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FBOE Investigating Suspicious Purchases


NOTE: In the complaint below, only one line was removed by the source because it described an "inappropriate relationship".

UPDATE: 6.30.15 System to seek accountability for false allegations against system employees

MEDIA RELEASE: The ethics complaint filed by attorney Julie Oinonen on behalf of former maintenance employee Greg McCary against several employees and a board member, and provided by Ms. Oinonen to Floyd County media, is based on false and unfounded allegations and blatant misrepresentations. The school system will welcome involvement of the Professional Standards Commission and invite the PSC to visit the system. The system will cooperate fully to exonerate the good names of individuals named in the complaint.

The school system will also seek assistance from state controlling authorities to provide the same scrutiny to the motives, actions and truthfulness of those making continued false allegations and unfounded claims against the school system. These allegations played out in media to bring attention to individuals take away energy and resources of the school system from the mission of helping each child reach "Destination Graduation."

The school system will seek every avenue available to hold individuals involved in these continued unfounded public attacks accountable for false statements made in the media and now in writing in these statements to the PSC.

UPDATE: 5.12.15 Court Records Reveal 17 Additional People Associated with the Growing FBOE Investigation >> RNT

Court documents filed on 4.16.15 & obtained by RFN indicate that state officials have frozen two more real estate assets belonging to DSR Properties LLC operated by recently resigned Floyd Schools employee, Derry Scott Richardson. The two properties are located on Widgeon Way off of Technology Pkwy in W Rome. Scroll down below the court document images to see the backstory.

According to board minutes from an emergency session, one person took retirement & four others resigned but there has been no official confirmation if these are related to the ongoing investigation.

Chief of Operations Samuel Sprewell >> RETIRED

Lead Maintenance Specialist William Greg McCary >> RESIGNED

Director of Maintenance Derry Richardson >> RESIGNED

Director of School Improvement Terri Snelling >> RESIGNED

Operations Coordinator Robert Chad Watson >> RESIGNED

FBOE MEDIA RELEASE: Floyd County Schools instituted an intensive review of purchasing in the system in recent months with the planned move to a new purchasing software system. In this process, questionable purchasing practices were discovered. The school system moved immediately to involve local law enforcement & District Attorney Leigh Patterson’s office to conduct a thorough review of purchasing records over several years. Due to the ongoing probe, additional information related to the investigation will need to be provided by Major Wallace, Commander of the FCPD Criminal Investigation Division. The school system does not want to do anything to impede the ongoing investigation or the legal process.

Floyd County Schools will move forward to institute safeguards in the purchasing process & institute changes & improvements in purchasing practices across the system to ensure that funds are used solely for our mission of helping every child reach the destination of graduation. This mission will not be detoured by the inappropriate decisions of individuals in the community or in the school system.

Central administration is working with experts in the field of purchasing to make sure all resources are used for the benefit of our children. To achieve the highest level of purchasing security, the school system will meet this week with Periscope Holdings, a nationally respected company in the area of purchasing & expenditure tracking, to put in place new policies & procedures to safeguard funds intended for the education of our children. Periscope is widely used by government entities & school systems across the country to protect the integrity of purchasing practices. Periscope currently works with some of the largest school systems & government agencies in the country & in the state Georgia. Experts from Periscope will immediately begin a review of the purchasing records & practices of Floyd County Schools & will work with us to institute revised & improved purchasing procedures.

Administration & the Board of Education will also move to streamline the system organizational structure to enhance the upgraded policies & procedures recommended by Periscope to ensure the effective use of all education funds for children. Those suspected of misuse of funds have been or will be relieved of duties in the school system pending legal action or board determination of employment status. Others not suspected of misuse of funds but in positions with oversight over departments may be impacted in the organizational restructure plan.

With the loss of millions of dollars in state & local funds experienced by our school system in recent years, every dollar is important in our efforts to provide the very best educational opportunities for the children of our community. Floyd County Schools is committed the best use of education funds available & to Destination Graduation for every child!

FCPD MEDIA RELEASE: The Floyd County Police Criminal Investigation Division has initiated a Criminal Investigation into complaints made by the Floyd County Board of Education and Superintendent Dr. Jeff McDaniel that questionable purchases may have been made by Board of Education Employees.

This investigation continues to be labor intensive considering the volume of purchase information that has to be examined.

The Floyd County Police Department is sensitive to the fact that Floyd County Tax Payer money is in question and will take every opportunity to expedite this investigation to arrive at a successful and full conclusion.

Due to the complexity involved and the need to maintain the integrity of the investigation no other information will be released at this time.

An FBOE official confirmed to RFN that suspicious activity was first brought to the attention of police back in October of 2014 but did not provide any further information as to the investigation's progress status since then.

Superintendent Charts Course Forward to "Destination Graduation"

UPDATE: 4.17.15 MEDIA RELEASE EXCERPT: Floyd County Schools is moving forward in the system’s quest for "Destination Graduation for every child” as Superintendent Dr. Jeff McDaniel today announced a personnel reorganization plan in a meeting with principals. The presentation involved an organizational restructuring of personnel and changes in purchasing procedures.

In announcing the organizational restructure, Dr. McDaniel displayed a flowchart that will change duties and responsibilities of personnel but at the same time reduce cost to the school system. “This restructuring involves existing personnel in new roles more so than adding new people,” McDaniel said. “Duties will shift and responsibilities will change to allow our system to be more efficient and effective for children.” One significant change will be the new position - Director of Internal Audits and Compliance. Lee Kaylor, currently in the Finance Department, will move into this new position that will review purchasing and finance in all departments in the system. Dr. April Childers, currently working in the area of strategic planning, will assume the role of Deputy Superintendent. “This position is all about creating a line of support for our departments and schools rather than being about authority,” explained McDaniel. “Dr. Childers will be able to bring continuity to efforts across the school system from academics in the classroom to maintenance efforts in our schools.”

Dr. McDaniel closed with details on revised purchasing procedures for the school system. “How we purchase materials needed for the education of children has changed, and while different, we will adapt and be more efficient as we move forward,” McDaniel stated. “We have a heightened awareness, new positions in personnel to review purchasing, and new procedures for procurement that will ensure every dollar is directed to the benefit of children.” Periscope Holdings, a nationally recognized company specializing in procurement procedures and policies, reviewed the system’s new plans for purchasing last week. “Periscope was very impressed with the procedures we planned to implement and gave us the green light to move forward,” McDaniel said. To view the entire release with other BOE changes, click >> HERE

UPDATE: 4.30.15 Court Documents Showing Derry Richardson Assets Nearing $1 Million

UPDATE: 5.1.15 Purchasing procedures tightened in revised policy for Floyd County Schools

Floyd County Schools is proposing revisions to purchasing procedures with the submission of a revised board policy and administrative rule to guide the process of making purchases to support learning in the classroom and the system’s mission of “Destination Graduation for every child.” The revised policy will be submitted for first reading at the next regular meeting on Tuesday, May 5, 2015. All new board policies require the change to be open for public review prior to formal adoption at the next regularly scheduled meeting of the board. The new policy could be formally approved at the June Board of Education meeting.

With the new policy, purchasing will be categorized in levels requiring increasing fiscal management controls as the purchasing dollar amounts increase. The levels will range from Level 1 for purchases below $1,000, Level 2 for purchases from $1,000 to less than $10,000 and Level 3 for any purchase of $!0,000 or more. The new position of Director of Internal Audits and Compliance will also be required to review major expenditures.

Level 1, costing less than $1,000, will be referred to as discretionary spending. Competitive pricing will not be required but will be encouraged for effective fiscal management. Purchases in this level will require purchase orders approved by the department head or principal. Items must be detailed in their description on purchase orders with no abbreviations.

Items purchased in Level 2, more than $1,000 and less than $10,000, will require competitive quotes. Three written quotes for the item will be reviewed by the Director of Internal Audits and Compliance for approval or revision. Detailed descriptions of items to be purchased will also be required for Level 2 purchases.

Level 3, costing more than $10,000, will require competitive sealed bids, requests for quotes (RFQ) or request for proposal (RFP) to select a vendor. Competitive sealed bids must be in accordance with written specifications identified by the Floyd County Board of Education submitted in writing at a time, date and place specified in the bid advertisement. Purchases under $50,000 can be approved by the Director of Internal Audits and Compliance. Purchases $50,000 and above will require final approval by the Floyd County Board of Education.

Local bids will be examined with priority and the local community presence represented in a bid given due consideration.

The new policy's administrative rule will also outline consequences for unauthorized purchases, unethical behavior and rules regarding gifts from vendors. Vendor responsibility in the purchasing process is outlined as well in the policy. Vendor contracts can be terminated, if the vendor is involved in unethical behavior,

The new policy will help the system to move forward in the mission of "Destination Graduation for every child.” Dr. Jeff McDaniel, Superintendent of Floyd County Schools, will recommend the new policy at Tuesday's board meeting. "These new procedures were developed with the input of Periscope Holdings, a nationally recognized expert in procurement working with government agencies and school systems across the country," McDaniel said. "These changes will allow our schools to provide the learning opportunities needed by our children and give the community confidence that tax dollars are being used to maximum efficiency." McDaniel added, "The focus of everyone in this school system is Destination Graduation and this policy supports that mission."

Court Records Reveal Large Cash Withdrawal from Former Floyd Schools Employee's Personal Account After Property Seizure >> RNT

State Authorities Seize Former Floyd Schools Employee's Personal Property >> RNT

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