Newly obtained audits reveal continued misuse of student funds

Internal school audit reports obtained today reveal continued disregard for procurement and spending rules at six MCPS high schools.

The audit reports, which cover the Independent Activity Funds at the schools, reveal that principals used student-owned funds to purchase items such as gift cards, restaurant meals, and Godiva chocolates. According to the auditors, many expenditures were not documented, and several large purchases were made without required approval.

Among the findings:

At Walt Whitman High School (Principal: Dr. Alan Goodwin), the auditors reported that "large sums payable to MCPS have been payable for longer than a year" and "the amount the school owed to MCPS and to other vendors was understated [in financial reports] by $19,309."

At Springbrook High School (Principal during reporting period: Mr. Michael Durso), student funds in the amount of $35,778 were used to purchase a basketball scoreboard without obtaining required approval from the Board of Education. The auditors note that purchases over $25,000 require approval from the Board of Education. In addition, a personal loan to an employee was made from the IAF, a practice that the auditors point out is prohibited.

At Einstein High School (Principal: Mr. James Fernandez), the auditors discovered that student funds were used by the principal "for purchase of numerous gift cards, restaurant meals, and other items without documentation as to names of recipients, or the reason for purchase so that it could be determined if the expense benefited student or staff." The auditor also questions "a reimbursement to a staff member for Godiva chocolates purchased with money donated for needy students."

At Blair High School (Principal: Mr. Darryl Williams), the auditors reported that purchase cards (MCPS-issued American Express credit cards) were used on occasion by someone other than the cardmember. In addition, a random sample of a few of the cash disbursement items revealed that documentation was missing or not adequate for 12 purchases. The auditors noted, however, that "progress has been made to improve conditions" compared to their report from April 2009.

At Blake High School (Principal: Mrs. Carole Goodman), auditors determined that at least two MCPS employees steered large purchases to organizations with whom they have direct affiliation, a clear violation of MCPS policy. Auditors also reported that an MCPS purchase card holder "did not prepare purchasing card logs or provide documentation supporting purchases for five consecutive months beginning in June 2009." The auditors added "While the card issued to this individual has been cancelled, we do not have assurance that charges amounting to $2,109.86 benefited the school, rather than the individual cardmember."

At Damascus High School (Principal: Mr. Robert Domergue), the auditors reported that the school spent $1000 more than allowed on refreshments for staff meetings. (MCPS allows a limited amount of student funds to be used for staff meeting refreshments and staff appreciation.)

The complete audit reports can be accessed at the links below.

Springbrook High School

Einstein High School

Damascus High School

Blake High School

Blair High School

Whitman High School