School Business
Office & Ethics
ETHICS
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QPA
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OFAC (Office of Fiscal Accountability and Compliance)
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School Ethics Commission
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Headlines/Penalties
QPA REQUIREMENTS
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New Applicants – Not required
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Renewals – 3 credits in Ethics required!
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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 2019. If you have any questions, please
see me after the presentation.
OFAC
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Commissioner Lucille Davy consolidated departments in February
2007 to provide better oversight of the expenditures of state education
funds.
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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
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Made up of six units
Criminal History Review Unit
State Aid Audit Unit
State-Operated Schools
Investigations Unit
Internal Audit Unit
Single/Grant Unit
OFAC – Investigations Unit
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Conduct investigations of external allegation of wrongdoing and, as
requested by the Commissioner, audits specific programs and functions
of school districts
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Perform audits of Early Childhood Education Programs
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Investigate complaints of wrongdoings pertaining to Educational
Facilities Construction and Financing Act
OFAC – State Aid Audit Unit
To ensure the accuracy of:
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Enrollment and data – ASSA
DRTRS
Application of EXAID
OFAC – Internal Audit Unit
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Perform financial and compliance review of departmental accounts,
financial transactions and programs
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Implement department-wide vulnerability assessments and internal control
evaluations
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Perform internal investigations
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Coordinates audits and the resolution of audit findings by external auditors
for federal, state and independent audits
OFAC – Single/Grants Audit Unit
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Conduct fiscal monitoring's of private schools for students with
disabilities for compliance
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Perform school district fiscal audits – fund 20 – in accordance with the
federal legislation and department guidelines
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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
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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 2015-2016
www.state.nj.us/education/finance/jobs/monitor/consolidated/15
OFAC – Internal Control Deficiencies
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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
SCHOOL ETHICS COMMISSION
Nine member body with the power to:
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Issue advisory opinions
Receive complaints
Receive and maintain disclosure statements
Conduct Investigations
Hold hearings
Compel attendance of witnesses
Compel production of documents
SCHOOL ETHICS ACT
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NJSA 18A:12-21 et seq
Applies to only school officials – administrators and board members
Sets forth the following standards
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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 COMMISSION
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Decisions and Advisory Opinions
www.state.nj.us/education/ethics
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Provides guidance to local districts that are affected by board member
conflicts by adopting the Resolution on Adopting the Doctrine of
Necessity.
www.state.nj.us/education/ethics/don/don.html
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November workshop – Michael Kaelbar, Esq., NJSBA will provide a
program describing the new opinions.
HEADLINES & PENALTIES
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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
2nd degree official misconduct & 3rd degree attempted theft by
deception = recommended 3-5 years in state prison
HEADLINES & PENALTIES
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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
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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
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EX-EMPLOYEE OF PATERSON SCHOOLS FOUND GUILTY OF
FRAUDULENTLY HAVING SCHOOL DISTRICT HIRE HER
COMPANY AND OVERBILLING DISTRICT - $190,000
HEADLINES & PENALTIES
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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
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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
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GEORGIA ‘LUNCH LADY’ ACCUSED OF STEALING MORE
THAN 1 MILLION FROM SCHOOL LUNCH LINE
How did she get caught?
Question and Answer Period