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Thursday, June 18, 2009

Charlotte-Meck. County Releases DSS Audit.... Money Wasted! Is New Leadership Needed... Again?






















For too long Fraud and Mismanagement within Charlotte-Mecklenburg's Foster Care/ Child Protective Services Programs (DSS) has plagued our region like a destructive, debilitating disease.

Due to Lax leadership, Cronyism, Favoritism, Greed and not really giving a darn about the clients it serves, DSS has hurt more people than it was supposed to help. Especially Foster Kids.

The mismanagement of this local agency also reveals Charlotte's two classes of citizens, Haves vs Have nots.

This includes Charlotte's African-American community.

Quite frequently the Haves (Elite) take advantage of the Have nots (common folk).

Lingering at the bottom of that list with their mouths open hoping to catch a few crumbs, are Foster Care Children.

At the end of the day two five million dollar questions remain:

1) Why are there still so many children being placed in North Carolina's Foster Care system and kept there until they age out?

2) Why does it appear as if North Carolina (Meck. Co.) is blocking these children from being permanently adopted into good homes by constantly creating new, unreasonable Administrative Laws?

Could it be these children are being kept in North Carolina's Foster Care system for extended periods just for the sole purpose of obtaining more Federal and State dollars?

Who cares about Foster kids?

Who cares if a little FEDERAL and STATE money initially intended for Foster Children is wasted or used for something else?

After all their just Foster Children right? Wrong!

Someone DOES care. Someone has been watching and waiting for the right moment to expose this type of dirt.

Exposing this type of Corruption is the ONLY way positive, effective, long term Change within Meck. County's dept of DSS will finally occur.

Will it shake things up and invoke anger among the current Leadership?

No doubt but for the sake of helping children, its well worth it.

Thank God the Charlotte Observer has returned to its Investigative Journalism roots.

Using their gifts in this manner is one way of helping to rebuild Charlotte's future.

Now if the Observer will only look into Charlotte's crooked Home Owner Associations and why the City Council refuses to enforce N.C.G.S. 47 F, to govern them.

In this fragile Economy too many homes are not only being lost to Foreclosures from toxic mortgages but also due to Home Owner Associations "stealing" property via the use of Excessive fees from bogus violations.

Charlotte, NC needs to lead the way in Home Owner Association Regulation just like its attempting to lead the way in creating Green Jobs.

However that's another story.




The Charlotte Observer, The Paper Trail----

DSS Mishandled, Misused Funding Allocated Specifically For Foster Care Children


Mecklenburg County leaders are promising reforms after a financial audit found widespread problems in the Department of Social Services, including unauthorized use of county credit cards.

A separate report also revealed the county may launch another investigation into whether DSS workers misspent money.

In March, officials said they suspended two workers suspected of taking $110,000 from a charity that solicits money to buy holiday gifts for kids. In a report to the Mecklenburg Board of County Commissioners this week, administrators said they had turned over the findings of an internal probe to Charlotte-Mecklenburg police.

“This shows DSS has serious internal control and cash management problems that (County Manager) Harry Jones and (DSS Director) Mary Wilson need to fix,” commissioner Bill James said.

DSS is one of the county's largest agencies with more than 1,200 employees and a roughly $180 million budget.

Wilson, who took over DSS in July 2008, told commissioners that she ordered the audit after learning this year about accounting irregularities in the charity program.

The county paid $93,000 to Cherry, Bakaert & Holland, which studied records from July 1, 2007 through March 31 of this year.

Among the findings:

DSS workers used two credit card accounts without proper authorization from the county finance director or commissioners.

In 99 percent of financial transactions studied for one program, there were missing receipts, purchases for unauthorized products, a lack of supervisor approval or other problems.

DSS issued checks without two different authorized signatures, a violation of a state statute.

Harry Jones, the county manager, said the county has already implemented new procedures in response to the audit.

“I am very disturbed by the findings,” he said in the report to commissioners. “I can assure this Board and the public that we have fixed and strengthened our fiscal controls ... We also will pursue aggressively any evidence of suspected misappropriation to the appropriate conclusion.”

The report says that DSS will no longer be able to write checks and that all checks will be processed and written by the county finance department. Administrators, the report says, will review DSS financial policies to ensure they match county rules.

The audit focused on a voucher program in which DSS provided financial assistance to help foster parents or caretakers buy needed items for foster children. The program operated on a $167,500 a year budget before officials discontinued it this year.

Wilson said in January she reviewed expenditures for the effort and found some “transactions seemed high in terms of dollars” and often there were no receipts.

Now, officials are working with auditors to determine whether to conduct a more extensive review. The review would try to determine whether workers violated fiscal policies.

The audit also studied transactions involving the Giving Tree program, which takes public donations to buy gifts for foster children and other DSS clients.

Among the well-known supporters of the program is Project Joy, the holiday fund drive initiated by Observer columnist Tommy Tomlinson.

In March, the county said it found multiple checks from November 2008 through January 2009 were made out to an employee who helps with Giving Tree. Other checks were authorized payable to the relative of another DSS employee. The relative is not a DSS worker.

Wednesday, the county said one of the workers suspected of taking money remains on paid administrative leave. The other is on extended family leave.

An internal agency audit found two instances of possible misappropriation. “Other instances of concealment were found, but misappropriation could not be determined due to poor record keeping,” a report says.

County officials are working with police to obtain receipts from vendors, but a spokesman said Wednesday there is no criminal investigation at this time.

The Giving Tree program has been suspended.



DSS Also Mishandled Social Security Money


Mecklenburg County officials paid for "various programs" out of an account for recipients of Social Security benefits, according to an audit of the Department of Social Services.

The practice, auditors say, is a violation of Social Security Administration regulations.

According to the report:

"The non-guardianship expenditures made from the account are in an inappropriate use of the guardianship funds and may be in violation of North Carolina general statutes."

Click here to read the full audit of cash receipts and disbursements.

In response, county officials say they have changed their use of the account.

Officials say effective March 31, "Only expenses related to Social Security guardian funds are expended from the Social Security account."

Click here to read the full response from Mecklenburg County.

DSS Director Mary Wilson, who took over in July 2008, ordered the audit after learning earlier this year about accounting irregularities in a charity program. Read more about the report in today's story, "Audit reveals more DSS problems."

The county paid $93,000 to Cherry, Bakaert & Holland, which studied records from July 1, 2007 through March 31 of this year.



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Sources: The Charlotte Observer, The Paper Trail, Mecklenburg County, Charmeck.org, Cherry Bekaert & Holland, LLP, Whitehouse.gov, North Carolina General Assembly, NPR, Heart Gallery, Google Maps

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