Charlotte Leaders Refusing To Release Full DSS Fraud Report

Charlotte-Mecklenburg County officials Won't Release Full DSS Fraud Report


Charlotte-Mecklenburg County on Monday released more documents from its probe into a Department of Social Services charity, but officials won't produce a related report they say is protected under NC State personnel laws.

The newly-released papers include copies of receipts for gifts bought for the now-defunct Giving Tree program, summaries of problems found by a county auditor and a list of items in storage.

But officials have repeatedly refused to provide the full Giving Tree audit since the Observer first asked for it last July.

The county has released a three-page executive summary, but former Internal Audit Director Cornita Spears said the full document includes a longer, more sensitive report.

The Giving Tree came under scrutiny early last year after an employee raised concern about possible misspending. County leaders have said they believe they know how more than $160,000 was spent by the charity in 2008, but said the poor records means they cannot be completely sure all money was spent as intended.

Since last summer, the county has released documents, including a revision of Spears' initial report to account for money that had been returned by a charity worker.

A review of the new records found no substantively new information, and none of the files appeared to contain any information that should have been kept private under the law. Deputy County Attorney Tyrone Wade said officials considered the files released Monday to be privileged, and thus protected, because they were attached to the longer personnel document.

Wade said officials decided to release the attachments, with some information redacted, because most of the information in them was out already.

North Carolina's personnel law is restrictive, keeping secret all but the most basic information about public employees. It states a personnel file includes any information gathered by the county with respect to an employee.

Mike Tadych, an attorney with the N.C. Press Association said personnel records "do have a broad definition, but it's not as all-encompassing as they would lead you to believe." He pointed to a 2007 N.C. Court of Appeals ruling that allowed the release of a redacted form of a document written by a Columbus County employee.

In that case, the worker recommended a hire for county medical director. The court ruled that part of the document was private but another portion was a public record and could be released under the law.

The personnel law does have some exceptions, however, including allowing the release of personnel files if officials decide it is necessary to maintain public trust in an institution. Charlotte-Mecklenburg County commissioners previously have said they believe Charlotte-Mecklenburg County officials have been transparent in releasing the information they can under the law.




Charlotte-Mecklenburg County Officials Hid FBI Probe Of DSS


The FBI and a Federal Grand Jury has been investigating Charlotte-Mecklenburg County DSS since August and county officials have attempted to hide that probe from the public.

How else to explain playing 20 Questions with April Betha’s document request — not mention flat out refusing to answer our own direct questions on the matter back in December? The bombshell over the weekend:

A Federal Grand jury last fall requested more than three years of financial documents from a now-defunct charity program run by the Charlotte-Mecklenburg Department of Social Services, according to a newly released copy of the subpoena.

The August request came as authorities were conducting a criminal investigation into a “suspected felony,” the subpoena states. It asked for, among other things, copies of all receipts, vouchers and paperwork on purchases made through the Giving Tree charity since 2006 and any communication from the county’s finance department on donations received by the charity.

Once again County Manage Harry Jones has some serious explaining to do. Jones has claimed total transparency in this matter. But this revelation — not to mention the cold, smug way Deputy County Attorney Tyrone Wade defends his calculated dissembling — indicates it was official county policy to hide the existence of the FBI’s involvement for as long as possible.

That is not transparency, that is not accountability. But it is Charlotte-Mecklenburg County government.

Bonus Observation: If Jennifer Roberts cannot raise herself to condemn this obvious breach of open and responsive, government she slides from ineffectual to co-conspirator. Then I wonder if the Uptown paper has the guts to condemn her….



Jennifer Roberts, Part of the Problem


I think I’m done cutting Roberts any slack on this DSS mess. For her to obstruct and slam the attempts of other commissioners to find out what is going on with county’s massive, $200m. DSS operation is too much. And for Roberts to suggest that a closed session airing of DSS’s dirty laundry is not her preferred way to go is an insult to the intelligence of all Mecklenburg County taxpayers.

The only reason Commissioner Bill James and the other GOPers are suggesting the closed session route is in response the “disclosure” stonewall County Manager Harry Jones has erected around the investigation — a construction effort aided and abetted by Jennifer Roberts. Fine. Let’s hear DSS chief Mary Wilson answer questions in open session. Super. Next.

It will also be interesting to see if Commissioner George Dunlap’s confirmation that a federal grand jury probe is underway of DSS shakes anything new loose. Why it took a full month for the probe’s existence to be reported remains a mystery, but at least everyone in town has caught up to the story.

However, it would be wrong to assume that the probe will result in any indictments, both as a matter of fairness and institutional inertia. Prosecutors are political animals and will require some slam-dunk, smoking gun type evidence of wrongdoing for them to move on a DSS devoid, until very recently, of adult supervision of its funds.

On the third hand, not all gross mismanagement rises to the level of criminality. This is why the county commission must itself reestablish public trust in one of its largest ongoing budget expenses. Jennifer Roberts needs to help that process or get out of the way.





Federal Grand Jury Investigating Charlotte-Mecklenburg County DSS


A Federal Grand Jury is investigating the Charlotte-Mecklenburg County Department of Social Services, which has faced scrutiny over accounting practices and spending since early this year, two county commissioners said Monday.

Commissioner George Dunlap said the grand jury has been looking into whether crimes were committed by employees.

Commissioner Bill James said board members were told last month that a federal grand jury is investigating. He refused further comment on the topic, saying commissioners were instructed by a county attorney not to discuss specifics.

The county ordered an audit of the Giving Tree after a DSS employee raised questions about spending at the Christmas charity for needy children. The county discovered checks written out to a county employee who volunteered with the program, as well as money issued to the sister of another employee.

County spokesman Danny Diehl said officials cannot confirm whether a federal grand jury is involved, but said the county "is cooperating with law enforcement to complete the investigation."

The county has asked Charlotte-Mecklenburg police to investigate. A police spokesperson on Monday said their work is ongoing.
Other commissioners reached Monday would not comment on work by authorities. "I want the investigation to have the best possible outcome, said board Chair Jennifer Roberts. "So I am unable to discuss it in the interest of not impeding the work of law enforcement."

In the meantime, James and fellow Republican commissioners Karen Bentley and Neil Cooksey want the county board to meet next week to learn more about ongoing probes.

"There are facts we don't have," James said. "I am just concerned there is stuff even senior management doesn't know."

Diehl said the county will respond to any questions the board has about the DSS audits. "The board has received reports and been briefed on all aspects of the DSS audits that are available to the county manager and staff."

The developments follow Observer stories on Sunday detailing a 74-page memo from a former county employee who headed the Giving Tree. Cindy Brady, who retired from the county in August, wrote she was never given a chance to talk at length about how the charity worked, despite requests to do so.

Brady said the county advanced her as much as $198,000 since 2005 with the approval of her supervisors. Brady said she spent the money on gifts for needy children, but says she did not collect all of her receipts, and some were handwritten or lost.
County leaders say they can account for how about $162,000 was spent by the Giving Tree last year.

But audit reports acknowledge numerous problems with receipts and other documents to track expenses and cited inadequate oversight and controls of the program by management.

The county has announced a number of changes in response to the charity audit and reviews of other DSS spending, including putting department finances under control of the county finance office and re-training DSS employees in financial practices and procedures.

The agency employs about 1,200, with a current annual budget of $176 million.

Brady's memo, dated July 29 and sent to a human resources manager, criticized county investigators for not interviewing her during the audit investigation. The county's former Internal Audit Director Cornita Spears said she first read the memo last month, and it led her to revise her earlier report to include about $33,000 Brady said she returned to the county earlier this year.

County Manager Harry Jones suspended Spears last month over the error.


Why James wants meeting

James cited the Observer story in explaining his reasons for calling the new discussions on DSS. He said he wants to give disgruntled employees a venue to air grievances. For months, James said, commissioners have been deluged with anonymous complaint letters from people who only identify themselves as current and former agency workers.

Some apparently won't divulge their names because they fear retaliation from superiors, James said.

The proposal requests that the board discuss the DSS issues on Dec. 17, with portions of the meeting to be held behind closed doors. It asks that DSS Director Mary Wilson appear to the meeting, and that other department employees be made available.

It also requests that former Giving Tree employees be invited to talk, including former county general manager Janice Allen Jackson, who briefly led DSS on an interim basis until Wilson was hired last year.

Neither Jackson nor Brady could be reached for comment Monday.

The proposal also wants Jones to provide in open session a detailed list of gifts bought with Giving Tree money and information on all items from the charity now in county inventory.

It also asks for copies of all internal memos produced by internal audit and county management involving the Giving Tree.

The county publicly released a three-page report in June and a follow-up report last month. The Observer has requested a longer report by Spears multiple times since July, but the county has said personnel laws bar them from releasing the document.

In order to hold the Dec. 17 meeting, at least five commissioners would have to agree. At least two of the six Democrats would have to sign on.

Roberts, Dunlap and Vilma Leake said they want to hear more about what the commissioners are trying to accomplish in holding the meeting before they can decide whether to support it. However, Roberts questioned whether meeting in closed session was the best approach, and said she is "distressed" that the board Republicans did not talk to her before putting the item on next week's agenda.

Dumont Clarke said he's inclined "to be as transparent and public as possible about this issue and do as little as possible behind closed doors."

Commissioners Harold Cogdell and Dan Murrey did not respond to requests for comments.

Cooksey said his constituents are demanding the board take a "more active role in getting to the bottom of this."

Cooksey disagreed with commissioners who have said they county is spending too much time on the issue and should not look into anonymous complaints.

"When you have issues swirling around, you can't ignore it," Cooksey said. "We have an obligation to see if these allegations have any truth to them or not."


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Sources: McClatchy Newspapers, Meck Deck, John Locke Foundation, Carolina Journal, Charmeck.org, Meckgov, Youtube, Google Maps