Prince George’s Public School Audit: Ugly (Demo)

The Office of Legislative Audits (OLA), co-chaired by Sen. James Rosapepe (Dist 21 -Prince George’s and Anne Arundel) and Del. Guy Guzzone (Dist 13-Howard County), issued a report on the Prince George’s County School System financial management practices.  It’s a not a pretty picture.  A full copy of the report is found HERE. Read management officials response and projected dates to implement response so that you can hold them accountable.  
 
Money BurningThe report found that PGCPS had not implemented adequate controls over its human resources and payroll, overpaying a number of employees. One employee was overpaid by $25, 111, another by $9,553, just to name a few.  PGCPS has recovered the full amount of overpayment from one employee and has another employee on a payment plan.  PGCPS management response to overpayments was a pledge that their Payroll Department will work with IT to modify current database responsibilities for those who approve time sheets to only include approval rights, not editing.  This will be change was to be completed in February 2014.  Problems with revenue were documented throughout the report, such as $1 million in no bid or “sole source” contracts for “consulting that PGCPS  handled that were not documented, as required, neither was the the rationale for the use of sole source procurements for any of the six consulting contracts selected for by OLA in a test sample.  In 2011-12, there were $22 million in  no bid contracts.  That’s a LOT of consulting for this school system, especially for the years 2011-2012.  I’ve left officials messages.  I’m going to get a list of those who were on the receiving end of these no bid contracts.
SchoolBusThe routing system used by PGCPS Transportation is unreliable, according to the audit, and the transportation staff told auditors that routes are planned out manually, even though PGCPS has had a automated routing system since 2001.  Even our County Executive had to admit at the 2103 State of the District address that his children had on many occasion  been late for school due to bus service.  Transportation problems don’t stop there. Managers responsible for approving time in the transportation timekeeping system for drivers and attendants did not sight documentation of hours worked, even on a test basis.
computer security keySome very basic systems are not in place. PGCPS does NOT use intrusion detection and prevention (IDP) coverage on its network or internet connections. The school system also lacks an Information Technology Disaster Recovery Plan for recovering computer operations from disaster scenarios such as a fire or flood.  Outdated practices are in place with the Before and After Care Program also.  The audit found that all 57 school sites all have separate bank accounts for their Before and After Programs and all program  records are maintained manually, which leaves room for financial mismanagement, errors, and a lack of oversight.  This lack of oversight abounded with a contract with two Energy Service Companies for $105 million.  The contract didn’t even include a timetable for when services would have to be complete or penalties for not completing the project.  In addition, PGCPS could not provide the auditors any other documentation that showed when individual Energy Service Companies’ components of the projects would be completed.
Smiley FaceI found a little light in this tunnel. The report found revenues collected and deposited by the Central Treasurer’s Office disclosed that the receipts tested were properly deposited and recorded. In a test from the OLA of 20 receipts processed by the Central Treasurer’s Office (totaling $4.8 million), it was found that receipts were deposited in a timely manner and accurately recorded in PGCPS’ accounting records.
Be sure to see the full report for yourself HEREMaryland Reporter has also done an extensive post on this audit.
[button link=”http://www.ola.state.md.us/Reports/Schools/PGCPS14.pdf” newwindow=”yes”] Audit Report[/button]
 
 

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