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Essay on Roslyn School District fraud
This paper examines one of the most perplexing problems in school administration today.
Much of the scholarship on organizational corruption--or systemic wrongdoing by employees who violate society's norms with the support of their organization's internal norms (Ermann and Lundman 1982)--assumes that corruption can be reduced through accountability devices such as oversight, surveillance, audits, performance evaluations, sanctions and structural reorganizations. The conventional belief is that, if adequate controls exist, managers will enforce them and subordinates will follow them (Gardiner and Lyman 1993).
ecently CPA firm audited the Roslyn School District discovered that performed work so flawed and so far below professional standards that it failed to recognize millions of dollars actually stolen by District personnel even after the firm was aware that fraud had occurred.
So much of the debate in the revolves around issues such as the types of audits needed to achieve different levels of fiscal accountability, the deterrent value of criminal and civil sanctions, and the role of inspectors general. If scandals continue despite these reforms, experts usually recommend tightening existing controls (Anechiarico and Jacobs 1996). But corruption may not result merely because an organization's internal accountability mechanisms are not tight or numerous enough.
A three-stage process has begun in Roslyn to regain the public's trust through the joint participation of the district attorney, the state comptroller and the school board. The three stages are (1) investigation and exposure of the wrongdoing; (2) demand for personal accountability, usually through criminal proceedings; and (3) corrective legislation to prevent future occurrences.
Phase one concluded with New York State Comptroller Alan Hevesi's audit report, "Roslyn: Anatomy of a Scandal." The 60-page report described the various illegal activities, including almost $6 million of misappropriated credit card use and ATM withdrawals against more than two dozen credit cards and more than $1 million of private mortgage payments on behalf of school officials....
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