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Georgia Professional Standards Commission 2014 West Georgia RESA Fraud Prevention, Booster Clubs and Other Items.

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Presentation on theme: "Georgia Professional Standards Commission 2014 West Georgia RESA Fraud Prevention, Booster Clubs and Other Items."— Presentation transcript:

1 Georgia Professional Standards Commission 2014 West Georgia RESA Fraud Prevention, Booster Clubs and Other Items

2 Sanctions-January, January 2014 Legal compliance-35 Legal compliance-35 Conduct with Students-84 Conduct with Students-84 Alcohol and Drugs-34 Alcohol and Drugs-34 Honesty-119 Honesty-119 Public Funds and Property-30 Public Funds and Property-30 Remunerative Conduct-2 Remunerative Conduct-2 Confidential Information-5 Confidential Information-5 2

3 Sanctions Abandonment of Contract-6 Abandonment of Contract-6 Required Reports-34 Required Reports-34 Professional Conduct-39 Professional Conduct-39 Testing-71 Testing-71 Total-459 Total-459 3

4 West Georgia RESA 4

5 FY 2011 Carroll County-6 Carroll County-6 Carrollton City-0 Carrollton City-0 Coweta County-5 Coweta County-5 Harris County-3 Harris County-3 Heard County-0 Heard County-0 Meriwether County-9 Meriwether County-9 Troup County-8 Troup County-8 Total-31 Total-31 RESAs avg-61 RESAs avg-61 FY 2012 Carroll County-3 Carroll County-3 Carrollton City-6 Carrollton City-6 Coweta County-10 Coweta County-10 Harris County-2 Harris County-2 Heard County-2 Heard County-2 Meriwether County-2 Meriwether County-2 Troup County-5 Troup County-5 Total-30 Total-30 RESAs avg-64 RESAs avg-64 FY-2013 Carroll County-1 Carroll County-1 Carrollton City-0 Carrollton City-0 Coweta County-7 Coweta County-7 Harris County-4 Harris County-4 Heard County-0 Heard County-0 Meriwether County-0 Meriwether County-0 Troup County-1 Troup County-1 Total-13 Total-13 RESAs avg-55 RESAs avg-55

6 Violations From Cases Closed July 1, 2010-June 30, 2012 Top certification areas: Top certification areas: CTAE CTAE P. E. P. E. Social Studies Social Studies Special Education Special Education Years of Experience: Years of Experience: 6-10 years—approximate age years—approximate age

7 Standard 2 Conduct With Students

8 Standard 2 An educator shall always maintain a professional relationship with all students, both in and outside the classroom.

9 For the purposes of the Code of Ethics, the enrollment period for a graduating student ends on August 31 of the year of graduation.

10 Sexual Abuse of Students Revocation

11 Statistics 1 in 84 chance of being killed in automobile during lifetime 1 in 84 chance of being killed in automobile during lifetime Risk of being sexually abused by age 18 Risk of being sexually abused by age 18 For Girls-1 in 4 For Girls-1 in 4 For Boys-1 in 6 For Boys-1 in 6 Median age-9 years old Median age-9 years old 90% of perpetrators known by family 90% of perpetrators known by family 40% inside the home 40% inside the home

12 Sexual Relationship with Students O. C.G. A O. C.G. A Person who has supervisory or disciplinary authority over a student who engages in sexual contact with students… Person who has supervisory or disciplinary authority over a student who engages in sexual contact with students… New thing in Georgia New thing in Georgia 12

13 Sexual Relationship with Student 13

14 Jail time Jail time Age 16-not less than one year nor more than 25 years in jail or a fine not to exceed $100,000 or both Age 16-not less than one year nor more than 25 years in jail or a fine not to exceed $100,000 or both Under the age of 16-not less than 25 years nor more than 50 years in jail Under the age of 16-not less than 25 years nor more than 50 years in jail 14

15 Principal Teacher heard a rumor regarding an inappropriate relationship between a teacher and a student Teacher heard a rumor regarding an inappropriate relationship between a teacher and a student Principal stated—”Do you have any evidence?” Principal stated—”Do you have any evidence?” Several weeks later, a 2 nd teacher reported to principal the rumor she had heard and got the same response Several weeks later, a 2 nd teacher reported to principal the rumor she had heard and got the same response Investigate and report rumors to superintendent Investigate and report rumors to superintendent 15

16 Public Funds & Property Standard 5

17 An educator entrusted with public funds and property shall honor that trust with a high level of honesty, accuracy, and responsibility.

18 Public Funds & Property Unethical conduct includes but is not limited to: 1. misusing public or school-related funds; 2. failing to account for funds collected from students or parents; 3. submitting fraudulent requests or documentation for reimbursement of expenses or for pay; 4. co-mingling public or school-related funds with personal funds or checking accounts; and 5. using school property without the approval of the local board of education/governing board or authorized designee.

19 Standard 5-Public Funds and Property Fraud-any intentional or deliberate act to deprive another of property or money by guile, deception, or other unfair means Fraud-any intentional or deliberate act to deprive another of property or money by guile, deception, or other unfair means 5% of revenue will be lost annually to occupational fraud 5% of revenue will be lost annually to occupational fraud 19

20 Rule 10% will never steal from you 10% will never steal from you 10% will rob you at every opportunity 10% will rob you at every opportunity 80% will steal if given the right opportunity and circumstances 80% will steal if given the right opportunity and circumstances 20

21 The Silent Code Code of the Schoolyard Code of the Schoolyard Don’t tattle Don’t tattle Never say anything unless you are sure everyone feels that way Never say anything unless you are sure everyone feels that way Don’t get involved Don’t get involved What is the difference between tattling and reporting? What is the difference between tattling and reporting? 21

22 Meet Bob

23 Bob Not his real picture; had to use a French model Not his real picture; had to use a French model Bob is a state employee Bob is a state employee Bob has been with the state of Georgia for 20 years Bob has been with the state of Georgia for 20 years Bob is a well respected family man Bob is a well respected family man Bob is a hard worker-he arrives early and stays late Bob is a hard worker-he arrives early and stays late Bob is dedicated-he has a heavy work load and never takes vacation Bob is dedicated-he has a heavy work load and never takes vacation 23

24 Bob Also the perpetrator of a million dollar fraud scheme Also the perpetrator of a million dollar fraud scheme Bob was caught purely by accident Bob was caught purely by accident Does your school district employ any Bobs Does your school district employ any Bobs 24

25 How could this have happened? Management ignored red flags Management ignored red flags Lack of management oversight Lack of management oversight Placed trust in Bob to the exclusion of internal controls Placed trust in Bob to the exclusion of internal controls Allowed high workloads to override basic accounting practices Allowed high workloads to override basic accounting practices 25

26 Why don’t more people report? No mechanism for reporting No mechanism for reporting Failure to train management to recognize fraud Failure to train management to recognize fraud Failure to train employees Failure to train employees Fear of retaliation Fear of retaliation Fear of lawsuit Fear of lawsuit 26

27 Schools are especially vulnerable Educators are basically trusting and compliant Educators are basically trusting and compliant Schools have a high workload Schools have a high workload Many employees have the opportunity to commit fraud Many employees have the opportunity to commit fraud Educators are not trained to audit and inspect financial transactions Educators are not trained to audit and inspect financial transactions 27

28 Reasons Employees Commit Fraud Opportunity Opportunity Financial pressures-living beyond one’s means, alcohol, drugs, gambling, poor credit, unexpected financial needs Financial pressures-living beyond one’s means, alcohol, drugs, gambling, poor credit, unexpected financial needs Rationalization-I’m only borrowing the money, I deserve more pay, they won’t miss it, I won’t get caught, I’m not hurting anyone, it’s not that serious, it’s for a good cause Rationalization-I’m only borrowing the money, I deserve more pay, they won’t miss it, I won’t get caught, I’m not hurting anyone, it’s not that serious, it’s for a good cause 28

29 What can be done Hotline Hotline Employee training Employee training Establishing a culture Establishing a culture Internal controls Internal controls Better hiring practices Better hiring practices Understand why fraud occurs Understand why fraud occurs 29

30 Top Internal Controls A system of checks and balances A system of checks and balances Reconcile revenues and expenditures every month Reconcile revenues and expenditures every month Restrict use of credit cards and verify all charges and accounts Restrict use of credit cards and verify all charges and accounts Provide oversight of operations and management Provide oversight of operations and management Put policies and procedures in writing Put policies and procedures in writing 30

31 Top Internal Controls Keep current inventory of assets Keep current inventory of assets Protect petty cash funds Protect petty cash funds Insist on receipts, invoices Insist on receipts, invoices 31

32 Schemes Expense reimbursement Expense reimbursement Payroll Payroll Billing Schemes-Shell companies, false invoices, overpayment Billing Schemes-Shell companies, false invoices, overpayment Vendors-nepotism, outside employment with company, projects before renovations Vendors-nepotism, outside employment with company, projects before renovations Bribery, Kickbacks, Bid-rigging Bribery, Kickbacks, Bid-rigging Specifications written for a specific business Specifications written for a specific business 32

33 Invoices P. O. Box with no phone number or fax P. O. Box with no phone number or fax No folded invoice No folded invoice No shipping and handling, no taxes No shipping and handling, no taxes Sequentially numbered invoices Sequentially numbered invoices Photoshop invoices Photoshop invoices 33

34 Do Schools Have a Problem? Former state superintendent Former state superintendent Former DeKalb superintendent Former DeKalb superintendent Former assistant superintendent in Walton County Former assistant superintendent in Walton County Booster Club and PTA officers-(Cherokee, Gwinnett, Walton) Booster Club and PTA officers-(Cherokee, Gwinnett, Walton) Assistant Principal and A. D. (Fayette) Assistant Principal and A. D. (Fayette) Coaches, Bookkeepers, Cafeteria Managers, Administrators, Bus Mechanics Coaches, Bookkeepers, Cafeteria Managers, Administrators, Bus Mechanics 34

35 Booster Clubs and Student Organizations 35

36 Position of Principals Booster Clubs have their own rules and regulations Booster Clubs have their own rules and regulations Booster Clubs do not fall under supervision of School Booster Clubs do not fall under supervision of School Principals have no control or authority over Booster Clubs Principals have no control or authority over Booster Clubs 36

37 Question If the high school does not exist, would there be a need for a Booster Club? If the high school does not exist, would there be a need for a Booster Club? What if Booster Club wanted to do something controversial What if Booster Club wanted to do something controversial Professional Standards Commission holds school system administration accountable for Booster Clubs Professional Standards Commission holds school system administration accountable for Booster Clubs 37

38 GHSA By-law 1.73 A Booster Club shall be considered to be an extension of the school A Booster Club shall be considered to be an extension of the school Following persons or groups may be considered boosters: Following persons or groups may be considered boosters: Members or Parents Members or Parents Donors Donors Volunteers Volunteers Alumni or Former Students Alumni or Former Students Relatives Relatives 38

39 Standard #5 Public Funds and Property An Educator entrusted with public funds and property shall honor that trust with a high level of honesty, accuracy, and responsibility An Educator entrusted with public funds and property shall honor that trust with a high level of honesty, accuracy, and responsibility Unethical conduct includes but is not limited to: Unethical conduct includes but is not limited to: Using school property for personal gain Using school property for personal gain Using school property without the approval of the local BOE/ designee Using school property without the approval of the local BOE/ designee 39

40 Is it Legal? Coaches utilize Booster Club funds or School funds to purchase team logo shirts for Coaches and Administrators Coaches utilize Booster Club funds or School funds to purchase team logo shirts for Coaches and Administrators Do other employees get free clothes to wear to work? Do other employees get free clothes to wear to work? Do we allow Band Directors to purchase their outfits for free?....or Drama teacher? Do we allow Band Directors to purchase their outfits for free?....or Drama teacher? If other teachers received anything free, they would be scrutinized If other teachers received anything free, they would be scrutinized 40

41 Camps Camps 41 Who handles the money? Who handles the money? Who gets paid? Who gets paid? How is the revenue used? How is the revenue used? Are school equipment, supplies, facilities, etc. used? Are school equipment, supplies, facilities, etc. used? Are the Drama teacher and other employees provided the same opportunities as coaches? Are the Drama teacher and other employees provided the same opportunities as coaches?

42 Required Reports Standard 9

43 Soccer Coach A player asked her coach if she could talk with her confidentially A player asked her coach if she could talk with her confidentially Coach agreed to keep things confidential Coach agreed to keep things confidential Student said she was being sexually abused at home Student said she was being sexually abused at home Coach suggested they go to the counselor Coach suggested they go to the counselor Student refused-saying she needed to keep things confidential Student refused-saying she needed to keep things confidential After several weeks of coercion, the coach and player went to the school counselor After several weeks of coercion, the coach and player went to the school counselor 43

44 Joe Paterno 44

45 Where Do We Go From Here? 45

46 Solutions Good Board Policies Good Board Policies Supervision of Booster Clubs and Student Organizations Supervision of Booster Clubs and Student Organizations Proper Accounting Procedures Proper Accounting Procedures Training provided on an annual basis Training provided on an annual basis Accurate and Up-to-Date records Accurate and Up-to-Date records 46

47 Suggested Board Policy All clubs and organizations (including PTAs and Booster clubs) are required to use school as fiscal agent All clubs and organizations (including PTAs and Booster clubs) are required to use school as fiscal agent Must follow all internal accounting procedures Must follow all internal accounting procedures Audit Trail-clear trail from receipt of funds to disbursement of funds Audit Trail-clear trail from receipt of funds to disbursement of funds Bank Account-Principal controls—as option-could require two signatures Bank Account-Principal controls—as option-could require two signatures 47

48 Suggested Board Policy Principal should establish a general fund or account for all organizations and projects such as pictures sales or vending income Principal should establish a general fund or account for all organizations and projects such as pictures sales or vending income No debt incurred which cannot be paid from receipts of the approved activity No debt incurred which cannot be paid from receipts of the approved activity No debt can be carried over to next fiscal year without specific board approval No debt can be carried over to next fiscal year without specific board approval All purchases must be made in accordance with board purchasing policies All purchases must be made in accordance with board purchasing policies 48

49 Up-to-Date Records for Student Organizations and Booster Clubs Files should contain current membership list with names, addresses, phone numbers of officers Files should contain current membership list with names, addresses, phone numbers of officers Files should contain list of By-laws Files should contain list of By-laws Goals should be submitted each year Goals should be submitted each year All planned fund raisers should be submitted for board/designee approval All planned fund raisers should be submitted for board/designee approval All trademarks, logos, and marketing information are property of the BOE All trademarks, logos, and marketing information are property of the BOE 49

50 Up-to Date Records (continued) Minutes should be taken at each meeting and submitted to principal or designee Minutes should be taken at each meeting and submitted to principal or designee Attendance records should be recorded and included in the minutes Attendance records should be recorded and included in the minutes Guidelines should be established on the procedures necessary to begin a new organization—minimum number of members, by-laws, name of sponsor, meeting dates, purpose, proposed activities, when clubs can be formed, etc Guidelines should be established on the procedures necessary to begin a new organization—minimum number of members, by-laws, name of sponsor, meeting dates, purpose, proposed activities, when clubs can be formed, etc 50

51 Community Coaches and Band Helpers Booster Clubs may hire using contracted services Booster Clubs may hire using contracted services Approval of Athletic Director, Principal, and Superintendent required prior to issuance of contract/MOU Approval of Athletic Director, Principal, and Superintendent required prior to issuance of contract/MOU Volunteers and Community Coaches should undergo FBI background check and fingerprinting Volunteers and Community Coaches should undergo FBI background check and fingerprinting Title IX guidelines apply Title IX guidelines apply 51

52 THE BUCK STOPS WITH YOUR ATTORNEY

53 Another Available Option Establish Booster Club as 501c3 non-profit organization Establish Booster Club as 501c3 non-profit organization Must have its own tax ID number Must have its own tax ID number Registered and approved with IRS Registered and approved with IRS Have same requirements for all Boosters (Band, Athletic, Academic, Foundations, etc.) Have same requirements for all Boosters (Band, Athletic, Academic, Foundations, etc.)

54 Requirements Principal or Administrative Designee should be a member of the Executive Committee and attend all meetings Principal or Administrative Designee should be a member of the Executive Committee and attend all meetings Coaches/Band Directors should not serve on Executive Board Coaches/Band Directors should not serve on Executive Board Check writing should require two signatures Check writing should require two signatures Audit and Tax returns should be required annually with copy sent to Superintendent Audit and Tax returns should be required annually with copy sent to Superintendent 54

55 Treatment of Perks and Benefits to Educators Booster Club is responsible for all record keeping and tax notification Booster Club is responsible for all record keeping and tax notification Form 990 should be filed with IRS if gross receipts are greater than $25,000. Form 990 should be filed with IRS if gross receipts are greater than $25,000. Form 1099 for income Form 1099 for income Educator responsible for reporting income on tax return Educator responsible for reporting income on tax return Camp Income also applies Camp Income also applies

56 Advice Coaches should not maintain checking account for any fund raisers or activities Coaches should not maintain checking account for any fund raisers or activities Strong board policies protect the coaches and the school system Strong board policies protect the coaches and the school system Utilize proper accounting procedures and maintain accurate records Utilize proper accounting procedures and maintain accurate records Provide training on an annual basis to administrators, coaches, and booster club/ PTA officers Provide training on an annual basis to administrators, coaches, and booster club/ PTA officers Seek advice from board attorney Seek advice from board attorney 56

57 What Will the Headlines Read? Booster Club money stolen-School System took advice of Attorney Booster Club money stolen-School System took advice of Attorney Trophy High School Booster Club Money Stolen Trophy High School Booster Club Money Stolen Who will the reporter call? Who will the reporter call? The superintendent/high school principal? The superintendent/high school principal? Attorney? Attorney? 57

58 Special Thanks Georgia High School Athletic Association Georgia High School Athletic Association Cartersville City School System Cartersville City School System John Grant John Grant 58

59 Contact Information

60


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