Georgia Professional Standards Commission

1. Georgia Professional Standards Commission 2014 West Georgia RESA Fraud Prevention, Booster Clubs and Other Items

2. Sanctions-January, 2013-January 2014 • Legal compliance-35 • Conduct with Students-84 • Alcohol and Drugs-34 • Honesty-119 • Public Funds and Property-30 • Remunerative Conduct-2 • Confidential Information-5

3. Sanctions • Abandonment of Contract-6 • Required Reports-34 • Professional Conduct-39 • Testing-71 • Total-459

4. West Georgia RESA

5. West Georgia RESA FY 2011 FY 2012 Carroll County-3 Carrollton City-6 Coweta County-10 Harris County-2 Heard County-2 Meriwether County-2 Troup County-5 Total-30 RESAs avg-64 FY-2013 • Carroll County-1 • Carrollton City-0 • Coweta County-7 • Harris County-4 • Heard County-0 • Meriwether County-0 • Troup County-1 • Total-13 • RESAs avg-55 • Carroll County-6 • Carrollton City-0 • Coweta County-5 • Harris County-3 • Heard County-0 • Meriwether County-9 • Troup County-8 • Total-31 • RESAs avg-61

6. Violations From Cases ClosedJuly 1, 2010-June 30, 2012 • Top certification areas: • CTAE • P. E. • Social Studies • Special Education • Years of Experience: • 6-10 years—approximate age-28-30

7. Standard 2Conduct With Students

8. Standard 2 An educator shall always maintain a professional relationship with all students, both in and outside the classroom.

9. For the purposes of the Code of Ethics, the enrollment period for a graduating student ends on August 31 of the year of graduation.

10. Revocation Sexual Abuse of Students

11. Statistics • 1 in 84 chance of being killed in automobile during lifetime • Risk of being sexually abused by age 18 • For Girls-1 in 4 • For Boys-1 in 6 • Median age-9 years old • 90% of perpetrators known by family • 40% inside the home

12. Sexual Relationship with Students • O. C.G. A.--16-6-5.1 • Person who has supervisory or disciplinary authority over a student who engages in sexual contact with students… • New thing in Georgia

13. Sexual Relationship with Student

14. 16-6-5.1 • Jail time • Age 16-not less than one year nor more than 25 years in jail or a fine not to exceed $100,000 or both • Under the age of 16-not less than 25 years nor more than 50 years in jail

15. Principal • Teacher heard a rumor regarding an inappropriate relationship between a teacher and a student • Principal stated—”Do you have any evidence?” • Several weeks later, a 2nd teacher reported to principal the rumor she had heard and got the same response • Investigate and report rumors to superintendent

16. Public Funds & Property Standard 5

17. Standard 5 An educator entrusted with public funds and property shall honor that trust with a high level of honesty, accuracy, and responsibility.

18. Public Funds & Property Unethical conduct includes but is not limited to: misusing public or school-related funds; failing to account for funds collected from students or parents; submitting fraudulent requests or documentation for reimbursement of expenses or for pay; co-mingling public or school-related funds with personal funds or checking accounts; and using school property without the approval of the local board of education/governing board or authorized designee.

19. Standard 5-Public Funds and Property • Fraud-any intentional or deliberate act to deprive another of property or money by guile, deception, or other unfair means • 5% of revenue will be lost annually to occupational fraud

20. 10-10-80 Rule • 10% will never steal from you • 10% will rob you at every opportunity • 80% will steal if given the right opportunity and circumstances

21. The Silent Code • Code of the Schoolyard • Don’t tattle • Never say anything unless you are sure everyone feels that way • Don’t get involved • What is the difference between tattling and reporting?

22. Meet Bob

23. Bob • Not his real picture; had to use a French model • Bob is a state employee • Bob has been with the state of Georgia for 20 years • Bob is a well respected family man • Bob is a hard worker-he arrives early and stays late • Bob is dedicated-he has a heavy work load and never takes vacation

24. Bob • Also the perpetrator of a million dollar fraud scheme • Bob was caught purely by accident • Does your school district employ any Bobs

25. How could this have happened? • Management ignored red flags • Lack of management oversight • Placed trust in Bob to the exclusion of internal controls • Allowed high workloads to override basic accounting practices

26. Why don’t more people report? • No mechanism for reporting • Failure to train management to recognize fraud • Failure to train employees • Fear of retaliation • Fear of lawsuit

27. Schools are especially vulnerable • Educators are basically trusting and compliant • Schools have a high workload • Many employees have the opportunity to commit fraud • Educators are not trained to audit and inspect financial transactions

28. Reasons Employees Commit Fraud • Opportunity • Financial pressures-living beyond one’s means, alcohol, drugs, gambling, poor credit, unexpected financial needs • Rationalization-I’m only borrowing the money, I deserve more pay, they won’t miss it, I won’t get caught, I’m not hurting anyone, it’s not that serious, it’s for a good cause

29. What can be done • Hotline • Employee training • Establishing a culture • Internal controls • Better hiring practices • Understand why fraud occurs

30. Top Internal Controls • A system of checks and balances • Reconcile revenues and expenditures every month • Restrict use of credit cards and verify all charges and accounts • Provide oversight of operations and management • Put policies and procedures in writing

31. Top Internal Controls • Keep current inventory of assets • Protect petty cash funds • Insist on receipts, invoices

32. Schemes • Expense reimbursement • Payroll • Billing Schemes-Shell companies, false invoices, overpayment • Vendors-nepotism, outside employment with company, projects before renovations • Bribery, Kickbacks, Bid-rigging • Specifications written for a specific business

33. Invoices • P. O. Box with no phone number or fax • No folded invoice • No shipping and handling, no taxes • Sequentially numbered invoices • Photoshop invoices

34. Do Schools Have a Problem? • Former state superintendent • Former DeKalb superintendent • Former assistant superintendent in Walton County • Booster Club and PTA officers-(Cherokee, Gwinnett, Walton) • Assistant Principal and A. D. (Fayette) • Coaches, Bookkeepers, Cafeteria Managers, Administrators, Bus Mechanics

35. Booster Clubs and Student Organizations

36. Position of Principals • Booster Clubs have their own rules and regulations • Booster Clubs do not fall under supervision of School • Principals have no control or authority over Booster Clubs

37. Question • If the high school does not exist, would there be a need for a Booster Club? • What if Booster Club wanted to do something controversial • Professional Standards Commission holds school system administration accountable for Booster Clubs

38. GHSA By-law 1.73 • A Booster Club shall be considered to be an extension of the school • Following persons or groups may be considered boosters: • Members or Parents • Donors • Volunteers • Alumni or Former Students • Relatives

39. Standard #5 Public Funds and Property • An Educator entrusted with public funds and property shall honor that trust with a high level of honesty, accuracy, and responsibility • Unethical conduct includes but is not limited to: • Using school property for personal gain • Using school property without the approval of the local BOE/ designee

40. Is it Legal? • Coaches utilize Booster Club funds or School funds to purchase team logo shirts for Coaches and Administrators • Do other employees get free clothes to wear to work? • Do we allow Band Directors to purchase their outfits for free?....or Drama teacher? • If other teachers received anything free, they would be scrutinized

41. Camps • Who handles the money? • Who gets paid? • How is the revenue used? • Are school equipment, supplies, facilities, etc. used? • Are the Drama teacher and other employees provided the same opportunities as coaches?

42. Required Reports Standard 9

43. Soccer Coach • A player asked her coach if she could talk with her confidentially • Coach agreed to keep things confidential • Student said she was being sexually abused at home • Coach suggested they go to the counselor • Student refused-saying she needed to keep things confidential • After several weeks of coercion, the coach and player went to the school counselor

44. Joe Paterno

45. Where Do We Go From Here?

46. Solutions • Good Board Policies • Supervision of Booster Clubs and Student Organizations • Proper Accounting Procedures • Training provided on an annual basis • Accurate and Up-to-Date records

47. Suggested Board Policy • All clubs and organizations (including PTAs and Booster clubs) are required to use school as fiscal agent • Must follow all internal accounting procedures • Audit Trail-clear trail from receipt of funds to disbursement of funds • Bank Account-Principal controls—as option-could require two signatures

48. Suggested Board Policy • Principal should establish a general fund or account for all organizations and projects such as pictures sales or vending income • No debt incurred which cannot be paid from receipts of the approved activity • No debt can be carried over to next fiscal year without specific board approval • All purchases must be made in accordance with board purchasing policies

49. Up-to-Date Records for Student Organizations and Booster Clubs • Files should contain current membership list with names, addresses, phone numbers of officers • Files should contain list of By-laws • Goals should be submitted each year • All planned fund raisers should be submitted for board/designee approval • All trademarks, logos, and marketing information are property of the BOE

50. Up-to Date Records (continued) • Minutes should be taken at each meeting and submitted to principal or designee • Attendance records should be recorded and included in the minutes • Guidelines should be established on the procedures necessary to begin a new organization—minimum number of members, by-laws, name of sponsor, meeting dates, purpose, proposed activities, when clubs can be formed, etc