Hello,

I’m Ken Smith, and I stand for transparency, accuracy and ethical dialogue. I have a long history of fighting for these ideals, such as helping Kenmore accurately disclose and plan for its bridge replacement, and by founding Northshore Citizens for Transparency. I have spent three decades in the public sector helping organizations overcome their risks and issues, and I have seen firsthand how misspent funds hurt children

I entered this race because Northshore School District has numerous financial and audit problems, and as a Northshore parent I want to help the district fix them. These problems include:

1. The recent audit finding (regarding Bond funds spent on carpet at the new high school)

2. Audit exit items (a dozen this year, including not being able to reconcile over $2 million of Technology Levy funds spent on training).

3. Excess capital projects fund balance – costing the district up to $20 million over the past 10 years in avoidable interest expense.

4. Lack of bond disclosure regarding long-term repayment plans.

5. Auditor warning about unhealthy “Debt Load” ratio (NSD is paying 20 cents of every dollar in debt and interest – State average is 5 cents).

6. Failure to collect Impact Fees (new development is not paying its fair share of the costs of growth).

7. Lack of clear and complete budget documents, on scale with award-winning districts like Auburn and Tacoma.

8. The audited financial statements do not follow GAAP (Generally Accepted Accounting Principles). We can’t know the total assets, because they are not reported.

9. Failure to follow sophomore-level accounting guidelines on marginal costs.

10. Lack of an Internal Auditor or Citizen Audit Committee, both of which are considered best practice for preventing fraud, waste, and abuse.

Bluntly, NSD is facing a constellation of financial problems, and seems ill-equipped to deal with them. Without a change in behavior or policy, NSD faces increased risk of fraud, greater financial hardship, and further damage to Northshore children. I entered this race to work together with the entire community to prevent this from happening.

I am an expert in government accounting.  I have a PhD in it, and I teach accounting for a living.

I worked in a CPA firm and earned the lifetime achievement award for practical government accounting research in the first year I was eligible.  I was appointed to the audit committee of a multi-billion dollar state agency.  I’ve been legally recognized as an expert witness in accounting matters in the State of California.  I served as the president of the Association of Government Accountants (Seattle Chapter) and am the author of a government accounting textbook. I know what government finance problems look like, and I know how to solve these problems.

In Kenmore, this included a lack of community input into the budget, and concern that the bridge replacement was not being shared transparently in public documents. Both of these were issues I campaigned on, both of these were issues I made policy recommendations on, and both of these policy recommendations were implemented by the Kenmore City Council after the election. Two Kenmore council members, including my opponent, endorse me (as private citizens) for this School Board position.

I am seeking election to help NSD fix its financial problems, and I stand by my record.