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| Sloppy Bookkeeping in DPS | |
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| Tweet Topic Started: Jun 3 2009, 12:55 PM (352 Views) | |
| Ms. AK | Jun 3 2009, 12:55 PM Post #1 |
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LINKhttp://www.freep.com/article/20090603/NEWS01/90603039#pluckcomments DPS audit: $1.7M in taxes lost, sloppy bookkeeping BY CHASTITY PRATT DAWSEY • FREE PRESS EDUCATION WRITER • JUNE 3, 2009 Detroit Public Schools Emergency Financial Manager Robert Bobb released audit findings this morning that show sloppy bookkeeping at 189 of 194 school buildings and a suspected loss of $1.7 million in taxes the tax-exempt schools should not have paid. The audits showed loans made to school officials using school funds, missing funds from activities, school funds diverted to personal accounts, principals writing and signing checks, untimely deposits and money taken home by staff. Three cases involving high schools and two involving elementary schools have been turned over the district’s inspector general, former FBI official John Bell. “We have a reason to believe some of them probably will” be turned over to the prosecutor’s office, Bobb said. “How do you justify making loans to school officials?” he said. Over a period of 21 days, 35 auditors investigated 194 schools that handle $2.5 million to $4 million in funds. Only five had “entirely proper bookkeeping,” he said. "My own assessment is it's not multimillions, it's just petty thieves and over time it adds up" Bobb said. Major sporting events are the source of many complaints, Bobb said. For example, in instances where there are $5 ticket fees for major sporting events, $2 allegedly may make it to the school, he said. Internal auditors will be posted at major events to ensure proper procedures are followed, Bobb said. Odell Bailey, the district's auditor general, called the 21-day audit sweep “unprecedented.” Bailey said it is the first district-wide, school-level audit in the four years since an internal audit department was eliminated. While saying the financial problems may have cost the district $1.7 million in sales taxes, the district has not estimated the losses to the district due to misappropriations. “We’ve audited every level of school,” Bailey said. Auditors found “an environment devoid of basic controls...You could be looking at organized chaos," where staff try to cover theft. Bobb called a $510,000 contract to a local firm to create an internal audit process “a waste of money that did not produce anything,” but credited the school board for being "on the right track." The school board hired the firm before Bobb took office in March. The process the auditor general created took less than a day, according to a statement Bobb released. In an effort to show how some waste occurs, Bobb showed media nearly a dozen food-handling bins that were found unused at Schulze Elementary where a news conference was held this morning. Other such equipment is piling up at other schools, he said. Also found were music facilities for keyboard classes, but no keyboards. Furthermore, debris from the school that was demolished to build the current Schulze is under a mound with grass now growing over it. Bobb called the mound a hazard that could attract and injure playful children. “That’s a problem that must be corrected,” he said. Bailey said bookkeepers will receive annual training and those who handle the largest budgets will now report to the chief financial officer. Contact CHASTITY PRATT DAWSEY: 313-223-4537 or cpratt@freepress.com. Edited by Ms. AK, Jun 3 2009, 12:57 PM.
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| Deleted User | Aug 12 2009, 01:55 PM Post #2 |
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5 DPS workers charged in embezzlement probe BY CHASTITY PRATT DAWSEY • FREE PRESS EDUCATION WRITER • August 12, 2009 Read Comments(59) Calling it the first in a wave of upcoming charges, Wayne County Prosecutor Kym Worthy today announced five felony cases against Detroit Public Schools employees charged with embezzling school funds between 2003 and 2009. Worthy said her office was surprised by the overtness of the alleged corruption. "What did surprise us is how rampant, how overt and how conspicuous and downright bold-faced the corruption is allegedly," Worthy said. "I don't know why the cases weren't brought to us before." The charges include: • Lisa Corean Williams, 41, of Detroit, was a clerical worker at Bow Elementary. She is charged with two 10-year felonies for allegedly writing and cashing checks totaling more than $10,000 and making withdrawals of nearly $15,000. • Roscoe Smiley, 42, of Detroit was a DPS truck driver and is charged with a 10-year felony and two five-year felonies for allegedly accepting unauthorized pay and giving kickbacks to the employee who helped get him the funds. • Sandra Carter, 56, of Harper Woods was a teacher's aide at Denby High and is charged with three 10-year felonies for accepting unauthorized pay and giving a kickback to the employee who made the pay possible. • Maria Roscoe, also known as Maria Starkey, 46, of Eastpointe, booked coach's pay in the DPS Controls Office. She is charged with three 10-year felonies and two five-year felonies for allegedly fraudulently authorizing more than $50,000 in payments to Carter and $2,400 to Smiley. • Tammi Henry, 39, of Detroit was a food services coordinator at Burns Elementary and is charged with three 10-year felonies for allegedly stealing more than $400 in lunch money. Robert Bobb, the emergency financial manager for the DPS, said now parents should feel confident that officials are cleaning up the district. "I don't personally care if the crook is a little guy or the chief executive," Bobb said. "If they commit a crime, we are going after them. You can neither run or you cannot hide. Parents, this is not a sad day but rather this is a great day for the Detroit Public Schools. We are seeing real change happening." This brings to seven the total number of employees charged this year with stealing DPS funds. Worthy said her office is investigating eight other cases and awaiting more potential cases to be referred from DPS. Worthy said she looks forward to working with DPS on changes to rules on cell phones and texting devices and truancy, which both contribute to illegal activity. Bobb said the athletic funds are now under investigation and officials will attend large sporting events to ensure funds are collected and turned in. DPS has an estimated $259-million deficit. Gov. Jennifer Granholm appointed Bobb this year to takeover control of the budget until next March. One of Bobb's first decisions was to hire a former Michigan FBI leader as DPS inspector general to investigate allegations of corruption and fraud. "Clearly, there was a friends and family culture," DPS Inspector General John Bell said. "There must be consequences for robbing our children." Asked whether officials are investigating past or present school board members, Bobb said he was "not at liberty to say." Arrangements are being made for the suspects in today's cases to turn themselves in, according to Worthy's office. In another case, a Denby student is scheduled to be arraigned today on two armed robbery cases. He allegedly committed a one-man "crime wave" against several students and a teacher, officials said. "We are no longer going to permit kids to terrorize other kids, to terrorize teachers, to terrorize our administrators," Bobb said. "We are here to change the culture," Bobb said. Contact CHASTITY PRATT DAWSEY: cpratt@freepress.com or 313-223-4537. http://www.freep.com/article/20090812/NEWS01/90812028/5-DPS-workers-charged-in-probe |
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| Ms. AK | Aug 12 2009, 04:03 PM Post #3 |
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"Clearly, there was a friends and family culture," DPS Inspector General John Bell said. "There must be consequences for robbing our children." |
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