Investigation Found Internal Controls Failed At Higley School District Due To Superintendent’s Misconduct

Investigation Found Internal Controls Failed At Higley School District Due To Superintendent’s Misconduct

By Terri Jo Neff |

An investigation by the Arizona Auditor General has led to criminal charges being filed earlier this month against several people involved with the building of two new schools for the Higley Unified School District in Gilbert, including the district’s former superintendent, it was announced late Thursday.

Angela Denise Birdwell was indicted July 13 by a state grand jury for 18 counts related to procurement fraud, misuse of public monies, fraudulent schemes and practices, conflict of interest, filing a false state tax return, fraudulent schemes and artifices, and conspiracy. She served as Higley’s superintendent from 2009 until her retirement in 2015.

“Public officials with oversight authority have a responsibility to properly manage the administration of money and property entrusted to them and must ensure that sufficient internal controls are designed and implemented to protect those assets,” according to the Auditor General’s report. “Nevertheless, a system of internal controls will not succeed when those in a position to oversee those operations are perpetrating unlawful behavior and concealing their misconduct.”

Among the more serious issues identified by the Auditor General was Birdwell’s possible misuse of public monies from December 2012 to November 2013 when she authorized or caused the unlawful use of $6 million in restricted public funds toward construction of two new schools in the Higley district, which serves about 10,000 PK-12 students.

Also indicted were Gary Aller and Steven Nielsen, both corporate officers of Educational Facilities Development Services (EFDS) which was awarded a $2.5 million project development service contract related to construction of the new schools. Investigators believe EFDS had access to “early and exclusive Project information” which provided the company an advantage over other prospective vendors.

Public records show Aller and Nielsen founded EFDS in 2012 just two weeks before the Higley District issued an RFP for project development services. The men are each charged with three felonies related to fraudulent schemes and practices, conspiracy, and fraudulent schemes and artifices. There is also an allegation Birdwell violated state procurement laws in connection to the EFDS contract.

“Dr. Birdwell was 1 of 3 selection committee members, and she evaluated EFDS with the only perfect score and recommended Higley award EFDS the Project development services contract, which the Higley Governing Board approved on July 12, 2012,” the report states.

Meanwhile, three felonies related to filing of a false state tax return were brought by the state grand jury against Kay Hartwell Hunnicutt, an attorney described in the Auditor General’s report as being a “close acquaintance” of Birdwell, with whom she shared a home as well as a checking account.

According to the Auditor General, Birdwell indirectly received or benefited from $43,000 paid by Hunt & Caraway Architects Ltd., which served as the district’s procurement advisor and was part of the EFDS development team. Hunt & Caraway, whose now deceased president was never registered in Arizona as an architect, issued checks to Hunnicutt or Hunnicutt’s law office, which were then deposited in a checking account held jointly by Birdwell and Hunnicutt.

Concerns have been rife for years about misconduct related to the school construction projects, according to State Rep. Jake Hoffman (R-LD12), who served as a Higley district board member from 2013 to 2015. Hoffman says he and another board member were criticized by Higley district administrators in response their attempts to look into concerns at the time.

“The level of apparent corruption is staggering and heartbreaking. I am proud to have actively fought against this abuse of power, misuse of taxpayer monies, and blatant disregard for the law during my tenure on the Higley governing board,” Hoffman said, adding that he plans to use the Auditor General’s findings to push for education reform during next year’s legislative session.

After retiring from Higley, Birdwell received eight checks totaling $57,000 from Hunt & Caraway before she was hired in 2016 by the Scottsdale Unified School District as its superintendent through June 2019.

The memo section on two of the Hunt & Caraway checks referred to “consulting” but the company failed to provide investigators any documents supporting the purposes of the checks.

But Birdwell’s time at SUSD was cut short, when she was given a $150,000 contract buyout in April 2018 after district officials alleged she failed to disclose a “substantial, personal interest” with Hunt & Caraway, which billed the Scottsdale District for nearly $2 million after Birdwell became its superintendent.

Birdwell is accused of not claiming the payments as income on her state income tax returns.

Court dates have not been announced for the four defendants who will stand trial in Maricopa County Superior Court.

Threats Of Termination For Refusing Vaccinations Send Shockwaves Through Already Short-staffed Healthcare Industry

Threats Of Termination For Refusing Vaccinations Send Shockwaves Through Already Short-staffed Healthcare Industry

By Terri Jo Neff |

Shockwaves continue to ripple through Arizona’s beleaguered healthcare industry after Tuesday’s emailed announcement by Banner Health CEO Peter Fine that employees could lose their jobs if they fail to provide proof of a COVID-19 vaccination by Nov. 1.

Fine’s companywide email touted uncited “overwhelming evidence” and “vaccine data” which purportedly proves the “safety and efficacy” of the three current vaccines. Employees will have the option to undergo an unspecified “exemption request process,” in hopes of retaining their job without being vaccinated but the between-the-lines message to Banner Health employees is that terminations are possible for refusing to subject themselves to the risks of an emergency-use-only vaccine.

Banner Health is also putting up $100,000 to award 10 fully-vaccinated employees with $10,000 each in a companywide drawing this summer.

“We care for some of the most vulnerable people in our communities and we owe it to them to take every measure possible to ensure the safest care environment,” Fine wrote, adding that mandatory vaccinations will reduce risk “for our patients, their families, visitors and each other.”

The problem, according to many in the healthcare industry, is that Arizona is already experiencing a shortage of workers in a high demand market. An exodus of qualified workers to other hospital systems or into smaller healthcare companies could leave Banner Health without enough medical professionals to adequately serve its patients.

Studies show the majority of healthcare workers who have declined so far to be vaccinated for COVID-19 are under the age of 40. Many have expressed concern about the lack of data about long-term impacts on fertility and overall health.

In April, Gov. Doug Ducey issued an Executive Order banning proof of vaccinations, also known as vaccine passports, and preventing state and local governments from requiring anyone to disclose their COVID-19 vaccination status to receive service or enter a public area.

The Order, however, allowed health care institutions to require COVID-19 vaccination status documentation of a patient, resident, employee, or visitor.

Protecting all Arizonans from being coerced into obtaining a COVID-19 vaccination was a priority for Rep. Bret Roberts throughout the recent legislative session. Roberts (R-LD11) advocated strongly for passage of a state law to prevent government and private employers from interfering with anyone’s freedom of choice when it came to being vaccinated.

Eventually the language of Roberts’ bill was watered down to protect those doing business with government entities, as well as customers and clients of private employers. Employees of private companies -particularly those working in the healthcare industry- would have had no protection.

The bill never made it to Ducey’s, but the governor did sign legislation which ensures any person “may refuse a vaccination…based on the person’s personal beliefs” during a public health emergency.

Roberts spoke out Tuesday against Banner Health’s mandate, expressing concern about the unknown risks associated with the current COVID-19 vaccines.

“Force and coercion, in my opinion, are not routes that should be taken,” he said. “Adults should be able to weigh the risks involved and decide for themselves.”

One of those who opposed freedom of choice protections for employees of private companies was State Sen. T.J. Shope (R-LD8). Shope bragged earlier this month about protecting Arizonans -including legislative staffers- from government required proof of vaccinations, but refused to support the same protections for most employees across the state.

To date, Banner is the largest private employer in Arizona to announced forced vaccinations as a condition of new or continued employment. However, earlier this year the U.S. Chamber of Commerce provided tips to its members on how to persuade employees and customers to receive the COVID-19 vaccine.

“Vaccination is a personal decision, so it’s logical that when employers show a personal willingness to be vaccinated, they are more likely to increase the willingness of their employees—across all demographic groups – to follow their lead and get the shot,” according to the chamber’s website.

The website also provides guidance for employers on talking to employees about getting vaccinated and includes advice on conducting business-sponsored “get vaccinated” events.

Biggs Introduces Companion Bill To Paul’s To Repeal Travel Mask Mandate

Biggs Introduces Companion Bill To Paul’s To Repeal Travel Mask Mandate

By B. Hamilton |

Congressman Andy Biggs introduced last week the House companion legislation to Senator Rand Paul’s Travel Mask Mandate Repeal Act of 2021. The bill prohibits the imposition of mask mandates on public transportation.

The House version is currently cosponsored by Congressman Randy Weber (TX-14), Congressman Andrew Clyde (GA-09), Congressman Tom McClintock (CA-04), Congressman Bob Gibbs (OH-07), Congressman Chip Roy (TX-21), Congressman Louie Gohmert (TX-01), and Congressman Lance Gooden (TX-05).

“There is no scientific evidence for the continuation of mask mandates on public transportation. Bottom line, mask mandates are old news, and are only being kept in place by those who relish controlling our day-to-day lives. The viral spread is collapsing and our normal lives are returning. It’s time for the CDC to follow the science and end the tyrannical COVID-19 restrictions once and for all,” said Biggs in a press release.

“The federal government forcing the American people to continue to wear masks despite the fact that we’ve already reached herd immunity is ridiculous and needs to end immediately,” said Dr. Paul. “I am introducing the Travel Mask Mandate Repeal Act of 2021 to put a stop to this nanny state mandate of requiring masks on public transportation. In a free country people will evaluate their personal risk factors and are smart enough to ultimately make medical decisions like wearing a mask themselves.”

“It’s time to recognize the never-ending government mask requirements as the political theater they are. Americans are capable of making their own decisions; it’s time to choose freedom over fear,” said Roy.

“The mask mandate is just another overreach by the power-grabbing administration. Americans make calculated decisions about their health risks every day, and through our combined efforts, we’ve virtually reached herd immunity. Given the air-circulation technology utilized on most modern airplanes, not to mention the science that corroborates the effectiveness of these innovations, it’s about time that we return to pre-pandemic normalcy by removing this—sometimes arbitrary—restriction from the flying public,” argued Weber.

“CDC Director Walensky said last month that those who are fully vaccinated are fully protected from the variants of COVID-19, including the ‘delta’ variant,” said Gibbs. “The science has made clear how effective the vaccines are and we are reaching the point at which those choosing to remain unvaccinated have taken on that risk to themselves, not to anyone else. We cannot only ‘follow the science’ when it is politically convenient and ignore it, like we are now, when it no longer conforms to bureaucrats’ desire for power. Continuing to punish those who have been fully vaccinated makes as much sense as defunding the police after violent crime incidents have spiked. If the TSA and CDC won’t rescind this mandate, it’s time for Congress to act.”

“The American people have been battling COVID-19 for over a year, and our lives are finally starting to get back to normal. As our states and communities lift restrictions and remove mask mandates, the federal government should take a note from those states’ playbooks. I am joining Representative Andy Biggs in the fight against the unnecessary federal mask mandate that requires citizens to wear masks on public transportation,” stated Clyde.

“Time and again we see Democrats flouting the rules to go maskless when it suits them; they are so desperate to maintain nanny state conditions that hypocrisy and fear tactics are all they have left to exercise control over the masses,” said Gooden. “Whether it’s masking or vaxxing, every American should be able to make their own choices without government interference.”

Brnovich Continues Efforts To Safeguard 2nd Amendment Rights In Other States

Brnovich Continues Efforts To Safeguard 2nd Amendment Rights In Other States

By Terri Jo Neff |

For the second time this year, Attorney General Mark Brnovich and Missouri Attorney General Eric Schmitt have authored a “friend-of-the-court” brief to the U.S. Supreme Court in support of a challenge to the constitutionally of a New York state law which severely restricts who can obtain a concealed carry permit.

On Tuesday, Brnovich, Schmitt, and the attorneys general of 24 other states joined in urging the justices to declare New York’s subjective-issue firearm license process as unconstitutional under the Second Amendment. The case is New York State Rifle and Pistol Association v. Corlett.  

Forty-two states, including Arizona, have objective-issue systems where a concealed carry permit is issued to an individual who meets a certain set of objective criteria such as a background check, a mental health records review, fingerprinting, knowledge of applicable laws, and firearms training.

However, New Yorkers who want a concealed carry permit must demonstrate to a state worker some type of “special need” for self-protection outside their home that is greater than the average citizen. In effect, the law serves as a de facto ban on most New Yorkers who want to exercise their right to protect themselves when away from home.

The 26 signors of the brief believe they have “a unique perspective that should aid the Court in weighing the value and importance of the rights implicated by the questions presented.” In particular, they cite empirical evidence that legal concealed carry holders are significantly less likely than the general public to commit a crime.

In addition, a 2013 National Research Council study is cited, showing that crime victims who resist with a gun are less likely to suffer serious injury than victims who resist in other ways or who offer no resistance at all.

“Those who obtain firearms-carry permits are, and remain, overwhelmingly more law-abiding than the general population. That conclusion makes perfect sense, as permit holders must typically pass background and other checks prior to being issued a license under state regimes,” the brief argues.

Brnovich issued a statement after the brief was filed Tuesday.

“Law-abiding citizens should not require the consent of faceless bureaucrats to exercise their right to keep and bear arms. New York cannot override the Second Amendment or the natural right of self-preservation,” Brnovich said, adding he will continue to vigorously protect the constitutional rights of all Americans.

According to the attorney general’s office, Arizona implemented a licensed concealed carry regime in 1994. That year, the state experienced 10.5 murders per 100,000 people compared to the nationwide rate of 9 murders per 100,000.

Then in 2010, Arizona implemented a right-to-carry for all law-abiding citizens, even without a license. By 2016, Arizona’s murder rate was 5.5 per 100,000, even though more guns were being lawfully carried in the state.

Joining Arizona and Missouri are the state attorneys general of Alabama, Alaska, Arkansas, Florida, Georgia, Idaho, Indiana, Kansas, Kentucky, Louisiana, Mississippi, Montana, Nebraska, New Hampshire, North Dakota, Ohio, Oklahoma, South Carolina, South Dakota, Tennessee, Texas, Utah, West Virginia, and Wyoming.

The July 20 brief follows one filed in February in which the 26 attorneys general argued why the U.S. Supreme Court should take up the case. The Justices announced in April that they will take up the case in its next term which starts Oct.  4, 2021.

The New York case, however, is not the only Second Amendment challenge Brnovich’s office has been involved with this year.

In April, he co-authored an amicus brief signed by nearly the attorneys general from nearly two dozen states urging the Ninth Circuit Court of Appeals to uphold the Second Amendment by declaring California’s law limiting magazine capacities as unconstitutional.

Then in May, Brnovich led another multi-state coalition in urging the U.S. Supreme Court to review a New Jersey law which limits magazine capacities and requires gun owners to surrender to law enforcement certain magazines which are legal in 43 other states.

And last month, Brnovich led a coalition of 22 states in writing a brief to the Ninth Circuit of the U.S. Court of Appeals in an effort to strike down a three-decade-old California law that bans popular rifles, even when kept in the home for self-defense.

Ducey’s Communications Director Not Impressed By Series Of ‘Conjecture And Innuendo’ Articles

Ducey’s Communications Director Not Impressed By Series Of ‘Conjecture And Innuendo’ Articles

By Terri Jo Neff |

Last week the Arizona Republic published a five-part series by news reporter Craig Harris which suggested something improper occurred when Gov. Doug Ducey’s office was consulted about a tax challenge filed by Carter Oil with the Arizona Department of Revenue (ADOR).

CJ Karamargin, for one, was not impressed.

Which matters, because Karamargin is Ducey’s director of communications. He is also a former journalist, having worked for the Arizona Daily Star and Tucson Citizen.

So when Karamargin took to Twitter on Sunday with a 10-part critique of Harris’ series, people listened. The critique used words such as conjecture and innuendo. And that was among some of his nicer comments.

“No one I’ve talked to can understand the story or reporting. Probably because it doesn’t make sense and doesn’t get basic facts right,” Karamargin wrote in tweet #1.  One of those incorrect facts, he tweeted, is that someone named in the article as being a former employee had never worked for Ducey.

“When a reporter can’t even get names right, you’ve got a problem,” he wrote in tweet #3.

Karamargin also points out that some of the former public servants who provided information to Harris were in fact “disgruntled former employees” of the state whom the newspaper had previously reported about.

Once he got to tweet #5, Karamargin was on a roll.

“The accusations are false,” he wrote about suggestions in the articles that state officials considered a settlement in the ADOR tax challenge because someone connected to the matter could potentially be helpful to Ducey in a possible presidential run.

“Losing the case in court would have caused a ripple effect, impacting many more industries and businesses,” Karamargin wrote. “This would not only have had a significant impact on these businesses — it would have had a much more significant impact on state revenue than settling.”

In the end, there was no settlement with Carter Oil because the Arizona Court of Appeals ruled in favor of the state.

“So this story is about something that did not happen,” tweet #8 says. Then Karamargin did a little explaining about how things work in the executive branch of state government.

“Our office does not lobby state agencies; they report to us. Agency directors aren’t free agents…And they do not make decisions that have potentially 100s of millions of $ in impact to the state without consulting us.”

One of those named throughout Harris’ series is Carlton Woodruff, who was removed by Ducey as ADOR’s director in December. Woodruff’s departure amid a disagreement with the governor’s office over how to respond to a court challenge to Prop 208, the Invest in Education Act. The only comments at the time came from Karamargin.

“The role of state agencies is not to take policy positions but to implement the law,” he said, adding that Woodruff’s removal was “unrelated” to how the Carter Oil tax challenge was handled.

Herbold, Pacheco Selected As New Regents

Herbold, Pacheco Selected As New Regents

PHOENIX — Governor Doug Ducey today selected Bob Herbold, whose foundation provides scholarships to higher education students, and Jessica Pacheco, an active member of the community with years of leadership experience, to fill recent vacancies on the Arizona Board of Regents.

“Bob and Jessica are both actively involved in communities throughout Arizona, and they have vast experience in public service and leadership roles,” said Governor Ducey. “I’m grateful for their commitment to serving Arizona’s students, universities and taxpayers. I know they will be excellent additions to the Board of Regents.”

The selection of Herbold and Pacheco will fill vacancies made by Kathryn Hackett King and Karrin Taylor Robson, who ended their terms early to pursue other opportunities.

Herbold is the President of The Herbold Foundation, which provides scholarships to master’s and PhD students in the areas of engineering and computer science at several universities. He is the Managing Director of The Herbold Group and serves on the Board of Trustees of the Hutchinson Cancer Research Center.

In 1994, Herbold joined Microsoft as Executive Vice President and Chief Operating Officer, retiring in 2001. During his tenure in that position, he was responsible for finance, corporate marketing, market research, manufacturing and distribution, information systems, human resources, and public relations. From 2001 to 2003, Herbold worked half-time for Microsoft as Executive Vice President assisting in customer, industry, and government issues.

Prior to joining Microsoft, Herbold spent 26 years at The Procter & Gamble Company. In his last 5 years with P&G, he served as senior Vice President of Marketing and Information Services. In that role, he was responsible for the company’s worldwide marketing/brand management operations as well as all marketing related services such as media and retail promotion programs. He was also responsible for the worldwide information technology and market research organizations.

Herbold also has extensive experience as a corporate board member, having served on the boards of directors of Agilent Technologies, Neptune Orient Shipping Lines, Weyerhaeuser and many others over the past 20 years.

Herbold has a Bachelor of Science in mathematics from the University of Cincinnati and both a master’s degree in mathematics and a Ph.D. in computer science from Case Western Reserve University. He has received honorary doctorate degrees from the Case Western Reserve University, the University of Cincinnati and the Thunderbird School of Global Management.

“I’m honored to be selected to join the Board of Regents by Governor Ducey,” said Herbold. “Arizona’s universities do an excellent job in serving students, maintaining talented educators and engaging with their communities — and I look forward to helping the Board of Regents to build on this continued success.”

Pacheco, currently is a managing partner at Horizon Strategies where she leads local engagement and policy strategies. She has extensive private sector experience and for over 22 years held various executive positions in a Pinnacle West Capital Corporation, including Vice President of Corporate Development and External Communications, Vice President of External Communications, and Vice President of State and Local Affairs.

Pacheco’s primary responsibilities at Pinnacle West Capital Corporation, the parent company of Arizona Public Service Company, included state and local engagement strategies, policy strategy, reputation and brand management, external and customer communications, economic development within the utility service territory and developing and expanding business opportunities within the unregulated entities under the parent umbrella.

Pacheco serves as President of the Board of Directors for the Arizona-Mexico Commission and serves on the Executive Committee for the Arizona Chamber of Commerce. She is active as a director with a number of other community and business organizations. Pacheco is a past chair of the Arizona Chamber of Commerce Foundation, past director for the Arizona Hispanic Chamber of Commerce Board and Maricopa Community College Foundation Board and is past chair of the Border Trade Alliance Board.

Pacheco earned a Bachelor of Arts degree from the University of Arizona and is fluent in Spanish and Portuguese. She has taught a seminar at Georgetown’s McDonough School of Business on utility engagement in public policy and campaign management. She is a graduate of the Stanford Executive Program and the Nuclear Reactor Technology Course at the Massachusetts Institute of Technology.