[Southsider2k12]

http://thenewsdispatch.com/main.asp?Sectio...ArticleID=15518

Coach Fired For Alleged Overpayments
MCHS teacher paid as assistant softball coach while never performing such duties.

Adam Parkhouse
Sports Editor, The News-Dispatch

MICHIGAN CITY - Four superintendents, three treasurers and seven Michigan City Area Schools board presidents missed it.

On May 27, teacher Eugene Zarazee was fired because of it.

During a period of 10 years, Zarazee - a Michigan City High School science teacher and assistant coach in multiple sports - was paid as an assistant softball coach while never performing duties associated with the position.

In all, Zarazee was the beneficiary of more than $28,000 in overpayments, a matter which is still working its way through the legal process, MCAS Director of Communications Betsy Kohn said. The corporation is waiting on a recommendation from the state's attorney general as to whether criminal charges will be pursued.

"There are internal checks in place," Kohn said, "but there have been several athletic directors and administrators in place during that time."

Zarazee failed to return requests for comment.

MCHS' current athletic director, Bob "Bear" Falls, caught the error last summer. According to Falls and an audit report compiled by the State Board of Accounts obtained by The News-Dispatch, he requested a list of all certified employees who serve as coaches. There had been a high turnover rate at the time, and Falls wanted to make sure everything on the books was accurate.

It was then Falls saw Zarazee's name listed as an assistant coach, and he forwarded the mistake to the administration building. Falls added this is a process athletic directors would go through annually, but this was his first opportunity to do so being relatively new to the position.

According to the audit report, an unsigned, handwritten contract was executed Feb. 10, 1998, naming Zarazee as assistant softball coach.

"Eventually a finalized contract, which was signed by all parties," the report continues, "included the assistant softball coaching position ... "

Falls checked with each of the school's head softball coaches who served during that time period, and each said Zarazee never performed any coaching duties in their program.

Additionally, and to Zarazee's detriment, he was underpaid based on years of service for his roles as assistant girls basketball coach and assistant football coach. Once those amounts were credited, Zarazee owes the school corporation $27,649.73. Additionally, Zarazee is to repay MCAS $2,858.90 for the cost of the special audit. To date, no repayment has been made.

In a letter to Zarazee on May 6, MCAS Superintendent Michael Harding wrote, "I will be recommending to the Board of School Trustees the cancellation of your contract with the Michigan City Area Schools on the grounds of immorality, insubordination, neglect of duty and other good and just cause. This recommendation is based on your knowingly accepting payment for work which you did not perform."

Zarazee signed the letter, but wrote, "I disagree," above his signature.

However, on Sept. 25, 2007, MCAS received an offer on behalf of Zarazee from the Indiana State Teachers Association. The offer was for Zarazee to repay $17,017 of what was owed, payable in 78 installments during three years taken directly from Zarazee's paycheck. Kohn said MCAS rejected the offer and is seeking the full amount.

In the letter making the offer, ISTA Uniserv Director Mary Junglas wrote, "The fault lies both with MCAS for not implementing basic internal controls which would have identified the overpayment and also with Mr. Zarazee for not paying closer attention to the contracts he signed."

Kohn, speaking on behalf of MCAS, said the system of checks hasn't been revamped, but "we're a little more on top of it."

Contact Sports Editor Adam Parkhouse at aparkhouse@thenewsdispatch.com or 874-7211, Ext. 461.

A list of the payments
Payments made to Eugene Zarazee for duties he never performed as assistant softball coach (number includes salary and employer share of fringe benefits):

1997-98: $2,262.69

1998-99: $2,321.44

1999-00: $2,346.88

2000-01: $2,351.31

2001-02: $2,969.85

2002-03: $2,986.45

2003-04: $3,055.04

2004-05: $3,084.92

2005-06: $3,291.84

2006-07: $3,441.22

Total: $28,110.65

- Information obtained from audit report performed by State Board of Accounts.

[Roger Kaputnik]

Kudos to Bear for catching this, but they should reach some financial agreement for full repayment and let him retain his teaching post. How else will he pay it back? And is it established that he knew about the money but did not do anything to correct the mistake.

[Ang]

I'm not surprised. I'm sure if they dig a little deeper they'll find more...

[Southsider2k12]

Kudos to Bear for catching this, but they should reach some financial agreement for full repayment and let him retain his teaching post. How else will he pay it back? And is it established that he knew about the money but did not do anything to correct the mistake.

This is what I would like to know. I know you are supposed to understand your paycheck and all, but that isn't that much money when spread out over a years worth of paychecks. I would be curious of the details of how much was known when, and how exactly he got put onto the payroll.

There should have been a school board vote on this at some point, as it is needed for these kind of appointments.

[Ang]

This was called into question a few years ago. I spoke with Gene and he assured me that he was performing all of his coaching duties. He offered to provide us with a time sheet signed by head coaches to verify the hours he put in. He was listed on the rosters as a softball assistant. So, IMO, if he was on the list and not showing up, then the Head Coach should have brought it to the AD's attention immediately.
There was some question as to how much time he spent with another sport and that's how it came up in the first place. When Tag talked to the head coach they said that Gene was putting in the proper amount of coaching time. We just figured someone had it out for Gene and that's why they said he was never there. He's not a very popular guy with some people.

Also, my comment above was not about Gene alone. What I meant was, if they dig a little deeper, they will find other people on the coaching payroll who don't show up.

[Southsider2k12]

Out of curiousity, was Zarazee one of the vocal crowd?

[Roger Kaputnik]

Who on the Board asks for financial controls over and over again? And gets outvoted 6-1?

[Ang]

Out of curiousity, was Zarazee one of the vocal crowd?

IMO not really. He's really into himself and won't hesitate to tell you how wonderful he thinks he is. Just ask him. If it's not going in his favor he will complain, but if it's not going in your favor he won't say a word. At least that's been MY experience with him.

He is a nice guy overall, and won't hesitate to buy you a lunch, or a beer at the Joe. I guess he won't be doing that anymore.

I do not know anything about his teaching skills, so I can't say anything in that respect other than I've not heard anything bad.

[Dan]

Wow

Boo to MCAS for missing this error for 10 years.

But it's completely dishonest for him not to come forward.

Criminal charges? No. Booted from the school? Yes. Repayment? Yes.

[Southsider2k12]

This was called into question a few years ago. I spoke with Gene and he assured me that he was performing all of his coaching duties. He offered to provide us with a time sheet signed by head coaches to verify the hours he put in. He was listed on the rosters as a softball assistant. So, IMO, if he was on the list and not showing up, then the Head Coach should have brought it to the AD's attention immediately.
There was some question as to how much time he spent with another sport and that's how it came up in the first place. When Tag talked to the head coach they said that Gene was putting in the proper amount of coaching time. We just figured someone had it out for Gene and that's why they said he was never there. He's not a very popular guy with some people.

Also, my comment above was not about Gene alone. What I meant was, if they dig a little deeper, they will find other people on the coaching payroll who don't show up.

I just went back and read this... according to Bear Falls, this has completely changed from when Jeff talked to him years ago then. Supposedly now every single one of them said he never did anything. Interesting. I wonder what is going on here.

[Roger Kaputnik]

CYA...Cover Your Dupa!

That is what is going on. And they can give him up so there is no more looking into this.

CYA...Cover Your Dupa!

That is what is going on. And they can give him up so there is no more looking into this.

[Ang]

hmmmmmmmmm......

For some reason, the term "scapegoat" comes to mind

[Roger Kaputnik]

so does "tossing him under the bus"

[Southsider2k12]

so does "tossing him under the bus"

That's what I was thinking... someone isn't being honest here.

[Roger Kaputnik]

Boy, if only there were someone on the School Board who could ask the right questions...

[Yokas]

Boy, if only there were someone on the School Board who could ask the right questions...

FYI--Gene offered to repay every dime; but administration refused the deal. I also want to add that Ang is right; Gene was not liked by some people. So what happened is this: Gene gets a coaching job b/c teachers have first take on ECA positions; the coach doesn't want him so the coach tells him to do laundry or scout, or stay off his playing area. Being treated that way leads to some confusion about what you are getting paid to do and what you're not getting paid. Gene IS a good guy; administration bears responsibility in this, too.
(By the way, am I answering this in the right place??????)

[Southsider2k12]

The post is in the perfect place. We aren't picky about exact placements or anything like that. It fits there, and that is all we ask.

[Roger Kaputnik]

Good info.

[Ang]

And of course the spin doctor won't share that information.

[Southsider2k12]

http://thenewsdispatch.com/articles/2010/0...4e470865068.txt

MCAS, ex-teacher reached $25K settlement over coaching pay

By Alicia Ebaugh
Staff Writer
Published: Friday, January 22, 2010 4:17 AM CST
MICHIGAN CITY — Former high school science teacher Eugene Zarazee was paid nearly $25,000 to resolve a grievance he filed with Michigan City Area Schools following his termination in 2008.

That’s almost as much money as he received over a period of 10 years for being an assistant softball coach, but while never performing duties associated with the position. Zarazee was terminated May 27, 2008, after athletic director Bob “Bear” Falls caught the error.

Signed in late November 2009, a memorandum of understanding between Zarazee, the Michigan City Education Association and MCAS states Zarazee was to receive a full year of salary to resolve the grievance, minus the money he previously received for the coaching position and money he was paid in unemployment. The final total he would be paid came to $24,847.

In addition to the salary, his termination will be erased from his employment record, instead reflecting a “resignation for the purposes of retirement,” the contract states.

MCAS attorney William Kaminski said the settlement was confidential, but it was released at the request of The News-Dispatch after the money was paid to Zarazee. Past Indiana court cases have ordered the release of agreements that obligate public entities to pay someone as part of a settlement.

Zarazee did not return a message for comment. Betsy Kohn, MCAS communication director, had no further comment for the school district.

The overpayment of more than $28,000 was found because Falls requested a list of all certified employees who serve as coaches. There had been a high turnover rate at the time, and Falls wanted to make sure everything on the books was accurate.

Zarazee, who was an assistant coach for multiple sports, was also found to have been underpaid based on years of service for his roles as assistant girls basketball coach and assistant football coach. Once those amounts were credited, Zarazee owed the school corporation $27,649.73. Additionally, Zarazee was to repay MCAS $2,858.90 for the cost of the special audit, but that total was not included in the contract.

In September 2007, before Zarazee was terminated, an offer was sent to MCAS on his behalf from the Indiana State Teachers Association for him to repay $17,017 of what was owed, payable in 78 installments during three years taken directly from Zarazee’s paycheck. MCAS rejected the offer and was seeking the full amount.

In the letter making the offer, ISTA Uniserv Director Mary Junglas wrote, “The fault lies both with MCAS for not implementing basic internal controls which would have identified the overpayment and also with Mr. Zarazee for not paying closer attention to the contracts he signed.”