Audit finds ‘off the books’ account used by vendors to pay Montgomery Co. schools staff

[Anonymous]

There is no oversight of MCPS. The state forces the county to pay them in a way that forbids any budget cuts. So the CE and Council have no teeth to force the system to do what's fiscally ethical and responsible. So there is a bunch of bloat EVERYWHERE in the system.

These kinds of issues are daily operational issues, so the BOE doesn't have oversight.

MCPS can do whatever it wants. Motto: Better to say sorry after, than to ask permission first.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Not a surprise.

MCPS spent 169m on an electric bus contract that probably will probably tear up the electric grid if it's not upgraded, assuming we ever see those busses.

https://wjla.com/features/i-team/school-bus-electric-buses-montgomery-county-public-schools-maryland-joe-biden-administration-mcps-highland-electric-fleets-transportation-fuel-epa-gas

https://driveteslacanada.ca/news/maryland-county-places-single-largest-order-for-electric-school-buses/

well, if mcps doesn't see buses, they can sue for non-performance.

It would be better if both parties agreed to mutual termination and just move on.

[Anonymous]

Anonymous wrote:There is no oversight of MCPS. The state forces the county to pay them in a way that forbids any budget cuts. So the CE and Council have no teeth to force the system to do what's fiscally ethical and responsible. So there is a bunch of bloat EVERYWHERE in the system.

These kinds of issues are daily operational issues, so the BOE doesn't have oversight.

MCPS can do whatever it wants. Motto: Better to say sorry after, than to ask permission first.

The county council has a significant oversight role that they abdicate. They can legislate MCPS to establish a local politics/civics curriculum but cannot hold them accountable for waste? The council elects to not conduct vigorous oversight. It’s a political choice.

[Anonymous]

Anonymous wrote:It’s just another example of MCPS employees who use the system for their own personal financial benefit. It’s amazing how many no-bid contracts are approved by the Board of Education. The Kid Museum is another example outside of the Transportation Department. Seems to be standard operating procedure for MCPS to not get competing bids for a public school system contract.

THIS

[Anonymous]

I’ve worked in large corporations and small businesses. There are standard accounting oversight that are best practices to prevent embezzlement and fraud. It’s ludicrous that after the Board of Education credit card scandal a few years ago that employee spending is done without any consistent oversight.

[Anonymous]

Anonymous wrote:

Anonymous wrote:It’s just another example of MCPS employees who use the system for their own personal financial benefit. It’s amazing how many no-bid contracts are approved by the Board of Education. The Kid Museum is another example outside of the Transportation Department. Seems to be standard operating procedure for MCPS to not get competing bids for a public school system contract.

THIS

Yes, it's an example of criminal malfeasance which can happen anywhere.

[Anonymous]

Anonymous wrote:I’ve worked in large corporations and small businesses. There are standard accounting oversight that are best practices to prevent embezzlement and fraud. It’s ludicrous that after the Board of Education credit card scandal a few years ago that employee spending is done without any consistent oversight.

Exactly! Employing those exact methods appears to be how MCPS discovered this was happening.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I’ve worked in large corporations and small businesses. There are standard accounting oversight that are best practices to prevent embezzlement and fraud. It’s ludicrous that after the Board of Education credit card scandal a few years ago that employee spending is done without any consistent oversight.

Exactly! Employing those exact methods appears to be how MCPS discovered this was happening.

Nope. Best accounting practices would have reviewed all expenditures at a minimum through a monthly reconciliation. There should have been purchase orders and audits of any MCPS credit card expenditures BEFORE bills are paid.

Per the previously WTOP article, “ According to the September 2022 report by the Maryland Office of Legislative Audits, the Montgomery County school system’s own internal audit showed “questionable purchases” for gift cards, furniture and other items shipped to an unnamed transportation manager’s home.” Best accounting practices would have caught bogus / unapproved expenditures the first month that they occurred. Who ships furniture purchased by their employer? Someone who was getting away with buying smaller purchases such as gift cards and knew no one was watching what he was buying.

This is similar to the Board of Education members that used MCPS credit cards for personal purchases. No one is reviewing the purchases and asking for the rationale for the purchase.

[Anonymous]

This is what happens when public organizations get too big and have way more money than they actually need.

[Anonymous]

Anonymous wrote:This is what happens when public organizations get too big and have way more money than they actually need.

No. This is what happens when you have insular and incompetent leadership who are shielded from accountability.

The buck stops with Dr. McKnight.

[Anonymous]

Anonymous wrote:

Anonymous wrote:This is what happens when public organizations get too big and have way more money than they actually need.

No. This is what happens when you have insular and incompetent leadership who are shielded from accountability.

The buck stops with Dr. McKnight.

The buck stops with the BoE, who can fire Dr M.

[Anonymous]

Anonymous wrote:

Anonymous wrote:This is what happens when public organizations get too big and have way more money than they actually need.

No. This is what happens when you have insular and incompetent leadership who are shielded from accountability.

The buck stops with Dr. McKnight.

This happens when an organization is not managed properly and fiscal safeguards are not in place. Perhaps there’s a lack of proper procedures, staffing vacancies, a lack of oversight with staff working remotely, or a combination of all the above but corporations larger than MCPS do not have employees embezzling from them when standard best practices for accounting are followed. No one in MCPS should have a blank check to spend as he/she desires.

Is anyone auditing beyond the Transportation Department to see if other MCPS employees are buying personal items with MCPS funds? Do audits happen at every level from schools, to Central Office, and the Board of Education? Is there going to be an explanation of how MCPS is going to fix their lack of spending oversight so the problem is prevented in the future?

[Anonymous]

Anonymous wrote:

Anonymous wrote:I’ve worked in large corporations and small businesses. There are standard accounting oversight that are best practices to prevent embezzlement and fraud. It’s ludicrous that after the Board of Education credit card scandal a few years ago that employee spending is done without any consistent oversight.

Exactly! Employing those exact methods appears to be how MCPS discovered this was happening.

Yes, it's great to see that they got ahead of this. Imagine this often goes without anyone knowing at less well run districts.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:This is what happens when public organizations get too big and have way more money than they actually need.

No. This is what happens when you have insular and incompetent leadership who are shielded from accountability.

The buck stops with Dr. McKnight.

The buck stops with the BoE, who can fire Dr M.

OMG, my head is going to explode! I thought things couldn't get any worse after Boccegate! It's terrible that MCPS found that an employee was stealing so scandalous!!

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I’ve worked in large corporations and small businesses. There are standard accounting oversight that are best practices to prevent embezzlement and fraud. It’s ludicrous that after the Board of Education credit card scandal a few years ago that employee spending is done without any consistent oversight.

Exactly! Employing those exact methods appears to be how MCPS discovered this was happening.

Yes, it's great to see that they got ahead of this. Imagine this often goes without anyone knowing at less well run districts.

DP. It does appear from the timeline that the malfeasance was happening under Jack Smith's watch, and it wasn't until after McKnight took over and reorganized central office that it came to light.