Press Release: State Audit of MCPS Confirms Parents' Coalition's concerns

PARENTS' COALITION OF MONTGOMERY COUNTY

Press Release
Contact:
Janis Sartucci
Parents' Coalition of Montgomery County
contact@parentscoalitionmc.com
http://www.parentscoalitionmc.com/
For Immediate ReleaseState Audit of MCPS Confirms Parents' Coalition's concerns:
1,400 MCPS credit cards need oversight
MCPS travel needs to be approved
Montgomery County, Maryland, January 23, 2009 - The Parents' Coalition of Montgomery County is pleased that today the Maryland Office of Legislative Audits has released their Financial Practices Performance Audit Report for Montgomery County Public Schools (MCPS).

In the summer of 2008, a citizen obtained the list of over 1,400 MCPS employees who have been issued American Express purchasing cards (credit cards). Multiple members of the Parents' Coalition filed Maryland Public Information Act (MPIA) requests to determine how these cards were being used by specific MCPS staff. The MPIA request process was difficult and time consuming. However, eventually credit card "logs" and travel expense reports were obtained for 14 MCPS employees. In just that small sample of expenditures, Parents' Coalition members saw that many of the credit card log purchases were not approved until after the MPIA request had been made. In some cases, the date the purchase had been approved was a year after the purchase was made. In addition, that small sample of credit card logs showed numerous expenditures that seemed to be unrelated to the mission of the school system. Those MPIA requests were made available to the public on the Parents' Coalition website. The credit card logs and travel expense reports have been the most popular items viewed on the Parents' Coalition website to date.

http://www.parentscoalitionmc.com/MCPSExpenseReports.html

Today, the Parents' Coalition applauds the Maryland Office of Legislative Audits for their audit of the MCPS use of credit cards and travel expenses. The Audit confirms that MCPS oversight of credit cards has been lax and that MCPS has failed to properly monitor and control credit card expenditures and travel.

http://www.ola.state.md.us/Reports/Schools/MCPS09.pdf
Chapter 3, Pages 19-23Included in the Legislative Audit is the following summary:"However, we found that processes over credit cards need to be strengthened. Specifically, our review disclosed significant weaknesses in internal controls over the procurement card program. These weaknesses included (1) a lack of monitoring over card usage and credit limits, (2) the employee who requested the procurement cards also initially received the cards from the vendor and (3) employees did not always complete card transaction logs, and other logs were not reviewed and approved. We also noted certain potentially questionable credit card purchases. Finally, for certain employees, travel was not approved in advance, as required by MCPS policy.From the report:

*MCPS records indicated that its employees used credit cards to make a total of $5.6 million in purchases (including textbook purchases). According to MCPS records, during fiscal year 2007, 1,209 employees used credit cards with the monthly charges being paid directly by the school system to the credit card bank. (Please note that as of the summer of 2008 there were 1,400 credit cards in use.)*In addition, nine of these cards had single transaction limits exceeding $7,500, MCPS’ threshold for obtaining competitive bids.

*MCPS did not ensure that credit card documentation was maintained that adequately supports all purchases and establishes proper supervisory review of every transaction. Our review of 161 calendar year 2007 transactions totaling $55,000 disclosed that 50 transactions totaling $22,800, applicable to 9 cardholders, were not included on transaction logs for subsequent review.

Of the remaining 111 transactions, there was no documented approval on the logs pertaining to 41 transactions (applicable to 6 cardholders) to indicate a supervisory review and approval of the related charges.

*For example, our review of fiscal year 2007 credit card purchases identified 512 purchases totaling $39,400 from vendors that did not appear to have an obvious relationship with the mission of MCPS.

*For example, we noted 119 purchases totaling $8,290 from department stores and 121 purchases totaling $5,571 from party supply stores.

*For example, one school spent a total of $21,000 on food (using credit cards) without obtaining such approval.

*Approximately 26 individuals (that is, upper management employees and Board members) had been issued credit cards that did not have travel-related restrictions, such as for air fare and hotel accommodations. Use of credit cards for travel expenditures may allow cardholders to incur such expenditures without obtaining advance approval, as required by MCPS regulations. Our tests of 32 calendar year 2007 travel expenditures charged to credit cards totaling $19,028 disclosed 30 expenditures totaling $17,930 that were not recorded on monthly activity logs and, therefore, were never approved. In addition, no documentation could be located to support 10 meal expenditures totaling $2,172 that were recorded on credit card statements. According to MCPS records, during fiscal year 2007, travel expenditures totaled $2.5 million, including $80,465 charged on credit cards.
The Parents' Coalition wishes to thank its members, who through their diligence and persistence brought a small amount of sunshine to the use of public funds by Montgomery County school officials.

The Parents' Coalition of Montgomery County is a citizen network dedicated to improving the responsiveness and performance of the Montgomery County Public Schools. Drawing from education advocacy groups throughout Montgomery County, Maryland, the Parents' Coalition seeks to use the political process to achieve the goals of coherent, content-rich curriculum standards; high expectations combined with timely remediation and acceleration; a wider range of educational options for parents and children; greater transparency and accountability; and meaningful community input.

Unofficial Press Release on Financial Issues by Board of Education Member in Montgomery County

At the Parents Coalition, we only post verifiable material.  We like the facts, so that folks can decide for themselves.

That's why this unusual "press release" that crossed our inbox today is posted with a caveat.

Note - it's not on Board of Education letterhead.  It doesn't have a contact person - don't these usually have a contact person?  This blogger isn't sure that it's a bona fide statement from the BOE leaders.  

But it's interesting in view of the Washington Post article and the ongoing allegations about candidate for county council and current BOE member Chris Barclay.

Board of Education Leaders Issue Statement on Use of Credit Cards by Board Members

A statement from Board of Education President Phil Kauffman and Vice President Patricia O'Neill: The Board of Education takes very seriously its responsibility to oversee Montgomery County Public Schools (MCPS) in an ethical and fiscally responsible manner. The Board works diligently to ensure that the taxpayer resources provided to the school system are used in a manner that promotes high-quality educational opportunities for our students. Board of Education members are issued credit cards to cover certain expenses they incur while conducting official Board business. Recent public interest in the usage of credit cards by Board members has emphasized the necessity to review our processes and procedures to ensure that these cards are being used in an appropriate manner. An ad-hoc committee composed of the Board officers and Board Member Michael Durso, chair of our Fiscal Management Committee, was formed in April. The committee has been charged with reviewing the Board’s processes and guidelines regarding reimbursable expenses.  The committee will make recommendations to the full Board for adoption and implementation. The committee’s work will also include a review of the Board’s expenses for the last two years in order to inform its forward-looking recommendations, as well as a review of the appropriateness of these expenditures under our policies. The committee has requested, and all Board members have agreed, to suspend usage of their MCPS-issued credit cards while the committee conducts its work. We are aware that MCPS has received a number of public requests for documents related to the usage of credit cards. Staff is diligently locating and reviewing the responsive documents and will produce the relevant materials.

If it's true - here are some thoughts.

Why is the Board of Education only posting this now?  The story about Mr. Barclay has been around for a few weeks.  The ad hoc committee was formed a few months ago, and allegedly has met, although public notice under the Open Meeting Act is not on the Board of Education website.  

But - suspending credit card usage is long overdue.  Remember, the Board of Education is a part time position.  How many of us receive credit cards from our full time employer?  From our part time employer?

Also overdue is suspending the credit cards for the numerous other MCPS employees.  If the school system isn't going to provide adequate oversight over public moneys, it's just too tempting to keep this practice going.  Time to go back to centralized purchasing.

And, please - get rid of the meal subsidies for MCPS top brass.  School system business and meetings should be conducted at school facilities and in the public view, not at restaurants. Take a half hour break for lunch at the Carver cafeteria or brown bag it, but please pay your own way.  

At the Parents Coalition, we've looked into credit card abuses for a long time.  Finally, someone is paying attention.

NBC4: PG BOE Members Continued Using Taxpayer-Funded Credit Cards After Vote to End Them

Some members of the Prince George’s County School Board continued using taxpayer-funded credit cards for months after voting to eliminate those cards, according to an investigation by the News4 I-Team.

After a 2014 News4 I-Team review found board members used credit cards for thousands of dollars of meal and hotel expenses within close range of their offices, the board voted unanimously to end its credit card program in January. But the I-Team’s review of 2015 board receipts and expenses showed at least two board members continued to make local meal purchases with those credit cards through April.

• Prince George’s County School Board Food Receipts

Several of those purchases were made by Board member Carolyn Boston, who formally introduced the credit card ban at a board meeting in January. Boston is also one of a handful of board members who purchased thousands of dollars in meals in 2014, including room service breakfast and seafood meals at restaurants within minutes of the board’s offices. Her 2015 expenses included more restaurant meals in Prince George’s County in the weeks after the vote. She also swiped her board credit card for a dinner at Ruth’s Chris Steak House during an education conference in Tennessee.

The I-Team also obtained credit card expense receipts from Board member Patricia Eubanks, showing a series of meal expenses in Prince George’s County after the Jan. 22 vote. The meals include a $90 lunch meeting at a Joe’s Crab Shack with two guests.

School Board president Segun Eubanks said, in the days after the vote, the board chose to delay the cancellation of its credit cards until April 1. “We needed to have some leeway to complete the process,” Eubanks said. “It was never our intent to be disingenuous or hide anything from the public.” The April 1 deadline was made part of the public record, school officials said. The deadline was not publicly specified at either the January or February school board meetings in which the credit card policy was official approved...

 http://www.nbcwashington.com/investigations/Prince-Georges-School-Board-Members-Continued-Using-Taxpayer-Funded-Credit-Cards-321620122.html

NBC4: Delegate Considering Legislation to Prohibit BOE Credit Cards

UPDATE: Members of the Maryland state legislature are urging the Prince George’s County School District to overhaul the rules for how board members use their taxpayer-funded credit cards, in the wake of an investigation by the News4 I-Team.

Del. Alonzo Washington (D-Hyattsville) said he’ll consider introducing legislation in January to prohibit the district from issuing credit cards to its board members. Washington said the use of those taxpayer-funded credit cards for meals and local hotels, detailed in the I-Team report, is a concern for his constituents. Washington said,

“They want us to do something about it,” Washington said
Washington said he’ll await the completion of an internal audit review of board credit card policy by the district before deciding whether to formally introduce the legislation.

“I’d want to see significant changes,” he said.

Del. Barbara Frush (D-Beltsville) said the district should consider cutting up the credit cards on its own.

“It’s a huge mistake for them to use the cards so freely for meals,” Frush said. “I’m clearly concerned when public money is used for private purposes.”

 http://www.nbcwashington.com/investigations/Prince-Georges-County-School-Board-Members-Spend-Thousands-on-Meals-at-Taxpayers-Expense-278584441.html

More Credit Cards for MCPS Staff!

At today's Board of Education meeting the Board will unanimously approve a new contract for personal credit cards for MCPS staff. (The item is on the Consent Agenda.)  The BOE won't discuss this multi-million dollar expense, won't ask how the credit cards are handed out, and won't ask for any accountability on the use of these cards.

Congratulations to MCPS staff!  Enjoy spending with your new JP Morgan Chase Bank credit cards!

Look at the notation in the BOE agenda.  It pretends as if credit cards handed out to staff don't have an associated cost!  Zero? Not hardly!  More like $6 million a year!

RFP06-828      Procurement Card Services

337-42

                        Awardee

                        JP Morgan Chase Bank, NA                                                                  $           0

http://www.boarddocs.com/mabe/mcpsmd/Board.nsf/files/9G2P7D5BAC09/$file/9.1%20Procure%20Contracts%2025K%20More.pdf

                       

MCPS State Audit: $17,930 in unapproved credit card expenditures

Finding:  MCPS Should Ensure that All Employees Comply with 

Existing Travel Policies

MCPS has established adequate policies and procedures designed 
to control travel expenditures. These policies define the conditions 
under which employees may be reimbursed for travel, including the 
requirement that all travel be approved in advance by appropriate 
supervisory personnel. 

However, the policies and procedures did 
not establish adequate controls over travel expenditures charged on 
credit cards. Approximately 26 individuals (that is, upper 
management employees and Board members) had been issued 
credit cards that did not have travel-related restrictions, such as for 
air fare and hotel accommodations. 

Use of credit cards for travel expenditures may allow cardholders to incur such expenditures 
without obtaining advance approval, as required by MCPS 
regulations. 

Our tests of 32 calendar year 2007 travel expenditures 
charged to credit cards totaling $19,028 disclosed 30 expenditures 
totaling $17,930 that were not recorded on monthly activity logs 
and, therefore, were never approved. In addition, no documentation 
could be located to support 10 meal expenditures totaling $2,172 
that were recorded on credit card statements. 

According to MCPS records, during fiscal year 2007, travel expenditures totaled $2.5 
million, including $80,465 charged on credit cards. 

-------------------
This finding is from the 2009 Maryland State Office of Legislative Audits report on Montgomery County Public Schools. Has anything changed since then? 

Detectives Investigate Eleven Purse Thefts from Schools in County; Photographs of a Suspect Released

What is going on with MCPS security?  Why were all of these schools so easy to enter undetected?  What does this say about the state of security in our public schools? 

Detectives from the Montgomery County Police Department (MCPD) are investigating 11 thefts of female employees’ purses from nine area schools that occurred in May and June.  Two of these thefts occurred in Rockville City and MCPD detectives are working with the Rockville City Police Department regarding those incidents.  Investigators believe that multiple thefts were committed by the same suspect whose photograph is being released today in hopes that someone recognizes him.

Investigators have received reports from 11 female employees who work at nine different schools/child care centers located in the County whose purses/wallets were stolen from a school classroom or office by an unknown suspect(s).  (The thefts are outlined below).  The victims’ stolen credit cards were then used to purchase items at stores.

During each of these thefts the suspect located an unattended classroom/office, found the employee’s purse/bag, and stole the entire purse or wallet or removed the victim’s cash and credit cards and left the purse/wallet.  At three of the schools the suspect was approached by personnel who inquired about his purpose in the school.  The suspect provided a brief response like he was with the cleaning staff or was a member of camp staff and then would quickly leave the area.  The suspect would then go to stores in the County, to include Target, Safeway, Best Buy, and Giant, and use the victims’ credit cards to buy merchandise.

The total amount of fraudulent charges placed on these victims’ credit cards has exceeded $13,000 and is growing.  (Investigators have not received final amounts for some of these fraudulent purchases so this amount will increase).  The total amount of cash stolen from these eleven victims is approximately $500.

Surveillance photographs of a suspect who used four of the victims’ credit cards at stores (from incidents in Germantown, Bethesda, and Silver Spring) were obtained by detectives and are being released to the public.

These thefts remain under investigation.  Anyone with information about this suspect or these thefts is asked to contact 2nd District detectives at 240-773-6710. For those who wish to remain anonymous, Crime Solvers of Montgomery County is offering a reward of up to $10,000 for any information that leads to the arrest of the unknown suspect. Tipsters can call Crime Solvers of Montgomery County toll-free at 1-866-411-TIPS (8477).

Thefts of Purses/Wallets from Schools:

May 9 – Twinbrook Elementary School, 5911 Ridgway Avenue, Rockville, approximately 4:00 pm – 5:00 pm – Rockville City Police Department

May 19 – Little People Daycare, 12720 Royal Carriage Drive, Germantown, approximately 3:00 p.m.

June 1 – Georgetown Hill Early School, 850 Nelson Street, Rockville, approximately 9:00 am to 1:00 pm – Rockville City Police Department

June 8 – Rock Creek Forest Elementary School, 8330 Grubb Road, Silver Spring, between approximately 5:45 pm  – 6:00 pm

June 9 – Montgomery Child Care – Garrett Park, 4806 Oxford Street, Garrett Park, between approximately 11:00 am and 4:30 pm – Note: Two victims at this school

June 14 – Somerset Elementary School, 5811 Warwick Place, Chevy Chase, between approximately 1:40 pm and 3:00 pm

June 19 – Bethesda Elementary School, 7600 Arlington Road, Bethesda, between 10:30 am and 3:00 pm – NOTE: Two victims at this school

June 21 – Silver Spring International Middle School, 313 Wayne Avenue, Silver Spring, between 12:30 pm and 1:30 pm

June 29 – Melvin J. Berman Hebrew Academy, 13300 Arctic Avenue, Rockville

MCPS American Express Bill Up $1.4 Million from 2010

Superintendent Jerry Weast
FY 2010 American Express $ 5,257,632

FY 2011 American Express $ 5,571,127

Superintendent Joshua Starr

FY 2012 American Express $ 6,634,939

In Superintendent Jerry Weast's first year in MCPS the Board of Education (BOE) approved a contract with American Express to supply MCPS staff and BOE members with their own personal American Express cards, billable to you the taxpayer.  

The list of 1,400 MCPS American Express card holders was made public for the first, and only, time in 2008 by an MCPS parent.  

The Parents' Coalition investigated some of the uses of these credit cards and discovered some disturbing trends in the accounting practices for these cards.  

In 2009, the Maryland State Office of Legislative Audits confirmed what the Parents' Coalition investigation had shown.

The Board of Education does not monitor the use of these personal credit cards, and does not monitor the number of credit cards that are in circulation in MCPS.  It is unknown how many MCPS American Express credit cards are issued to individual MCPS staff and BOE members as of today.  What is known is that the total, annual American Express bill has been steadily increasing since 2010.  

Why has this bill increased?  What are these undocumented funds being spent on?

Starr's American Express Bill Jumps to $6,969,342! Hey, big spender!

Superintendent Jerry Weast
FY 2010 American Express $ 5,257,632

FY 2011 American Express $ 5,571,127

Superintendent Joshua Starr

FY 2012 American Express $ 6,634,939

FY 2013 American Express $6,969,342

In Superintendent Jerry Weast's first year in MCPS the Board of Education (BOE) approved a contract with American Express to supply MCPS staff and BOE members with their own personal American Express cards, billable to you the taxpayer.  NO QUESTIONS ASKED. The American Express bills are paid out of the MCPS Operating Budget without MCPS staff turning in receipts! 

The list of 1,400 MCPS American Express card holders was made public for the first, and only, time in 2008 by an MCPS parent.  

The Parents' Coalition investigated some of the uses of these credit cards and discovered some disturbing trends in the accounting practices for these cards.  

In 2009, the Maryland State Office of Legislative Audits confirmed what the Parents' Coalition investigation had shown.

The Board of Education does not monitor the use of these personal credit cards, and does not monitor the number of credit cards that are in circulation in MCPS.  It is unknown how many MCPS American Express credit cards are issued to individual MCPS staff and BOE members as of today.  What is known is that the total, annual American Express bill has been steadily increasing since 2010.  

Why has this bill increased?  What are these undocumented funds being spent on?

Whitman's Student Paper Calls for More Transparency in MCPS

Good article in the online edition of Whitman HS's student newspaper.

The students get it - we're in tight budget, with a rough economy - its time to get tougher with the county credit cards, stop spending where its not needed. Start with more open disclosures of how we spend our money. And of course, check the credit card logs.

Can the kids get the adults in MCPS to shape up?

************************************************

Opinion

MCPS officials should more closely regulate purchases with county credit cards

By Megan Dwyer - News Writer
Published February 24, 2009 05:17:49 pm

Members of the Montgomery County Parents Coalition recently raised concerns over credit card regulation within the school district. A local legislative audit released in late January supported the claim that MCPS doesn't do enough to regulate credit card usage. While independent organizations have recognized the problem, Superintendent Jerry Weast asserts in his memo that every system can improve, and that he is pleased with the results of the credit card audit.

Yet it seems surprising that Weast was satisfied when auditors found that there were 512 credit card purchases totaling $39,400 in fiscal year 2007 that didn't have an obvious connection to education or the MCPS mission. Officials need to better regulate the questionable purchases that they don't approve before or after employees spend the money.

Members of the County Legislature are taking ineffective steps to rectify the situation through a proposed bill to mandate recording all purchases over $10,000 in a searchable database.
While measures like the proposed database are well-intended, the county still needs broader reform for credit card policy. Most of the illegitimate credit card purchases are less than $10,000, making the database irrelevant to the problem. Officials should just follow the regulations and check the logs.

The school system also needs to ensure that different people order, receive and allocate the credit cards, leaving less room for questionable purchases. Officials need to be diligent about checking and approving credit card logs. Standards should be stringent for what constitutes justifiable spending.

MCPS officials are slashing funding in an attempt to close the deficit gap in the operating budget during these tough economic times. To maximize the efficiency of every dollar, the county should implement a more transparent and efficient system, with strict adherence to regulations, thus monitoring credit card spending and decreasing unnecessary expenditures.

Helium Hands Highlight Board of Education Meeting on July 14

July 14, 2009, is a big day for the Montgomery County Board of Education. One of the items on the agenda concerns ratification of the purchase card contract with American Express.

This no cost contract is such a deal for MCPS that it can be on the consent agenda, because a discussion of the merits isn't necessary. Its all set forth in Dr. Weast's memo. Here is what our data driven Superintendent has to say, in his own words, about the past performance of the vendor:

Based on the company’s past performance and that American Express Corporate Services has agreed to the request for a special extension, I am recommending that the Board of Education extend the contract through September 2010.

That's it folks, no data on how many cards, how many employees get the cards, or what employees are allowed to charge. Even the contract is omitted from the package, so we can't see the interest rates or better yet, how much in the way of rebates come back to our school system by way of this really nifty contract.

But, does it really matter? This contract was brought before the BOE in 2000, 2003, and 2006 for approval - also on the consent agenda, and also without the contract or other documentation on performance, rebates, costs, or volume of cards used.

Each of these items have a note that says this procurement is at no cost to the school system. Do we really believe that? We must have a wonderful school system then, because our employees only charge what they should, approvals and reviews are done in a timely manner, and balances are always paid on time, so finance charges and potential misuse of the cards aren't an issue. Here is a snip from a 2009 audit by the Maryland General Assembly, Office of Legislative Audits:

MCPS needs to improve controls and policies governing the use of credit cards and travel. For example, new MCPS credit cards were sent directly to the employee who placed the card order with the bank rather than to an independent employee. Also, certain credit cards purchases were not logged nor subject to supervisory review.

Our Board of Education will likely continue to raise their collective helium hands and vote en masse to approve this contract again - after all, we're Montgomery County, who cares about the reports of the state auditors, we're superior performers, and supporting data - that's just for kids.

PG School board unanimously votes to ban credit cards

UPPER MARLBORO – The Prince George’s County Board of Education unanimously voted to include a provision in its policy banning board members from having county-issued credit cards following a routine legislative update Thursday evening.

The decision came after the board voted to accept committee positions regarding bills proposed in the General Assembly by members of the Prince George’s County House Delegation, including a bill proposed by Delegate Alonzo Washington (D-22) that would have banned credit cards.
In October, The Sentinel reported board members spent thousands on local meals and a retreat at a hotel in National Harbor. According to credit card receipts and expense reports, the board’s vice chair, Carolyn Boston, and school board member Verjeana Jacobs used their credit cards for the most meals of any board members between January 2013 and May 2014. Boston purchased 114 meals totaling more than $5,500 and Jacobs purchased 87 meals totaling more than $6,200. The retreat cost taxpayers more than $5,000 plus additional costs for room service and overnight valet parking...

 http://www.thesentinel.com/pgs/index.php?option=com_k2&view=item&id=1110%3Aschool-board-unanimously-votes-to-ban-credit-cards&Itemid=766

Bethesda Beat: MCPS administrators have not suspended the use of their cards

Report: School Credit Card Review Committee to Close Meetings - Bethesda Beat

...Board members aren’t the only people who hold school-issued cards. Montgomery County Public Schools spokesman Dana Tofig said less than 20 top-level administrators also have credit cards with similar spending accounts. Tofig said in an email that these administrators have not suspended the use of their cards. Superintendent Joshua Starr has instructed the school system's attorney to assess the policides and procedures that govern the use of these credit cards, according to Tofig.
"That will take place in the near future," Tofig wrote.
Teachers and other school staff also have credit cards, but those are restricted to purchases of supplies or classroom needs, according to Tofig.
The Post reported that Kauffman said the panel’s work is exempt from open meetings law requirements.  He said meetings pertaining to officials’ expense records and legal matters would be closed, but meetings focused on policy will be open “to the extent we can,” according to the newspaper.
The Parents’ Coalition of Montgomery County, a group that advocates for transparency in county schools, filed an Open Meetings Act complaint on May 31 with the Maryland attorney general’s office, which noted that the committee has already had two meetings in which minutes were not made available and public notices were not issued...

Breaking: How @mcps Administrators Can Embezzle Funds Without Detection. It Would Take MCPS 3 Years to Review Credit Card Bills for Each Cardholder.

In FY 2018, the MCPS credit card bill was $9,817,320.

In FY 2019, one year later, the MCPS credit card bill had just about doubled to $18,020,543.  Why? 

We now know that at the same time the credit card bill was doubling, MCPS education funds were being embezzled and diverted by a vendor to make payments to MCPS administrators, and MCPS credit cards were being misused by administrators. But that embezzlement and misuse wouldn't be discovered for years.  

Is the Board of Education exerting any oversight over MCPS spending?  No they can't. We now know it is virtually impossible for the Board of Education to have any oversight over MCPS spending. 

We filed a simple request for the expense reports for 7 administrators and a list of the cars assigned to each.  MCPS' public information office has responded to us that it would take over 30 hours and over 7 weeks to provide us with these documents for just 7 administrators.

  

At this rate it would take MCPS 3 years to review expense reports for each current credit card holder.  

MCPS has given out credit cards to thousands of employees over the years.  How those credit cards were used is a mystery.  The embezzlement in the MCPS Transportation Department confirms that embezzlement can go undetected for years.  How much more misuse, fraud or waste has occurred in this unmonitored spending of MCPS Operating Budget funds? 

If you want to find out about these 7 administrators, it will cost you $1,298.

FY23-265 10 Day Letter Fee[... by Parents' Coalition of Montg...

After Controversies, Committee Recommends Montgomery Co. School Board Nix Credit Cards « CBS DC

LANHAM, Md. (WNEW) — After a few recent controversies surrounding the use of credit cards by Montgomery County school board members, an ad hoc committee has recommended eliminating the use of cards and switching to per diem allowances, instead.
The recommendations will go before the board Monday for consideration.
The committee was formed after board member Christopher Barclay charged more than $1,500 worth of personal items on his school system credit card,The Gazette reports.
In accordance with a request from the Parents’ Coalition of Montgomery County, the school board released expense records for other school board staff members, as well.
They showed that Ikhide Roland Ikheloa, the board’s chief of staff, had used his school system credit card to pay for several hundred dollars worth of personal items at Mr. Tire, Target, CVS and other stores. A school spokeswoman told The Gazette those purchases were made accidentally and that Ikheloa “quickly rectified the situation.”

...

After Controversies, Committee Recommends Montgomery Co. School Board Nix Credit Cards « CBS DC

Gazette: Montgomery County school panel: Get rid of credit cards for members

The Montgomery County school board should stop letting its members use district-issued credit cards entirely, a board committee said Tuesday.
The ad hoc committee has been examining guidelines and practices for members’ expenses and use of these cards. During their June 12 meeting, the panel’s members had discussed scaling back acceptable uses so board members would be allowed to use cards only for expenses related to travel outside the county.
On Tuesday, they went a step further...

http://www.gazette.net/article/20140722/NEWS/140729841/1022/montgomery-county-school-panel-get-rid-of-credit-cards-for-members&template=gazette

Credit Card Abuse & Misuse Continues in MCPS

And, why not? Why shouldn't MCPS administrators abuse credit card privileges?  MCPS has over $2 billion dollars of cash to play with and no oversight from any elected officials   So, party on!  

The Parents' Coalition first exposed the issue of MCPS American Express credit cards being abused and misused by MCPS staff back in 2007.  We documented that at that time there were over 1,400 personal American Express credit cards floating around MCPS. 

In 2009, a Maryland State Audit of MCPS confirmed what the Parents' Coalition had exposed.

Yet, here we are in 2013 and the credit card abuses and misuses continue.   

Today, we made public a document that the Board of Education doesn't want you to see.  It's the MCPS Annual Report of the Internal Auditors and the BOE discussed it at an off-camera committee meeting in an attempt to keep the report quiet.  

Here's what today's Audit report says about MCPS staff use of their American Express (AMEX) credit cards:

"Monthly procurement card [AMEX] logs were not maintained, did not have receipts to support purchases, and lacked review by the principal or community superintendent.  Some purchases were made by dividing a single procurement amount into several lesser amounts in order to circumvent daily or monthly transaction limits."

It's only taxpayer dollars!  Who needs receipts and rules! There's plenty more where this came from!  Look for MCPS administrators at Rockville restaurants today!

Blast from the Past: When Montgomery Co. Audited County Credit Card Use

Here we are in 2011, anyone seen an audit of the $5.5 million MCPS Credit Card Bill?  Of course not. Why audit? Money is plentiful.  MONTGOMERY COUNTY, MARYLAND OFFICE OF INSPECTOR GENERAL UNAUTHORIZED PROCUREMENT AND USE OF CORPORATE CREDIT CARDS BY FLEET MANAGEMENT SERVICES REPORT OF INVESTIGATION MARCH 1999

Finding No. 1: Unauthorized Procurement and Use of Corporate Credit Cards by Fleet Management Services

Finding No. 2: Questioned Costs ($44,000) FMS Engaged in "Splitting" Vendor Invoices in Violation of Procurement RegulationsGoverning Direct Purchases

Finding No. 3: Some FMS Employees Made Personal Purchases Charged to the Unauthorized Credit Card Account and Did NotReimburse the County

Finding No. 4: Waste of County Funds for Payment of Annual Fees, Sales, Taxes and Finance Charges

Finding No. 5: Failure to Comply With County Procurement Regulations Regarding the Purchase of Commodities By Use of CreditCard

Finding No. 6: Some FMS Employees Used the Unauthorized Credit Cards to Make Personal Purchases Which They Later Reimbursed

http://www.montgomerycountymd.gov/oigtmpl.asp?url=/content/inspectorg/creditdoc.asp

State credit cards at university used to dodge purchasing rules, auditors find

State credit cards at university used to dodge purchasing rules, auditors find

An audit report released Monday said purchases made on these two corporate purchasing cards, which had monthly limits of $400,000 or more, “were artificially split in order to bypass formal procurement policies,” which generally require competitive bids for purchases over $5,000.
In some cases, vendors of research and medical equipment used at the professional schools were asked to generate several invoices for a single purchase to avoid competitive bids. The team from the Office of Legislative Audits found that 15 orders from two medical supply firms totaling about $122,000 were split into two or more transaction to avoid the $5,000 limit. The purchases occurred from March 2009 to September 2011.

Read more: http://marylandreporter.com/2013/04/16/state-credit-cards-at-university-used-to-dodge-purchasing-rules-auditors-find/#ixzz2QdPwdtab 
Under Creative Commons License: Attribution

Statement in Support of Gov. Hogan's Proposal for an Inspector General for Education

Statement on Senate Bill 302 Accountability in Education Act of 2018
February 7, 2018

Senate Education, Health and Environmental Affairs Committee

Janis Zink Sartucci
 Parents' Coalition of Montgomery County, Maryland
 parentscoalitionmc@outlook.com

Formed in 2002, the Parents' Coalition of Montgomery County, Maryland seeks to achieve the goals of coherent, content-rich curriculum standards; high expectations combined with timely remediation and acceleration; a wider range of educational options for parents and children; greater transparency and accountability; and meaningful community input. The Parents' Coalition is a non-partisan group made up of independents, Republicans, and Democrats like myself.  We believe that public school education is a vital right for all children.  We believe that every dollar labeled for education should benefit classrooms and that when children attend public schools they should be in a safe and secure environment.

In Governor Hogan's press conference announcing the introduction of this bill, he mentioned our 2014 investigation into the use of personal MCPS credit cards by Board of Education members and MCPS administrators.

Over the years the Parents' Coalition has investigated various issues related to our public school system.  Each and every investigation has been validated by State Audits and, or investigative journalists from all of the major news sources in the Washington, D.C. area.  Today I would like to briefly mention some of our investigations in the hopes that the vital need for an Investigator General for Education in the State of Maryland will become clear.

• Our investigation into the use of personal credit cards by Board of Education members and Montgomery County Public School administrators revealed that thousands of credit cards had been issued but that the credit card bills are paid without verification.  Over the years the credit card bill has climbed to over $8 million a year.  Any time these bills are reviewed, improprieties are revealed.

• No bid purchases continue to be the prevalent with the Board of Education and often the majority of Board of Education spending is without bids or review of vendors.  At the last Board of Education on January 9, 2018, there was $4.8 million in spending.  Of those purchases 8 contracts were no bid and 12 were “extensions.”  The majority of the $4.8 million was spent without competitive bidding or a review of contractors for quality or price.

• In 2009, while working with a federal inspector general, I uncovered the no bid purchase of 3,300 Promethean boards for over $12 million.  Those Promethean Boards were being purchased on individual invoices so as to avoid Board of Education public votes on the purchase.

• Further investigation into the under the table Promethean Board purchases revealed that the Board of Education had been receiving rebates from the federal government that they were not reporting in their public budget documents.  As of 2009, the Board of Education had received over $21 million that had not been disclosed in public budget documents.  The Board was then spending those funds on no bid purchases, without any public disclosure.

• Our 2013 investigation into the placement of commercial cell towers on public school land revealed that those cell towers were hiding in plain site and not paying property taxes.  At the time Louis Wilen discovered that the cell tower companies had avoided hundreds of thousands of dollars in property taxes by building on public school land.  He prompted the State to begin issuing property tax bills as required by law, but years of tax revenue was lost forever.

• In 2008, we uncovered the illegal charging of class fees.  In Maryland, students are entitled to a free public education.  Unfortunately, that right is not honored by the Montgomery County Board of Education and to this day students are denied their right to attend public school free of charge.

• In 2013, working with parents and staff we exposed the stealing of student funds at Rock Terrace School.

• In 2013, I uncovered that our Board of Education was allowing teachers who were suspected of sexually abusing students to stay in classrooms.  The Board would issue “restriction letters” to the teachers telling them to stop touching or otherwise physically interacting with students.  In some cases, the teachers were left in their classrooms, in other cases they were moved to new schools without parents ever being informed as to the potential danger to their children.

• I uncovered that Capital Budget funds of over $8 million are diverted annually to the Operating Budget without disclosure in the public budget documents.

• We have investigated students with disabilities not receiving services they need, yet that same testing qualifies them for services under the Americans with Disabilities Act if they go to college.

• Monitoring gaps:  MCPS, as well as other Maryland school districts, have been addressing educational achievement gaps forever.  MCPS has been at it for more than 3 decades.  Yet, pretty much every school district in the state is unable to answer simple questions.  For example:  Overtime, has the black-white achievement gap--measured with test scores narrowed within districts like MCPS?  The reason we cannot answer the question is because districts like MCPS have not used a common measurement standard overtime.  But one does exists:  NAEP.  Make districts use NAEP for gap measuring initiatives.  NAEP is low cost.  The federal government produces it.  Districts can buy in.  https://nces.ed.gov/nationsreportcard/

• Require districts to periodically conduct follow-along (longitudinal) studies:  We have no systematic means by which to determine if inputs generate significant outputs (outcomes).
We want all districts to conduct follow-along studies.  And these studies would include following dropouts.  Normally, such studies pick a cohort/class and begin following them at the end of middle school.  By beginning this early, studies include dropouts.  Districts also would capture what happens to special populations.  Right now, a district like MCPS only seems interested in kids that complete college--never documenting what happens to other populations. https://nces.ed.gov/surveys/hsb/    Jerry and Jody’s Kids: Where are They Now? | MoCoEdBlog

• We have monitored the public school funds diverted to the Maryland Association of Boards of Education (MABE).   We continually watch as public education dollars are spent on this private club that gives no bid vendors exclusive access to Board of Education members in closed meetings and at an annual vacation in Ocean City.  Those vendors have secured no bid contracts with Boards of Education across the State, all without public oversight or competition.

• We have investigated and exposed the failure of our public school system to keep children safe from sexual predators in classrooms.  We have attended court proceedings and heard how teachers who have been arrested and convicted of crimes against children remain on the MCPS payroll and can even have their records expunged so that they can return to jobs working with children.  The list of teachers and administrators who have had their licenses suspended and revoked should be made public and parents should have access to this information.  Currently, the Parents' Coalition is the only source for this complete information.

• The fraud, waste and abuse of tax dollars is unfortunate, but dollars can be replaced.  Our childrens' lives can not.  First and foremost, we would like to see an Education Investigator General work on making sure that all Maryland children are safe and protected from predators when they attend our public schools.

Thank you for your time today and for your consideration of Senate Bill 302.