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Something Is Wrong With This Picture

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There is something wrong with this picture: (1) Katy ISD paid Xpediant $13 M to do technology consulting. (2) Four administrators of Katy ISD worked with Xpediant to develop some sort of glorified "systems management" program called KMAC. (3) Evidently these four Katy administrators worked on KMAC during the school day while they were also drawing a salary from Katy ISD to perform their administrative duties. (4) There are no analytical studies to prove that KMAC has raised academic achievement in the district. (4) Xpediant cannot produce any documents to prove that classroom teachers using KMAC are any more effective than those teachers not using KMAC. (5) These four Katy administrators are now seeking a patent for KMAC. Their plan is to market KMAC to other districts. (6) Their invention was developed using Katy ISD equipment and office space while they were employed full-time at taxpayers' expense. (7) As reported by Peyton Wolcott, Xpediant is not even in good standing with the Texas Attorney General's office because among other things, Xpediant has not paid its back taxes even though they have been paid over $13 M by Katy ISD. (8) The Katy ISD voters are currently being asked to approve millions of dollars more in technology spending in an upcoming bond election. (9) Katy ISD says it cannot "possibly" produce the information requested in A. D. Muller's open records requests regarding Xpediant and KMAC until AFTER the bond election is held.

As I said earlier, "Something is wrong with this picture." Duh!

 

© 2006 by Donna Garner. All rights reserved.

 

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http://www.educationnews.org/Commentaries/KATY_ISDS_$13-MILLION_TO_XPEDIANT_LLC.htm

EducationNews.org -- 4.17.06

TECH SPENDING UPDATE: WHO'S OVERSEEING
KATY ISD'S $13 MILLION TO XPEDIANT, LLC?

By Peyton Wolcott - April 17, 2006
www.peytonwolcott.com


Katy ISD supe Leonard E. Merrell

Katy ISD has paid Xpediant, LLC $13 million since June 7, 2002 for unbid work; also, KISD has applied for a patent it is developing with Xpediant for a curriculum management system which it plans to market to other school districts. (SOURCE--George Scott/Katy News)

But according to sources within the Texas Secretary of State's office this morning, Xpediant, LLC, "in our world here doesn't have an active entity status" and has been in a state of forfeiture since February 13, 2003 because "they didn't do their state franchise taxes," with the result that Xpediant "has no entity status and no liability shield." Xpediant's 2003 return has not yet been received, making it almost three years overdue.

An employee of the Texas Comptroller's office confirmed this morning that "Xpediant is not in good standing with us" although would not state the amount of taxes due, stating only that the formula was based on gross income receipts available only on the entity's IRS returns.

The Secretary of State's records indicate that Xpediant, LLC was formed July 31, 2001 in Sugarland, Texas; the president is Scott Wright and the vice president is Jack Wayne Caskey, and both men are also directors of the company.

Wright and Caskey officing at KATY ISD?

According to Katy ISD's website earlier today, both men are listed as KISD "technology staff," with Wright as "Executive Director, Technology Operations" and Caskey as "Director, Technical Services-System Engineering, Networking Engineering, Server Operations."

Sources familiar with the district's operations indicate that both individuals occupy office space in the Leonard E. Merrell Center and have been allocated support personnel, as confirmed by George Scott's piece in tomorrow's Katy News. Neither Wright's nor Caskey's names appear on the patent application.

Good news for Xpediant from the SOS

The good news for Xpediant from the secretary of state's office is that once they've filed their late returns, paid their back taxes, and obtained clearance from the Comptroller, they can then come back to the SOS and file Form 801 ("Reinstatement Application"), pay the $75 fee, and they're then good to go.

But the question for Katy ISD taxpayers is, where? The district, already charging Texas' maximum legal property tax rate of $2.00/$100 valuation, is operating at a budget deficit for the current school year and seeking voter approval next month for a $261.5 million bond issue which includes $30,351,000 for technology. Is this the intent of local taxpayers, to fund a technology company whose taxes and business status, according to state Offices, appear to be in arrears?

____________________________

FOLLOW UP. I have today queried Katy ISD supe Leonard E. Merrell (with copies to Katy ISD board members) as to the following: Where is Katy ISD's fiduciary duty of care in doing business with Xpediant given its apparent current state of forfeiture? What specific steps did you take to ensure that Katy ISD was doing business with a business entity in good standing? What are Wright's and Caskey's exact current employment status at KISD, their individual salaries, terms of their employment contracts including all perqs, and specifics as to Katy ISD personnel under the direct control of Wright and Caskey and any and all business arrangements between Xpediant and Katy ISD?

FURTHER FOLLOW UP. I have also asked Xpediant's Wright and Caskey why they haven't paid their taxes and brought their corporate status current as the average person would assume $13 million would allow for sufficient financial wiggle room for those back taxes to be paid from. Will post their responses if and when.

Copyright 2006 Peyton Wolcott - All rights reserved

Donna Garner
wgarner1@hot.rr.com

Writer/Consultant for MyStudyHall.com
http://www.mystudyhall.com

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http://www.educationnews.org/Curriculum/Language_Arts/grammar_packets.htm

Texas Alternative Document (TAD) for English/Language Arts/Reading (Pre-K-12)
http://www.educationnews.org/Curriculum/TAD/texas_alternative_document.htm

Research-Paper Writing
http://www.educationnews.org/Curriculum/Language_Arts/The_Lost_Art_of_Research_Paper_Writing.htm

Steps to Research Paper
http://www.educationnews.org/Curriculum/Language_Arts/STEPS-TO-RESEARCH-PAPER.htm

Expository Reseach Paper - English I-II
http://www.educationnews.org/Curriculum/Language_Arts/EXPOSITORY-RESEARCH-PAPER-ENGLISH-I-AND-II.htm

Expository Research Paper - English III-IV
http://www.educationnews.org/Curriculum/Language_Arts/EXPOSITORY-RESEARCH-PAPER-ENGLISH-III-AND-ENGLISH-IV.htm

 

© 2006 by Peyton Wolcott. All rights reserved.

Donna Garner & Peyton Wolcott

Date: 04/17/2006