. Our key
efforts were to clearly understand and grasp the
insurance policies, meet with adjusters to
develop an adjustment strategy, seek advances
from insurance companies to help aid the
mitigation of damage process, and understand the
assets of OPSB. Our Progress over the Past
Two Weeks Insurance - We have received copies of
all insurance policies from Aon and have reviewed
them. There appears to have been a significant
loss of OPSB accounting data, which will require
significant work related to the accounting for
all assets, including land, buildings and
structures, furniture fixtures and equipment, and
books and supplies. Thus, the DAF group is
working to recreate these records through the
research of city, county and state records.
Additionally, we compared properties within the
property policy and the flood policies and have
determined certain properties were not properly
insured. We are continuing our research in this
matter and should fully understand the
consequences of this under-insured / non-insured
properties once they have been fully
identified. Additionally, we are focusing on
working with the insurance companies, adjusters,
and brokers to receive advances from the
insurance companies to continue our mitigation
efforts. Both the insurance companies and FEMA
are very concerned about our response in this
matter and we anticipate Lexington to have funds
forthcoming soon. Finally, we are working with
the flood insurance carrier and the automotive
insurance carrier to maximize the policy amounts
for each of these policies. We have received
approval for a 1.5 million advance against the
automotive policy on Friday. We expect an
advance against the flood policies in the next
two weeks. FEMA - Discussions with FEMA are
proceeding very slowly and we anticipate the
slowness to continue until a larger remediation
plan for the school board is in place. We are
working to begin a weekly capital projects /
repairs meeting every Tuesday and include FEMA as
part of that meeting. As a result, we believe
that more productive communications and an
established FEMA plan will be forthcoming soon.
32
Dispute Analysis and Forensics (cont.)

• Summary of Activities
• Insurance Claims
• Determination of Assets
• Requested and received copy of the addresses of
  property owned by the OPSB from the Algiers Tax
  Assessors office. Assessor was able to retrieve
  listing of all property listed by all of the Tax
  Assessors office as being owned by the School
  Board in the Parish.
• Met with the State department of Lands office.
  Found property owned by the state, but managed by
  the OPSB. These Section 16 lands allow for all
  proceeds generated either through leases, sales,
  or rents from these properties to be to the
  benefit of the OPSB. Requested land plots for
  these properties.
• Researched records from the accounting department
  for all fixed assets. Found a fixed asset
  inventory for 2004 that appears to be incomplete.
  Did not find 2005 asset listing, though data on
  one computer was irretrievable.
• Requested copies of the check register for 2001
  2005 for all furniture, fixtures and equipment,
  supplies, and repairs and maintenance.
• Loss Payees / Certificates of Insurance
• Called and requested copies of all loans,
  mortgages or leases that were attached to
  insurance policies.
• Vehicles Requested and received copies of all
  titles of busses that were purchased and financed
  by Chase. Also received copy of the financing
  documents.
• Modular Buildings Requested and received copies
  of leases for modular buildings that were
  purchased. Analyzed the leases and researched
  locations of modular buildings to determine the
  extent of the damage to them.
• I Can Learn Program Researched documents
  related to the I Can Learn Program and
  attempted to document the location of the
  computers.
• Worked with Accounting and Legal to determine
  best method of protecting the OPSB from liability
  at the insurance proceeds are paid. Agreed to
  set aside full values of the losses for the named
  additional insureds until the value of the losses
  can be determined.
• Created and executed an Indemnification and Hold
  Harmless Agreement to give to Lexington to
  release all insurance proceeds to OPSB.
• Initiated calls to Motorola to determine value
  damages for items listed on certificate of
  insurance.

33
Dispute Analysis and Forensics (cont.)

• Summary of Activities (cont.)
• Insurance Claims
• Policies
• Reviewed all insurance policies and outlined
  major components within them.
• Discussed and requested names of potential law
  firms that could be retained for coverage
  counsel.
• Adjusting Activities
• Property Policy
• Conducted meetings with all adjusters for each
  layer of insurance. Discuss strategy for
  adjustment and initial work to be performed.
• Created RFP to provide estimates of repairs,
  distinguishing between water damage and wind
  damage.
• Coordinated efforts to have personnel available
  for adjusters inspections.
• Worked with Lexington adjuster to receive an
  advance and discuss progress.
• Flood Policies
• Met with adjuster for Travelers Flood policies.
  Discussed adjustment procedures and coordinated
  efforts for physical access for site inspections.
• Automotive Policies
• Met with adjuster and coordinated efforts for
  site inspection of the bus yards.
• Researched additional problems surrounding the
  rental vehicles damaged during Katrina that were
  rented by OPSB.
• Brokerage

34
Dispute Analysis and Forensics (cont.)

• Work Planned For Upcoming Weeks
• Insurance
• Research Tax Assessors records and attempt to
  retrieve copies of titles for all lands owned by
  OPSB.
• Determine what buildings are on lands owned by
  OPSB.
• Research Section 16 properties to determine what
  buildings / other entitlements are attached to
  the property.
• Research documents and hire appraisers to value
  the contents within the OPSB buildings.
• Research and document replacement value for
  damaged property.
• Work with insurance adjusters to value the repair
  costs of the properties.
• Continue to seek advances for insurance companies
  and work to mitigate damages to properties.
• Continue to perform site visits with insurance
  adjusters.
• Review and document repair estimates as work is
  to be completed.
• Document and segregate repair costs as they are
  completed for FEMA and insurance reimbursement.
• Compile and research the value of properties for
  named additional insured. Negotiate and settle
  with named additional insured.
• Work with FEMA to develop a long range property
  management and damage plan.
• Retain coverage counsel and work with firm to
  develop strategies to maximize insurance and FEMA
  proceeds.
• Work with State School Board in preparing OPSBs
  FEMA claim.

35
Appendix
36
Schedule A - Financial Reporting

37
Schedule A - Financial Reporting (cont.)

38
Schedule B - Accounting Records

39
Schedule B - Accounting Records (cont.)

40
Schedule B - Accounting Records (cont.)

41
Schedule C - Internal Controls

42
Schedule C - Internal Controls (cont.)

43
Schedule D - Budget Control, Allowable Cost
and Cash Mgmt.
44
Schedule D - Budget Control, Allowable Cost
and Cash Mgmt. (cont.)
45
Schedule D - Budget Control, Allowable Cost and
Cash Mgmt. (cont.)
46
Schedule D - Budget Control, Allowable Cost
and Cash Mgmt. (cont.)
47
Schedule E - Human Resources

48
Schedule E - Human Resources (cont.)

49
Schedule E - Human Resources (cont.)

50
Schedule E - Human Resources (cont.)

51
Schedule E - Human Resources (cont.)

52
Schedule E - Human Resources (cont.)

53
Schedule E - Human Resources (cont.)

54
Schedule E - Human Resources (cont.)

55
Schedule E - Human Resources (cont.)

56
Schedule F - Payroll
57
Schedule F Payroll (cont.)
58
Schedule F Payroll (cont.)
59
Schedule F Payroll (cont.)
60
Schedule F Payroll (cont.)
61
Schedule F Payroll (cont.)
62
Schedule G - Procurement

63
Schedule G Procurement (cont.)

64
Schedule G Procurement (cont.)

65
Schedule G - Procurement (cont.)

66
Schedule G Procurement (cont.)

67
Schedule G Procurement (cont.)

68
Schedule H - Risk Management
69
Schedule H Catastrophic Claims Management
70
Schedule I Information Technology
71
Schedule I Information Technology (cont.)