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.
Charlotte-Mecklenburg County Officials Still Not Talking About DSS Criminal Probe
One week after Mecklenburg County Commission Chair Jennifer Roberts acknowledged publicly an ongoing criminal investigation of the county’s $200 million Department of Social Services, county officials refused to identify the government agency conducting the investigation. County commissioners reportedly were advised of a federal probe while in closed session in early November.
Danny Diehl, the county’s director of public information, responded to e-mail questions on the probe by saying an unnamed deputy county attorney advised him the county cannot comment on the investigation at this time.
Diehl instead directed a reporter to a county Web site which includes a March 2009 audit of DSS operations and the county’s response, but no information on the ongoing criminal probe.
That outside audit, which reportedly cost the county $83,000, turned up some $162,000 in missing or undocumented expenditures in a Christmas charity account administered by DSS employees. Auditors advised radical overhauls for DSS finances, including an end to all credit card purchases by the department. The department had about a dozen Diners Club accounts and one Target charge card with a $99,000 balance, including several hundred dollars in late fees.
As a result of the audit’s findings, DSS’ check-writing authority was transferred to the county finance office and several programs were ended.
Three weeks ago the county revealed that one former DSS employee, whose identity remains unknown, returned $33,000 of the missing funds to the county, along with earrings and a DVD player.
County Manager Harry Jones said the revelation left him “damned embarassed” and he suspended the internal auditor who missed the repayments. Jones has also vowed repeatedly to make public all aspects of the DSS investigation.
“The buck stops with me. I’m the Manager of Mecklenburg County,” Jones told WFAE radio. “I go back to my initial point. We have conducted this review of this particular program transparently and out in the sunshine. As manager I will say we’ve done a good job of trying to explain to the public and elected officials where we are and what the problems were.”
Last week Roberts wrote that she hoped the secret criminal investigation “will produce findings soon, so the public will know the conclusions. I also want to be clear that if there is evidence of illegal activity within DSS — currently we have no firm indication of this — the county will take every action it can to prosecute those responsible to the full extent of the law.”
Below is the list of questions submitted to the county that the county refused to answer:
1.) Is there a federal grand jury investigation going on? Approximately when did it begin or when did County learn of it? Has the County received subpoenas or other process compelling production of County documents? Have County personnel been subpoenaed to testify before the grand jury?
2.) Is the County cooperating? If so, how?
3.) What federal agencies are involved (FBI, U.S. Postal Inspector, etc.?)? (An answer to this question would permit any member of the public with possibly relevant information to contact investigating agents and provide that information.)
4.) What lawyer or lawyers are representing the County as to the investigation (in-house or outside counsel)? To what extent is the attorney for County keeping County Commissioners advised of progress in the federal investigation? (briefings, memos, etc.)
5.) Is the County paying for separate, independent counsel for any individual County employees or any individual County Commissioners? If so, for whom? If so, who authorized such payments for counsel?
6.) Has any County official or employee sworn out a warrant with regard to missing or misallocated DSS funds? If not, why not?
Grand jury investigating Charlotte-Mecklenburg County DSS
A Federal Grand Jury is investigating the 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."
Agenda for Charlotte-Mecklenburg DSS Fraud Probe Closed Meeting Request
Some Charlotte-Mecklenburg County Commissioners want the board to hold a closed-door meeting as soon as next week to shed more light on an ongoing investigation into the Department of Social Services, including a charity that bought gifts for needy children.
Commissioner Bill James sent the request in an email overnight to county commissioners and top county staff, including County Manager Harry Jones and DSS Director Mary Wilson. He said it was sent on behalf of the board's three Republicans, which also include Karen Bentley and Neil Cooksey.
Here is his proposed agenda:
Mecklenburg Board of Commissioners
Action Item – (DRAFT at 12-6-2009)
December 15, 2009
_____________________________________________________________________________________________
Subject: Schedule a closed session meeting of the Mecklenburg Board of County Commissioners operating as the ‘Board of Social Services’ to discuss various matters related to DSS for Noon on December 17, 2009.
ACTION: A motion to schedule a meeting of the County Commission operating as the ‘Board of Social Services’ within the meaning of NCGS 90B-6, NCGS 153A-77 and other statutes for Noon on December 17, 2009 and to also:
A.) Instruct the Board of Social Services’ employee, Director Mary Wilson, who is a direct hire of the Board of County Commissioners, to appear at this meeting and to provide answers to certain questions and to provide documents as requested by the members of the Board of Social Services in advance of that meeting.
B.) Instruct the Director of Social Services to make her supervisors and employees (especially those in DSS Finance) available to the Board of Social Services for questioning in private without management present.
C.) Offer an invitation to former acting DSS head Janice Allen Jackson to appear at this closed session and to offer private commentary about the DSS.
D.) Offer an invitation to former DSS ‘Giving Tree’ employees to appear at this closed session and to offer private commentary about DSS’ Giving Tree program.
E.) Instruct the County Manager to make available to the Commissioners copies of any and all internal memo’s produced by internal Audit and senior management involving DSS matters from the last 12 months for the Board to review (including all of those classified as ‘personnel matters’.
F.) Instruct the County Manager to provide to the Commission a detailed list of gifts purchased for others with Giving Tree funds and his opinion as to whether these purchases actually benefited (were received by) the individuals to whom they were intended.
G.) Receive a presentation from Dena Dioro about our current expense ‘advance’ policy and whether it complies with the time requirements of IRS circular/publication 15.
H.) Provide a list to the Commission of all remaining items left in inventory in the County’s possession related to the Giving Tree program before these items were allowed to be disbursed (and their purchase price).
Commission Contact: Commissioners Karen Bentley, Neil Cooksey and Bill James
Presentation: Yes __X__ No _____
BACKGROUND/JUSTIFICATION: Recent turmoil and dissention within DSS
POLICY IMPACT: Unknown until presentation
FISCAL IMPACT: None
How could Charlotte-Mecklenburg DSS mess have gone on so long?
We'll let police and federal investigators sort through the murky question of whether there's evidence of possible crimes at the Mecklenburg County Department of Social Services' Giving Tree program. But this is clear: For years, money for the program was handled in a method more suited to a 10-year-old's lemonade stand than one of the county's largest departments.
Thankfully, under current DSS Director Mary Wilson, financial procedures have been tightened - at last. But the credibility of the DSS charity that bought gifts for needy children, and of DSS itself, is as shredded as some of the receipts an ex-DSS employee turned in.
Ultimately, responsibility for this mess lies with County Manager Harry Jones. Yes, the same county manager who in November was awarded a $38,400 bonus from the county commissioners for doing such an excellent job. (Jones, to his credit, has said he accepts responsibility.)
It would be one thing if the DSS problem had been a short-term mess that, once discovered, was quickly fixed. But it turns out this county department with some 1,200 employees and a $180 million budget hadn't been fully audited since 1996.
The problems with the Giving Tree money went public after a tipster in February raised questions. Yet ex-DSS employee Cindy Brady said the charity operated for years without written policies and procedures, and administrators knew it and never offered assistance or oversight.
Brady would get cash advances to buy gifts, then turn in receipts. Or she would use her own money and seek reimbursements. For years, Brady reports, donated and purchased items weren't inventoried.
A bunch of receipts she provided after questions were raised are damaged, marked up and ripped. Brady said she dropped some on a rainy, windy day, and that her puppy chewed on others.
How many things are wrong with this picture? First, any county employee ought to know the public's money deserves more careful accounting and should know basic financial procedures for dealing with public money. The DSS workers who operated in those topsy-turvy circumstances should have taken steps to set things right.
Meantime, former DSS directors should have known enough about department procedures to have realized Giving Tree finances were - if Brady is to be believed - loosey-goosey. Any DSS director who was awake should have noted the lack of an audit for 13 years.
So should the county manager. Jones is also responsible for knowing whether department heads are paying close enough attention to their books.
Too many people were asleep at the switch. The records are in such shambles it's difficult for a layman to know what to think: Was money stolen or simply not accounted for? But it's not hard at all to know that such sloppiness has no role in county finances.
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Sources: The Meck Deck Blog, John Locke Foundation, Carolina Journal Online, McClatchy Newspapers, Charlotte Observer, Charmeck.org, Google Maps
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