The Delaware accounting system is a train wreck of epic proportions. I found 100% proof funds were switched around that benefit certain schools. We have one charter school that can’t even follow proper accounting procedures and another charter school that seems to think Student Body Activities are their personal playground.
For something like this chart, I would expect to see school districts firmly in the lead, but we don’t see that at all. Cape Henlopen is a bit of an oddity when it comes to Delaware school districts. They get a lot of money from school taxes and the residents in those areas don’t seem to mind paying them. But Newark Charter School, with $445,000 in student body activities? That is an excessively high amount. For a charter school with a student population of less than 14% of the neighboring Christina School District, they spend 17 times more on activities for students than Christina. Four districts and one charter don’t even have anything coded as “Student Body Activity” with the state: Caesar Rodney, Colonial, Delmar, Sussex Tech, and Sussex Academy. Do they not have any student body activities or do they just put it somewhere else in the Rubik’s Cube called the Delaware Financial System (DFS)?
So how does this even work? Are districts and charters paying out for field trips and fun activities and then reimbursing those costs as revenue generated from parents paying for them? Are these schools paying for them without collecting any money from students? Or is it a combination of both?
Do these activities affect the bottom line for the per student costs for each district and charter school?
Rocketing to number one with $108,000 in student body activity costs based on their number of students is Delaware Academy of Public Safety & Security (DAPSS). That sure is a lot of field trips! We know they bought a fire truck for their students last winter, but those funds were generated from a collection by students. So what accounts for such a high amount based on their student population? I went on Delaware Online Checkbook and found that DAPPS is coding all their student transportation costs under student body activity. So that throws their numbers way off! We can clearly see the transportation costs as part of this category, with an amount totaling $84,236. Had they coded this correctly, under student transportation, their costs for student body activity would have been a little over $23,000.
For Newark Charter School’s student body activity expenses on Delaware Online Checkbook, there is no explanation for their very high amounts. While we do see transportation costs, they are not as high as DAPSS. They appear to be transportation costs associated with field trips. What is even more bizarre are the many payments going to certain individuals. As if they are parents or teachers. We see amounts going out to American Airlines for 26 purchases of what I assume to be airline tickets at $818 each and one for $875 totaling over $21,000 on 2/5/16 which were bought with the state procurement card on 1/15/16. I reviewed NCS board minutes and found no mention of any big field trips for students taking place that would warrant such high airline ticket prices. The state’s accounting manual is explicit that no state employee can purchase first class airline tickets. So where was this trip to that cost $818 for each ticket?
Cape Henlopen has an obscene amount of p-card activity associated with student body activities under student body activity. Like Newark Charter School, I see a lot of names associated with these charges.
Where this gets incredibly odd is when I went to look at examples of student body activity for different school districts and charters. A Delaware citizen submitted a FOIA request to the state and received the FOIA in early July. All of this citizen’s information was run by the Department of Finance on 7/2/16 for every single district and charter school’s expenses for Fiscal Year 2016. June 30th was the end of the fiscal year. All the charts and graphs I have made to date have been based on those figures. But upon review, amounts are changing in the state accounting system. The total expenditures for each district and charter are the same, but funds are moving around in the coding system. As an example, Odyssey Charter School showed over $35,000 in student body activity costs. But when I look now on Delaware Online Checkbook, the amount is over $153,000. This trend occurred with many districts and charters, some for nominal amounts and some for rather considerable amounts. And this is just under student body activity expenses.
In looking at Odyssey, it became clear something was up, so I was able to actually find the exact amount that was shifted over to student body activity.
In the above picture, we clearly see Odyssey Charter School, as of 21:06:44 on 07/02/16 had a total amount for FY2016 in Student Body Activity in the amount of $35,831.91.
In the above snapshot, taken from Delaware Online Checkbook today about ten minutes ago, we clearly see an amount showing $153,958.79. The difference between the two is $118,126.88. That is a rather steep increase for student body activities! In looking at their expenses for student body activity for Odyssey, I found two rather large amounts going to First Student Inc. This is the bus company Odyssey uses. As seen in the below picture, the two charges were for $69,486.40 and $48,640.48. If you add those up, you get $118,126.88. Now why would those funds be shifted from some other category to student body activity?
The two payments to First Student Inc. are listed in the below picture.
So if $118,126.88 was shifted to Student Body Activity, where did the funds come from? If Odyssey’s total expenditures didn’t change, what happened to the money? In the FOIA from 7/2/16, it clearly shows Odyssey’s Fleet Rental costs at $612,546.34.
Now watch what happens when I go on Delaware Online Checkbook to find out the current Fleet Rental amount for Odyssey Charter School…
Wait, it went down from $612,546.34 to $494,419.46. That is a difference of $118,126.88…
There is one thing charter schools get that traditional school districts don’t get. Some call it the transportation slush fund. Every year, in the epilogue to the state budget, there is a stipulation that allows charter schools to keep any difference between their budgeted amount for transportation and what they actually spend. For Odyssey, this is listed as “Transportation” in their budget. These costs go up each year. But how much did charter schools get to keep from these surplus funds. Surely it wasn’t that much. In the below pictures from FY2014 and FY2015, we see how much charters get back from this slush fund.
Odyssey has clearly benefitted from this arrangement with legislators that has continued for the past seven years in the epilogue of the state budget. I sincerely hope charters aren’t hiding any funds so they can actually get more from the Delaware Charter School Transportation Slush Fund then they already are!
What I am more curious about with these coding changes are 1) Why are they happening, 2) Who is making the changes, and 3) Are both the districts or charters and the state aware of these changes if only one of them are making the changes? Something to keep in mind is this simple fact: this is only for Student Body Activity. There are hundreds of codes in the Delaware Financial System. This is just what I could find for our schools in one code.
In the picture above, this is based on rounded off figures to the nearest dollar which is why the Odyssey number doesn’t match up with the $118,126.88 I mentioned a few times. I have not been able to look at the other schools to see where the money is going to. Odyssey was easy because of the high amounts involved. While some of these amounts are small, what other shifts are going on? Why are they going on for other areas if they are? We know districts and charters code things incorrectly but who monitors that? Does anyone? And how much does all this shifting of taxpayer dollars affect funding for the next fiscal year?
I would strongly recommend each district or charter school Chief Operating Officer or Business Manager proactively gets in touch with me and voluntarily lets me know of any changes being made to the Delaware Financial System, the justification for these changes, and how they are able to do it. If they aren’t aware of these changes, they need to let me know that as well. Because as I go through each of the different codes in the coming weeks, I will find more. I’ve already done a cursory glance at different (and major) categories and found excessive sums of money shifting around. If you don’t get in touch with me, don’t get upset when I blast the lack of transparency from your school or district in each article. We know this is happening. So the choice is simple: be held accountable or be honest. If there is funny business, you know I will expose it and call you out on it. And each time, I am submitting requests to the State Auditor’s office for each and every category. So you can ignore me all you want, but know that someone else will be knocking on your door. And if the State Auditor’s office ignores this, it is time to take steps at a Federal level. None of you who are manipulating funds will be allowed to do so anymore. If the Auditor won’t hold you accountable, I will. And I will make so much noise you won’t be able to hear above the outcries of the citizens in your district or charter school. This begins now. I don’t want to hear any crap about “I didn’t know” or “no one ever told me”. You are all subject to the rules of this state. Your excuses are exactly that: an excuse. If you aren’t doing anything wrong, you won’t have anything to worry about. But someone has to shake all this up and see what settles at the bottom.
I sincerely hope I’m not spoiling anyone’s party and ruining a chance to get some extra money for themselves. The party’s over. Deal with it.
7 thoughts on “Student Body Activity In Delaware Schools A Hotbed For Fraud & Abuse! Why Is $118,126.88 Such An Important Number?”
Something to bear in mind in regards to student activity items being paid out to a person – in order for a payment to be made out of the state system, a purchase order must be submitted for payment and then a check is cut and sent. Field trip activities like a visit to a museum or something like that must be paid beforehand or on the spot. They will not wait for a PO to go through. someone pays and then they submit to be reimbursed through the state system.
Thanks for clarifying that J. How long does it take the state to go through this purchase order system? As an example, say I know now I want to take kids to a museum in October to see life in the pre-Colonial days. The board approves it and I put in a purchase order now. Would that be ready by the time, say October 15th, happens?
I’ve heard it can vary in terms of timing. But seriously – you’ve got parents sending in field trip money up until the very last minute. How do you even know the number attending until a couple of days beforehand, at best? And the board approving every field trip? I don’t think so. That’s day to day operations of the school not a board function unless it’s something like an overnight trip or something like that.
It can take forever to get reimbursement! As an art teacher I have bought supplies over the years with my own money and have seen my name in the online check book before. It takes forever to get a reimbursement after using your own money to buy something.