BISD FORENSIC AUDIT: A CULTURE OF FRAUD AND CORRUPTION

By Juan Montoya

It now has become apparent that the small glimpses that the Brownsville Independent School District and the local daily have allowed the residents of the district to get of the forensic audit of operations during the last three years that found “systemic corruption at practically every level” was just the tip of the iceberg.

In the report released by the BISD, (click on the blue letters or the graphic to the right to see it) the Dallas firm of Defenbaugh and Associates performed the $250,000 audit of the 2008-2009, 2009-2010 and 2010-2011 school years and the administration of former Superintendent Brett Springston.

Besides finding “fraud, abuse, and waste” in multiple areas and tacit approval in the maintenance and transportation departments of time and attendance and overtime abuse, it also named individuals who contributed to the pilferage of BISD funds.

Phase I under Financials and Budget included investigation into the fund-balance depletion, ghost employees and no-show jobs, overtime scheme, capital equipment, adding non-eligible dependents on core benfits (medical, dental, vision) BISD purchase order and blank PO review, misuse, waste, or theft of state and/or federal funds, and expenses incurred by board members.

Phase II of the forensic audit covered bonds construction and an analysis of $136 million qualified construction bonds and the Phase III of the audit covered the E-Rate program.

The 2008-2009, 2009-2010 and 2010-2011 school years covered by the audit were during the administration of former Superintendent Brett Springston. Springston resigned to become the superintendent of the Bartlett independent School District in Central Texas, a district with one high school and one elementary school.

Carl Montoya later was named superintendent by a unanimous vote of the BISD Board of Trustees.

In the first part of the report the auditors found that "fraud and waste was identified in multiple areas of the administration from the former Superintendent not upholding his fiduciary responsibilities; to the (2) two largest departments, maintenance and transportation, administrators, assistant administrators and supervisors/foremen giving tacit approval to time and attendance (T&A) abuse (maintenance) and giving tacit approval to overtime (OT) fraud (transportation.)

Fraud and waste of federal and Texas state funds were found to be occurring in maintenance and transportation department along with placing BISD at risk of fines and other legal actions by the Texas Education Agency, the City of Brownsville and the Texas Dept. of Licensing and Regulations. Fixed Assets Department was identified as broken with a complete overhaul recommended.

"Forensic audit found an air of entitlement amongst the rank and file employees inasmuch as fraud abuse and waste was the given and not the exception. Forensic audit found many department administrators had lost their sense of fiduciary responsibility and many interviewed made the statement "this is the way we've done it for years" or "it has been brought to their attention before and no one has done anything about it. Forensic audit found BISD to have no financial risk strategy. An outside law enforcement official who was presented with many of the identified fraud complaints said it best: "There is a tacit approval throughout BISD management. Where is the criminal intent when the supervisor approves the criminal act?...

Forensic audit staff found that during the audit period, especially (Internal Audit Dept. Lead Auditor) Ms. Pizano-Flores and (Purchasing Dept. Administrator) Ms. Rosario Pena have encountered either threats or bullying from external forces to compromise their personal and professional integrity but both stood tall and refused the undue influence."

Here, for our Rrun-Rrun readers is a complete version of the executive summary report. You decide whether a thorough house cleaning is overdue at the district.