UPDATE » Sussex Tech construction costs scrutinized

The state Auditor’s Office says an audit of Sussex Tech has uncovered a questionable land deal and insufficient oversight of construction management contracts at the school.

The report, issued June 8, says the Auditor’s Office reviewed nearly $4 million in expenditures paid to Common Sense Solutions LLC from 2011 through 2016, uncovering an overall lack of documentation for invoices, numerous state budget and accounting violations, avoidance of fair procurement processes, and conflicts of interest. The Auditor’s Office identified 105 payment vouchers totaling more than $900,000 that appeared to have been managed so as to stay below thresholds that require purchase orders and competitive bidding.

CSS, which the report says is owned by Michael Horsey of Laurel, was initially hired to perform contract management services that totaled more than $1.8 million, but the audit found CSS was paid more than $2 million more for additional construction-related services – with many expenditures made without proper review and approvals.

In addition, the former director of facilities retired from Sussex Tech in 2015 and was subsequently employed by CSS as project coordinator and liaison for Sussex Tech projects. These projects were the same contracts he awarded to CSS and managed when employed by Sussex Tech.

The report found Sussex Tech school board failed to enforce fiscal policies and procedures and that many expenditures had not been properly scrutinized. The report states the school board trusted Sussex Tech administrators to make decisions on construction projects without the board's involvement, creating a lack of accountability.

According to the auditor’s report, these practices and violations are still occurring, and CSS continues to gain contracts from Sussex Tech.

Sussex Tech officials could not be reached for comment.