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...

Board of Education Removes $30M Agenda Item after Parents' Coalition Complaint Filed with Inspector General

Yesterday, a complaint was filed with the Montgomery County Inspector General with regard to Board of Education Agenda Item 6.2, a resolution for a $30 million purchase that included a reference to using student activity funds to pay for the purchase. 

Today at the Board of Education meeting the first order of business was to have that agenda item removed from today's agenda.  

Board of Education to Raid Student Activity Funds. ***Complaint Filed with MoCo Inspector General***

 Mon 6/10/2024 3:41 PM

To:  Megan Davey Limarzi, Esq. 

       Montgomery County Office of the Inspector General 

       ig@montgomerycountymd.gov

In reviewing the Agenda for the Montgomery County Board of Education's June 11, 2024, business meeting we were shocked to read a Resolution that discussed using Independent Student Activity Funds (IAF) as an option for funding a MCPS Operating Budget expenditure.  

Buried in the Montgomery County Board of Education's Agenda Item 6.6 for June 11, 2024, is the following sentence: 

...A total of $14,225,000 is projected to be funded in the FY 2023–2028 CIP, and $10,775,000 is projected to be funded in the FY 2025 Operating Budget or the Independent Student Activity Funds...

https://go.boarddocs.com/mabe/mcpsmd/Board.nsf/files/D5WRBX6A8F88/$file/Cont Apprv RFP 121923 Tech Products Servcs Solutions Ext.pdf

The Resolution does not give any further explanation as to how the superintendent would accomplish this transfer of student funds.  

MCPS Student funds ...IAFs for each school are to be used for the benefit of the student body currently in attendance...

https://ww2.montgomeryschoolsmd.org/departments/policy/pdf/diara.pdf

We have reviewed the MCPS Financial Manual chapter on MCPS Independent Activity Funds (IAF) and do not find any exception that allows the Board of Education to steal funds from student accounts at neighborhood schools.  

IAF funds are raised through student fees at sporting events, student ticket sales at musical and drama performances, yearbook sales, senior dues, field trip fees, memorial funds (deceased students), student parking permits, and student picture sales. We are not aware of any policy or regulation that permits the Montgomery County Board of Education to use these funds to fund the Operating Budget.

If MCPS student funds can be used to fund the MCPS Operating Budget, please advise how that would be accomplished and we will make that information available to parents and guardians so they are aware of how fees they pay into their local school can be diverted by the Board of Education.   

Thank you for your review of this issue.  

Janis Zink Sartucci

Parents' Coalition of Montgomery County, MD

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.

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

 

Auditors allege extensive misuse of student funds by Northwood HS principal

MCPS auditors are reporting that the Principal of Northwood High School, Mrs. Mildred Charley-Greene (or her immediate predecessor), unlawfully collected curricular fees from students and then used the funds to purchase meals for the football team, a practice that is explicitly prohibited in the MCPS Athletic Handbook.  

In addition, Mrs. Charley-Greene (or her immediate predecessor) used over $2500 of student money to purchase smartphone services for staff members, a violation of MCPS procurement rules.

Adding to the misuse of student funds, Mrs. Charley-Greene (or her immediate predecessor) improperly spent over $60 per staff member on "staff refreshments". 

The complete audit report, which lists numerous rule-breaking spending actions by the current principal or her immediate predecessor, is available at:

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

Update: This blog post has been updated to recognize the fact that the audit covers a period of time where both the current and former principals had control over the Independent Activity Fund.   The audit does not distinguish between improprieties attributable to the current principal and improprieties attributable to the former principal.   In any case, there is nothing in the audit that indicates that the current principal has issued refunds to students for the illegally collected curricular fees.   Furthermore, there is nothing in the audit that indicates that the current principal has reimbursed the IAF accounts for funds improperly used for staff refreshments, meals for the football team, or smartphone service.

MCPS formerly required that an audit be conducted whenever the administrator of an IAF (the principal) changes. However, MCPS no longer reliably conducts IAF audits when there is a change of principal. Many IAF audits are more than a year overdue.

Pursuant to MCPS Regulation DIA-RA, "Independent Activity Funds (IAF) are funds that, unless otherwise specifically designated, belong to the student body currently in attendance and must be used solely for the benefit of the student body."

Walter Johnson HS principal used student funds to pay for staff smartphone service

MCPS internal auditors are reporting that the Walter Johnson High School principal used student activity funds to pay for additional smartphone service for eight staff members. 

The Independent Activity Fund, or IAF, is comprised of money that has been collected from students.

The complete audit report can be found at:

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

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

WTOP: Concerns about Montgomery Co. school finances aren't new

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

http://www.wtop.com/52/3366607/Concerns-about-Montgomery-Co-school-finances-arent-new