ethics and compliance: lessons learned from el paso isd region 20 education service center december...
TRANSCRIPT
Ethics and Compliance:Lessons learned from El Paso ISD
Region 20 Education Service Center
December 4th, 2013
Bill Brown, JD, CPA, WeaverAdam Jones, Weaver
The CaseEl Paso ISD was a large-scale forensics investigation of a data-manipulation and accountability avoidance scheme
implemented over several school years, impacting the education of
hundreds of students.
• A team of up to 12 staff: investigators, data analysts, accountants, HR and policy consultants, including a former FBI agent and former Dallas police detective
• Examination of thousands of student records, HR files and e-mails across six school years
• 155 individual witness interviews
• Four months of on-site work, culminating in an 86-page report with hundreds of pages of additional exhibits
The Scope
Caveats• The Criminal Element: The district was literally
run for several years by a criminal, eventually convicted and incarcerated
• The engagement was not originally proposed as an investigation, but as a process examination
• We had the benefit of HINDSIGHT
What can an education leader take away from today’s presentation to improve a school district?• Setting the “Tone at the Top” is not a cliché• How do you monitor what happens at a campus?• Policies and procedures matter• Preventative data analysis• Ethics and compliance programs: a people solution
“Tone at the Top” (not a management cliché)
• In this case, the superintendent/board relationship was not a “team of eight” but a team of one
• Inadequate oversight: internal audit was ineffective and reported to the wrong place
• One bad actor at the top will leave behind an infrastructure even after he is gone—and sometimes worse, a power void
From Central Office to Campus• Monitoring disparate campuses is a difficult
task in the best of circumstances• It is more difficult if the underlying
infrastructure (reporting and communications) lacks integrity and campus staff are not empowered
• Data is one tool…but engagement is more important
Policies and Procedures Matter• In some instances, policies were developed to
facilitate improper actions at the campus level
• However, a vast majority of board policies adhered to statute, administrative code and TASB blue book practice…
…assuming they were followed.
They weren’t.
In a large school district, there are always hidden corners where employees can make bad decisions, often escaping anyone’s notice or knowledge.
Policies and Procedures Matter
Preventive Data AnalysisRemember, we had the benefit of hindsight…
FACT: Bowie High School implemented a scheme to avoid students taking the 10th grade TAKS, eliminate the LEP subgroup and then advance students past 10th grade and to graduate them without accountability consequences.
Question:
Did campuses other than Bowie exhibit any similar characteristics?
Preventive Data Analysis
Avoiding LEP Accountability
2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 -
20
40
60
80
100
120
140
160
LEP by 10th Grade Level (Bowie)
BOWIE HIGH SCHOOL
Avoiding LEP Accountability
2005/06 2006/07 2007/08 2008/09 2009/10 2010/11 -
20
40
60
80
100
120
140
160
LEP by 10th Grade Level
ANDRESS HIGH SCHOOLAUSTIN HIGH SCHOOLBOWIE HIGH SCHOOLBURGES HIGH SCHOOLEL PASO HIGH SCHOOLIRVIN HIGH SCHOOLJEFFERSON HIGH SCHOOL
50
Skipping 10th Grade
2006/07 2007/08 2008/09 2009/10 2010/110
10
20
30
40
50
60
70
80
SCHOOL, Grade Change, 9 --> 11 (Bowie)
BOWIE HIGH SCHOOL
Skipping 10th Grade
2006/07 2007/08 2008/09 2009/10 2010/110
10
20
30
40
50
60
70
80
SCHOOL, Grade Change, 9 --> 11
ANDRESS HIGH SCHOOLAUSTIN HIGH SCHOOLBOWIE HIGH SCHOOLBURGES HIGH SCHOOLEL PASO HIGH SCHOOLIRVIN HIGH SCHOOLJEFFERSON HIGH SCHOOL
Code of Ethics
Central Office
State LawPolicy and Procedures
Campuses
COMMUNICATION*• Training• Monitoring• Reporting• Assistance
Integrity of DataEducation
Reporting Non-com
pliance
Code of Ethics
Central Office
State LawPolicy and Procedures
Campuses
COMMUNICATION*• Training• Monitoring• Reporting• Assistance
Integrity of DataEducation
Reporting Non-com
pliance
DISCONNECT
Ethics and Compliance Program• Establish a written ethics policy and code of
conduct, communicate to ALL employees• Be vigilant about updating policies and
procedures• Be more vigilant about communicating those
policies and procedures to employees and third party contractors
Ethics and Compliance Program
But remember:
• This is a PEOPLE solution, not just words on a page.• It requires empowerment!
The “People” SolutionREMEDIATIO
N95%
INVESTIGATEEDUCATE EMPLOYEES
REPORTING MECHANISM
TONE at the Top
REDUCE DETECTION
TIME
• Establishes standards for ethical behavior
• Affixes responsibility for maintaining ethical culture
• Sets positive example for others to follow
The “People” SolutionREMEDIATIO
N95%
INVESTIGATEEDUCATE EMPLOYEES
REPORTING MECHANISM
TONE at the Top
REDUCE DETECTION
TIME
The “People” SolutionREMEDIATIO
N95%
INVESTIGATEEDUCATE EMPLOYEES
REPORTING MECHANISM
TONE at the Top
REDUCE DETECTION
TIME
• Informed employees will be more likely to act ethically
• Raises awareness of potentially fraudulent conduct by other employees or vendors
• Encourages reporting of fraudulent conduct (early detection)
The “People” SolutionREMEDIATIO
N95%
INVESTIGATEEDUCATE EMPLOYEES
REPORTING MECHANISM
TONE at the Top
REDUCE DETECTION
TIME
The “People” SolutionREMEDIATIO
N95%
INVESTIGATEEDUCATE EMPLOYEES
REPORTING MECHANISM
TONE at the Top
REDUCE DETECTION
TIME
The “People” SolutionREMEDIATIO
N95%
INVESTIGATEEDUCATE EMPLOYEES
REPORTING MECHANISM
TONE at the Top
REDUCE DETECTION
TIME
• Commitment to non-retaliation
• Anonymous reporting extremely important
• Appropriate response (part of the solution or part of the problem)
• Reduces detection time
• Cornerstone to enterprise-wide anti-fraud system
The “People” SolutionREMEDIATIO
N95%
INVESTIGATEEDUCATE EMPLOYEES
REPORTING MECHANISM
TONE at the Top
REDUCE DETECTION
TIME
• Objective/probing
• Identify stakeholders/isolate interested individuals
• Utilize appropriate investigative personnel (appropriate skills)
• Timely conclusion/recommendations
The “People” SolutionREMEDIATIO
N95%
INVESTIGATEEDUCATE EMPLOYEES
REPORTING MECHANISM
TONE at the Top
REDUCE DETECTION
TIME
Thank you for all you do for Texas kids!
Questions? Comments?