Auditors on way amid DSS probe
Jones tells review panel he’ll make hiring a priority to address staffing shortage.
http://www.charlotteobserver.com/topstories/story/895715.html
By Fred Clasen-Kelly
frkelly@charlotteobserver.com
Posted: Wednesday, Aug. 19, 2009
As officials continued to investigate misspending at the Mecklenburg County Department of Social Services, County Manager Harry Jones said Tuesday he would hire more internal auditors.
The comments came in response to questions from the county board’s Audit Review Committee, which said Mecklenburg has too few auditors to protect the $1 billion-plus it spends annually.
The lack of staffing has been cited as a major reason officials failed to spot DSS accounting lapses sooner.
County leaders say they cannot fully account for tens of thousands of dollars meant to help needy children. The problems include a $10,000 check made out to a county employee.
Mecklenburg employs five auditors, enough to review spending in each county agency once every six years, officials say. Administrators say the agencies should be reviewed at least every three years.
DSS, the county’s second largest agency with about 1,200 employees and a roughly $180 million budget, has not undergone a full audit since 1996.
Hiring more auditors “is a top priority,” Jones said. “I will exhaust every avenue.”
He spoke during an Audit Review Committee meeting where officials explained how they would respond to problems in DSS.
Committee members said they were alarmed to learn about short staffing and voted to recommend the full Board of Commissioners take up the matter. They said they supported a suggestion to hire at least three new auditors.
Commissioner Bill James said the county likely will need to add still more, since it has about 5,000 workers.
“I have worked with companies with 5,000 employees and the audit department was whale of a lot bigger than five or eight,” James said.
Jones said the county’s internal audit office once deployed more workers, but lost positions through attrition that weren’t filled because of cuts.
Details about missing or altered receipts from DSS surfaced this year when an audit showed the county could not show how it spent $162,000 in donations meant to buy holiday gifts for needy children. Charlotte-Mecklenburg police are investigating.
On Tuesday, county officials said they would continue to investigate whether county employees misused money meant to buy emergency supplies for families. Auditors are reviewing 2008 invoices from Target stores to determine why there was a surge in purchases.
Officials said they would submit a report by Friday.
Committee members questioned how administrators dealt with a DSS administrator who was responsible for making sure workers followed spending rules. The administrator approved purchases by foster parents or employees that cost more money than the county had authorized, officials said.
While two other employees linked to the purchases have left their positions, the administrator continues to work in the DSS finance department, officials said. They did not name the administrator.
The Audit Review Committee itself has come under scrutiny since it concluded this year that top county managers took proper steps to address the problems in DSS.
Two of its members are county administrators: Jones and a top assistants, General Manager John McGillicuddy.
On Tuesday, the committee voted to recommend the full Board of Commissioners remove county staff from the committee.
Some commissioners have complained that the existing arrangement hinders public confidence in the DSS probe and gives the appearance of a conflict of interest. NO…It is a conflict of interest.
Counties such as Guilford, Wake, Durham and Forsyth have audit review committees and none allows staff to sit on the panel. Jones and McGillicuddy voted for the recommendation to remove themselves.
McGillicuddy said he doesn’t see a problem with administrators serving most times, but said the DSS investigation has put him and Jones in an “awkward” position.
Fred Clasen-Kelly: 704 358-5027
DSS makes changes after audit
http://www.wcnc.com/news/local/stories/wcnc-081809-mw-dss-audit.f3332c03.html
08:54 AM EDT on Wednesday, August 19, 2009
By STUART WATSON / NewsChannel 36
E-mail Stuart: SWatson@WCNC.com
CHARLOTTE, N.C. — Mecklenburg County administrators have taken steps to plug the holes disclosed in an audit of the Department of Social Services.
The audit found:
• Vouchers for items like clothing for foster kids without receipts to back them up,
• Cash payments without adequate paperwork,
• And credit card expenses with loose controls.
Now, DSS has cancelled vouchers and credit cards and tightened and centralized controls over cash.
DSS Director Mary E. Wilson says there is “no evidence whatsoever” of fraud but that DSS is “still working with the Charlotte-Mecklenburg Police Department” in a criminal investigation.
A review of all credit card receipts from Sam’s Club and Harris Teeter revealed no fraudulent use of credit cards.
Mecklenburg County Commissioner Dan Murray, the chairman of the County’s Audit Review Committee, said, “It seems the problems were not as broad or concerning as they might have been.”
The Audit Review Committee voted to recommend that the County Commission hire three more internal auditors to speed up the review of county agencies. The DSS audit showed cash handling had not been reviewed in 13 years, which came as a shock to commissioners.
County Commissioner Bill James had pressed county managers to reveal whether anyone had been fired or disciplined over the sloppy accounting of millions of dollars in public money.
DSS officials told the audit committee that one employee had resigned but no one had been disciplined.
The Audit Review Committee also voted unanimously to recommend to the County Commission that the county manager and a general manager be removed from the committee to avoid being accused of overseeing themselves. County Manager Harry Jones and General Manager John McGillicuddy voted in favor of the measure, removing themselves from the committee, but only after McGillicuddy suggested that the two remain as non-voting, ex-officio members.
Related Stories:
• DSS accounting practices criticized
• Spending probe spreads at DSS
• DSS pays benefits despite cutbacks
• I-Team report leads to change in Mecklenburg hiring policy
• DSS spends $20,000 on holiday party, training
• DSS director spends $20,000 renovating office
DSS director spends $20,000 renovating office
November 19th, 2008 -
The Mecklenburg County Department of Social Services is supposed to help some of the poorest of the poor. So why is the new director spending tens of thousands of dollars renovating her office?
Look at this office…my livingroom doesn’t even look like this…do you know how many people she could have helped with all of the money she spent redoing her office…This is a prime example of why they have no money and are alway requesting more funds…this just proves…they have the money, but they don’t use it to help children or the community!

New Directors Office
http://www.wcnc.com/video/?nvid=305319&shu=1
DSS spends $20,000 on holiday party
December 18th, 2008 -
While most workplaces are scaling back their holiday parties, one local government agency doubled their budget.
http://www.wcnc.com/video/?nvid=314488&shu=1
Last month I posted a story on this blog about one year old baby girl Noblely Lawson who was hit by a car in Charlotte, North Carolina.
The full story that was originally posted at: http://angiemedia.com/?p=4130 states:
“Although the family survived the car accident, they may never recover from what the DSS has threatened to do to them. They have told the family they will take the baby away from her parents, thereby destroying the family.
The little girl’s parents are not rich and are not politically connected, but they did manage to put a roof over her head, feed her, and even throw a small 1st birthday party for her. There are no allegations of drug abuse or child abuse.
So why would DSS make such a threat?”
The answer is provided in the article as follows:
“DSS Preys On Poor And Injured Families
DSS has threatened to take the baby away from her parents because they live in a weekly rental motel because of limited financial means. Father Shane Lawson is employed at a Wendy’s restaurant. It is not a high paying job, but at least he’s trying to meet his family’s needs.
DSS claims the amount of medical equipment that will be needed to care for Noblely after the car accident won’t fit in the motel room. Therefore DSS views the home as “unfit” and believes it is “justified” in threatening to take the child away from her family.
Yes, you read that right:
The car crash didn’t kill their family, so DSS will.”
DSS could have used the $40,000 dollars that they spent on themselves on this family so Nobely and her family could have a place to live that would accommodate the equipment she now needs to survive. Instead of using funds to help families like the Noberly’s Mecklenburg County Department of Social Services blows thousands of dollars on themselves and then uses lack of funds to tear families apart or as an excuse not to help because of “lack of funds”.
They also use the excuse of lack of funds when they fail to protect a child from child abuse, we are short staffed, we don’t have enough funds…how many times have we heard this excuse as to why children died, why the child was not monitored closely enough…I, for one, am tired of their shitty excuses. They are spending money left and right, misappropriating funds, stealing from the very people who need it the most…and where do you think this money comes from in the first place??? The taxpayer wallet…this is our money that they are blowing! These are our children, neighbors, friends, and follow Americans that they are failing…if you step back and look…you will find one person, one child, one family member, or one friend that DSS has failed that you personally know….enough is enough…the time has come to speak out against this corruption.