Things the Board of Education Doesn't Want the Public to See: MCPS Independent Activity Fund Manual @mocoboe @mcps

The Montgomery County Board of Education has a long history of removing information from the MCPS website when they didn't want parents and guardians to know what was going to go on in the organization.  

One example is the removal of the MCPS Procurement Manual. This document came up in the Montgomery County Inspector General's Report that was released yesterday.  The IG knew about the MCPS Procurement Manual, but did the public?  

The MCPS Procurement Manual used to be posted on the MCPS website until the Parents' Coalition started calling out the Board of Education for not following their procedures.  Then, the MCPS Procurement Manual disappeared from the MCPS website.  

Another example is the MCPS Independent Activity Fund (IAF) Manual.  That document is mentioned in numerous Board of Education policies.  But where is the IAF Manual available to the public? It isn't.  But we are going to make public the last copy of this Manual that we saw.  This is an important document now that the Board of Education has decided to start using student fees (IAF money) to fund the MCPS Operating Budget.  

2001 Montgomery County Publ... by Parents' Coalition of Montg...

MCPS Principal Used Student Funds for Staff Development

When parents and guardians pay a fee to their child's school, they imagine that those fees are then used to pay for something for the student.

Unfortunately, that is not necessarily the case.

The Board of Education allows principals to collect fees from students and to then spend those fees without oversight.  From time to time audits are performed to find out how student fees were actually used. Frequently audits of schools show that student fees have been misdirected and used for non-student uses.

The July 10, 2017, audit of Paint Branch High School student fees cited the principal for doing exactly that. Student fees were used to pay for staff development.  What did parents and guardians think they had paid for with those fees?  The audit does not say.  Class fees, senior fees/dues, field trip fees can all be diverted to non-student uses without any oversight from the Board of Education.  It is only a year or two later when the accounts are audited that the misuse of student fees is discovered.

Principal charged with theft of school funds, withdrawing cash at casino

The former principal of an alternative high school in southeast Baltimore has been indicted on charges of stealing more than $13,000 from a school account — proceeds from the sales of school uniforms, class dues, graduation fees — and withdrawing the cash from an ATM at Maryland Live Casino, state prosecutors said.

The Office of the State Prosecutor announced Monday the indictments charging Leslie Lewis, 44, of Owings Mills, and her former colleague Albert Fluker, 45, of Randallstown. Lewis worked as principal of Baltimore Community High School near the Dundalk line. Fluker formerly worked as a teacher at the alternative high school. Lewis is charged with theft, misappropriation and conspiracy to commit theft; Fluker with theft and conspiracy...

http://www.baltimoresun.com/news/maryland/crime/bs-md-ci-principal-teacher-charged-20170320-story.html

MCPS Does Not Report Class Fees to County Council #illegal #extortion #slushfund #appropriation #altfacts

Please ask a question: *

Where in the MCPS Operating budget is the money collected from curricular fees accounted for? Thank you.

Ms. Sartucci,

Thank you for the question regarding curricular fees.  Every school provides without charge the textbooks, supplementary readers, audio/visual aids, stationery, and materials of instruction necessary to teach the curriculum or needed by the students to demonstrate mastery of the curriculum through the MCPS Operating budget. The decision to charge curricular fees for designated courses is determined at the school level. An allowable maximum fee has been established for each designated course and must be specific to the course and cost of the item(s) (rounded to the nearest dollar for ease of accounting)—no overcharge may be assessed to paying students to offset the costs absorbed by the school for students who are unable to pay. Course related fees are collected by the school and deposited to the school’s Independent Activity Funds account.  These fees are not accounted for as part of the Operating Budget revenue since they are managed at the school level.  If you have any additional questions regarding course related fees, please contact Dr. Arronza M. LaBatt, Executive Director of School Support and Improvement at 301-279-3994 or via Arronza_M_LaBatt@mcpsmd.org

Nancy Austin
Budget Unit
Carver Educational Services Center
850 Hungerford Drive, Room 170
Rockville, MD  20850
Nancy_Austin@mcpsmd.org
301-279-3547

NBC4: Money Schools Earn From Student Portraits Varies Widely

The amounts of money local schools earn through the sale of student portraits varies widely, according to an investigation by the News4 I-Team.

Similar-sized schools, often within the same school district, are cutting demonstratively different contracts with photography vendors, causing disparities and potentially burdensome work for school principals.

The I-Team, through a review of school photography contacts in Virginia and Maryland, found some school principals cutting more lucrative deals than others. Some secured signing bonuses, while others negotiated more generous commissions. The I-Team found local school districts, which use school portraits as a fundraising tool for individual schools, allow individual school principals to make contract agreements with portrait photographers. Even within the same school district, those principals hire a series of a different photography companies, and are permitted to set their own prices for the pictures...

http://www.nbcwashington.com/investigations/Money-Schools-Earn-From-Student-Portraits-Varies-Widely-369744951.html

Frederick woman sentenced to 15 months in prison for stealing $150K from employer

Read more: http://thedailyrecord.com/2016/01/21/frederick-woman-sentenced-to-15-months-in-prison-for-stealing-150k-from-employer/#ixzz3y1KxIpso

But when students' funds are lost to MCPS administrators...nothing happens.

Principal Stole $50,000 from Student Funds

...From February 2011 to January of 2014, prosecutors said, Trusty used the account's debit card and checks to buy $25,000 worth of personal items and more to pay bills, personal legal fees and a 19-day hotel stay in New Jersey.
State Prosecutor Emmet C. Davitt asked for a nine-month sentence, calling the case "particularly egregious" because Trusty abused her position as principal, taking advantage of students she was supposed to serve. He added that Trusty's financial troubles were not an excuse, and noted her $126,000 annual salary...

http://www.baltimoresun.com/news/maryland/crime/blog/bs-md-ci-principal-sentencing-20151022-story.html

MCPS will no longer sponsor service trips

Every year, students trade the comforts of home to live with high school students abroad. They explore new languages, tastes and cultures as a part of MCPS sponsored exchange programs.

But starting this year, MCPS will no longer sponsor any foreign exchange trips. Schools used to be required to cover costs for any students who couldn’t afford the trips, but due to the heavy financial burden this puts on schools, MCPS cut all programs. The decision will also help MCPS cope with budget cuts because it will no longer have to pay liability insurance for the trips, principal Alan Goodwin said...

http://www.theblackandwhite.net/2015/10/20/mcps-will-no-longer-sponsor-service-trips/ 

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Note the part of the article that has been highlighted.  Who was requiring "schools" to do this? As local schools are not given a budget for this expense, how was a local school supposed to find the money to pay for these trips?  Illegal curricular fees perhaps?

Auditor reports over $25,000 loss at Gaithersburg HS

After a long delay, MCPS has finally put the Gaithersburg High School Independent Activity Fund (IAF) report online.   The IAF is comprised entirely of student money and is administered by the principal.

Among the findings:

• A cumulative loss of student money during recent years of $25,500 related to production of the yearbook. 
• Course fees that are being used to pay for things other than course costs. All course fees are illegal, but the auditors are now reporting that some of the illegal course fees aren't even being used to pay for course materials.
• Negative balances in several accounts.

The entire report is available at:

http://audits.montgomeryschoolsmd.org/school/gaithersburghs

 

Should parents be spending their time raising their children or raising cash for principals?

...Cathy Stocker — vice president of the Friends of Westbrook School Foundation and PTA president at Chevy Chase Elementary School — said she helped raise about $247,000 for improvements to the all-purpose room and courtyard at Westbrook Elementary School in Bethesda...

http://www.gazette.net/article/20140512/NEWS/140519976/1144/montgomery-school-community-members-thinking-of-new-system-for&template=gazette

What misuse of funds means in other professions

Balt. Co. attorney disbarred for misusing escrow funds

Montgomery County State's Attorneys Office - Prosecution Units

Montgomery County State's Attorneys Office - Prosecution Units

Special Prosecution Unit

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The Special Prosecution Unit investigates and prosecutes a variety of crimes dealing with economic loss.   These crimes include:  violations of fiduciary responsibilities (misappropriation of funds), financial exploitation of the elderly, theft/embezzlement by employees, attorney misconduct (including unauthorized practice of law), fraud schemes involving investments, mortgages, identify theft, and internet scams, and matters dealing with misconduct in office by public officials.   The unit also reviews all incidents involving the use of deadly force by a police officer in the line of duty.  The unit manages a Senior Financial Exploitation Prevention Initiative designed to focus on the protection of seniors from financial exploitation.

School Employee Charged with Embezzlement

Only in Fairfax...

http://www.fairfaxcounty.gov/police/news-releases/2014/011314embezzlement.htm

Local School Cash

In Montgomery County, the 25 high schools collected $195,368 in parking fees last year. Each school retains its own revenue to use for athletics expenses, schools officials said.

 http://www.washingtonpost.com/local/education/parking-lots-an-example-of-fairfax-schools-economic-gap/2013/11/16/0362fc2e-3c21-11e3-b6a9-da62c264f40e_story_1.html

Middle school principal, high school administrative employee accused of embezzling money

When this happens in Fairfax County, this is the story:

http://www.nbcwashington.com/news/local/Sonya-Swansbrough-Bethany-Speed-Accused-of-Embezzling-Money-231502931.html

When it happens in MCPS?

Staff throws a farewell party for the administrators.

Schools using Student Funds to pay for Teacher Planning Time

Last we heard, parents and PTAs could not pay for classroom teachers at local schools.

Yet, the Report released by the teacher's union shows that MCPS elementary schools are currently using student funds to pay for substitute teachers so that classroom teachers can have additional planning time during the school day.

Where do student funds come from? They are payments by parents, guardians and students to the local school for tickets to plays, athletic events, yearbooks etc... The funds are put into the local schools Independent Activity Fund (IAF) account.

The use of student funds for substitute teachers was listed as a "creative strategy" in the Report.

Bring a great story!

This flyer has been put in mailboxes at Rock Terrace School.  It announces a "retirement" party for the former Rock Terrace School principal and asks participants to "bring a great story."

Here are some of the "great" stories that have already been in the news:

Missing credit card logs

Lobster tail in Europe

Superintendent Joshua Starr suppressing information about Rock Terrace investigation.

"Unusual and ripe for fraud and abuse"

See you at the party!

Rock Terrace School 2011 Audit

WTOP reported on June 22, 2013, that the Rock Terrace School was audited in 2011.  Below is a copy of that audit.

From the WTOP report:

The audit covering the period from August 2008 to September 2011 also found:

• Payments for gift cards were found, but there was no record of the recipients.

• A PlayStation, a Nintendo 3DS, and nine iPod Shuffles were paid for with school funds, but there was no record of who received them.

• A form used to reconcile ticket sales for the prom or the SGA dance wasn't prepared for FY 2010.

• The school collected money from more students than invoiced by MCPS for Outdoor Education.

• An advance was given to the sponsor of the senior trip with all expenditures documented, except for cash given to chaperones in the amount of $410. The memo went on to say, "All expenditures from an advance need to be documented with receipts or invoices and any remainder returned to the school."

  2011 Rock Terrace by Parents' Coalition of Montgomery County, Maryland

Charter School Needs to Raise $500,000 Annually to Stay Afloat

What kind of a public school is MCPS' one and only Charter School that it needs to raise $500,000 every year to stay open?  Is this how MCPS runs all of its public schools?  Why was a Charter School allowed to open if they didn't have sufficient funds to be sustainable?

Families at the Community Montessori Charter School have been told that $500,000 needs to be raised.  
What does this mean to those families?  What burden does it put on them now that they have enrolled their child in what they thought was a MCPS public school?

Are the Board of Education and the County Council monitoring this fundraising?  

See #5 on this document from the Community Montessori Charter School:

  Community Montessori Charter School by Parents' Coalition of Montgomery County, Maryland

Montgomery Sentinel: MCPS Investigates Principal For Improper Use Of Funds

ROCKVILLE – The Rock Terrace School community is reeling after Montgomery County Public Schools placed the principal on administrative leave following accusations of improper use of school funds.

Lyda Astrove, a local attorney and advocate for the parents and students, said the school apparently paid children for work done in a transition to work program and set up bank accounts in the children’s’ names. However, according to Astrove, parents were not aware of the money or the bank accounts.

Continues at: http://www.thesentinel.com/mont/MCPS-investigates-principal6-27-2013

Printed edition: http://data.axmag.com/data/201306/20130627/U22594_F225390/FLASH/index.html