Cindy Brady Crucified To Save Harry Jones' Career, More Arrests??

Former Charlotte DSS Employee Pleads Guilty To Embezzling Money From Christmas Fund For Foster Care Children


Accusations of Embezzlement have led to changes at Charlotte-Mecklenburg's Department of Social Services.

Charlotte-Mecklenburg County will now re-organize the handling of its finances.

The employee allegedly created dozens of fictitious receipts and then submitted them claiming she was buying gifts for people in need at Christmas.

Former Mecklenburg County Department of Social Services employee Cindy Brady has pleaded guilty to stealing money from the Giving Tree program, a program used to buy Christmas gifts for needy children and families.

Brady is charged with three separate criminal counts.

Federal Investigators say between 2007 and 2009 she created false receipts and then submitted them to DSS. A total of $112,000 is missing. Federal, state and local investigators say Brady used as much as $30,000 of Giving Tree funds to pay off her personal credit card debt.

We tried to talk to Brady. She did not answer her door or phone Tuesday night.

At the Mecklenburg County Commission meeting, Chair Jennifer Roberts said, "The board is pleased that the law enforcement investigation will result in justice being served regarding Ms. Brady's wrongdoing. At the same time, the board is saddened and disturbed that Ms. Brady chose to violate the public trust and her responsibilities as a county employee by committing these acts."

Investigators say Brady got advances from DSS to purchase Christmas gifts for low income families through the Giving Tree fund. They say she then used the money herself, even paying off her credit card bills.

Brady faces as many as 10 years in prison and a $250,000 fine for each of the three federal criminal counts against her. Because of her alleged actions, the county is reorganizing how it handles its finances.


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Sources: Charmeck.org, McClatchy Newspapers, WCNC, Google Maps

Charlotte Leaders Vote No To Raises For Police, Yes To Bonuses (Jones, McCarley & Walton)

Folks I've just read an article published by the Charlotte Observer (nickname: "Charlotte Disturber") which states Charlotte City Council members voted NOT to give City Employees a raise including Police & Firefighters, but will instead give millions of dollars to the County.

How is it that last fall Charlotte City Council members voted to give City Manager Curt Walton & City Attorney Mac McCarley FAT raises (totaling $31,000) but yet can't come to terms about granting City employees well-deserved raises when they haven't had a Cost of Living increase in several years?

And why are City officials giving the County money when they have wasted so much in the past?

Remember last year's Charlotte DSS "Fraudgate"?

Remember Mecklenburg County Manager Harry Jones' FAT $38,000 Bonus?

City employees can hardly pay for their Health benefits yet council members are throwing money away to the County??

Is this a Political move to save their seats or what?

We'd like for them to explain why because inquiring minds want to know.

This stinks to high heaven!

I'll remind you going forward to please vote intelligently and responsibly.

Check out the articles below.




Raises For Charlotte City Workers Could Be Cut But Not Bonuses


Raises for City of Charlotte employees could be cut for the upcoming fiscal year, with the money possibly placed in contingency or given to Charlotte-Mecklenburg County to stave off steep cuts to libraries and schools.

Six City Council members - of 10 who attended a workshop Wednesday - voted to consider not giving the raises, which would cost the city $6.1million.

Charlotte Mayor Anthony Foxx, a Democrat, said that he's uncomfortable giving even modest 2 percent raises when hundreds of teachers could be laid off and libraries closed.

The city isn't responsible for funding libraries or Charlotte-Mecklenburg Schools.

"I think we need to think about those net reductions," Foxx said. "Will they have a permanent impact?"

In his concern about raises, Foxx was joined by the council's Republican minority.

Republican council member Warren Cooksey proposed not giving the raises and then giving Charlotte residents a small decrease in property taxes - equal to $5 annual savings on a house with a $200,000 tax value. Cooksey said it was important to give some money back to residents, who will probably face increases in their fixed rates for water and sewer usage.

Cooksey's proposal didn't receive enough votes to move forward.

But Republican Edwin Peacock's proposal to cut the raises and place the money in contingency did get six votes - Republicans Cooksey, Peacock and Andy Dulin, and Democrats Patrick Cannon, Michael Barnes and Nancy Carter. Foxx's proposal to give the county one-time financial help will be discussed under that plan.

Carter is a staunch proponent of giving city employees a pay increase. She's worried that their cost of living is going up, due to having to pay higher health insurance premiums. But she voted with the five for a "discussion."

The city's budget is in much better shape than Mecklenburg County's. That's due, in part, to the city being more conservative as to how much debt it assumed. At the start of the budget process earlier this year, the city had a shortfall of roughly $10 million in a $500 million operating budget.

City Manager Curt Walton proposed a number of small cuts, such as reducing the staffing hours at the 311 call center and suspending installation of new streetlights.

The city also proposed giving employees a raise, in part because the private sector is beginning to rebound and some companies are giving raises again.

Dulin said he didn't think the city would be at a competitive disadvantage if it didn't give raises for fiscal 2011 after not giving them in fiscal 2010.

"I don't agree we will lose employees," he said. "I can't support pay raises for them now."

Help for libraries

Facing a possible $17 million cut, the cash-strapped library system has proposed that local municipalities chip in to close to deficit.

Foxx proposed that the city could put up a certain amount of money and ask that the county's other towns match its efforts. He said it would be like a "challenge grant."

He said the money wouldn't necessarily have to come from the same pot of money saved by not giving raises. He said the city could shift money from capital funds.

It's unclear if there is political support for such a plan.

Council members Carter, Patsy Kinsey, David Howard and Susan Burgess were strong advocates Wednesday of giving raises.

Said Burgess: "Libraries are a county function, not a city function. It's not fair to the people of Charlotte."

Peacock countered that residents have trouble differentiating between city and county government.

"People view us as one," Peacock said. "They don't know that this is a county library. They just know that they are picking up a book. I support the mayor's idea on this."

The council will discuss Foxx's and Peacock's proposals May 26 when it takes straw votes on items for the budget, which will be approved in June.




Charlotte City Manager Curt Walton Receives $16,000 Bonus


Charlotte City Manager Curt Walton this summer cut pay raises and merit-based bonuses for city employees due to the recession.

On Monday night, the Charlotte City Council awarded Walton a $16,000 bonus, and the city manager accepted.

Council members said they were pleased with how Walton has navigated the city through the economic downturn. But Democrat Michael Barnes and Republican Mayor Pat McCrory voted against the pay package because of the bonus.

"I thought he did a very good job - I told him that," said Barnes. "But I didn't think it was right to pay out bonuses. My concern is that there are a lot of people struggling. It would be beneficial for us to show restraint."

McCrory, who is allowed to vote in personnel matters, said Walton did a good job.

"But I was opposed to the bonus because of the economic circumstances in the public and private sector," McCrory said.

Walton, whose evaluation was approved Monday for work in the previous 12 months, will see his total pay remain the same as a year ago. He will receive a salary of $200,312 and the $16,000 bonus, based on his 2008-09 performance.

But a number of city employees whose evaluations also came after July are seeing their pay decrease. The city awarded 314 bonuses, or merit payments, between July 2008 and May 2009 for a total of nearly $400,000. As the financial crisis deepened last year, the city froze positions and cut back on travel and other expenses. The city decided against stopping merit bonus payments in the middle of the fiscal year to avoid punishing employees who had later review dates.

Typically, most city employees can receive up to 8 percent of their salary as a merit-based raise, a bonus, or a combination of the two. When the new fiscal year began in July, Walton said he would recommend stopping the bonuses due to the downturn.

Human Resources Director Tim Mayes, for instance, was paid a salary of $149,555 for 2008-09 as well as a merit bonus of $14,955. For this fiscal year, Mayes will receive only his base salary.

He said Walton was given a bonus by council members because of an "understanding" that's been in place for five years.

"(Council members and the city manager) liken the one-time payment as the first cousin to base pay," Mayes said. "It's not contractually based, but there is a good faith understanding between them."

Mayes said in an e-mail that cutting the bonus would reduce the manager's pay, which would be "inappropriate."

Walton was out of town Tuesday and couldn't be reached for comment. A city spokesperson, Kim McMillan, said Walton declined to talk about his evaluation because state law allows those discussions to take place in private.

In a June Observer story, Walton said he wanted to cut all the city's bonuses temporarily except for a program that allows employees to share in savings when their department or division is a low bidder on a contract. The story didn't address whether Walton planned to not accept any bonus council members might approve.

City attorney Mac McCarley is also paid by the council and is eligible for a bonus.

Mayor-elect Anthony Foxx, a Democrat, voted for Walton's pay package.

"There was a lot of discussion about that issue," Foxx said. "The decision was that as part of the package that the city manager has, if certain targets are met, that's part of the compensation. It wasn't done without debate."

Mecklenburg County Manager Harry Jones accepted a $38,400 bonus earlier this month. His total compensation of $254,055 remains the same as last year.

Charlotte-Mecklenburg Schools Superintendent Peter Gorman turned down his bonus this summer, and eliminated bonuses for principals and teachers. CMS said the reductions saved $1million.

Council member Patsy Kinsey, a Democrat who voted for Walton's bonus, said she believes Walton received it because it was based on his performance for fiscal year 2008-09 - making it unrelated, she believed, to one-time payments that have been "frozen" for the fiscal year 2009-2010.

That isn't correct, according to the timeline outlined by Mayes. All city employees whose evaluations fell after July 1 of this year are ineligible for pay increases except Walton and McCarley.





Charlotte City Council Approves Bonus To Attorney Mac McCarley


The Charlotte City Council voted Monday night to give City Attorney Mac McCarley a $15,000 bonus - a controversial decision that comes in a year when city employees aren't receiving bonuses.

Council members a week ago gave City Manager Curt Walton a $16,000 bonus, the same amount he received a year ago. Walton had earlier this year stopped all raises and merit-based bonuses for city employees due to the recession. The council voted 7-5 to give McCarley his bonus. Democrat Michael Barnes and Republican Mayor Pat McCrory were the only "no" votes against Walton's bonus, and they voted against McCarley's as well.

They were joined Monday by Democrats Warren Turner, James Mitchell and Mayor-elect Anthony Foxx. Turner had missed last week's vote on Walton's bonus.

Republican Warren Cooksey voted for both bonuses, and said Monday night he supported them because they were for work done in fiscal year 2008-09, which ended June 30. Walton has cut raises for employees receiving evaluations after July of this year.

When asked if he will accept his bonus, McCarley said "of course." When asked if he won't accept a bonus next year, he said he wouldn't speculate. Walton also said last week in an e-mail that he would not speculate on whether he will accept a bonus for 2009-10.

McCrory, in his last meeting as mayor, said McCarley did "outstanding" work for the city in the last year. But he said he couldn't support the bonus due to the economy.

McCarley's base salary will remain at $175,781. Walton's base salary of $200,312 is the same as he received a year ago. The city manager and the city attorney are the two city salaries set by council.

In other action, council members voted 7-4 to approve spending $630,000 on a smart traffic-control system for Pineville-Matthews Road that's designed to ensure traffic flows on the busy highway.

The item didn't appear to be controversial, but it touched off a heated debate over District 7 member Cooksey's opposition.

Cooksey, a Republican, said he was voting against the item because it's being paid for with federal stimulus dollars. He said he believes it's wrong to pay for these and other projects with money that will place the nation deeper into debt.

Cooksey's statement prompted Mayor Pro Tem Susan Burgess, a Democrat, to question why the rest of the council should support the item, because N.C. 51 is almost entirely in Cooksey's south Charlotte district.

Democrat Michael Barnes continued that line of thought: "If a district rep doesn't believe it's in his best interest to support it, why should the rest of the city?"

Republican John Lassiter, at his last meeting, accused Burgess and Barnes of potentially acting "vindictively" to punish residents near the highway, which Lassiter said he drives frequently. He described it as a "personal assault."

Cooksey said he believes that council districts are to ensure geographic diversity, and that his vote isn't only for his 100,000 residents.

Cooksey wasn't put in the position of voting for the project or losing it. Barnes and Democrats Warren Turner and James Mitchell also voted against it, but it passed with seven votes.

Council members approved its federal lobbying agenda, which included a stance against collective bargaining for police and firefighters.

A bill being considered in Congress would allow for collective bargaining for public safety officials in all states, including those that forbid it, such as North Carolina.

McCrory pushed his colleagues to come out against collective bargaining, saying it would increase costs to taxpayers.

Council members also voted 10-1 to authorize Walton to begin making long-term investments in the stock market with up to $150 million - up to 10 percent of the city's investments.

The N.C. General Assembly in 2007 gave Charlotte and other large N.C. cities and counties the right to invest in the market, with the hope of getting higher returns than safer investments such as bonds.

The city has said it would invest $35 million initially and then $8 million a month.

Barnes voted against the investments.

"This is our entry into the stock market," Barnes said. "I don't believe we need to do that."






"King Harry Jones" Slams Charlotte-Mecklenburg Library Board


In another indication that the rancor and dust have not settled between county budget cutters and their cuttees, County Manager Harry “Bonus Baby” Jones used the venue of a Ballantyne Breakfast Club community meeting Saturday to slam the library board.

Jones told the Ballantyne group that the library board should never have proposed closing half its branches after it was confronted with the need for large cuts in the library system’s budget.

Jones also said the board should not have responded to the public outcry about closing libraries by telling citizens to direct their complaints to the county commission.

Jones’ comments came about 10 days after Schools Superintendent Peter Gorman, while announcing that he and his top aides were forgoing bonuses, reminded everyone that his actions were “unlike other government bodies’” practices — a none-too-subtle slap at Jones, who took a $38,000 bonus after cutting county jobs and denying raises to other county employees.

Jones’ comments may be meant to remind the library board who’s king of the county, but there are a couple of little problems King Harry should consider.

First, local citizens have much more respect for the folks who run one of the nation’s finest library systems (or at least it was until the current budget fiasco) than they’ve ever had for him.

Second, if the library board acted peevishly by referring complainers to the county commission, you frankly can’t blame them.

We’ve noted this before, but it bears repeating until it sinks in with Jones’ bosses on the commission: Much of the current community angst over library and school cuts is due to the way Jones (and the financial wizards he hired to keep up with the county’s money) waited until the last possible minute to tell the library and CMS to gut their budgets.

The reason for the delay? Oh, well, Jones & Co. didn’t realize that revenue was going to be so much lower than expected — who’d-a thought that was possible in a deep recession, huh? — and they kept thinking the numbers would get better, so they waited and waited and waited.

The upshot was that the schools and libraries were blindsided by Jones’ demand for massive cuts, which had to be decided on within a matter of days.

In most places, Jones & Co.’s actions would be considered incompetent. Here, he gets to go around talking crap about those he blindsided. But who are we to comment? It’s King Harry’s county; we just live in it.


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Sources: Charmeck.org, Creative Loafing, McClatchy Newspapers, WCNC, Google Maps

Harry Jones Suggests Charlotte Tax Hike (Only For Poor Voters), Cut Education

“Unless this board and our community are prepared to support raising taxes, Mecklenburg County government must shrink, contract, cut, reduce and/or eliminate current programs, services, projects, facilities, positions and employees, including many programs and services that are near and dear to the people in this room and those we serve in this community,” Jones said. “We must confront the brutal facts.”



Harry Jones Pushes For Charlotte Tax Hike, Some Charlotte-Mecklenburg Commissioners Resist


A majority of Mecklenburg County commissioners said this afternoon they would prefer not to raise taxes, and would be willing to delay most, if not all, capital projects to get a handle on a looming budget gap for 2010-11.

But commissioners were split on how much money to take from its reserves in the next budget, and how to prioritize spending for county and educational services.

The decisions made during today’s county commissioners retreat are not binding, but Budget Director Hyong Yi said staff will use them to help shape their recommendations in the coming months.

County staff recently predicted the county could face a shortfall of up to $62.8 million for 2010-11, and county departments have been told to identify cuts of up to 15 percent. The magnitude of cuts for the agencies will depend on where they land on the commissioners list of priorities.

For example, protecting funding for areas like Charlotte-Mecklenburg Schools or the Department of Social Services would require deep cuts to other areas.

County commissioners are holding their annual strategic planning conference today and tomorrow at the Mahlon Adams Pavilion at Freedom Park.

County Manager Harry Jones opened the retreat by saying the county is “at the bottom of a very large financial hole and we are not getting out of this hole any time soon, not next year, not the year after that and perhaps beyond.”

That, Jones said, will require leaders to rethink how county government will look like in the near future:

“Unless this board and our community are prepared to support raising taxes, Mecklenburg County government must shrink, contract, cut, reduce and/or eliminate current programs, services, projects, facilities, positions and employees, including many programs and services that are near and dear to the people in this room and those we serve in this community,” Jones said. “We must confront the brutal facts.”

Jones and others said many of the upcoming budget decisions will be driven by how commissioners want to pay for construction projects in the coming years.

Last year, commissioners agreed to cut back on how much money they borrowed on construction through 2013-14, in part, to respond to concerns raised by rating agencies on how much debt the county had taken on.

But Finance Director Dena Diorio said the rating agencies still have some concerns about the county’s finances, including how much money it has taken out of reserves for next year. The county uses the money to help pay for construction projects, but also has used it recently to help cover operating expenses in the recession.

The estimated $63 million shortfall assumes the county takes no money out of its fund balance, or reserves, for next year.

However, Diorio outlined five options for commissioners on what to draw down from the fund balance next year, ranging from nothing to $78 million.

Three of the scenarios would keep the county in compliance with its current debt policy, at least partially, and could help them keep their prized AAA bond rating.

But the other two, which would draw the least amount from the fund balance, would lead the county to violate its debt policy and could likely lead to a downgrade from at least one credit agency.

Nonetheless, Diorio cautioned that even with the changes, the county’s prized AAA bond rating could remain at risk if the local economy erodes any further.






Fire Harry Jones. Tomorrow.



Over the years I’ve defended County Manager Harry Jones in public and private as a competent manager who seems to have the right goals and standards in place for Mecklenburg County. But his handling of the DSS mess is a firing offense, specifically his move to quiet a critic of DSS by calling the man’s employer to silence him.

Jones has not said why he contacted Bank of America after a local BAC employee complained that he felt “duped” by giving money to DSS’ charitable efforts for kids. That is no doubt because the tone of the email exchange is unmistakable — and chilling.

“There seems to be a need for a wholesale cleanup of many county agencies, and I think that starts from the top down,” BofA employee Harry Lomax wrote to county officials. A week later, Jones sent the email on to a BofA VP with an ominous “Do you know Harry Lomax” addition.

The response was immediate from BofA government liaison Betty Turner. Lomax’s email was deemed “embarassing” and Jones was assured that BofA execs were on to Lomax: “I am tracking it down. I don’t know him – I have alerted charles. Will be back to you.” Question: Who the hell is “charles?” The Uptown paper of record account leaves this out.

Anyone with even a glancing understanding of Charlotte’s history is probably flashing back to the time when uppity mill hands who questioned local leaders were met with, “What’s your name again? I know your pastor.” The threat was clear — shut up and know your place.

Harry Jones clearly has no problem pulling the same power levers as boss men of years past. And no doubt Jones has done this sort of thing before to be so comfortable as to put such a smoking gun in email form, and on such a high profile matter as DSS’s continued money and management woes. For that reason, the “isolated incident” defense we are sure to get this week does not wash.

Harry Jones has proven he does not have the temperament required of highly compensated public employees, particularly at a time when revenues are tight and citizens are concerned about spending. Criticism from engaged citizens — Harry Lomax was concerned that a county Christmas charity was misusing funds — must be welcomed and encouraged, not kick off corporate retaliation efforts among the lock-step Uptown crowd.

A unanimous vote by the Mecklenburg County commission to remove Jones from his position is the only thing which can restore confidence in the notion that local government works for local citizens rather than actively conspires against them.

Update: Betty Turner is a registered lobbyist for BAC in both North Carolina and Virginia.


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Sources: McClatchy Newspapers, Meck Deck Blog, John Locke Foundation, Charmeck.org, Google Maps

Jennifer Roberts Mulls Removing Park Helms (Don't Believe The Hype!)

Charlotte Mecklenburg County Commissioner Chairman Jennifer Roberts suddenly "gets it" and is now pondering whether or not to remove Corrupt, Partisan Park Helms (former Charlotte-Meck. County Commissioner) from his role of Mecklenburg ABC Board Chairman.

Of course this revelation comes on the heels of another Federal Investigation after word of illegal activity (Helms' violation of ABC Alcohol Laws) was made public.

Trust people this is ONLY a move to save Jennifer Roberts' Political career.

Since Helms was once Jennifer's Mentor as you can tell by her activity and decisions as Chairman (past & present), the apple doesn't usually fall far from the tree.

Jennifer Roberts remove Park Helms from his position as Mecklenburg ABC Board Chairman?

Yeah right!

I'll believe it when I see it.

Just remember folks if Charlotte Voters sent Norman Mitchell packing, they can certainly do the same for Jennifer Roberts.

Next time you visit the Polls (in 2012) forget about that foolish, Partisan Straight Ticket Voting mess and vote Responsibly!






NC State Officials Looks At Wining, Dining Of ABC Execs


The state Alcoholic Beverage Control Commission has widened a probe into possible violations of liquor laws across North Carolina in the wake of a company's lavish holiday dinner for the Charlotte-Mecklenburg County ABC Board.

The liquor company Diageo spent $12,700 on the Nov. 18 dinner for 28 ABC Board employees and their guests at Del Frisco's, a high-end steakhouse. The bar tab alone came to more than $4,900, including $1,000 for four bottles of Dom Perignon.

Andy Iredale, Diageo's marketing director for North Carolina, told investigators he had bought meals for ABC employees in many cities and counties.

In a report released this week, state Alcohol Law Enforcement agents charged the Mecklenburg board with accepting illegal gifts. It charged Diageo and Iredale with providing the gifts and unlawfully entering an ABC store for reasons other than conducting business.

Michael Herring, chief administrator for the state ABC Commission, said these are the most serious accusations leveled in years.

Herring said his agency has sent Diageo and Iredale violation notices stemming from the Charlotte dinner. They face a fine of $140,000 or a year's suspension of theirliquor permit. They couldappeal.

After news accounts of the dinner, Mecklenburg ABC employees and board chairman Parks Helms repaid $9,334. The company picked up the bill for its two employees and their spouses, as well as the entire $2,032 tip.

The state ABC Commission's chairman, Jon Williams, ordered the investigation in November. The state commission, which adjudicates allegations of liquor law violations, did not issue any comment beyond the agents' report.

Attempts to reach a Diageo spokesman were unsuccessful. The London-based company's brands include Smirnoff, Johnnie Walker, Captain Morgan, Tanqueray, Guinness and Crown Royal.

Iredale told Alcohol Law Enforcement agents he'd also bought meals for local board employees in Asheville, Lenoir, Greensboro and Winston-Salem, and in Carteret, New Hanover and Onslow counties.

Iredale said he offered to treat Craig Pleasants, general manager of Wake County's ABC Board, to meals, but Pleasants refused.

Pleasants confirmed that Thursday night. "He just said, 'I'd like to take you out for a meal,' and I said, 'I don't think that's a good idea right now,'" Pleasants said.

Pleasants said that for the past several months, he has been turning down offers of meals - two in the past two days. Typically, someone offers a free meal every couple of weeks, he said, though these are hardly invites to lavish blowouts. "Mostly what we're talking about is a meat and two vegetables somewhere, and it's really talking business," he said.

Pleasants said such meals are allowed under state ABC guidelines.

The N.C. ABC Commission this week gave Iredale 10 days to provide receipts for other dinners provided to ABC employees. Among those are receipts from a Nov. 17 lunch at Charlotte's Ritz-Carlton hosted by Jim Beam Brands for Helms, the Mecklenburg board chairman, and ABC Board CEO Calvin McDougal.

Neither Helms nor McDougal could be reached Thursday.

North Carolina maintains a state ABC Commission that operates a central liquor warehouse, the sole source of products for the stores. The state commission, though, can intervene at a store only when there is a major problem, such as corruption. The local ABC boards that run the stores are appointed public panels with their own bureaucracies.

Critics are using the controversy to renew calls for the state to get out of the liquor business.

Controversies prompted the commission to issue ethics guidelines in 1996 and 2003.






Charlotte-Meck. ABC Board Caught In Another Lie



The distiller that the Mecklenburg County ABC Board got a $9000 dinner from and the board then claimed it had “no business relation with Diageo other than selling its products in ABC stores in Mecklenburg County.” Yeah, not so much.

WCNC reports that the board only routinely writes six-figure checks to Diageo each month. During 2009 the board has had $11m. worth of business relations with Diageo.

Still, this has not pushed the Charlotte-Mecklenburg County Commissioners to remove the board and its chair Parks Helms and start over. Instead the Republicans on the board remain narrowly focused on whether board violated any ethics law by accepting the $9000 gift. This is staggeringly beside the point. Helms and fellow board members are presumed to be held to a higher standard than petty thieves.

They are in a position of trust, given immense power with little direct, day-to-day public oversight. If we can’t trust them to do the right thing, then we need to find people we can trust.







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Sources: WRAL, McClatchy Newspapers, Newsobserver, Charlotte Observer, Charmeck.org, The Meck Deck Blog, John Locke Foundation, WCNC, Google Maps

Charlotte-Meck. DSS Fraud Probe Reveals More Corruption, Lax Oversight...GAO Audit, New Leadership Needed

Charlotte Observer----


Mecklenburg officials prepared this update for the 2:30 p.m. Audit Review Committe meeting.

The suggestions were released in response to reports of misspending at the Charlotte-Mecklenburg Department of Social Services. Officials cannot fully account for tens of thousands of dollars meant to help Children and Poor Families.

Details emerged in June of missing and altered receipts from donations meant to buy Christmas gifts for needy kids. In one case, a $10,000 check was made out to a Charlotte-Meck. DSS employee. Charlotte-Mecklenburg police are investigating.

The Audit Review committee is overseeing an internal county probe into the matter.

Among the recommendations:

* Additional audits of Target vouchers, to identify any Fraud or Theft, and to learn why there was an increase in vouchers for the store.

* Studying whether to make county-wide changes to its financial structure.

* Considering the need for adding three members to the county's internal audit staff.

Also on today's agenda: The makeup of the Audit Review Committee itself.

Two of the five committee members are county administrators – County Manager Harry Jones and General Manager John McGillicuddy.

Charlotte-Meck. Board of County commissioners Bill James and Harold Cogdell have said the arrangement undermines public confidence in the panel's work.


Charlotte-Mecklenburg DSS Audit Review Panel Survey Results: Remove County Administrators From the Panel

County administrators should not sit on a panel that oversees management's performance, officials say.

That was one recommendation today from the Audit Review Committee, which is is overseeing an internal county probe into reports of misspending at the Department of Social Services.

The final decision on whether to remove County Manager Harry Jones and General Manager John McGillicuddy from the committee rests with the full board of county commissioners.

The committee studied 9 other large governing bodies in North Carolina and found that none of them included staff members on their Audit Review Committees.

The committee's makeup came under scrutiny after some commissioners questioned whether having staff members conduct audits on the county's performance presents a conflict.




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Sources: Charlotte Observer, Charmeck.org, Flickr, Google Maps

2009 Charlotte Mayoral Race: Lassiter's Possible Win Won't "Border On The Ridiculous"

Since early July when Mayoral candidates John Lassiter (R) and Anthony Foxx (D) made it official by filing for Charlotte's top seat, momentum from both campaigns has been on the rise.

Foxx blasted Lassiter by taking a shot at him on Charlotte's lack of Affordable Housing, even though he didn't seem to realize the Homeless population existed until he decided to run for Mayor.

Foxx also bragged about having raised $250,000 even though he only has $67,000 left and a long way to go, while Lassiter trumped him by announcing he has raised $310,000. thus far with at least $200,000. left in his campaign account.

Although many people may disagree with me, I can pretty much predict how this contest is probably going to end. Republican Candidate and Grassroots Public Servant John Lassiter will win by a mile.

How can I be so sure? Here are a few reasons why:

1) Anthony Foxx is probably a nice guy but he has NO experience in running a large company successfully.

It seems he likes to spend everyone else's money. Not a good sign in a Recession.

Foxx paid big bucks to hire Well-known, out of state Consultants. I'm sure the advice they provided him was valuable, however couldn't he have acquired the same advice from some local folk?

Charlotteans are tired of Arrogant, "spend and waste" Politicians, who don't seem to give a second thought about wasting Taxpayer's money on Political experiments.

No Consultant regardless of how influential he or she may be, can wipe away 4 years of doing basically nothing for your Constituents.

Who is the more Fiscally Responsible candidate?

Lassiter still having at least $207,000 of the $310,000 he's raised, versus Foxx's $67,000 from the $250,000 he raised is telling....or not. Only time and the November Election results will really prove this theory.


2) Anthony Foxx has not proven to the citizens of Charlotte that he is a Grassroots leader or that he cares about ALL citizens, especially those in the lower middle income or low income tax brackets.

As I mentioned above, he didn't know the Homeless Population existed until he decided to run for Mayor. Instead he was too busy trying to impress the Uptown crowd of which now no longer really exist.

As a Successful businessman who believes in providing good customer service, John Lassiter looked ahead.

He knew the Banking Industry problem would eventually adversely affect Charlotte's economy.

While Lassiter didn't forget about the Uptown crowd, he also didn't forget about the little people. The little people whose votes he would soon need.

For example I've spoken to many "regular" people who told me that Charlotte City Councilman John Lassiter responded to their e-mails or tried to help them with problems. (In the past. not just now when he's seeking the Mayor's seat around the dais.)

Can the same be said about his "worthy opponent"? Maybe yes, maybe no.

As a Politician, investing in people, ALL of the people not just Wealthy and Influential citizens, often speaks loudly of one's Character.

Thanks for caring about us Councilman Lassiter. It was a wise choice paying off with big dividends.


3) Some people (Politicians included) appear to think that one's Education or Socio-Economic status makes them entitled to everything. Even if that something has the strong, rotten smell of Impropriety.

Just because a person has reached a certain level of personal achievement, doesn't give that individual the right to do as he or she pleases. Especially if that individual wants a long career in Public Office.

For example: Several months ago there was a big controversy in the Media about how Foxx's wife may have gotten her $100,000+ Salary job with the Meck. County Dept. of DSS.

Apparently the vacancy was advertised for just one day and then Foxx's wife was hired.

Later on DSS Director Mary Wilson admitted Foxx's wife was a friend of hers and that she would have hired her anyway.

I believe we can all agree that Nepotism is not a crime right?

However the Charlotte Observer and WCNC also reported that Wilson's husband had donated $4,000. to Anthony Foxx's campaign after Foxx's wife was hired for the DSS position.

Hmmmmm, now this bit of info. complicates matters.

How so?

If a person in Management wants to hire a friend whose husband is a Politician and the friend doing the hiring allows HER husband to donate money to THAT Politician's campaign fund before or after the friend in Management hires the Politician's wife.... is it safe to say that kind of activity than could give the appearance of blatant Cronyism and Impropriety?

I think its safe to say even if it wasn't Cronyism or Impropriety, it most certainly looked like it!

Still don't get it? Please allow me to elaborate further on this issue.

No one doubted Foxx's wife's credentials or qualifications for the job she was offered by Mary Wilson. That wasn't the problem.

The problem was that in a looming Recession, while Meck. County was in the middle of a Hiring Freeze, Foxx's wife was basically handed a job on a silver platter making $100,000+ a year, after it was only posted for ONE DAY.

Thousands of other people residing within the City of Charlotte and Charlotte-Mecklenburg county, many of them possessing better credentials than Foxx's wife are experiencing great difficulty in landing a job.

Yet....she does with ease, after it was posted for only ONE DAY.

To top it all off after this information was revealed to the public by the Charlotte Observer and WCNC, then both Councilman Anthony Foxx and his wife blasted the media with letters brandishing her resume. ("Accusations Border On The Ridiculous")

The result?

Voters were turned completely off. Why?

Charlotteans don't care about big words and smoke screens. We just want the truth and we want fairness.

When addressing such a sensitive issue Anthony Foxx and his wife should have used Humility and Empathy. Instead their actions screamed to the public ENTITLEMENT!

ENTITLEMENT doesn't cut the mustard in a looming Recession where thousands of people (Voters) with similar or better credentials than Foxx's wife can't get a job, even a much lower paying job.

Here's the kind of Damage Control Anthony Foxx should have used to quell the outcry about his wife's "situation". (I'm surprised Foxx's well-paid Consultants didn't suggest this.)

Current First Lady Michelle Obama is a extremely well-educated and attractive woman (just like Anthony Foxx's wife).

Michelle used to have a job as an Chicago Hospital Administrator. Her salary was more than $300,000 a year.

Was Michelle qualified to have that job? Of course! (her resume is outstanding)

When than U.S. Senator Barack Obama decided to run for President, Mrs. Obama chose to resign from that position.

There was no scandal or controversy preceding her decision.

In addition Michelle Obama didn't balk or write letters to the Chicago Tribune explaining how she was ENTITLED to work in that position.

She most likely stepped aside to care for daughters Malia & Sasha, while Pres. Obama was on the campaign trail.

Michelle made a great sacrifice which allowed her husband now the first African-American president of our nation, to have center stage.

Where is Michelle Obama now? Sitting pretty as the First Lady of our Country.

Nice trade don't you think?

Perhaps that is what Samara Foxx should have done.

Even though she was in fact qualified for the position, the way she was hired did smell kind of "fishy".

Furthermore, now (by association) Samara's name has been tainted by the recent DSS Scandals and Corruption (DSS officials embezzling public funds and wasting money intended for Foster Care children).

Thus to help Anthony regain Constituents' trust, she should have simply swallowed her pride, apologized for the appearance of Impropriety and made a graceful exit.

In return she would probably have become Charlotte's second African-American First Lady in History.

What's the lesson to be learned from this mistake? ENTITLEMENT doesn't always equal better rewards.

DSS Director Mary Wilson claims to have interviewed other applicants for the position Samara was hired to fill.

If anyone else not currently employed by DSS can come forth and truthfully state they were interviewed for the same position Samara was hired to fill, I'll let this mystery rest....forever.


4) John Lassiter practiced Grassroots Politics long before filing to become Charlotte's next Mayor.

His parents and serving 16 years in Public Office (Charlotte-Meck. School Board, City Council, etc.,) taught him that ALL people regardless of their ethnicity, religion, creed, gender and socio-economic backgrounds are worthwhile.

Like President Obama, Lassiter also learned early in his Political career how to reach out across party lines, hold hands with those less fortunate and still cater to more influential constituents all for the greater common good of improving the Charlotte community.

While I do personally believe that Councilman Anthony Foxx is a nice guy who will make a good mayor in about four years, today he isn't ready.

He needs to slow it down and learn to care more about the needs and feelings of his Constituents.

President Obama once lived and worked in some of Chicago's poorest neighborhoods, tutoring inner city children and helping low income citizens with Legal issues.

Is Foxx currently capable of demonstrating such altruistic, grassroots behavior?

After searching deep within his heart if Foxx is truly an honest man, he knows the answer to that question is....not yet.




Mayoral race heats up as Foxx blasts Lassiter

(Democrat questions his Republican opponent's support for affordable housing initiatives.)

Democrat Anthony Foxx fired the first shots in Charlotte's mayoral campaign Thursday, questioning Republican John Lassiter's position on affordable housing.

In an e-mail sent to up to 10,000 supporters, Foxx ridiculed Lassiter's professed support for housing initiatives in an online video the Republican sent to his own supporters.

“Last week, a friend sent me an e-mailed video in which a colleague and fellow mayoral candidate made claims about a so-called plan for affordable housing,” Foxx told supporters. “I almost fell out of my chair because it belies the voting record.”

The attack marks the first heated comments of a months-long campaign that so far has been low-key. Lassiter called it “desperate.”

“When you're behind in the polls, fundraising and ideas, sometimes you become desperate and resort to negative campaigning,” he said.

One claim Foxx questioned was Lassiter's statement that “we need stable housing for the chronically homeless.”

Foxx cited a 2007 vote on using a quarter-acre of city property in Biddlesville for affordable housing, a proposal Foxx supported. According to the council minutes, Lassiter argued that the city would be better served by putting the site on tax rolls with a private home.

By a vote of 7-2, Lassiter's position prevailed. Foxx was one of the two votes. Four Democrats were among those voting with Lassiter.

Another claim Foxx questioned was Lassiter's statement that “every landlord accepting public money (should) maintain their property.”

Foxx pointed to a 2006 vote in which Lassiter voted against a so-called rental registration program. The program, which Foxx supported, would have boosted city inspections of rental properties.

Council critics questioned the program's cost – more than $4 million.

The measure lost 8-3, with Lassiter in a majority with four Democrats including Mayor Pro Tem Susan Burgess.




Lassiter holds cash advantage

(Republican heads toward Charlotte's mayoral election having raised more and spent less than Democrat Foxx.)

Despite raising more money than any Democratic mayoral candidate in Charlotte history, Democrat Anthony Foxx trails Republican John Lassiter in cash heading into their expected November matchup.

Lassiter has raised $310,000 to Foxx's $250,000, according to reports filed Thursday with the board of elections.

However, because Foxx has spent nearly double that of his rival, he has $67,000 on hand compared to Lassiter's nearly $207,000.

Lassiter, who's running in a Sept. 15 primary against fellow Republicans Martin Davis and Jack Stratton, is widely expected to face Foxx in November.

The money reflects the stakes in their race to succeed seven-term incumbent Mayor Pat McCrory.

“It is the first open seat in 14 years,” said county elections director Michael Dickerson. “You've got two popular sitting councilmen at-large running. So they both should have a pretty good following.”

The reports showed both candidates had widespread support, including from Charlotte's business community. Some donors gave to both. Businessman Stoney Sellars, for example, gave Foxx $4,000 and Lassiter $1,000.

“We are especially pleased that we've had this strong financial support from our friends and neighbors in Charlotte that believe in our message of experienced leadership,” Lassiter said.

Foxx, who loaned his campaign $20,000, downplayed Lassiter's 3-1 financial edge heading into the fall.

“He's got two campaigns to run, I've got one, and we've been deploying resources on the ground that I don't think anyone else has been doing,” Foxx said. “So we're … where we wanted to be.”

Lassiter's biggest expenses were for fundraising and marketing. He spent $33,500 with a Charlotte fundraising firm and $28,500 with a local marketing firm.

Foxx spent $12,000 with AKP Message & Media, a Chicago-based firm started by David Axelrod, now a White House adviser.

He also spent $26,500 on an Alabama polling firm that worked for President Obama and N.C. Democratic Sen. Kay Hagan in 2008.

Foxx, trying to become his party's first mayor since Harvey Gantt in 1987, said the money has helped finance a grassroots organization.

“For the last 22 years, people who've run under the Democratic Party for mayor have lost,” he said, “and part of the reason is some of the mechanics of building a campaign tended to happen late in the season.

“And what we've done essentially is to give ourselves more time to put a camp operation together that will be very strong. The things we've been doing all along will bear fruit as we go forward.”

Lassiter said that, while he's not taking the primary for granted, he's looking ahead to the general election.

“We will be reaching out to Republicans and independents who plan to vote in September,” he said, “but we will not lose our attention to preparing an effective and broad-based campaign for victory in November.”



Foxx’s Wife’s Hiring Due to Patronage?

It sounds like there is a little of “you scratch my back, I scratch yours” down on Billingsly Rd. Controversy is brewing over the hiring of Samara Foxx, the wife of Charlotte City Councilman and mayoral candidate Anthony Foxx (D), to a position with the Mecklenburg County Department of Social Services which pays a salary of $100,000. Her hiring alone isn’t enough reason to suspect any unethical play here. What raises my eyebrow is the fact that the department was on a hiring freeze and she got the job after it being posted for just one day.

Nothing to see here folks (wink, wink). Move along. Move along…….




DSS hires politically-connected during "Hiring Freeze"

CHARLOTTE, N.C. -- While Mecklenburg County is cutting some jobs, the county's Department of Social Services has been hiring.

The NewsChannel 36 I-Team discovered DSS has hired 30-40 positions, many of them managers and several filled with candidates who have political connections.

The DSS hiring freeze was in effect when Mary E. Wilson joined the department as director last July. But in the name of reorganizing the department, DSS has hired dozens of new employees, including the daughter of Charlotte's police chief, the daughter of a Superior Court judge and the wife of a city councilman who is running for mayor.

DSS hired Samara Foxx, the wife of at-large councilman and mayoral candidate Anthony Foxx, last July.

Her salary as Division Director II was $100,000 a year.

Foxx's hiring raised questions among some DSS staffers since the position was posted on July 17 and taken down the very next day.

For months, the I-Team has asked DSS in writing for public records showing when the job was posted. At first a department spokeswoman told us that legal counsel had advised her the records were confidential personnel records. After our repeated requests for only the public portion of the records, DSS sent us a two-page letter detailing the job posting.

The letter says in part, "The creation of Ms. Foxx's position was an initial step in the re-organization of DSS, which was approved by the county's executive team."

County Commission Chair Jennifer Roberts told us by phone from Washington, "I did not realize that opening was posted for such a short period of time. It's concerning. We pride ourselves on being open, transparent, equal and fair. I can't imagine why the posting period would not be available to reporters."

After DSS Director Mary E. Wilson gave Samara Foxx the job, Wilson's husband Cornell donated $4,000 -- the legal maximum -- to Anthony Foxx's mayoral campaign.

Foxx Campaign Manager Bruce Clark said Wilson and Foxx had worked together in the past but declined comment on the hiring, saying it was a county decision.

Foxx is not the only person with political connections to be hired by DSS since the "hiring freeze" went into effect.

Public records show DSS hired Hollye Monroe, the daughter of CMPD Police Chief Rodney Monroe, on Jan. 14 as a Management Analyst. Her salary: $46,613.60 per year. Our phone messages to Monroe's public information officer and chief of staff were not returned.

DSS also hired Tracey Evans, the daughter of Superior Court Judge Yvonne Mims-Evans, on Feb. 11 as a Social Services Manager at a salary of $57,380.95 per year. Judge Mims-Evans told us in a brief telephone interview that she had nothing to do with the hire.

County Manager Harry Jones e-mailed us a two-line response saying, "These individuals were hired within our policies and without regard to who their parents or spouses are."

Neither Jones nor DSS Director Mary E. Wilson responded to our requests for an on-camera interview.

But County Commissioner Bill James says the hiring smacks of political patronage and in his words "just smells bad." Commissioner James says the hiring should be investigated.



Charlotte City Councilman and Mayoral Candidate Anthony Foxx's Statement to the local media about his wife Samara's qualifications for her DSS job. (Note: No one ever questioned her qualifications, just the way she obtained her job in a looming Recession.)

The insinuations regarding my wife Samara’s employment with Mecklenburg County’s
Department of Social Services in yesterday’s report on WCNC-TV and today’s related
article in the Observer are irresponsible and deeply hurtful.

A close reading of those overheated reports reveals that, despite all the smoke and mirrors, there is no evidence of wrongdoing by my wife or me.

The facts in this story are simple and straightforward, Samara’s qualifications for the job are beyond question. She is a cum laude graduate of UCLA with a degree in Political Science as well as a law degree from the University of Michigan Law School.

Samara worked as staff counsel to the U.S. House of Representatives Judiciary Committee for five years prior to our getting married and relocating to Charlotte in 2001.

That same year, Samara accepted a contract attorney position at KOSA, an industrial products company. Mary Wilson, the company’s General Counsel, served as her supervisor.

Their working relationship began, independently of me, and four years before I ran for public office. In 2004, Samara left her job at KOSA to help raise our children.

Samara did not rest during that time. While raising our two children, Samara joined the Board of Directors of Florence Crittenton Services, an agency that provides prenatal care and other services for pregnant teens and woman, many of whom are victims of domestic violence and incest.

She saw firsthand the positive impact of direct service programs for those who desperately needed help. Samara was eventually selected to chair the Board of Directors.

In July 2008, Samara applied for a position within the Mecklenburg County Department
of Social Services and was hired by Mary Wilson, her former supervisor in the private
sector. Other than applying for the job, Samara had no role in the hiring process.

In taking the position, she had to give up her Florence Crittenton Board affiliation. But Samara did so with the belief that she would impact many more people who need help at the Department of Social Services.

I am proud of Samara, her accomplishments and, most importantly, her commitment to
integrity. As I work to change Charlotte for the better, there will be voices opposed.

However, make no mistake: I will not allow gratuitous assaults on my wife -- a highly
qualified and talented professional -- to go unanswered. The people of Mecklenburg are fortunate to have her. I expect any serious investigation of the facts to confirm this truth.


Sincerely,
Anthony Foxx



Samara Foxx's statement to the local media about how "riduculous" the accusations were over the way she was hired. (Therein again no one doubted her qualifications, just her connections which may have allowed her special privileges.)

3/10/2009
To: Charlotte Media
From: Samara Foxx
Re: Recent accusations made by WCNC I-Reporter

The accusations made and alluded to in yesterdays report by WCNC I-Reporter Stuart
Watson regarding myself and my husband "Border on Slander and the Ridiculous".

Within all of the loose language contained in the report, there are no allegations of
wrongdoing on the part of my husband or myself. However, the story was presented to
smear us both. It is unfortunate that these false attacks would be given attention by a news outlet that is supposed to report the news without bias.

The facts are simple and straightforward: I graduated cum laude from UCLA with a
degree in political science as well as a law degree from the University of Michigan Law School.

I am a lifelong member of the Episcopal Church. I worked as staff counsel to the
U.S. House of Representatives Judiciary Committee for five years prior to getting
married and relocating to Charlotte with Anthony in 2001.

In 2001, I accepted a contract attorney position at KOSA, global polyester
manufacturing company. Mary Wilson, the company!s General Counsel, hired me.

Our working relationship began fours years before Anthony ran for public office in 2005.

In 2004, KOSA moved most legal positions to Wichita, Kansas. I remained in Charlotte
and spent a few years raising our small children.

During that time, I joined the Board of Directors of Florence-Crittenton Services, an
agency that provides services for pregnant teens and woman, many of whom are
victims of domestic violence and incest. I saw firsthand the impact of direct service
programs. I was eventually selected to Chair the Board of Directors.

In July 2008, I applied for a position within the Mecklenburg County Department of
Social Services and was hired by Mary Wilson, my former supervisor. In this capacity, I am responsible for contracts issues, legislative affairs issues, compliance issues and helping to improve the delivery of social services to DSS clients.

Given this fuller picture, my qualifications for this position are clear. I have worked my entire life to uphold the highest standards of integrity, and I expect, even as my husband begins his campaign to lead our city, that the facts, not innuendo, will prevail.

- Samara Foxx


I'll say it again folks...DSS Director Mary Wilson claims to have interviewed other applicants for the position Samara was hired to fill.

If anyone else not currently employed by DSS, can trutfully come forth and publicly state to the local media that they were in fact interviewed (before Samara was offered the job) for the same position Samara was hired to fill, I'll let this mystery rest....forever.



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Sources: Charlotte Observer, WCNC, Carolina Politics Online, Charmeck.org, Google Maps

Charlotte-Meck. County Gov't/ DSS Finally Decides To Let The Sunshine In...Too Late! Time For New Leadership

Charlotte Observer----


Mecklenburg County Gov't offers greater detail on steps taken to fix DSS

(From Mecklenburg County Manager Harry Jones:)

The Charlotte Observer has published several articles and editorials regarding financial management and audits in the Department of Social Services. Despite this extensive coverage, there are details about the county's response that we feel should have been discussed more fully than they were in Observer stories.

Actions taken in response to the audit findings were reported to the Meck. Board of County Commissioners on June 16, and discussed in detail by the board's Audit Review Committee on June 24. The board further discussed these responses on July 7 when it received the ARC's report. At this same meeting, the board discussed the external auditor's written statement that management's responses appear “appropriate to resolve the noted issues.” To ensure the public is aware of all the steps being taken to fix DSS, we provide the following:

1) DSS no longer processes department financial transactions through a separate bank account. All DSS non-guardian transactions are now processed from the main county account through the county finance department, requiring signatures of the county manager and finance director.

2) DSS employees are being trained or retrained on financial policies and procedures. Work plans are being updated to include accountability and adherence to these.

3) The county's agreement with the Good Friends program ended in March, with the county refunding Good Friends $45,318.

4) Prior to the audit, DSS Director Mary Wilson halted the use of vouchers pending the review. Subsequent to audit findings, DSS permanently discontinued the use of vouchers. DSS now makes purchases through approved procurement cards and other procedures using stringent controls overseen by county finance.

5) Funds managed by DSS on behalf of Social Security beneficiaries are segregated from other funds. Only expenses related to Social Security guardian funds are expended from this account.

6) The county finance department identified all credit cards in DSS and throughout the organization. These cards have been destroyed and the related accounts have been closed, with a few exceptions that are warranted and approved.

7) We requested that the Charlotte-Mecklenburg Police Department investigate questions about the use of Giving Tree donations. In partnership with CMPD, we will aggressively pursue any evidence of suspected misappropriation of funds to the appropriate conclusion. The CMPD investigation is ongoing.

8) The county manager's office directed the human resources department and the county attorney's office to determine necessary employee disciplinary action, including termination as appropriate. This action is underway.

9) All Giving Tree activity was halted at the beginning of the investigation and remains so.

10) Further follow up also is underway. County staff is preparing additional reviews based on questions raised by commissioners. These plans will be provided to the ARC at its next meeting.

In September, we also will supplement existing reporting protocols by implementing an employee report line. This will add another option for employees to report concerns they may have about financial management practices.

Finally, to ensure Transparency, public documents and video of BOCC discussions related to the DSS audits are available online at www.MecklenburgCountyNC.Gov.



Foxes or Not, Others Need To Watch County Hen House

There's an obvious conflict of interest going on in Mecklenburg County Government, and commissioners should make it a priority to fix it.

The Meck. county's Audit Review Committee is tasked with overseeing independent audits of the county and responding to their findings by making recommendations to the full board of commissioners. In carrying out this role, it's not uncommon for the committee to need to review the performance of top county administrators, including the county manager.

Here's where the conflict arises: The committee is made up of two county commissioners, one community member and two members of the county management staff. In other words, the top brass is largely responsible for determining how county management has performed when its performance is in question.

It's evident such an arrangement poses a conflict. Even if the members of county management were to have the best of intentions, the arrangement undercuts the committee's credibility. The public can't feel confident that an independent review has been done.

Most recently, the committee reviewed misspending at the Department of Social Services and management's response to the problems there. Recent financial audits revealed the county cannot account for $162,000 meant to buy Christmas gifts for poor children. Commissioners have said they may never know just how much money is missing or what happened to it.

DSS hadn't been fully audited in 13 years. As county manager, Harry Jones said he deserves to be held accountable.

But Jones himself is on the Audit Review Committee, along with one of his top assistants, John McGillicuddy. The committee's report to commissioners last week agreed with an outside auditor's finding that Jones and his team had acted appropriately in responding to problems at DSS. The primary author of that report? McGillicuddy himself, with the support of Jones, to whom he reports.

Whether management's response was adequate or inadequate, the public's faith in the legitimacy and comprehensiveness of the report should be shaky. As when a police officer is investigated for killing a civilian, the only review that has credibility is a truly independent one.

Supporters of the committee's makeup say it allows management to provide commissioners with useful information. But clearly they can provide that same information without sitting in judgment of it.

We applaud Democrat Harold Cogdell and Republican Bill James for questioning how the committee was designed. Now the full board should vote to have it include four commissioners, two from each party, and one community member – and not have management review itself.



Make-up of DSS Audit Review Panel Is Criticized

The makeup of a panel investigating alleged misspending at the Department of Social Services has come under scrutiny after it concluded top Mecklenburg County managers took proper steps to address accounting failures.

Two of the five members of the Audit Review Committee are county administrators – County Manager Harry Jones and one of his top lieutenants, John McGillicuddy, who helped write the report.

Some commissioners say the arrangement undermines public confidence in the probe and hinders the committee's ability to find out who's to blame. The report was presented to the county board of commissioners this week.

“It seems odd to me that our county manager and an assistant county manager who reports to our county manager would be a part of a committee to make a determination about whether management responded appropriately,” Commissioner Harold Cogdell said. “It undermines to some extent … the appearance of what this committee is charged with having done.”

Commissioner Dan Murrey, a member of the audit committee, said members will look into whether they should remove administrators from the panel in the future.

Supporters of allowing managers on the panel say it does not compromise investigations and allows administrators to provide commissioners with useful information.

The committee is investigating DSS programs, including a Christmas charity that solicited public donations. Recent financial audits revealed the county cannot account for tens of thousands of dollars from spending programs meant to help children and poor families.

Officials said they may never learn what happened to the money because receipts are missing or altered.

Some commissioners have said Jones and other top managers should shoulder some responsibility. Jones met with commissioners in closed session this week to discuss the issue.

County officials established the Audit Review Committee in 1998 to oversee financial audits and make recommendations to the commissioners. The move followed the indictment of former county elections director Bill Culp, who pleaded guilty to taking $134,000 in bribes and kickbacks.

The county set up the committee so it must include two commissioners, two county administrators and a community member.

Jones and McGillicuddy, county general manager, are the administrators on the committee. Murrey, commissioner Bill James and certified public accountant Ward Simmons are the other members.

Earlier this week, the panel presented a report to the board of commissioners that is critical of the accounting practices at DSS and says further investigation may be needed.

But the report endorses reforms county managers made in response to problems found by auditors.

“Management's responses to the audit findings are appropriate and sufficient in strengthening internal controls and addressing inconsistent and insufficient supervision,” the report says.

McGillicuddy wrote a draft of the report and took suggestions on revisions from other committee members.

McGillicuddy and James disagreed about what committee members had concluded during a meeting.

In an e-mail to committee members and officials, James suggested the report say: “Management's responses to the audit findings are not appropriate and sufficient in strengthening internal controls and addressing inconsistent and insufficient supervision because they do not determine who at DSS was responsible for the inconsistent and insufficient supervision (lack of control environment) and because Management cannot determine how long the control environment has missing from DSS Finance.”

McGillicuddy objected, writing back that James' statement was inaccurate. Murrey and Simmons sided with McGillicuddy.

McGillicuddy told the Observer he volunteered to write the report and “provided this draft to all the members for revisions until the members were satisfied with the report that was provided to the Board in its agenda.”

Commissioners originally appointed McGillicuddy to the audit committee in 2004.

“I hope that my participation on the Audit Review Committee has provided expertise and insight from a management perspective that is useful to the overall charge of the committee,” he said.

Jones did not return calls or an e-mail seeking comment.

Commissioners have long debated whether to keep administrators on the Audit Review Committee.

James said he unsuccessfully lobbied to keep county managers off the committee when it was formed. The presence of administrators prevents the panel from conducting fully independent investigations, he said.

In the DSS case, Cogdell said the committee structure could raise negative public perceptions.

“The makeup would have instilled a little bit better public confidence if you had members of this board in conjunction with some type of outside auditing agency and not someone that the outcome of the recommendation is in some way going to impact or show ... you did a good job or you didn't do a good job,” he said.

Former commissioner Parks Helms said he can understand why some say the arrangement represents a conflict of interest. But Helms said he supported putting administrators on the committee to provide intimate knowledge about the daily workings of county government.

“I never thought having members on management would compromise the integrity,” said Helms, who is former member of the Audit Review Committee. “They are just as interested in finding errors as members of the board.”



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Sources: Charlotte Observer, Charmeck.org, Google Maps