Public schools

Audit: Baltimore City Public Schools Playing Fast and Loose with Public Funds

|

In 2004, after Baltimore City public schools reported a $58 million deficit, Maryland legislators instituted an audit of state school systems every six years. Auditors found that Baltimore school officials sent checks to deceased staff, overpaid employees, and paid contractors for services that had not been rendered.  

Preliminary findings from the city's second sexennial audit, obtained by the Baltimore Sun, reveal more fiscal hjinks:

The Baltimore school system spent more than $2.8 million on overtime in fiscal 2010, even though it was doubtful that employees worked all of the hours for which they were paid.

Three employees earned a combined $250,000 in salaries while working for both the school system and a state agency during the same hours.

And the school system failed to collect nearly $1.5 million in debt dating to 2009, including $336,000 in bonuses paid to employees who hadn't earned them.

…The auditors also found financial oversight to be so inadequate that officials paid millions of dollars in contracted work that wasn't verified, lost 1,400 computers and allowed dozens of employees access to adjusting payroll even though it wasn't required for their jobs.

…School board oversight was lacking, particularly in its ethics and financial disclosure policies. Auditors found several instances of conflicts of interests. The system paid one employee for both part-time work in the central office and nearly $34,000 as a contractual vendor for instructional services. The employee owned the vendor business—and had the authority to approve purchases in the school system's automated procurement system.

In addition, 105 school system employees had home addresses that matched the addresses of vendors hired for instruction, special education and consulting services. A review of eight procurement payments showed that seven went to vendors who were also system employees.

…Oversight of contracts and procurement was lacking. For example, auditors found that the system continued to pay a contract for special education instruction that expired in 2008 and was never renewed by the school board, for a total of $6.9 million through June 2010. The audit doesn't specify whether any work was done after the contract expired.

The system failed to verify bills submitted by school bus contractors. A review of monthly invoices showed that contractors billed for driving time and mileage totaling nearly $350,000, using the exact same hours and minutes for about 50 buses every month. And, in one instance, a contractor bus aide reported that no students were transported for two days due to a water main break, but the company still billed the system $327 for each day.

According to the state's acting legislative auditor, school officials "might have [an] explanation for things or provide documentation that would basically cause the finding to go away."

Reason writers have explored the notion that public schools may not be underfunded and covered poll results suggesting the public is underwhelmed with government schools.

Advertisement

NEXT: Mitt Romney is Right, War in Europe is Inconceivable

Editor's Note: We invite comments and request that they be civil and on-topic. We do not moderate or assume any responsibility for comments, which are owned by the readers who post them. Comments do not represent the views of Reason.com or Reason Foundation. We reserve the right to delete any comment for any reason at any time. Report abuses.

  1. Maryland legislators instituted an audit of state school systems every six years.

    Yeah, that’s some accountability.

    1. That was my exact reaction. Conveniently longer than anyone’s term, too. So the blame can always go to someone who is no longer in office (I seriously doubt the retention rate is 100%.)

  2. The Baltimore school system spent more than $2.8 million on overtime in fiscal 2010, even though it was doubtful that employees worked all of the hours for which they were paid.

    Isn’t it obvious? Baltimore was funding black ops. Probably in Hamsterdam.

    1. Sweet. I just watched that ep of The Wire this weekend.

      For the first time. NO SPOILERS, you bastards!

    2. Isn’t it obvious? Baltimore was funding black ops.

      Racist!

  3. If your school must have a sexennial audit, there are worse auditors than Cameron Diaz to choose.

  4. Baltimore city playing fast and loose with the tax payers money? Oh nos! It can’t possibly be! I mean just because they have turned large sections(pretty much all) of the city into ghost towns with delapidated housing because no one in their right mind would pay the obscene propery tax by buying in the city?

    They seem to be spending a shitload of tax payers money on a park that I pass every day on my way to work that is constantly covered in trash and that no one in their right mind would dare to walk through in the daytime, let alone at night. They could turn it into the garden of fucking Eden and it would be so covered in trash the next day by the self righteous entitlement minded trash that fill the neighborhood that it wouldn’t make any difference at all. But what the hell, compliments of the tax payers, it was all free!

    1. Vote question7! For the kids!

  5. Don’t you see? This is just righteous compensation taken by brave edu-warriors thinking outside the box. They are taking what they have EANRED and what an ungrateful public refuses to pay them. Teachers are heroes.

  6. So, so I guess Sarbanes?Oxley only applies to businesses that provide tax dollars, not to bureaucrats who help themselves to tax dollars? Wait, but didn’t the government write the damned regulations in the first place?

  7. Whoa, I never had a teacher that was that HAWT! Wow.

    http://www.VPN-Network.tk

Please to post comments

Comments are closed.