School Business Office & Ethics

QPA OFAC (Office of Fiscal Accountability and Compliance) School Ethics Commission Headlines/Penalties ETHICS

New Applicants – Not required Renewals – 3 credits in Ethics required! June 2015 Renewal – Required (has been extended 6 month if have not acquired the 3 credits in Ethics or the total 20 credits) January 2016 Renewal Required June 2016 Renewal Required PLEASE NOTE: If you have renewed your certificate which was initially dated January 2016 or June 2016 – you cannot apply these credits to your renewal for January 2019 or June If you have any questions, please see me after the presentation. QPA REQUIREMENTS

Commissioner Lucille Davy consolidated departments in February 2007 to provide better oversight of the expenditures of state education funds. Primary function is to conduct audits and investigations of compliance and fiscal matters pertaining to New Jersey school districts, charter schools and private schools for students with disabilities Made up of six units Criminal History Review UnitInvestigations Unit State Aid Audit UnitInternal Audit Unit State-Operated SchoolsSingle/Grant Unit OFAC

Conduct investigations of external allegation of wrongdoing and, as requested by the Commissioner, audits specific programs and functions of school districts Perform audits of Early Childhood Education Programs Investigate complaints of wrongdoings pertaining to Educational Facilities Construction and Financing Act OFAC – Investigations Unit

To ensure the accuracy of: Enrollment and data – ASSA DRTRS Application of EXAID OFAC – State Aid Audit Unit

Perform financial and compliance review of departmental accounts, financial transactions and programs Implement department-wide vulnerability assessments and internal control evaluations Perform internal investigations Coordinates audits and the resolution of audit findings by external auditors for federal, state and independent audits OFAC – Internal Audit Unit

Conduct fiscal monitoring's of private schools for students with disabilities for compliance Perform school district fiscal audits – fund 20 – in accordance with the federal legislation and department guidelines Oversee the department’s compliance with the U.S. Single Audit Act through the collection of CAFRs for all NJ local education agencies and sub-recipients, desk review of the CAFRs and through federal review of our single audit program on annual basis. OFAC – Single/Grants Audit Unit

CAFR DESK REVIEW PROCESS Dollar amount of federal and state awards The nature and number of audit findings LEAs that have deficits Appointment of state monitor QSAC scores Late submission of the CAFR LINK TO DISTRICTS TO BE MONITOR IN OFAC – Single/Grants Audit Unit

Inadequate segregation of duties and responsibilities Staff Members not adequately trained Staff Members do not have access to information necessary to perform tasks Internal Controls not documented for financial reporting process Lack of formal program for monitoring internal controls Staff members are not familiar with internal controls Standard Control Procedures/reconciliations are not performed, reviewed, or approved OFAC – Internal Control Deficiencies

Nine member body with the power to: Issue advisory opinions Receive complaints Receive and maintain disclosure statements Conduct Investigations Hold hearings Compel attendance of witnesses Compel production of documents SCHOOL ETHICS COMMISSION

NJSA 18A:12-21 et seq Applies to only school officials – administrators and board members Sets forth the following standards Conflicts of Interest for school officials Code of Ethics for School Board Members Requires annual disclosure of employment and financial interests Annual filing of Personal/Relative and Financial Disclosure Statements School Board Member Training Reviews complaints alleging violations of the school ethics act Issues advisory opinions Enforces the requirements of the filing of the personal/relative and financial disclosure statements Enforces school board member training requirements SCHOOL ETHICS ACT

Decisions and Advisory Opinions Provides guidance to local districts that are affected by board member conflicts by adopting the Resolution on Adopting the Doctrine of Necessity. November workshop – Michael Kaelbar, Esq., NJSBA will provide a program describing the new opinions. SCHOOL ETHICS COMMISSION

FORMER CAMDEN CITY SCHOOL PRINCIPAL PLEADS GUILTY TO ATTEMPTED THEFT FOR PARTICIPATING IN $25,000 SCAM Extra wages for school meetings that never took place Principal – probation, resignation and banned from public employment 3 others also involved received 2 nd degree official misconduct & 3 rd degree attempted theft by deception = recommended 3-5 years in state prison HEADLINES & PENALTIES

FORMER CAMDEN PRINCIPAL AND TOP AIDE INDICTED ON CHARGES THEYSTOLE $14,000 IN FIELD TRIP MONEY FROM STUDENTS AND TEACHERS Two of the previous employees who were involved in the previous incident. Charges and Penalties 10 counts included up to 5 to 10 years in state prison and finds from $15,000 to $150,000 HEADLINES & PENALTIES

FORMER ELIZABETH SCHOOL BOARD MEMBER, BOARD ATTORNEY AND BOARD’S OUTSIDE COUNSEL INDICTED FOR ALLEGEDLY COVERING UP FALSE APPLICATION FOR FREE SCHOOL LUNCH PROGRAM FILED BY BOARD MEMBER’S WIFE EX-EMPLOYEE OF PATERSON SCHOOLS FOUND GUILTY OF FRAUDULENTLY HAVING SCHOOL DISTRICT HIRE HER COMPANY AND OVERBILLING DISTRICT - $190,000 HEADLINES & PENALTIES

FORMER BUSINESS ADMINISTRATOR FOR KNOWLTON BOARD OF EDUCATIONSENTENCED TO PRISON FOR EMBEZZLING $70,000 FROM SCHOOL DISTRICT 3 YEARS IN PRISON PAY FULL RESTITUTION FORFEITED PENSION PERMANENTLY BARRED FROM PUBLIC EMPLOYMENT HEADLINES & PENALTIES

FORMER IRVINGTON MAYOR PLEADS GUILTY TO TAKING KICKBACKS AS BUSINESS ADMINISTRATOR FOR IRVINGTON SCHOOLS Kickbacks from maintenance supply orders 29 contracts 7 years in prison – 5 years probation ineligibility barred from public employment pay restitution of $120,00 HEADLINES & PENALTIES

GEORGIA ‘LUNCH LADY’ ACCUSED OF STEALING MORE THAN 1 MILLION FROM SCHOOL LUNCH LINE How did she get caught? HEADLINES & PENALTIES

Question and Answer Period