From: Wilson, Mary Sent: Friday, January 02, 2009 8:04 AM To: Diorio, Dena R. Subject: Re: Voucher Protocol

Is Nita part of Finance?

Mary E. Wilson Director Department of Social Services 301 Billingsley Road Charlotte, NC 28211 W) 704-336-mary C) 704-649-0568 mary.wilson@mecklenburgcountync.gov

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From: Diorio, Dena R. To: Wilson, Mary; Spears, Cornita Cc: Lancaster, Michelle; Jackson, Janice Sent: Fri Jan 02 08:02:05 2009 Subject: RE: Voucher Protocol

Mary & Nita, Let me know if you need any assistance from the Finance Department. Dena

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From: Wilson, Mary Sent: Wednesday, December 31, 2008 5:03 PM To: Diorio, Dena R.; Spears, Cornita Cc: Lancaster, Michelle; Jackson, Janice Subject: FW: Voucher Protocol

Anita, I'd like to speak with you soon about how we conduct an internal audit on this issue. Thanks, Mary Mary E. Wilson Director Department of Social Services 301 Billingsley Road Charlotte, NC 28211 W) 704-336-Mary C) 704-649-0568 mary.wilson@mecklenburgcountync.gov

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From: Wilson, Mary Sent: Wednesday, December 31, 2008 4:58 PM To: DSS-ALL Subject: Voucher Protocol

Dear Staff,

On Monday, December 1st, I instructed Paul Risk, Division Director for Youth and Family Services (YFS) to discontinue using vouchers at local stores for purchases until we could understand why the costs had increased so significantly. In recent months one retail bill increased from an average of $5,000 - $6,000 per month to over $20,000 in October. Additionally, it was learned that contrary to County policy, only 30 ñ 35% of receipts have been returned to DSSí Finance Department by the person making the purchases. I ceased the use of YFS vouchers due to a lack of strict oversight of our voucher system for clothes and other consumable supplies for foster children. As a result of this lack of oversight I have asked County Finance internal audit department to review all invoices and expenditures to ensure compliance with County policies.

Upon further investigation, we have found that (i) foster care families are responsible for purchasing clothes for the kids in their care but do not receive a check until 45 days after the child comes to their home, (ii) Mecklenburg County was spending money in addition to the money being paid to the foster care families to purchase clothes, (iii) there are other families with unmet needs such as grandparents in our Kinship care program and (iv) there are donations available to provide for many of these resources for our children who are in need but not in DSS custody.

Following my guidance to discontinue using the vouchers until further research was completed, I received an email from a staff member and subsequently received questions during the round of supervisory meetings I held across DSS. I want to thank the staff member who was courageous enough to send me an e-mail asking me about my decision and I want to thank the supervisors who raised the question during the supervisory meetings.

The following is an update on the issue and our plan for the new process going forward.

A foster parentís monthly maintenance payment is intended to meet the needs of youth in custody such as clothing and/or other essential items, however they can not do so if they do not receive their check on time. Therefore, the following clothing protocol is being implemented immediately:

1) Foster parents are informed at the beginning of their relationship with DSS that they are expected to use the maintenance payment to meet the needs (clothing, school supplies, food, and increases in utilities) of a child placed within their home.

2) Foster parents are responsible for ensuring that foster youth are adequately clothed for the season and should have clothing equal to or greater than the minimum clothing list as established by the Department within three months of placement in the foster home.

3) DSS will provide a $150 check within one business day of placement of the foster child to the foster parent for initial clothing purchases and will have that amount deducted from the first foster care payment. This will apply to public and private provider agencies.

4) The licensing worker for the agency will monitor the foster parent to ensure that a foster childís basic needs are met.

5) When a youth leaves a foster care placement it is expected that they will have clothing that meets their minimum needs. If they do not the provider will have the cost of replacement clothing deducted from their next maintenance payment.

6) Emergency placements: after-hours staff are authorized to use a clothing voucher, up to $50, so that the provider can get essential clothing that evening or the next day when the child has no clothing.

7) Petitioning social workers should attempt to get clothing from the family and if the family denies access to their children's clothing this matter should be discussed in court at the initial hearing and YFS should request the court to order the family to provide all clothing that is available.

8) Social workers should also contact the Community Resource Office to access funds for safety, preventive or reunification services when a juvenile is remaining in the home or returning to the home (ex. cribs, car seats, etc.). The main contact number to the Community Resources is 704-336-4809.

The YFS Management team is developing the following protocols and will communicate these at a later date:

* A protocol for youth who go "absent with out leave " (AWOL).

* A protocol for kinship care placements throughout DSS. Permanency planning worker should ensure that basic clothing and other needs are met through the kinship care providerís resources. If additional resources are required , the social worker should contact the Community Resource Office for assistance using funds donated by the public for the care of our clients. Additionally, the worker should encourage the kinship provider to apply for the Work First cash assistance program to receive Temporary Assistance of Needy Families (TANF) funds and explore becoming licensed as a foster parent which will entitle them to additional cash assistance.

This is a great example of how I hope we can address issues within DSS by being open, honest and transparent and without fear of retaliation. Going forward, I believe it is essential to bring resolution by reviewing the situation and determining whether we are consistent with the policy intended or have we created a work around to fix another problem? In this instance, we created a work around to fix the problem of foster parents not being paid timely and children not having necessary items. This work around was on schedule to costing the County approximately $200,000 a year (up from $58,000 in FY 2007 without an increase in the number of children served). I think all of us would prefer to see these funds used for other items, such as summer camp opportunities or after school transportation for tutoring, that we know our clients need.

Finally, please know that no child was left without necessary items during this time of review and transition. Every Division Director has access to me 24 hours a day 7 days a week so that decisions can be made timely and effectively for our clients. While we will take the time to review and correct our policies and procedures we will always do the right thing to take care of our clients.

Thanks for your continued hard work on behalf of those we serve,

Mary

Mary E. Wilson

Director

Department of Social Services

301 Billingsley Road

Charlotte, NC 28211

W) 704-336-Mary

C) 704-649-0568

mary.wilson@mecklenburgcountync.gov

From: Risk, Paul M. Sent: Friday, January 02, 2009 10:16 AM To: Wilson, Mary Subject: Re: Voucher Protocol

I'll work on it once I get back in town, probably Sunday.

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From: Wilson, Mary To: Risk, Paul M.; Yeager, James E.; Cunningham, Darrell Sent: Fri Jan 02 10:12:18 2009 Subject: Re: Voucher Protocol

Paul,

I think you should mark it up and let me have a list of who you want to send it to and in what format (i.e. E-mail, hard copy, etc.)

Happy New Year to you, too!

Mary

Mary E. Wilson Director Department of Social Services 301 Billingsley Road Charlotte, NC 28211 W) 704-336-mary C) 704-649-0568 mary.wilson@mecklenburgcountync.gov

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From: Risk, Paul M. To: Yeager, James E.; Cunningham, Darrell; Wilson, Mary Sent: Fri Jan 02 10:04:34 2009 Subject: Re: Voucher Protocol

Mary and Darrell, I hope you had a safe New Years, I would suggest the email below be reviewed and adjusted for our partners and stake holders, would you like me to work on it or is this something Tabitha could do? See you Monday. Paul

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From: Yeager, James E. To: Risk, Paul M. Sent: Fri Jan 02 09:51:25 2009 Subject: FW: Voucher Protocol

Paul, I suggest providing this info to the GAL's office and the judges. I can forward the e-mail unless you prefer addressing in a different manner.-

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From: Wilson, Mary Sent: Wednesday, December 31, 2008 4:58 PM To: DSS-ALL Subject: Voucher Protocol

Dear Staff,

On Monday, December 1st, I instructed Paul Risk, Division Director for Youth and Family Services (YFS) to discontinue using vouchers at local stores for purchases until we could understand why the costs had increased so significantly. In recent months one retail bill increased from an average of $5,000 - $6,000 per month to over $20,000 in October. Additionally, it was learned that contrary to County policy, only 30 ñ 35% of receipts have been returned to DSSí Finance Department by the person making the purchases. I ceased the use of YFS vouchers due to a lack of strict oversight of our voucher system for clothes and other consumable supplies for foster children. As a result of this lack of oversight I have asked County Finance internal audit department to review all invoices and expenditures to ensure compliance with County policies.

Upon further investigation, we have found that (i) foster care families are responsible for purchasing clothes for the kids in their care but do not receive a check until 45 days after the child comes to their home, (ii) Mecklenburg County was spending money in addition to the money being paid to the foster care families to purchase clothes, (iii) there are other families with unmet needs such as grandparents in our Kinship care program and (iv) there are donations available to provide for many of these resources for our children who are in need but not in DSS custody.

Following my guidance to discontinue using the vouchers until further research was completed, I received an email from a staff member and subsequently received questions during the round of supervisory meetings I held across DSS. I want to thank the staff member who was courageous enough to send me an e-mail asking me about my decision and I want to thank the supervisors who raised the question during the supervisory meetings.

The following is an update on the issue and our plan for the new process going forward.

A foster parentís monthly maintenance payment is intended to meet the needs of youth in custody such as clothing and/or other essential items, however they can not do so if they do not receive their check on time. Therefore, the following clothing protocol is being implemented immediately:

1) Foster parents are informed at the beginning of their relationship with DSS that they are expected to use the maintenance payment to meet the needs (clothing, school supplies, food, and increases in utilities) of a child placed within their home.

2) Foster parents are responsible for ensuring that foster youth are adequately clothed for the season and should have clothing equal to or greater than the minimum clothing list as established by the Department within three months of placement in the foster home.

3) DSS will provide a $150 check within one business day of placement of the foster child to the foster parent for initial clothing purchases and will have that amount deducted from the first foster care payment. This will apply to public and private provider agencies.

4) The licensing worker for the agency will monitor the foster parent to ensure that a foster childís basic needs are met.

5) When a youth leaves a foster care placement it is expected that they will have clothing that meets their minimum needs. If they do not the provider will have the cost of replacement clothing deducted from their next maintenance payment.

6) Emergency placements: after-hours staff are authorized to use a clothing voucher, up to $50, so that the provider can get essential clothing that evening or the next day when the child has no clothing.

7) Petitioning social workers should attempt to get clothing from the family and if the family denies access to their children's clothing this matter should be discussed in court at the initial hearing and YFS should request the court to order the family to provide all clothing that is available.

8) Social workers should also contact the Community Resource Office to access funds for safety, preventive or reunification services when a juvenile is remaining in the home or returning to the home (ex. cribs, car seats, etc.). The main contact number to the Community Resources is 704-336-4809.

The YFS Management team is developing the following protocols and will communicate these at a later date:

* A protocol for youth who go "absent with out leave " (AWOL).

* A protocol for kinship care placements throughout DSS. Permanency planning worker should ensure that basic clothing and other needs are met through the kinship care providerís resources. If additional resources are required , the social worker should contact the Community Resource Office for assistance using funds donated by the public for the care of our clients. Additionally, the worker should encourage the kinship provider to apply for the Work First cash assistance program to receive Temporary Assistance of Needy Families (TANF) funds and explore becoming licensed as a foster parent which will entitle them to additional cash assistance.

This is a great example of how I hope we can address issues within DSS by being open, honest and transparent and without fear of retaliation. Going forward, I believe it is essential to bring resolution by reviewing the situation and determining whether we are consistent with the policy intended or have we created a work around to fix another problem? In this instance, we created a work around to fix the problem of foster parents not being paid timely and children not having necessary items. This work around was on schedule to costing the County approximately $200,000 a year (up from $58,000 in FY 2007 without an increase in the number of children served). I think all of us would prefer to see these funds used for other items, such as summer camp opportunities or after school transportation for tutoring, that we know our clients need.

Finally, please know that no child was left without necessary items during this time of review and transition. Every Division Director has access to me 24 hours a day 7 days a week so that decisions can be made timely and effectively for our clients. While we will take the time to review and correct our policies and procedures we will always do the right thing to take care of our clients.

Thanks for your continued hard work on behalf of those we serve,

Mary

Mary E. Wilson

Director

Department of Social Services

301 Billingsley Road

Charlotte, NC 28211

W) 704-336-Mary

C) 704-649-0568

mary.wilson@mecklenburgcountync.gov

From: Isler, Cynthia Sent: Friday, January 02, 2009 10:33 AM To: Wilson, Mary Subject: RE: Voucher Protocol

THANK YOU FOR PROVIDING DIRECTION. Cynthia Isler Alexander

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From: Wilson, Mary Sent: Wednesday, December 31, 2008 4:58 PM To: DSS-ALL Subject: Voucher Protocol

Dear Staff,

On Monday, December 1st, I instructed Paul Risk, Division Director for Youth and Family Services (YFS) to discontinue using vouchers at local stores for purchases until we could understand why the costs had increased so significantly. In recent months one retail bill increased from an average of $5,000 - $6,000 per month to over $20,000 in October. Additionally, it was learned that contrary to County policy, only 30 - 35% of receipts have been returned to DSS' Finance Department by the person making the purchases. I ceased the use of YFS vouchers due to a lack of strict oversight of our voucher system for clothes and other consumable supplies for foster children. As a result of this lack of oversight I have asked County Finance internal audit department to review all invoices and expenditures to ensure compliance with County policies.

Upon further investigation, we have found that (i) foster care families are responsible for purchasing clothes for the kids in their care but do not receive a check until 45 days after the child comes to their home, (ii) Mecklenburg County was spending money in addition to the money being paid to the foster care families to purchase clothes, (iii) there are other families with unmet needs such as grandparents in our Kinship care program and (iv) there are donations available to provide for many of these resources for our children who are in need but not in DSS custody.

Following my guidance to discontinue using the vouchers until further research was completed, I received an email from a staff member and subsequently received questions during the round of supervisory meetings I held across DSS. I want to thank the staff member who was courageous enough to send me an e-mail asking me about my decision and I want to thank the supervisors who raised the question during the supervisory meetings.

The following is an update on the issue and our plan for the new process going forward.

A foster parent's monthly maintenance payment is intended to meet the needs of youth in custody such as clothing and/or other essential items, however they can not do so if they do not receive their check on time. Therefore, the following clothing protocol is being implemented immediately:

1) Foster parents are informed at the beginning of their relationship with DSS that they are expected to use the maintenance payment to meet the needs (clothing, school supplies, food, and increases in utilities) of a child placed within their home.

2) Foster parents are responsible for ensuring that foster youth are adequately clothed for the season and should have clothing equal to or greater than the minimum clothing list as established by the Department within three months of placement in the foster home.

3) DSS will provide a $150 check within one business day of placement of the foster child to the foster parent for initial clothing purchases and will have that amount deducted from the first foster care payment. This will apply to public and private provider agencies.

4) The licensing worker for the agency will monitor the foster parent to ensure that a foster child's basic needs are met.

5) When a youth leaves a foster care placement it is expected that they will have clothing that meets their minimum needs. If they do not the provider will have the cost of replacement clothing deducted from their next maintenance payment.

6) Emergency placements: after-hours staff are authorized to use a clothing voucher, up to $50, so that the provider can get essential clothing that evening or the next day when the child has no clothing.

7) Petitioning social workers should attempt to get clothing from the family and if the family denies access to their children's clothing this matter should be discussed in court at the initial hearing and YFS should request the court to order the family to provide all clothing that is available.

8) Social workers should also contact the Community Resource Office to access funds for safety, preventive or reunification services when a juvenile is remaining in the home or returning to the home (ex. cribs, car seats, etc.). The main contact number to the Community Resources is 704-336-4809.

The YFS Management team is developing the following protocols and will communicate these at a later date:

* A protocol for youth who go "absent with out leave " (AWOL).

* A protocol for kinship care placements throughout DSS. Permanency planning worker should ensure that basic clothing and other needs are met through the kinship care provider's resources. If additional resources are required , the social worker should contact the Community Resource Office for assistance using funds donated by the public for the care of our clients. Additionally, the worker should encourage the kinship provider to apply for the Work First cash assistance program to receive Temporary Assistance of Needy Families (TANF) funds and explore becoming licensed as a foster parent which will entitle them to additional cash assistance.

This is a great example of how I hope we can address issues within DSS by being open, honest and transparent and without fear of retaliation. Going forward, I believe it is essential to bring resolution by reviewing the situation and determining whether we are consistent with the policy intended or have we created a work around to fix another problem? In this instance, we created a work around to fix the problem of foster parents not being paid timely and children not having necessary items. This work around was on schedule to costing the County approximately $200,000 a year (up from $58,000 in FY 2007 without an increase in the number of children served). I think all of us would prefer to see these funds used for other items, such as summer camp opportunities or after school transportation for tutoring, that we know our clients need.

Finally, please know that no child was left without necessary items during this time of review and transition. Every Division Director has access to me 24 hours a day 7 days a week so that decisions can be made timely and effectively for our clients. While we will take the time to review and correct our policies and procedures we will always do the right thing to take care of our clients.

Thanks for your continued hard work on behalf of those we serve,

Mary

Mary E. Wilson

Director

Department of Social Services

301 Billingsley Road

Charlotte, NC 28211

W) 704-336-Mary

C) 704-649-0568

mary.wilson@mecklenburgcountync.gov

From: Wilson, Mary Sent: Saturday, January 03, 2009 6:31 PM To: Luong, Tienna Subject: RE: Voucher Protocol

Thanks for your support and encouragement. Regards, Mary Mary E. Wilson Director Department of Social Services 301 Billingsley Road Charlotte, NC 28211 W) 704-336-mary C) 704-649-0568 mary.wilson@mecklenburgcountync.gov

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From: Luong, Tienna Sent: Fri 1/2/2009 8:29 AM To: Wilson, Mary Subject: RE: Voucher Protocol

Good Morning Ms. Wilson: I just wanted to send you an email to express my appreciation for your much needed "justness". I feel that it is each of our responsibility as county employees and especially as social workers to be accountable for our action, represent ourselves as good steward, and to present an image of competency not only to be able to instill confidence in our clients; but to overcome negative stereotypes held by the public about county employees and social workers. I hope to be able to see more of these updates. Thank you!!! Tienna Luong, MSW Guardianship Social Worker Services for Adults Division Phone: 704-353-0680 Fax: 704-432-3505

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From: Wilson, Mary Sent: Wednesday, December 31, 2008 4:58 PM To: DSS-ALL Subject: Voucher Protocol

Dear Staff,

On Monday, December 1st, I instructed Paul Risk, Division Director for Youth and Family Services (YFS) to discontinue using vouchers at local stores for purchases until we could understand why the costs had increased so significantly. In recent months one retail bill increased from an average of $5,000 - $6,000 per month to over $20,000 in October. Additionally, it was learned that contrary to County policy, only 30 ñ 35% of receipts have been returned to DSSí Finance Department by the person making the purchases. I ceased the use of YFS vouchers due to a lack of strict oversight of our voucher system for clothes and other consumable supplies for foster children. As a result of this lack of oversight I have asked County Finance internal audit department to review all invoices and expenditures to ensure compliance with County policies.

Upon further investigation, we have found that (i) foster care families are responsible for purchasing clothes for the kids in their care but do not receive a check until 45 days after the child comes to their home, (ii) Mecklenburg County was spending money in addition to the money being paid to the foster care families to purchase clothes, (iii) there are other families with unmet needs such as grandparents in our Kinship care program and (iv) there are donations available to provide for many of these resources for our children who are in need but not in DSS custody.

Following my guidance to discontinue using the vouchers until further research was completed, I received an email from a staff member and subsequently received questions during the round of supervisory meetings I held across DSS. I want to thank the staff member who was courageous enough to send me an e-mail asking me about my decision and I want to thank the supervisors who raised the question during the supervisory meetings.

The following is an update on the issue and our plan for the new process going forward.

A foster parentís monthly maintenance payment is intended to meet the needs of youth in custody such as clothing and/or other essential items, however they can not do so if they do not receive their check on time. Therefore, the following clothing protocol is being implemented immediately:

1) Foster parents are informed at the beginning of their relationship with DSS that they are expected to use the maintenance payment to meet the needs (clothing, school supplies, food, and increases in utilities) of a child placed within their home.

2) Foster parents are responsible for ensuring that foster youth are adequately clothed for the season and should have clothing equal to or greater than the minimum clothing list as established by the Department within three months of placement in the foster home.

3) DSS will provide a $150 check within one business day of placement of the foster child to the foster parent for initial clothing purchases and will have that amount deducted from the first foster care payment. This will apply to public and private provider agencies.

4) The licensing worker for the agency will monitor the foster parent to ensure that a foster childís basic needs are met.

5) When a youth leaves a foster care placement it is expected that they will have clothing that meets their minimum needs. If they do not the provider will have the cost of replacement clothing deducted from their next maintenance payment.

6) Emergency placements: after-hours staff are authorized to use a clothing voucher, up to $50, so that the provider can get essential clothing that evening or the next day when the child has no clothing.

7) Petitioning social workers should attempt to get clothing from the family and if the family denies access to their children's clothing this matter should be discussed in court at the initial hearing and YFS should request the court to order the family to provide all clothing that is available.

8) Social workers should also contact the Community Resource Office to access funds for safety, preventive or reunification services when a juvenile is remaining in the home or returning to the home (ex. cribs, car seats, etc.). The main contact number to the Community Resources is 704-336-4809.

The YFS Management team is developing the following protocols and will communicate these at a later date:

* A protocol for youth who go "absent with out leave " (AWOL).

* A protocol for kinship care placements throughout DSS. Permanency planning worker should ensure that basic clothing and other needs are met through the kinship care providerís resources. If additional resources are required , the social worker should contact the Community Resource Office for assistance using funds donated by the public for the care of our clients. Additionally, the worker should encourage the kinship provider to apply for the Work First cash assistance program to receive Temporary Assistance of Needy Families (TANF) funds and explore becoming licensed as a foster parent which will entitle them to additional cash assistance.

This is a great example of how I hope we can address issues within DSS by being open, honest and transparent and without fear of retaliation. Going forward, I believe it is essential to bring resolution by reviewing the situation and determining whether we are consistent with the policy intended or have we created a work around to fix another problem? In this instance, we created a work around to fix the problem of foster parents not being paid timely and children not having necessary items. This work around was on schedule to costing the County approximately $200,000 a year (up from $58,000 in FY 2007 without an increase in the number of children served). I think all of us would prefer to see these funds used for other items, such as summer camp opportunities or after school transportation for tutoring, that we know our clients need.

Finally, please know that no child was left without necessary items during this time of review and transition. Every Division Director has access to me 24 hours a day 7 days a week so that decisions can be made timely and effectively for our clients. While we will take the time to review and correct our policies and procedures we will always do the right thing to take care of our clients.

Thanks for your continued hard work on behalf of those we serve,

Mary

Mary E. Wilson

Director

Department of Social Services

301 Billingsley Road

Charlotte, NC 28211

W) 704-336-Mary

C) 704-649-0568

mary.wilson@mecklenburgcountync.gov

From: Clark, Erin Sent: Monday, January 05, 2009 10:13 AM To: Wilson, Mary Subject: RE: Voucher Protocol

Thank you for your efforts on this important matter. I know that it was causing concern for workers and foster families, but I think we now have a very fair and viable solution. Erin Clark, MSW Foster/Adoptive Parent Recruiter Mecklenburg County Youth and Family Services 700 East Stonewall Street Charlotte, NC 28202 (704)432-5714

STATEMENT OF CONFIDENTIALITY: The information in this email and in any attachments may contain confidential information and is intended solely for the attention and use of the named addressee(s). It may not be disclosed to any person without authorization. If you are not the intended recipient, or a person responsible for delivering it to the intended recipient, you are not authorized to and must not disclose, copy, distribute or retain this message or any part of it.

_____

From: Wilson, Mary Sent: Wednesday, December 31, 2008 4:58 PM To: DSS-ALL Subject: Voucher Protocol

Dear Staff,

On Monday, December 1st, I instructed Paul Risk, Division Director for Youth and Family Services (YFS) to discontinue using vouchers at local stores for purchases until we could understand why the costs had increased so significantly. In recent months one retail bill increased from an average of $5,000 - $6,000 per month to over $20,000 in October. Additionally, it was learned that contrary to County policy, only 30 - 35% of receipts have been returned to DSS' Finance Department by the person making the purchases. I ceased the use of YFS vouchers due to a lack of strict oversight of our voucher system for clothes and other consumable supplies for foster children. As a result of this lack of oversight I have asked County Finance internal audit department to review all invoices and expenditures to ensure compliance with County policies.

Upon further investigation, we have found that (i) foster care families are responsible for purchasing clothes for the kids in their care but do not receive a check until 45 days after the child comes to their home, (ii) Mecklenburg County was spending money in addition to the money being paid to the foster care families to purchase clothes, (iii) there are other families with unmet needs such as grandparents in our Kinship care program and (iv) there are donations available to provide for many of these resources for our children who are in need but not in DSS custody.

Following my guidance to discontinue using the vouchers until further research was completed, I received an email from a staff member and subsequently received questions during the round of supervisory meetings I held across DSS. I want to thank the staff member who was courageous enough to send me an e-mail asking me about my decision and I want to thank the supervisors who raised the question during the supervisory meetings.

The following is an update on the issue and our plan for the new process going forward.

A foster parent's monthly maintenance payment is intended to meet the needs of youth in custody such as clothing and/or other essential items, however they can not do so if they do not receive their check on time. Therefore, the following clothing protocol is being implemented immediately:

1) Foster parents are informed at the beginning of their relationship with DSS that they are expected to use the maintenance payment to meet the needs (clothing, school supplies, food, and increases in utilities) of a child placed within their home.

2) Foster parents are responsible for ensuring that foster youth are adequately clothed for the season and should have clothing equal to or greater than the minimum clothing list as established by the Department within three months of placement in the foster home.

3) DSS will provide a $150 check within one business day of placement of the foster child to the foster parent for initial clothing purchases and will have that amount deducted from the first foster care payment. This will apply to public and private provider agencies.

4) The licensing worker for the agency will monitor the foster parent to ensure that a foster child's basic needs are met.

5) When a youth leaves a foster care placement it is expected that they will have clothing that meets their minimum needs. If they do not the provider will have the cost of replacement clothing deducted from their next maintenance payment.

6) Emergency placements: after-hours staff are authorized to use a clothing voucher, up to $50, so that the provider can get essential clothing that evening or the next day when the child has no clothing.

7) Petitioning social workers should attempt to get clothing from the family and if the family denies access to their children's clothing this matter should be discussed in court at the initial hearing and YFS should request the court to order the family to provide all clothing that is available.

8) Social workers should also contact the Community Resource Office to access funds for safety, preventive or reunification services when a juvenile is remaining in the home or returning to the home (ex. cribs, car seats, etc.). The main contact number to the Community Resources is 704-336-4809.

The YFS Management team is developing the following protocols and will communicate these at a later date:

* A protocol for youth who go "absent with out leave " (AWOL).

* A protocol for kinship care placements throughout DSS. Permanency planning worker should ensure that basic clothing and other needs are met through the kinship care provider's resources. If additional resources are required , the social worker should contact the Community Resource Office for assistance using funds donated by the public for the care of our clients. Additionally, the worker should encourage the kinship provider to apply for the Work First cash assistance program to receive Temporary Assistance of Needy Families (TANF) funds and explore becoming licensed as a foster parent which will entitle them to additional cash assistance.

This is a great example of how I hope we can address issues within DSS by being open, honest and transparent and without fear of retaliation. Going forward, I believe it is essential to bring resolution by reviewing the situation and determining whether we are consistent with the policy intended or have we created a work around to fix another problem? In this instance, we created a work around to fix the problem of foster parents not being paid timely and children not having necessary items. This work around was on schedule to costing the County approximately $200,000 a year (up from $58,000 in FY 2007 without an increase in the number of children served). I think all of us would prefer to see these funds used for other items, such as summer camp opportunities or after school transportation for tutoring, that we know our clients need.

Finally, please know that no child was left without necessary items during this time of review and transition. Every Division Director has access to me 24 hours a day 7 days a week so that decisions can be made timely and effectively for our clients. While we will take the time to review and correct our policies and procedures we will always do the right thing to take care of our clients.

Thanks for your continued hard work on behalf of those we serve,

Mary

Mary E. Wilson

Director

Department of Social Services

301 Billingsley Road

Charlotte, NC 28211

W) 704-336-Mary

C) 704-649-0568

mary.wilson@mecklenburgcountync.gov

From: Hamilton-Brooks, Judy Sent: Monday, January 05, 2009 10:13 AM To: Wilson, Mary; Risk, Paul M. Subject: RE: Voucher Protocol

Hi Mary, Happy New Year! We have a pretty good system established to quickly register students new to foster care for free lunch in school. There is a delay of few days, however, between the court decision and my being notified. Paul agreed that foster parents should be responsible for providing lunch money for students for the first week in foster care so as not to have an unpaid balance. I just wanted you to be aware that part of that money allocated initially may be going to school lunches which is $2.00 day. Thanks for all of your support for our school-aged students in foster care. Judy Hamilton-Brooks CMS-DSS Lead Liaison 704-432-0067

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From: Wilson, Mary Sent: Wednesday, December 31, 2008 4:58 PM To: DSS-ALL Subject: Voucher Protocol

Dear Staff,

On Monday, December 1st, I instructed Paul Risk, Division Director for Youth and Family Services (YFS) to discontinue using vouchers at local stores for purchases until we could understand why the costs had increased so significantly. In recent months one retail bill increased from an average of $5,000 - $6,000 per month to over $20,000 in October. Additionally, it was learned that contrary to County policy, only 30 - 35% of receipts have been returned to DSS' Finance Department by the person making the purchases. I ceased the use of YFS vouchers due to a lack of strict oversight of our voucher system for clothes and other consumable supplies for foster children. As a result of this lack of oversight I have asked County Finance internal audit department to review all invoices and expenditures to ensure compliance with County policies.

Upon further investigation, we have found that (i) foster care families are responsible for purchasing clothes for the kids in their care but do not receive a check until 45 days after the child comes to their home, (ii) Mecklenburg County was spending money in addition to the money being paid to the foster care families to purchase clothes, (iii) there are other families with unmet needs such as grandparents in our Kinship care program and (iv) there are donations available to provide for many of these resources for our children who are in need but not in DSS custody.

Following my guidance to discontinue using the vouchers until further research was completed, I received an email from a staff member and subsequently received questions during the round of supervisory meetings I held across DSS. I want to thank the staff member who was courageous enough to send me an e-mail asking me about my decision and I want to thank the supervisors who raised the question during the supervisory meetings.

The following is an update on the issue and our plan for the new process going forward.

A foster parent's monthly maintenance payment is intended to meet the needs of youth in custody such as clothing and/or other essential items, however they can not do so if they do not receive their check on time. Therefore, the following clothing protocol is being implemented immediately:

1) Foster parents are informed at the beginning of their relationship with DSS that they are expected to use the maintenance payment to meet the needs (clothing, school supplies, food, and increases in utilities) of a child placed within their home.

2) Foster parents are responsible for ensuring that foster youth are adequately clothed for the season and should have clothing equal to or greater than the minimum clothing list as established by the Department within three months of placement in the foster home.

3) DSS will provide a $150 check within one business day of placement of the foster child to the foster parent for initial clothing purchases and will have that amount deducted from the first foster care payment. This will apply to public and private provider agencies.

4) The licensing worker for the agency will monitor the foster parent to ensure that a foster child's basic needs are met.

5) When a youth leaves a foster care placement it is expected that they will have clothing that meets their minimum needs. If they do not the provider will have the cost of replacement clothing deducted from their next maintenance payment.

6) Emergency placements: after-hours staff are authorized to use a clothing voucher, up to $50, so that the provider can get essential clothing that evening or the next day when the child has no clothing.

7) Petitioning social workers should attempt to get clothing from the family and if the family denies access to their children's clothing this matter should be discussed in court at the initial hearing and YFS should request the court to order the family to provide all clothing that is available.

8) Social workers should also contact the Community Resource Office to access funds for safety, preventive or reunification services when a juvenile is remaining in the home or returning to the home (ex. cribs, car seats, etc.). The main contact number to the Community Resources is 704-336-4809.

The YFS Management team is developing the following protocols and will communicate these at a later date:

* A protocol for youth who go "absent with out leave " (AWOL).

* A protocol for kinship care placements throughout DSS. Permanency planning worker should ensure that basic clothing and other needs are met through the kinship care provider's resources. If additional resources are required , the social worker should contact the Community Resource Office for assistance using funds donated by the public for the care of our clients. Additionally, the worker should encourage the kinship provider to apply for the Work First cash assistance program to receive Temporary Assistance of Needy Families (TANF) funds and explore becoming licensed as a foster parent which will entitle them to additional cash assistance.

This is a great example of how I hope we can address issues within DSS by being open, honest and transparent and without fear of retaliation. Going forward, I believe it is essential to bring resolution by reviewing the situation and determining whether we are consistent with the policy intended or have we created a work around to fix another problem? In this instance, we created a work around to fix the problem of foster parents not being paid timely and children not having necessary items. This work around was on schedule to costing the County approximately $200,000 a year (up from $58,000 in FY 2007 without an increase in the number of children served). I think all of us would prefer to see these funds used for other items, such as summer camp opportunities or after school transportation for tutoring, that we know our clients need.

Finally, please know that no child was left without necessary items during this time of review and transition. Every Division Director has access to me 24 hours a day 7 days a week so that decisions can be made timely and effectively for our clients. While we will take the time to review and correct our policies and procedures we will always do the right thing to take care of our clients.

Thanks for your continued hard work on behalf of those we serve,

Mary

Mary E. Wilson

Director

Department of Social Services

301 Billingsley Road

Charlotte, NC 28211

W) 704-336-Mary

C) 704-649-0568

mary.wilson@mecklenburgcountync.gov

From: Spears, Cornita Sent: Tuesday, January 13, 2009 2:11 PM To: Wilson, Mary Cc: Waddell, Christopher; Lancaster, Michelle; Jackson, Janice; Diorio, Dena R. Subject: RE: Voucher Protocol

Alright.

_____

From: Wilson, Mary Sent: Tuesday, January 13, 2009 12:38 PM To: Spears, Cornita Subject: Re: Voucher Protocol

Cornita,

I have not called yet but I do need help on this audit. I'll call you late next week.

Thanks, Mary

Mary E. Wilson Director Department of Social Services 301 Billingsley Road Charlotte, NC 28211 W) 704-336-mary C) 704-649-0568 mary.wilson@mecklenburgcountync.gov

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From: Spears, Cornita To: Wilson, Mary; Diorio, Dena R. Cc: Lancaster, Michelle; Jackson, Janice; Waddell, Christopher Sent: Tue Jan 13 11:49:46 2009 Subject: RE: Voucher Protocol

Mary... Unless you tried to reach me and didn't leave a message, I haven't received your call as of yet. If you still need Internal Audit assistance on this, let me know.

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From: Wilson, Mary Sent: Wednesday, December 31, 2008 5:03 PM To: Diorio, Dena R.; Spears, Cornita Cc: Lancaster, Michelle; Jackson, Janice Subject: FW: Voucher Protocol

Anita, I'd like to speak with you soon about how we conduct an internal audit on this issue. Thanks, Mary Mary E. Wilson Director Department of Social Services 301 Billingsley Road Charlotte, NC 28211 W) 704-336-Mary C) 704-649-0568 mary.wilson@mecklenburgcountync.gov

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From: Wilson, Mary Sent: Wednesday, December 31, 2008 4:58 PM To: DSS-ALL Subject: Voucher Protocol

Dear Staff,

On Monday, December 1st, I instructed Paul Risk, Division Director for Youth and Family Services (YFS) to discontinue using vouchers at local stores for purchases until we could understand why the costs had increased so significantly. In recent months one retail bill increased from an average of $5,000 - $6,000 per month to over $20,000 in October. Additionally, it was learned that contrary to County policy, only 30 - 35% of receipts have been returned to DSS' Finance Department by the person making the purchases. I ceased the use of YFS vouchers due to a lack of strict oversight of our voucher system for clothes and other consumable supplies for foster children. As a result of this lack of oversight I have asked County Finance internal audit department to review all invoices and expenditures to ensure compliance with County policies.

Upon further investigation, we have found that (i) foster care families are responsible for purchasing clothes for the kids in their care but do not receive a check until 45 days after the child comes to their home, (ii) Mecklenburg County was spending money in addition to the money being paid to the foster care families to purchase clothes, (iii) there are other families with unmet needs such as grandparents in our Kinship care program and (iv) there are donations available to provide for many of these resources for our children who are in need but not in DSS custody.

Following my guidance to discontinue using the vouchers until further research was completed, I received an email from a staff member and subsequently received questions during the round of supervisory meetings I held across DSS. I want to thank the staff member who was courageous enough to send me an e-mail asking me about my decision and I want to thank the supervisors who raised the question during the supervisory meetings.

The following is an update on the issue and our plan for the new process going forward.

A foster parent's monthly maintenance payment is intended to meet the needs of youth in custody such as clothing and/or other essential items, however they can not do so if they do not receive their check on time. Therefore, the following clothing protocol is being implemented immediately:

1) Foster parents are informed at the beginning of their relationship with DSS that they are expected to use the maintenance payment to meet the needs (clothing, school supplies, food, and increases in utilities) of a child placed within their home.

2) Foster parents are responsible for ensuring that foster youth are adequately clothed for the season and should have clothing equal to or greater than the minimum clothing list as established by the Department within three months of placement in the foster home.

3) DSS will provide a $150 check within one business day of placement of the foster child to the foster parent for initial clothing purchases and will have that amount deducted from the first foster care payment. This will apply to public and private provider agencies.

4) The licensing worker for the agency will monitor the foster parent to ensure that a foster child's basic needs are met.

5) When a youth leaves a foster care placement it is expected that they will have clothing that meets their minimum needs. If they do not the provider will have the cost of replacement clothing deducted from their next maintenance payment.

6) Emergency placements: after-hours staff are authorized to use a clothing voucher, up to $50, so that the provider can get essential clothing that evening or the next day when the child has no clothing.

7) Petitioning social workers should attempt to get clothing from the family and if the family denies access to their children's clothing this matter should be discussed in court at the initial hearing and YFS should request the court to order the family to provide all clothing that is available.

8) Social workers should also contact the Community Resource Office to access funds for safety, preventive or reunification services when a juvenile is remaining in the home or returning to the home (ex. cribs, car seats, etc.). The main contact number to the Community Resources is 704-336-4809.

The YFS Management team is developing the following protocols and will communicate these at a later date:

* A protocol for youth who go "absent with out leave " (AWOL).

* A protocol for kinship care placements throughout DSS. Permanency planning worker should ensure that basic clothing and other needs are met through the kinship care provider's resources. If additional resources are required , the social worker should contact the Community Resource Office for assistance using funds donated by the public for the care of our clients. Additionally, the worker should encourage the kinship provider to apply for the Work First cash assistance program to receive Temporary Assistance of Needy Families (TANF) funds and explore becoming licensed as a foster parent which will entitle them to additional cash assistance.

This is a great example of how I hope we can address issues within DSS by being open, honest and transparent and without fear of retaliation. Going forward, I believe it is essential to bring resolution by reviewing the situation and determining whether we are consistent with the policy intended or have we created a work around to fix another problem? In this instance, we created a work around to fix the problem of foster parents not being paid timely and children not having necessary items. This work around was on schedule to costing the County approximately $200,000 a year (up from $58,000 in FY 2007 without an increase in the number of children served). I think all of us would prefer to see these funds used for other items, such as summer camp opportunities or after school transportation for tutoring, that we know our clients need.

Finally, please know that no child was left without necessary items during this time of review and transition. Every Division Director has access to me 24 hours a day 7 days a week so that decisions can be made timely and effectively for our clients. While we will take the time to review and correct our policies and procedures we will always do the right thing to take care of our clients.

Thanks for your continued hard work on behalf of those we serve,

Mary

Mary E. Wilson

Director

Department of Social Services

301 Billingsley Road

Charlotte, NC 28211

W) 704-336-Mary

C) 704-649-0568

mary.wilson@mecklenburgcountync.gov

From: Cunningham, Darrell Sent: Tuesday, February 17, 2009 7:02 AM To: Glenn, Sherri; McGill, Betty; De Los Santos, Annie; Hinson, Beverly; Harper, Ginny L.; Hubbard, Jacqueline S.; Spence, Randy; Cunningham, Darrell Cc: Foxx, Samara; Wilson, Mary; Evans, Tracey Subject: Utility and rent bill assistance

From: Spears, Cornita Sent: Tuesday, February 17, 2009 9:21 AM To: Fayko, Donna; Wilson, Mary Cc: Johnson, Amy; Risk, Paul M. Subject: RE: Clothing Voucher Audit

Mary.... In most cases, the vouchers that I have looked at thus far had supervisory signature; albeit some are missing the signature of the manager. While this needs to be stressed in the policy, the problem which relates to purchases is the lack of supervisory review on the back-end after the purchases have taken place. Maybe there's some way to modify the voucher or provide for some recordation of supervisory/manager signature evidencing review of the actual purchases to ensure (a) receipts are remitted, and (b) the purchases were in accordance to what was duly authorized on the voucher. Although the main objective of the review relates to purchases of items that were disallowed, I've seen several instances where it appears that the items purchased were allowed, but not indicated on the voucher as items that were supposed to have been bought for the client. The supervisor can review for that when comparing the vouchers to the receipts. Also, some (but not all) of the vouchers have a line to record the name of the designated shopper; the name is not always recorded.

_____

From: Fayko, Donna Sent: Monday, February 16, 2009 6:08 PM To: Wilson, Mary; Spears, Cornita Cc: Johnson, Amy; Risk, Paul M. Subject: RE: Clothing Voucher Audit

Mary, We will make sure this is clearly spelled out in the revised policy. The team should have a draft for your review by Monday. Thanks Donna Fayko 704.336.3274

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From: Wilson, Mary Sent: Monday, February 16, 2009 2:14 PM To: Spears, Cornita; Fayko, Donna Cc: Johnson, Amy Subject: Re: Clothing Voucher Audit

We have eliminated this process except in cases of weekend emergencies and the dollar limit is $50. The supervisor must authorize the voucher and verify the need and follow-up to make sure receipts are rec'd.

Thanks, Mary

Mary E. Wilson Director Department of Social Services 301 Billingsley Road Charlotte, NC 28211 W) 704-336-mary C) 704-649-0568 mary.wilson@mecklenburgcountync.gov

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From: Spears, Cornita To: Fayko, Donna Cc: Wilson, Mary; Johnson, Amy Sent: Mon Feb 16 14:06:38 2009 Subject: RE: Clothing Voucher Audit

Okay. Mary....you need to have staff revise policy to provide for managerial review and approval of purchases prior to their being submitted to YFS Finance for payment. That would put the responsibility back on the program to ensure that receipts are received and that the purchases made were solely for goods authorized and for the purposes intended. I'll let you know of other modications, but if that hasn't been put into place, I think that should be done asap. Some way, the envelops need to be readdressed to come back to the program or, at a minimum, instruct Finance that any envelops received should be rerouted to the program for review. I hope I'm making sense. If either of you disagrees with my recommendation, please provide your input!!! Perhaps there's something I'm overlooking.

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From: Fayko, Donna Sent: Monday, February 16, 2009 1:10 PM To: Spears, Cornita Cc: Wilson, Mary; Johnson, Amy Subject: RE: Clothing Voucher Audit

Yes, that is correct. Donna Fayko 704.336.3274

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From: Spears, Cornita Sent: Monday, February 16, 2009 12:25 PM To: Fayko, Donna Cc: Wilson, Mary; Johnson, Amy Subject: RE: Clothing Voucher Audit

Okay.....there's a gap in the policy. There's no provision for programmatic review/approval of purchases by the social worker and/or social worker supervisor prior to receipt by Finance. Am I right?

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From: Fayko, Donna Sent: Monday, February 16, 2009 12:17 PM To: Spears, Cornita Cc: Wilson, Mary; Johnson, Amy Subject: RE: Clothing Voucher Audit

Yes, the envelope is addressed to YFS Finance. Just FYI, the administrative policy was written by finance - Johnny Cunningham Donna Fayko 704.336.3274

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From: Spears, Cornita Sent: Monday, February 16, 2009 11:44 AM To: Fayko, Donna Cc: Wilson, Mary; Johnson, Amy Subject: RE: Clothing Voucher Audit Importance: High

Donna..... I've read over the Administrative Policy for cloting and emergency vouchers, and theYFS Finance Procedure for client benefits, voucher, and invoice processing. The procedures for the Administrative Policy end by indicating that the designated shopper purchases items and, if applicable, returns original receipts in the self-addressed stamped envelope attached to the voucher. The YFS Finance Procedure begins by indicating that Client benefit requests (SS-3s), vouchers, and invoices are received through the mail or forwarded to YFS Finance, and the Senior Fiscal Analyst reviews them for errors. Question......when the Administrative Policy makes reference to the purchaser mailing receipts in a self-addressed envelop, who is the envelop addressed to....YFS Finance?

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From: Fayko, Donna Sent: Thursday, February 12, 2009 11:16 AM To: Spears, Cornita Cc: Wilson, Mary Subject: RE: Clothing Voucher Audit Importance: High

Attached is the clothing voucher policy with the effective date of March 12, 2007. This is the exact policy that is currently on RON with the exception that it has the effective date. This copy was maintained by the YFS director's assistant. I apologize for any delays. Donna

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From: Wilson, Mary Sent: Thursday, February 12, 2009 10:42 AM To: Fayko, Donna Cc: Spears, Cornita Subject: RE: Clothing Voucher Audit Importance: High

Donna, Please send the current clothing policy to Cornita ASAP. I know we are re-drafting the policy but for this review we are looking at the existing policy. I'd like to have all the documents she needs to begin this review. Please copy me on your response. Thanks, Mary Mary E. Wilson Director Department of Social Services 301 Billingsley Road Charlotte, NC 28211 W) 704-336-Mary C) 704-649-0568 mary.wilson@mecklenburgcountync.gov

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From: Spears, Cornita Sent: Thursday, February 12, 2009 10:38 AM To: Wilson, Mary Subject: FW: Clothing Voucher Audit

See the e-mail below from Donna on February 4. She sent me the vendor listing this past Tuesday, but didn't send the finalized policy draft. I'll touch bases with her if I don't receive the policy by tomorrow.

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From: Fayko, Donna Sent: Tuesday, February 10, 2009 10:41 PM To: Spears, Cornita Subject: FW: Clothing Voucher Audit

See attached. The only vendor for direct submit of receipts (vendor sent in to Finance) was Food Lion, although in most cases Food Lion did provide the shopper with a charge slip and the register transaction receipt which was most times brought back to the office and we sent it in to Finance. Thanks! _____

From: Spears, Cornita To: Fayko, Donna Sent: Thu Feb 05 10:42:26 2009 Subject: RE: Clothing Voucher Audit

The policy indicates that certain vendors have pre-arranged with YFS to retain and directlyl submit receipts for the shopper, and there is a list of those vendors. Can you send me a copy of the list? Also, the policy indicates that bed linen, personal hygiene supplies and school supplies may be purchase for Mental Health placements at the direction of the therapeutic provider. Is there any particular identifier that I should look for on the voucher or other documents that would help me distinguish Mental Health placements from those that are under DSS contract?

_____

From: Fayko, Donna Sent: Wednesday, February 04, 2009 6:53 PM To: Spears, Cornita; Risk, Paul M.; Johnson, Amy Cc: Butler, Karen; Brooks, Awilda; Leeper, Angela Subject: RE: Clothing Voucher Audit

Attached is the YFS clothing voucher policy that was pulled from RON. I noticed that this draft doesn't have an effective date on it but all policies were finalized with effective dates prior to our last federal audit in March 2007. I will research the final copy of this policy and get to you upon my return on Monday. Thanks Donna Fayko 704.336.3274

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From: Spears, Cornita Sent: Wednesday, January 28, 2009 12:13 PM To: Risk, Paul M.; Fayko, Donna; Johnson, Amy Cc: Butler, Karen; Brooks, Awilda; Leeper, Angela Subject: RE: Clothing Voucher Audit

Okay. Donna....will you be providing me the procedural guidelines?

_____

From: Risk, Paul M. Sent: Wednesday, January 28, 2009 10:42 AM To: Spears, Cornita; Fayko, Donna; Johnson, Amy Cc: Butler, Karen; Brooks, Awilda; Leeper, Angela Subject: RE: Clothing Voucher Audit

Ms. Spears, If you have questions the best person to contact with questions about our current processes is Donna Fayko. 704-336-3274 Thanks, Paul

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From: Spears, Cornita Sent: Wednesday, January 28, 2009 8:49 AM To: Fayko, Donna; Johnson, Amy Cc: Risk, Paul M.; Butler, Karen; Brooks, Awilda; Leeper, Angela Subject: RE: Clothing Voucher Audit

I'm not sure a meeting is needed for the scope of work that I've been asked to do, which is basically transactional testing for compliance to applicable guidelines. If you can just document the process and provide me the guidelines that spell out the items allowed to be purchased, that would be great. Once I read over them, I'll contact you if I have any questions.

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From: Fayko, Donna Sent: Tuesday, January 27, 2009 10:57 PM To: Spears, Cornita; Johnson, Amy Cc: Risk, Paul M.; Butler, Karen; Brooks, Awilda; Leeper, Angela Subject: RE: Clothing Voucher Audit

Hi Nita, I hope that you are well! I will research the procedures that we have in place for clothing and vouchers on the programmatic side. Shall we then meet to discuss, per Paul's recommendation? Thanks, Donna

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From: Spears, Cornita Sent: Tue 1/27/2009 5:24 PM To: Johnson, Amy Cc: Risk, Paul M.; Butler, Karen; Fayko, Donna; Brooks, Awilda Subject: RE: Clothing Voucher Audit

Okay. I'm attaching a copy of the procedures you sent me which include the SS3. As long as I have documentation that explains the process from A to Z.

_____

From: Johnson, Amy Sent: Tuesday, January 27, 2009 5:17 PM To: Spears, Cornita Cc: Risk, Paul M.; Butler, Karen; Fayko, Donna; Brooks, Awilda Subject: RE: Clothing Voucher Audit

Not to my knowledge. I am not sure they fill out an SS-3. I think they only filled out a voucher request. We can provide you with a copy of the voucher, which should be included with the bills. I will copy Karen, Donna and Paul on your question to determine if they have a more formalized written process for the program side. Amy E. Johnson Senior Fiscal Administrator Mecklenburg County Department of Social Services 301 Billingsley Road Charlotte, NC 28211 Work: (704) 336-7976 Cell: (704) 208-7063 Email: Amy.Johnson@MecklenburgCountyNC.gov This message may contain information that is confidential and/or protected by law. If the reader of this message is not the intended recipient, you are hereby notified that any dissemination, distribution, copying or communication of this message is strictly prohibited. If you have received this communication in error, please contact the sender immediately and delete the message. Please note that although we will take all commercially reasonable efforts to prevent viruses from being transmitted from our systems, it is the responsibility of the recipient to check for and prevent adverse action by viruses on its own systems.

_____

From: Spears, Cornita Sent: Tuesday, January 27, 2009 5:10 PM To: Johnson, Amy Subject: RE: Clothing Voucher Audit

I've read over the procedural document. It covers the processes used in YFS Finance to process payment, but doesn't give an audit trail of the SS3 prior to it being received in YFS Finance, such as who prepares/approves the SS3's, who actually makes the purchases (the case worker or the foster parent), and any other processes that are supposed to take place in the programmatic area prior to the SS3 being remitted to YFS Finance. We also discussed that there are guidelines on what can be purchased. Are the other procedures amongst the documents that staff's making copies of?

_____

From: Johnson, Amy Sent: Monday, January 26, 2009 5:21 PM To: Spears, Cornita Subject: Clothing Voucher Audit

Please see attached for procedures document. We are making copies of the rest and hopefully can get it to you this week. Thanks. Amy E. Johnson Senior Fiscal Administrator Mecklenburg County Department of Social Services 301 Billingsley Road Charlotte, NC 28211 Work: (704) 336-7976 Cell: (704) 208-7063 Email: Amy.Johnson@MecklenburgCountyNC.gov This message may contain information that is confidential and/or protected by law. If the reader of this message is not the intended recipient, you are hereby notified that any dissemination, distribution, copying or communication of this message is strictly prohibited. If you have received this communication in error, please contact the sender immediately and delete the message. Please note that although we will take all commercially reasonable efforts to prevent viruses from being transmitted from our systems, it is the responsibility of the recipient to check for and prevent adverse action by viruses on its own systems.

From: Brito, Teresa S. Sent: Friday, February 20, 2009 12:51 PM To: Wilson, Mary; Cunningham, Darrell; Wilkins, Judi Subject: Follow Up Items

From: Wilson, Mary Sent: Thursday, February 26, 2009 9:22 AM To: Wilson, Mary Subject: Reasons to Hire Finance Director For DSS

From: Johnson, Amy Sent: Friday, March 13, 2009 11:15 AM To: Wilson, Mary Cc: Cunningham, Darrell Subject: FW: gift cards

From: Wilson, Mary Sent: Friday, March 13, 2009 11:31 AM To: Johnson, Amy Cc: Cunningham, Darrell Subject: RE: gift cards

From: Diehl, Daniel Sent: Tuesday, March 17, 2009 3:32 PM To: Cunningham, Darrell Cc: Wilson, Mary Subject: FW: giving tree statement

From: Cunningham, Darrell Sent: Tuesday, March 17, 2009 5:11 PM To: Wilson, Mary Subject: DRAFT OF DSS ALL

From: Wilson, Mary Sent: Tuesday, March 17, 2009 5:23 PM To: Diehl, Daniel Subject: Fw: DRAFT OF DSS ALL

From: Wilson, Mary Sent: Wednesday, March 18, 2009 8:08 AM To: Cunningham, Darrell Subject: Re: Urgent Message: Action required

From: Carnes, Tabitha D Sent: Wednesday, March 18, 2009 9:41 AM To: Wilson, Mary Subject: RE: Heads up folo

From: William F. James, Jr. [wjames@carolina.rr.com] Sent: Wednesday, March 18, 2009 11:49 AM To: CountyCommissioners; Jones, Harry L.; Lancaster, Michelle; Shields, Bobbie; McGillicuddy, John; Wilson, Mary; Wade, Tyrone C.; Jackson, Janice; Paige, Janice Subject: DSS

Importance: High

Well, that didnít take long to hit the proverbial fan.

I would like to ësuggestí that as we proceed with the investigation and once it is determined that money was stolen that we offer to reimburse individuals who have contributed to the fund.

If a review of 5 years shows $100,000 a year or $500,000 in total fraud we should indentify the organizations or individuals who contributed and offer a refund. If the fraud goes back before that we should go back as far as records exist (normally seven years I think). Many may agree to forgo reimbursement from any fraud but we should give them the option.

There is a PR aspect of this that will have to be addressed if true since the contributions were likely tax deductable as a charitable contribution by these individuals. IF folks have given year after year and had their money taken for non-charitable purposes, we would need to ëfixí that in the publicís mind. We canít allow the perception to exist that money designed for widows, orphans and poor children was used to buy stuff for employees.

If we want folks to give this year we will need to fix the prior problems assuming they are true.

Of course, I hope that it is proven and shown that this is untrue.

Regards,

Commissioner Bill James (R, District 6)

Mecklenburg County Board of Commissioners

600 East Fourth Street, 11th Floor

Charlotte-Mecklenburg Government Center

Charlotte, North Carolina 28202

HTTP://billjames.org

Confidentiality Notice: E-mail correspondence to and from this address regarding public matters pertaining to Mecklenburg County business may be subject to the North Carolina Public Records law "NCGS Ch 132" and may be disclosed to third parties. This electronic mail transmission may contain information that is confidential, priviledged, or proprietary. If you are not the intended recipient, you are hereby notified that you are not authorized to read, print, retain, copy or disseminate this message, any part of it, or any attachments. If you have received this message in error, please delete the message and any attachments from your system without reading the content and notify me immediately of the inadvertent transmission. There is no intent on the part of the sender (me) to waive any priviledge that may attach to this communication. Thank you for your cooperation.

DSS investigation: Was $110,00 in Christmas money misused?

Agency investigating money meant for foster children.

By Mark Price msprice@charlotteobserver.com

Posted: Wednesday, Mar. 18, 2009

Two employees of Mecklenburg County's Department of Social Services have been suspended with pay pending an investigation into whether they took money meant to benefit foster children at Christmas.

The pair, whose names were not released, are suspected of taking $110,000 from the Youth and Family Services Giving Tree program, which solicits money to buy gifts for foster care children and other DSS clients during the holidays. On average, 900 to 1,000 children benefit from the program each year.

DSS officials say it was a DSS staff member who first raised questions in early February about use of Giving Tree funds ñ including checks for large sums issued after the holidays.

DSS officials say they discovered that several checks from November 2008 through January of this year were made out to a DSS employee who also does volunteer work for the Giving Tree program in the DSS Community Resources Office. Other checks were authorized as payable to the sister of another DSS employee. The sister is not a DSS employee, officials said.

Based on the findings, DSS and the county's Internal Audit and Human Resources Departments launched an immediate investigation into staffers who requested or authorized those checks.

Among issues being investigated: whether there was impropriety and whether money was misappropriated in previous years of the Giving Tree program, which is more than a decade old.

The two employees under investigation are described as ìlong-tenuredî staff members with experience of at least 10 years. Both were suspended within days of the discovery, said Mary Wilson, director of DSS.

ìWhat I would like to say to people who have donated to this fund is that we are going to investigate this as fully and expeditiously as possible, and we're going take appropriate action as soon as we know the details,î she said. ìThese funds were for the most vulnerable among our population, and we're going go make sure they were used in the right way.î

Among organizations listed as supporters on the Giving Tree Web site: Second String Santas, Young Lawyers, employees of Wachovia and Bank of America, and Project Joy, the holiday fund drive launched by Charlotte Observer columnist Tommy Tomlinson.

News of the investigation comes just a week after the department came under scrutiny because of Wilson's hiring of the wife of Charlotte City Council member Anthony Foxx during a department-wide hiring freeze last summer. Her job was posted for one day before it was filled. Questions were also raised about the agency's hiring the daughter of Charlotte-Mecklenburg police Chief Rodney Monroe and the daughter of Superior Court Judge Yvonne Mims Evans.

Wilson, who joined DSS in July, said the fact that someone quickly reported suspicions about the Giving Tree fund show that her effort to reorganize the department has introduced an atmosphere of openness, where questions can be raised ìwithout threat of retribution.î

The county's Internal Audit Department has nearly completed its part of the investigation, officials said. As part of its effort, Internal Audit will determine if proper controls were in place, and whether a criminal investigation by local law enforcement is warranted, officials said.

The Giving Tree program falls under the Youth and Family Services division, which handles things such as foster child adoptions and family interventions. The Giving Tree fund is separate from other county-related donation projects, such as Good Friends.

County Commission chair Jennifer Roberts said it's possible that the situation involves sloppy bookkeeping rather than willful wrongdoing.

ìWe are very adamant about making sure that taxpayer funds are not misused. Now, in this particular case, we don't have all the information,î Roberts said. ìWe absolutely want to make sure that those funds have not been misused. If they have been, we will take appropriate action.î

Staff writer April Bethea contributed.

From: Wilson, Mary Sent: Wednesday, March 18, 2009 2:26 PM To: Houston, Christine Subject: RE: DSS Internal Investigation/ Your Eyes Only

Hopefully, they will speak up with you and let the BOCC and the County Manager hear their voice. It's important that you make sure you speak for you and not let the naysayers tell the story. Mary E. Wilson Director Department of Social Services 301 Billingsley Road Charlotte, NC 28211 W) 704-336-Mary C) 704-649-0568 mary.wilson@mecklenburgcountync.gov

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From: Houston, Christine Sent: Wednesday, March 18, 2009 2:15 PM To: Wilson, Mary Subject: RE: DSS Internal Investigation/ Your Eyes Only

I will. I am also aware that I have to be careful of my tone when defending you, and yes I will defend you when needed. There are others that feel the same way. Chris

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From: Wilson, Mary Sent: Wednesday, March 18, 2009 12:40 PM To: Houston, Christine Subject: RE: DSS Internal Investigation/ Your Eyes Only

Thank you so much for the uplifting message. Please share these thoughts with the Board of County Commissioners and the County Manager. They need to know that there are employees here who have another perspective than just the anonymous, negative letters. My spiritual gift is faith...it took a lot to recognize it and accept it and now I know why! Thanks, Mary Mary E. Wilson Director Department of Social Services 301 Billingsley Road Charlotte, NC 28211 W) 704-336-Mary C) 704-649-0568 mary.wilson@mecklenburgcountync.gov

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From: Houston, Christine Sent: Wednesday, March 18, 2009 12:09 PM To: Wilson, Mary Subject: RE: DSS Internal Investigation/ Your Eyes Only

Mrs. Wilson: I know that we cannot control what others think about us (agency) nor should we worry. I read today's artilce in the newspaper and I must admit I was a little offened about the comments made regarding our agency. Some of us work very hard and work here because we want to. I have only been here for a year and some months and I love my job. I may not always agree with everything, but I want you to know that you do have my support. In times like these I focus on my faith. Life is just too short. Take care of yourself and surround yourself by others who truly have your best interest at heart. Chris

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From: Wilson, Mary Sent: Tuesday, March 17, 2009 9:45 PM To: DSS-ALL Subject: DSS Internal Investigation

Dear DSS Team:

During the Tuesday, March 17th Mecklenburg Board of County Commissioners closed session meeting, Commissioners and Executive staff were briefed about an ongoing investigation at the Department of Social Services (DSS). In early February, a DSS staff member raised questions about the use of funds donated to DSS. We are looking into potential improprieties in connection with the expenditure of approximately $110,000 in Giving Tree donations between December 2007 and November 2008 to DSS and overseen by the DSS Community Resources Office. These funds are separate and different than other donation efforts, such as the Good Friends. These are serious allegations which require a complete and thorough investigation.

A preliminary review revealed that several checks involving Giving Tree funds had been made out to a DSS employee who also does volunteer work for the Giving Tree program in the DSS Community Resources Office. Other checks were made payable to the sister of another DSS employee. The sister is not a DSS employee. The checks were supposed to be used to pay for clothing and gifts for the foster care children and other DSS clients. Two members of DSS staff associated with the investigation have been suspended with pay pending the investigation.

The Internal Audit Department has nearly completed its part of the investigation. Once we have these findings we will take the necessary action and determine if proper controls where in place and if a criminal investigation by local law enforcement is warranted.

Going forward it is imperative that our accountability and our customer service is exemplary. We are the safety net of this community and the stewards of public funds and cannot tolerate any impropriety in this or other fiscal matters. I know we can count on each other to live up to the standards to which our public deserves.

Your Senior Executive Team and I are working hard to create a culture where employees feel comfotable coming forward to uphold the highest level of integrity this department has earned wiithout fear of treading on a "sacred cow" or fear of retaliation. I believe this is a great step in the right direction.

Regards,

Mary

Mary E. Wilson Director Department of Social Services 301 Billingsley Road Charlotte, NC 28211 W) 704-336-mary C) 704-649-0568 mary.wilson@mecklenburgcountync.gov

From: Wilson, Mary Sent: Wednesday, March 18, 2009 3:17 PM To: Meyers, Janice Subject: RE: DSS Internal Investigation

From: Wilson, Mary Sent: Wednesday, March 18, 2009 4:40 PM To: Diehl, Daniel; Carnes, Tabitha D; Cunningham, Darrell Subject: RE: Follow-up to today's media interviews

From: Wilson, Mary Sent: Thursday, March 19, 2009 5:44 AM To: Spears, Cornita Subject: Re: Chanel 9 news report

From: Wilson, Mary Sent: Thursday, March 19, 2009 7:50 AM To: Carnes, Tabitha D Cc: Cunningham, Darrell Subject: Re: Questions from Fred Clasen-Kelly

From: Wheeler, William Sent: Tuesday, March 24, 2009 12:19 PM To: Wilson, Mary Subject: Meeting with Patricia Norman (Good Friends)

From: Wheeler, William Sent: Tuesday, March 24, 2009 5:44 PM To: Wilson, Mary Subject: Good Friends

From: Patty Norman [pnorman@carolina.rr.com] Sent: Wednesday, March 25, 2009 8:11 AM To: Wilson, Mary Subject: short meeting request

From: Kortekaas, Roger Sent: Monday, March 30, 2009 3:52 PM To: Carnes, Tabitha D; Wilson, Mary Cc: Christenbury, Rick Subject: RE: Tomorrow's MeckTube

From: Diehl, Daniel Sent: Monday, March 30, 2009 3:56 PM To: 'abethea@charlotteobserver.com' Subject: DSS Fiscal Audit

From: Wilson, Mary Sent: Monday, March 30, 2009 4:23 PM To: Carnes, Tabitha D Cc: Christenbury, Rick; Kortekaas, Roger Subject: RE: Tomorrow's MeckTube

From: Murphy, Freda Sent: Monday, March 30, 2009 4:32 PM To: Daniel Murrey; Dumont Clarke; 'gdunlap@bellsouth.net'; 'Harold@attorneycogdell.com'; 'Karen Bentley'; Leake, Vilma; 'mroberts5@carolina.rr.com'; 'ncooksey@bellsouth.net'; James, Bill Cc: Wilson, Mary; Diorio, Dena R.; Diehl, Daniel; Jackson, Janice; Jones, Harry L.; Lancaster, Michelle; McGillicuddy, John; Shields, Bobbie Subject: Email to the BOCC on behalf of Harry Jones

From: Wilson, Mary Sent: Tuesday, March 31, 2009 1:27 PM To: Diehl, Daniel; Diorio, Dena R. Subject: Re: from jim bradley

From: Cunningham, Darrell Sent: Friday, April 03, 2009 6:28 AM To: Wilson, Mary Subject: RE: Good Friends

From: Wilson, Mary Sent: Tuesday, April 07, 2009 7:15 PM To: Hurlburt, Angela; Diorio, Dena R. Subject: Fw: Good Friends funds

From: Cunningham, Darrell Sent: Wednesday, April 08, 2009 7:46 AM To: Diorio, Dena R.; Wilson, Mary Cc: Hurlburt, Angela Subject: Good Friends Request

Importance: High

From: Diorio, Dena R. Sent: Wednesday, April 08, 2009 7:58 AM To: Cunningham, Darrell; Wilson, Mary Cc: Hurlburt, Angela Subject: Re: Good Friends Request

From: Hurlburt, Angela Sent: Thursday, April 09, 2009 5:26 PM To: Adams, Rodney; Benson, LaCinda; Cunningham, Darrell; Foxx, Samara; Johnson, Amy; Risk, Paul M.; Sturgill, Brian; Voignier, Clayton; Wheeler, William; Wilkins, Judi; Wilson, Mary Subject: AUDIT REQUEST - DUE NOON MONDAY 4-13

Importance: High

From: Cunningham, Darrell Sent: Thursday, April 09, 2009 5:59 PM To: De Los Santos, Annie Cc: Evans, Tracey; Wilson, Mary Subject: RE: Good Friends

From: Wilson, Mary Sent: Monday, April 13, 2009 9:40 AM To: Lancaster, Michelle Subject: Re: Good Friends

From: Diorio, Dena R. Sent: Tuesday, April 14, 2009 7:57 AM To: Alexander, Becky; Bowen, Patrena; Daniels, Erskine N.; Gibbs, Grace; Happney, Bridget; Hooper, Betty J.; Lucas, Pamela; McNeil, Peter; Myers, Kelly; Plummer, Sharon P.; Shepard-Smith, Rebecca; St. Aimie-Bonner, Nichole; Thomas, Paula; Williams, Avi; Woodberry, Shellie D.; Harvey, Gregory; Avent, Elizabeth; Brady, Cindy; Fee, David; Graham, Jennifer D.; Harris, Leslie; Alexander, Cynthia; Masterton, Ramona; McSwain, Christine; Nelson, Tammera; Pryor, Harold L.; Schriber, Joni; Steele-Campbell, Denise; Todd, Linda; Clark, Aaron; Zimmerman, Jeffrey; Bohland, Leo J.; Cook, Sue; Hampton, Kirk; Havner, Kenneth R.; Long, Kathy A.; Mason, Erma; Newman, Donna; Roberts, Erin M.; Smith, Sherrida; Taylor, John M.; White, Beverly; Wilson, Givonna L.; Kenner, Nyasia; Smith, Felicia; Syles-Ballard, Denise; Renfroe, Darrell; Bradley, Charles; Daugherty, Dennis; Alexander, Stanley; Buchanan, Richard; Butler, Karen; Mcallister, James P.; Fayko, Donna; Risk, Paul M.; Cunningham, Darrell; Foxx, Samara; Adams, Rodney; Benson, LaCinda; Johnson, Amy; Sturgill, Brian; Voignier, Clayton; Wilkins, Judi; Mullis, Wayne; Wilson, Mary; Hurlburt, Angela Cc: Eddie Burke; Collin Hill; Chris Silvey; Adam King; Murchison, Gail Subject: DSS Voucher Program

From: Hurlburt, Angela Sent: Tuesday, April 14, 2009 11:21 AM To: Cunningham, Darrell; Wilson, Mary Subject: Fw: Good Friends 2008 Testing

Importance: High

From: Collin Hill [chill@cbh.com] Sent: Tuesday, April 14, 2009 11:24 AM To: Hurlburt, Angela; Chris Silvey Cc: Wheeler, William; Wilson, Mary; Johnson, Amy Subject: RE: Meeting Room Extension

From: Wilson, Mary Sent: Tuesday, April 14, 2009 11:29 AM To: Hurlburt, Angela; Cunningham, Darrell Cc: Lancaster, Michelle; Murchison, Gail; Diorio, Dena R. Subject: Re: Good Friends 2008 Testing

From: Hurlburt, Angela Sent: Tuesday, April 14, 2009 5:35 PM To: Diorio, Dena R.; Wilson, Mary; Cunningham, Darrell; Johnson, Amy Cc: Lancaster, Michelle; Murchison, Gail Subject: RE: Good Friends 2008 Testing

From: Wilson, Mary Sent: Wednesday, April 15, 2009 11:44 AM To: Lancaster, Michelle; Hurlburt, Angela; Diorio, Dena R. Cc: Cunningham, Darrell; Murchison, Gail Subject: Re: Good Friend's funds

I will give her a call today.

Mary

Mary E. Wilson Director Department of Social Services 301 Billingsley Road Charlotte, NC 28211 W) 704-336-mary C) 704-649-0568 mary.wilson@mecklenburgcountync.gov

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From: Lancaster, Michelle To: Wilson, Mary; Hurlburt, Angela; Diorio, Dena R. Cc: Cunningham, Darrell; Murchison, Gail Sent: Wed Apr 15 11:42:55 2009 Subject: RE: Good Friend's funds

I think you should call Patty Norman and indicate the amount we will be providing and handle any issues that may arise from that. Since her indication last week was that they had an expectation much higher than this number, I do not want any surprises from them and those can be best handled with a personal phone call.

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From: Wilson, Mary Sent: Wednesday, April 15, 2009 11:41 AM To: Lancaster, Michelle; Hurlburt, Angela; Diorio, Dena R. Cc: Cunningham, Darrell; Murchison, Gail Subject: Re: Good Friend's funds

I was planning to do it in a letter with a check.

Mary

Mary E. Wilson Director Department of Social Services 301 Billingsley Road Charlotte, NC 28211 W) 704-336-mary C) 704-649-0568 mary.wilson@mecklenburgcountync.gov

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From: Lancaster, Michelle To: Hurlburt, Angela; Wilson, Mary; Diorio, Dena R. Cc: Cunningham, Darrell; Murchison, Gail Sent: Wed Apr 15 11:38:23 2009 Subject: RE: Good Friend's funds

Has someone or is someone going to communicate the amount we can support to Good Friends?

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From: Hurlburt, Angela Sent: Wednesday, April 15, 2009 10:52 AM To: Wilson, Mary; Diorio, Dena R.; Lancaster, Michelle Cc: Cunningham, Darrell; Murchison, Gail Subject: Re: Good Friend's funds

We have the support to justify a payent of $14,180.76 to good friends.

Adrienne Johnson will scan and email the support to you today.

Thanks! Angie

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From: Wilson, Mary To: Diorio, Dena R.; Lancaster, Michelle Cc: Hurlburt, Angela; Cunningham, Darrell; Murchison, Gail Sent: Tue Apr 14 08:11:25 2009 Subject: Re: Good Friend's funds

Angela,

Please have someone work on confirming the number we have today with back-up for Dena.

Thanks, Mary

Mary E. Wilson Director Department of Social Services 301 Billingsley Road Charlotte, NC 28211 W) 704-336-mary C) 704-649-0568 mary.wilson@mecklenburgcountync.gov

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From: Diorio, Dena R. To: Wilson, Mary; Lancaster, Michelle Cc: Hurlburt, Angela; Cunningham, Darrell; Murchison, Gail Sent: Tue Apr 14 08:09:15 2009 Subject: RE: Good Friend's funds

Mary - when we had our update meeting last week, the auditors indicated that they still had 60 hours of testing left to do on the Good Friends disbursements. I found out yesterday the HR has all of the FY2008 backup for the program which I have to get from them so the auditors can test it. While we can try to get it done this week I cannot guarantee it will be done. If returning the money is the priority than we should go ahead and do that and not rush the audit process. Once you figure our how much it is and have sufficient back-up to support it we will issue the check.

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From: Wilson, Mary Sent: Monday, April 13, 2009 6:16 PM To: Diorio, Dena R.; Lancaster, Michelle Cc: Hurlburt, Angela; Cunningham, Darrell Subject: Fw: Good Friend's funds

Dena,

Can you speak to the auditors and see if we can make this a priority and get the Good Friends portion wrapped up this week?

Thanks, Mary

Mary E. Wilson Director Department of Social Services 301 Billingsley Road Charlotte, NC 28211 W) 704-336-mary C) 704-649-0568 mary.wilson@mecklenburgcountync.gov

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From: Wilson, Mary To: 'pnorman@carolina.rr.com' ; Cunningham, Darrell Cc: 'catbrowning@carolina.rr.com' ; 'SCSaussy@aol.com' Sent: Mon Apr 13 18:13:21 2009 Subject: Re: Good Friend's funds

Patti,

Our number is closer to $14,000. I think points out that we need to make sure we do our due diligence before closing the books.

Please bear with us a little bit longer. We should know something within the next 10 days.

Thanks, Mary

Mary E. Wilson Director Department of Social Services 301 Billingsley Road Charlotte, NC 28211 W) 704-336-mary C) 704-649-0568 mary.wilson@mecklenburgcountync.gov

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From: Patty Norman To: Cunningham, Darrell Cc: Wilson, Mary; 'Catherine Browning' ; SCSaussy@aol.com Sent: Mon Apr 13 18:10:40 2009 Subject: RE: Good Friend's funds

Darrell, I understood from our meeting that you all could get us a check quickly. We are ready to start distributing and I hope that you will be able to proceed and not wait until after the audit which could take quite long. It should be in the neighborhood of $59,000. Thank-you, Patty

From: Cunningham, Darrell [mailto:Darrell.Cunningham@mecklenburgcountync.gov] Sent: Thursday, April 09, 2009 8:44 PM To: Patty Norman; Wilson, Mary Subject: RE: Good Friend's funds

Hi, we have received your request and are currently working with the external auditors to review all transactions. We will have an update for you early next week.

Darrell Cunningham Community Resources Division Director Mecklenburg County Department of Social Services 704-336-3286 Darrell.Cunningham@MecklenburgCountyNC.gov

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From: Patty Norman [mailto:pnorman@carolina.rr.com] Sent: Tuesday, April 07, 2009 10:29 AM To: Wilson, Mary; Cunningham, Darrell Subject: Good Friend's funds

Mary and Darrell,

Catherine and I appreciate your meeting with us regarding the Good Friendís funds. Please know how much we appreciate your support in our decision to become independent. Per our letter, will you please forward the funds to: Good Friends, c/o Sally Saussy, 2725 Loch lane, Charlotte, NC 28226. Thank you so much.

My very best wishes,

Patty Norman, President

Good Friends

From: Wilson, Mary Sent: Thursday, April 16, 2009 10:27 AM To: Lancaster, Michelle Subject: Re: good friends

From: Diorio, Dena R. Sent: Friday, April 17, 2009 4:27 PM To: Alexander, Becky; Bowen, Patrena; Daniels, Erskine N.; Gibbs, Grace; Happney, Bridget; Hooper, Betty J.; Lucas, Pamela; McNeil, Peter; Myers, Kelly; Plummer, Sharon P.; Shepard-Smith, Rebecca; St. Aimie-Bonner, Nichole; Thomas, Paula; Williams, Avi; Woodberry, Shellie D.; Harvey, Gregory; Avent, Elizabeth; Brady, Cindy; Fee, David; Graham, Jennifer D.; Harris, Leslie; Alexander, Cynthia; Masterton, Ramona; McSwain, Christine; Nelson, Tammera; Pryor, Harold L.; Schriber, Joni; Steele-Campbell, Denise; Todd, Linda; Clark, Aaron; Zimmerman, Jeffrey; Bohland, Leo J.; Cook, Sue; Hampton, Kirk; Havner, Kenneth R.; Long, Kathy A.; Mason, Erma; Newman, Donna; Roberts, Erin M.; Smith, Sherrida; Taylor, John M.; White, Beverly; Wilson, Givonna L.; Kenner, Nyasia; Smith, Felicia; Syles-Ballard, Denise; Renfroe, Darrell; Bradley, Charles; Daugherty, Dennis; Alexander, Stanley; Buchanan, Richard; Butler, Karen; Mcallister, James P.; Fayko, Donna; Risk, Paul M.; Cunningham, Darrell; Foxx, Samara; Adams, Rodney; Benson, LaCinda; Johnson, Amy; Sturgill, Brian; Voignier, Clayton; Wilkins, Judi; Mullis, Wayne; Wilson, Mary; Hurlburt, Angela Cc: Eddie Burke; Collin Hill; Chris Silvey; Adam King; Murchison, Gail Subject: RE: DSS Credit Cards

From: Wilson, Mary Sent: Friday, April 17, 2009 8:39 PM To: Cunningham, Darrell; Hurlburt, Angela Subject: Re: Balance due to Good Friends

From: Wilson, Mary Sent: Saturday, April 18, 2009 9:10 AM To: Lancaster, Michelle Subject: check writing at DSS

Michelle, I want to give you the heads up on this issue. County Finance took check writing from DSS on 24 hours notice without discussing it with me or exploring any other option. I think it was premature and shortsighted but we were in the heat of the chaos so I did not push back. I understand the urgency at the time but there was a reason DSS had check writing capability and I think we threw the baby out with the bathwater instead of fixing the underlying issue which is documentation and accountability. I'm okay with County Finance writing all checks but I am concerned it will turn into a logistical nightmare. Previously, we wrote checks daily and Kuralt was the central pick-up location. Now we are waiting days to get a check and a courier is going back and forth to bring checks to Kuralt. The delay is the problem but it is also exacerbated by the courier situation, especially on days when we reduce courier service to 1 trip per day. I'm just concerned that we have taken a slightly broken system that could have been fixed and totally smashed it and now we are not meeting customer needs efficiently and effectively. DSS has emergency and immediate check writing needs as follows: 1. We take kids into custody daily (30-40 per month) and often they have nothing to bring with them. We immediately have to purchase clothes, toiletries, and school supplies. The letter below is an example of how this could hurt the first impression and future relationship a child and the foster care family have of DSS. 2. We administer emergency funds donated by the public and some General Administration dollars we hold back from Crisis Assistance. These dollars are used for client needs not covered under conventional programs such as getting someone medicine who is waiting for a Medicaid card, getting them a refrigerator or something for the home if it is necessary for the home to be deemed adequate to keep a child in the home or a walker for a senior so they can maneuver their home and remain safe. There are thousands of small things that we do to fulfill the mission. 3. We are the payee for guardians and they can walk in and say they want $50 of their funds to go to a concert. We can't give them a weekly allowance because they are not capable of managing their money. So we keep them on a short string to help them stretch their money out to make it last and so they are not victims of other people preying on them. I'm going to let Angela Hurlburt try to sort this out with Gail and Dena but I want you to be aware that we may have acted prematurely and we may need to re-consider this move. I have every confidence that Angela could put the proper checks and balances in place to manage this if we need to continue doing this at DSS. Thanks, Mary Mary E. Wilson Director Department of Social Services 301 Billingsley Road Charlotte, NC 28211 W) 704-336-Mary C) 704-649-0568 mary.wilson@mecklenburgcountync.gov

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From: Wilson, Mary Sent: Thu 4/16/2009 10:14 PM To: Hurlburt, Angela; Risk, Paul M.; Benson, LaCinda Subject: RE: Clothing Vouchers

Angela, Thanks. Gail and Dena may not understand the issue here. This is the very issue that resulted in DSS creating a "work around" that led to use of vouchers at Target, Wal-Mart and Kmart. In the last two months, we created a process to give foster care families an advance (not the entire amount) on their first month foster care payment so the foster care parents could purchase necessary items. This is what we need to have fixed ASAP as we bring in 30-40 children a month and it is not a scheduled event. Mary

Mary E. Wilson Director Department of Social Services 301 Billingsley Road Charlotte, NC 28211 W) 704-336-mary C) 704-649-0568 mary.wilson@mecklenburgcountync.gov

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From: Hurlburt, Angela Sent: Thu 4/16/2009 11:14 AM To: Wilson, Mary; Risk, Paul M.; Benson, LaCinda Subject: Re: Clothing Vouchers

Mary,

I agree.

We have a meeting with county finance monday to address all issues related to check cutting that we have had since the transition of this function to conty finance. Emergency issues such as this are at the top of my priority list.

Gail and I will work on a new communication as soon as we reach agreement on procedures.

Thanks, Angie

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From: Wilson, Mary To: Risk, Paul M.; Hurlburt, Angela; Benson, LaCinda Sent: Thu Apr 16 11:07:22 2009 Subject: Fw: Clothing Vouchers

Paul,

It was my understanding that we had voucher approval authority in place to handle emergencies.

What happened?

Angela, We need to get this process streamlined and fixed.

Thanks, Mary

Mary E. Wilson Director Department of Social Services 301 Billingsley Road Charlotte, NC 28211 W) 704-336-mary C) 704-649-0568 mary.wilson@mecklenburgcountync.gov

From: Wilson, Mary Sent: Thursday, April 23, 2009 9:16 AM To: Lancaster, Michelle Cc: Cunningham, Darrell; Hurlburt, Angela Subject: Good Friends

From: Cunningham, Darrell Sent: Saturday, April 25, 2009 7:50 AM To: Wilson, Mary Subject: FW: Good Friends Distribution Office

From: Brooks, Awilda Sent: Tuesday, April 28, 2009 1:00 PM To: Hurlburt, Angela; Cunningham, Darrell Cc: Johnson, Amy; Wilson, Mary Subject: Good Friends Refunds

From: Wilson, Mary Sent: Friday, May 01, 2009 1:26 PM To: Hurlburt, Angela; Cunningham, Darrell Cc: Johnson, Amy Subject: Re: Good Friends

From: Diorio, Dena R. Sent: Monday, May 04, 2009 9:26 AM To: Wilson, Mary; Lancaster, Michelle Cc: Hurlburt, Angela; Cunningham, Darrell Subject: RE: Good Friends

Thanks

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From: Wilson, Mary Sent: Monday, May 04, 2009 9:23 AM To: Diorio, Dena R.; Lancaster, Michelle Cc: Hurlburt, Angela; Cunningham, Darrell Subject: RE: Good Friends

sounds good. see you then. Thanks, Mary Mary E. Wilson Director Department of Social Services 301 Billingsley Road Charlotte, NC 28211 W) 704-336-Mary C) 704-649-0568 mary.wilson@mecklenburgcountync.gov "One Team, Many Services"

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From: Diorio, Dena R. Sent: Mon 5/4/2009 9:16 AM To: Wilson, Mary; Lancaster, Michelle Cc: Hurlburt, Angela; Cunningham, Darrell Subject: RE: Good Friends

Sure - can you come by at 3:00?

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From: Wilson, Mary Sent: Monday, May 04, 2009 9:09 AM To: Diorio, Dena R.; Lancaster, Michelle Cc: Hurlburt, Angela; Cunningham, Darrell Subject: RE: Good Friends

Dena, Maybe we need to get together and not try to do this through e-mail;. Do you have nay time today to discuss? Thanks, Mary Mary E. Wilson Director Department of Social Services 301 Billingsley Road Charlotte, NC 28211 W) 704-336-Mary C) 704-649-0568 mary.wilson@mecklenburgcountync.gov "One Team, Many Services"

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From: Diorio, Dena R. Sent: Mon 5/4/2009 8:26 AM To: Wilson, Mary; Lancaster, Michelle Cc: Hurlburt, Angela; Cunningham, Darrell Subject: RE: Good Friends

Mary, I received drafts of the audit on Friday which I am reviewing. Before we cut any more checks we need to verify that we are refunding the proper amount to the proper organization. Based on your e-mail you indicate that the $36K does not belong to Good Friends - if that is the case why are we going to give it back to them? What I also don't understand is why you have been holding that check to Good Friends this entire time. That is the precise reason why we eliminated our hold for pick up policy because we cannot control what happens to checks if we don't mail them. If you are not going to mail it then send it back to the Finance Department.

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From: Wilson, Mary Sent: Saturday, May 02, 2009 5:47 PM To: Lancaster, Michelle; Diorio, Dena R. Cc: Hurlburt, Angela; Cunningham, Darrell Subject: RE: Good Friends

Michelle and Dena, Following is where we are with GOod Friends. I think it would be better if we send them the check for $50,920.93. When will the audit be ready ? Thanks, Mary Mary E. Wilson Director Department of Social Services 301 Billingsley Road Charlotte, NC 28211 W) 704-336-Mary C) 704-649-0568 mary.wilson@mecklenburgcountync.gov "One Team, Many Services"

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From: Hurlburt, Angela Sent: Fri 5/1/2009 12:32 PM To: Wilson, Mary; Cunningham, Darrell Cc: Johnson, Amy Subject: RE: Good Friends

Darrell & Mary,

We have one check cut and ready for Good Friends for $14,180.76. An additional check will need to be written for $36,740.17 to get us to the amount reported to Good Friends of $50,920.93.

From an audit trail perspective we believe it is best to just cut these two checks separately. We have been able to identify that the primary reason for the 36k difference between DSS Finance and Good Friends is due to a Volunteer Fund deposit that was misapplied to Good Friends in the CRIS system back in FY04. Because this number has been reported to Good Friends by DSS for over 5 years it will be difficult to justify and reconcile to them why it is not really their money.

In speaking with Darrell, this additional $36,740.17 check should be able to be funded from Work First 8405-5301. We will need to have this money transferred into Good Friends and then have the check issued.

Please let me know if anyone has any questions or concerns before we proceed.

Thank you,

Angie

Angie Hurlburt Director - Finance Division Department of Social Services 301 Billingsley Rd. Charlotte, NC 28211 Office: 704-353-1773 angela.hurlburt@mecklenburgcountync.gov

-----Original Message----- From: Wilson, Mary Sent: Thursday, April 30, 2009 10:45 AM To: Cunningham, Darrell; Hurlburt, Angela Subject: Good Friends Importance: High

We need to wrap up today and request check so I can send with transmital letter tomorrow.

Mary

Mary E. Wilson Director Department of Social Services 301 Billingsley Road Charlotte, NC 28211 W) 704-336-mary C) 704-649-0568 mary.wilson@mecklenburgcountync.gov

From: Wilson, Mary Sent: Wednesday, May 06, 2009 11:20 AM To: 'Patty Norman' Subject: RE: Good Friends

From: Diorio, Dena R. Sent: Wednesday, May 06, 2009 4:41 PM To: Wilson, Mary; Lancaster, Michelle Cc: Hurlburt, Angela Subject: RE: Good Friends - Final Numbers

Mary - after discussion with Michelle we will present Good Friends with a check for $45,318. We will present one check, not two. Angie, I need you to return the check you have back to me to be voided. Please process a new payment request for this amount. Make sure you include a request for the check to be held for pickup or it will be mailed. Thanks

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From: Wilson, Mary Sent: Wednesday, May 06, 2009 10:28 AM To: Diorio, Dena R.; Lancaster, Michelle Cc: Hurlburt, Angela Subject: Re: Good Friends - Final Numbers

Yes. Let me confirm that Good Friends can make it.

Will the audit be available prior to meeting?

Mary

Mary E. Wilson Director Department of Social Services 301 Billingsley Road Charlotte, NC 28211 W) 704-336-mary C) 704-649-0568 mary.wilson@mecklenburgcountync.gov

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From: Diorio, Dena R. To: Wilson, Mary; Lancaster, Michelle Cc: Hurlburt, Angela Sent: Wed May 06 10:23:14 2009 Subject: RE: Good Friends - Final Numbers

CBH will make themselves available on Tuesday at 1:00. I assume we will be meeting at DSS.

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From: Wilson, Mary Sent: Wednesday, May 06, 2009 7:45 AM To: Diorio, Dena R.; Lancaster, Michelle Cc: Hurlburt, Angela Subject: Re: Good Friends - Final Numbers

I'm fine with having the auditors present but we may want to send them report ahead of time so they have a chance to review.

I think they will be smart enough to know the audit is for a period of time and may not capture a past error that would account for the. $5000 difference. I don't think making an compromise and paying the add'l. ~$5000 is equal to saying we don't stand by the audit.

I can rearrange some things to do this Tuesday at 1.

Can we get the final audit report by Friday so we can mail it out prior to the meeting or do you need to share with the audit committee first?

Thanks, Mary

Mary E. Wilson Director Department of Social Services 301 Billingsley Road Charlotte, NC 28211 W) 704-336-mary C) 704-649-0568 mary.wilson@mecklenburgcountync.gov

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From: Diorio, Dena R. To: Lancaster, Michelle; Wilson, Mary Cc: Hurlburt, Angela Sent: Wed May 06 07:26:19 2009 Subject: RE: Good Friends - Final Numbers

When we first started the project Mary requested that a separate audit and report be done on the Good Friend program as she wanted to verify that funds were appropriately spent. It seems to me that since we spent approximately $40,000 on the Good Friends portion of the audit (maybe more) we should stand by the number that can be supported by documentation and ties to our bank statements and the general ledger, not a DSS system. If we go ahead and just give them the $50K it would appear as though we don't stand by the audit results and we wasted our money. As a general rule we always have the auditors present the audit findings. They are independent and will present unbiased results. In addition, since they did all of the testing/field work, they are in a much better position to answer any questions Good Friends may have. Based on the results of the audit I think this may be important. I am not available either of those times - I am available on Tuesday between 11:00 & 1:00 - But again I need to check CBH availability. _____

From: Lancaster, Michelle Sent: Tuesday, May 05, 2009 6:26 PM To: Wilson, Mary Cc: Diorio, Dena R.; Hurlburt, Angela Subject: Re: Good Friends - Final Numbers

Do it quick - have dena there. I am ok with our audited number - dena what do you think? Sent from Blackberry. Michelle

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From: Wilson, Mary To: Lancaster, Michelle Cc: Diorio, Dena R.; Hurlburt, Angela Sent: Tue May 05 17:16:42 2009 Subject: Good Friends - Final Numbers

Michelle, I'd like to recommend that Angela Hurlburt and I invite Good Friends in Friday (10:30 am) or Tuesday (2:30 pm) and meet to discuss the preliminary audit findings (if they are not final by then). Unfortunately, I am out of the office on a personal matter Monday and cannot meet then. I don't think we need to turn this into a big meeting with the auditors at this point. Also, following is where we are in the internal DSS reporting system versus the audit results. We are off approximately $5602. I'm sure if we spend another $20,000 of internal time we could find it but I think we should cut them a check for $50,920.93 and call it even. Your thoughts? Thanks, Mary Mary E. Wilson Director Department of Social Services 301 Billingsley Road Charlotte, NC 28211 W) 704-336-Mary C) 704-649-0568 mary.wilson@mecklenburgcountync.gov "One Team, Many Services"

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From: Hurlburt, Angela Sent: Tuesday, May 05, 2009 4:45 PM To: Wilson, Mary Cc: Cunningham, Darrell Subject: Good Friends - Final Numbers Importance: High

Mary, The amounts provided to Good Friends on their monthly reports from Jan 1-March 31 of 2009 are as follows: Beginning Balance: $65,361.37 Disbursements: $14,440.44 Remaining Balance: $50,920.93 (DUE TO GOOD FRIENDS) The recently completed Cherry, Bekaert, and Holland audit supports a final amount due to Good Friends of $45,318. This is a difference of $5602.93. Please let us know how what amount we should proceed with in getting a check cut for Good Friends. Thank you! Angie Angie Hurlburt Director - Finance Division Department of Social Services 301 Billingsley Rd. Charlotte, NC 28211 Office: 704-353-1773 angela.hurlburt@mecklenburgcountync.gov From: Cunningham, Darrell Sent: Wednesday, May 06, 2009 8:16 PM To: Wilson, Mary; Hurlburt, Angela Subject: Re: Good Friends

From: Diorio, Dena R. Sent: Thursday, May 07, 2009 6:56 AM To: Wilson, Mary; Hurlburt, Angela Cc: Lancaster, Michelle; McGillicuddy, John Subject: FW: Good Friends Final Drafts

From: Wilson, Mary Sent: Thursday, May 07, 2009 1:41 PM To: Diorio, Dena R. Subject: Re: Good Friends Final Drafts

From: Diorio, Dena R. Sent: Friday, May 08, 2009 3:58 PM To: Wilson, Mary; Lancaster, Michelle Subject: RE: Good Friends Report

From: Diorio, Dena R. Sent: Friday, May 08, 2009 4:34 PM To: Wilson, Mary; Lancaster, Michelle Subject: RE: Good Friends Report

From: Hurlburt, Angela Sent: Monday, May 11, 2009 7:13 PM To: Wilson, Mary Subject: Fw: meeting Tuesday

From: Hurlburt, Angela Sent: Tuesday, May 12, 2009 10:55 AM To: Diorio, Dena R. Cc: Johnson, Amy; Wilson, Mary Subject: RE: Check Issuance for Good Friends - Assistance Needed

From: Diorio, Dena R. Sent: Tuesday, May 12, 2009 3:41 PM To: Hurlburt, Angela Cc: Wilson, Mary Subject: Re: Response to audit findings

From: Hurlburt, Angela Sent: Thursday, May 14, 2009 11:15 AM To: Diorio, Dena R. Cc: Wilson, Mary Subject: RE: Response to audit findings

From: Hurlburt, Angela Sent: Monday, May 18, 2009 12:17 PM To: Diorio, Dena R. Cc: Wilson, Mary Subject: RE: Response to audit findings

Dena, Please see the attached revised version of the Management Reponses document. I added additional details on items 3-5 highlighting the review I am currently doing of all policies and procedures within the department. I included information on our weekly "news you can use" training tool, new hire training, putting County Finance policy enforcement in our work plans for FY2010 for ALL employees, implementing checklists to aid in compliance reviews, etc. I did not get into specifics as we are still developing these at this time. Please let me know if what I put in will suffice for your needs. I also added responses for 6-8 if "similar programs" are or will be in existence so there is an action plan for those too. I did leave the first sentence in about Good Friends being discontinued - but we can take that out if you think it is redundant. Thanks! Angie Angie Hurlburt Director - Finance Division Department of Social Services 301 Billingsley Rd. Charlotte, NC 28211 Office: 704-353-1773 angela.hurlburt@mecklenburgcountync.gov

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From: Diorio, Dena R. Sent: Friday, May 15, 2009 1:16 PM To: Hurlburt, Angela Cc: Wilson, Mary Subject: RE: Response to audit findings

Hi Angie - I know you are out today but when you get back can you give me more detail on your re-education plan of DSS employees. The response is a bit thin on details. Also for findings 6-8 I understand that since Good Friends is defunct no action related to this program is required. However, since these same issues will be raised in the voucher program audit we need to consider what our response is going to be. Re-education of employees is not going to be sufficient.

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From: Hurlburt, Angela Sent: Thursday, May 14, 2009 11:15 AM To: Diorio, Dena R. Cc: Wilson, Mary Subject: RE: Response to audit findings

Dena, Management responses to audit findings 3-8 are attached. Thanks! Angie Angie Hurlburt Director - Finance Division Department of Social Services 301 Billingsley Rd. Charlotte, NC 28211 Office: 704-353-1773 angela.hurlburt@mecklenburgcountync.gov

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From: Diorio, Dena R. Sent: Tuesday, May 12, 2009 3:41 PM To: Hurlburt, Angela Cc: Wilson, Mary Subject: Re: Response to audit findings

You are correct - thursday at noon is fine.

Thanks for your help.

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From: Hurlburt, Angela To: Diorio, Dena R. Cc: Wilson, Mary Sent: Tue May 12 13:10:51 2009 Subject: RE: Response to audit findings

Dena, Certainly. I will work on responses for 3-8 and provide you what I have by noon on Thursday.

Thanks! Angie Angie Hurlburt Director - Finance Division Department of Social Services 301 Billingsley Rd. Charlotte, NC 28211 Office: 704-353-1773 angela.hurlburt@mecklenburgcountync.gov

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From: Diorio, Dena R. Sent: Monday, May 11, 2009 1:38 PM To: Hurlburt, Angela Cc: Wilson, Mary Subject: Response to audit findings

Hi Angie, I hope you are doing well. We need to craft responses to the Good Friends audit findings. This will be important for the Audit Committee, the Board of County Commissioners and the press. Overall, we can say that we have responded to the issues since we will no longer be managing the Good Friends money, however, the findings will most likely still apply to the voucher program. We need to include all of the changes DSS has made to improve internal controls in the areas cited in the report. I can draft responses to audit findings 1&2 since they apply to the County at large. Can you draft responses to 3-8?

Can I have something by Thursday around noon?

Dena R. Diorio Director of Finance Mecklenburg County 600 East Fourth Street Charlotte, North Carolina 28202 Dena.Diorio@mecklenburgcountync.gov 704-336-2228 (p) 704-336-2380 (f)

Please take the time to complete the Finance Department's Customer Service Survey here.

From: Diorio, Dena R. Sent: Tuesday, May 19, 2009 11:32 AM To: Hurlburt, Angela Cc: Wilson, Mary Subject: RE: Response to audit findings

Thanks for these -

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From: Hurlburt, Angela Sent: Monday, May 18, 2009 12:17 PM To: Diorio, Dena R. Cc: Wilson, Mary Subject: RE: Response to audit findings

Dena, Please see the attached revised version of the Management Reponses document. I added additional details on items 3-5 highlighting the review I am currently doing of all policies and procedures within the department. I included information on our weekly "news you can use" training tool, new hire training, putting County Finance policy enforcement in our work plans for FY2010 for ALL employees, implementing checklists to aid in compliance reviews, etc. I did not get into specifics as we are still developing these at this time. Please let me know if what I put in will suffice for your needs. I also added responses for 6-8 if "similar programs" are or will be in existence so there is an action plan for those too. I did leave the first sentence in about Good Friends being discontinued - but we can take that out if you think it is redundant. Thanks! Angie Angie Hurlburt Director - Finance Division Department of Social Services 301 Billingsley Rd. Charlotte, NC 28211 Office: 704-353-1773 angela.hurlburt@mecklenburgcountync.gov

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From: Diorio, Dena R. Sent: Friday, May 15, 2009 1:16 PM To: Hurlburt, Angela Cc: Wilson, Mary Subject: RE: Response to audit findings

Hi Angie - I know you are out today but when you get back can you give me more detail on your re-education plan of DSS employees. The response is a bit thin on details. Also for findings 6-8 I understand that since Good Friends is defunct no action related to this program is required. However, since these same issues will be raised in the voucher program audit we need to consider what our response is going to be. Re-education of employees is not going to be sufficient.

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From: Hurlburt, Angela Sent: Thursday, May 14, 2009 11:15 AM To: Diorio, Dena R. Cc: Wilson, Mary Subject: RE: Response to audit findings

Dena, Management responses to audit findings 3-8 are attached. Thanks! Angie Angie Hurlburt Director - Finance Division Department of Social Services 301 Billingsley Rd. Charlotte, NC 28211 Office: 704-353-1773 angela.hurlburt@mecklenburgcountync.gov

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From: Diorio, Dena R. Sent: Tuesday, May 12, 2009 3:41 PM To: Hurlburt, Angela Cc: Wilson, Mary Subject: Re: Response to audit findings

You are correct - thursday at noon is fine.

Thanks for your help.

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From: Hurlburt, Angela To: Diorio, Dena R. Cc: Wilson, Mary Sent: Tue May 12 13:10:51 2009 Subject: RE: Response to audit findings

Dena, Certainly. I will work on responses for 3-8 and provide you what I have by noon on Thursday.

Thanks! Angie Angie Hurlburt Director - Finance Division Department of Social Services 301 Billingsley Rd. Charlotte, NC 28211 Office: 704-353-1773 angela.hurlburt@mecklenburgcountync.gov

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From: Diorio, Dena R. Sent: Monday, May 11, 2009 1:38 PM To: Hurlburt, Angela Cc: Wilson, Mary Subject: Response to audit findings

Hi Angie, I hope you are doing well. We need to craft responses to the Good Friends audit findings. This will be important for the Audit Committee, the Board of County Commissioners and the press. Overall, we can say that we have responded to the issues since we will no longer be managing the Good Friends money, however, the findings will most likely still apply to the voucher program. We need to include all of the changes DSS has made to improve internal controls in the areas cited in the report. I can draft responses to audit findings 1&2 since they apply to the County at large. Can you draft responses to 3-8?

Can I have something by Thursday around noon?

Dena R. Diorio Director of Finance Mecklenburg County 600 East Fourth Street Charlotte, North Carolina 28202 Dena.Diorio@mecklenburgcountync.gov 704-336-2228 (p) 704-336-2380 (f)

Please take the time to complete the Finance Department's Customer Service Survey here.

From: Diorio, Dena R. Sent: Tuesday, May 19, 2009 12:04 PM To: Wilson, Mary; Hurlburt, Angela; Murchison, Gail Subject: Reponses to Good friends

From: Diorio, Dena R. Sent: Thursday, May 21, 2009 1:02 PM To: Spears, Cornita; Wilson, Mary; Brito, Teresa S.; Thomas, Robert; Lancaster, Michelle Cc: Waddell, Christopher Subject: RE: Documentation

From: Diorio, Dena R. Sent: Wednesday, May 27, 2009 8:25 AM To: Hurlburt, Angela Cc: Wilson, Mary; Murchison, Gail Subject: FW: DSS Polices and Procedures Report

Hi Angie - I need Reponses to items - 2-6

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From: Chris Silvey [mailto:csilvey@cbh.com] Sent: Tuesday, May 26, 2009 11:24 AM To: Diorio, Dena R. Subject: RE: DSS Polices and Procedures Report

Dena, Here you go.

Christopher Silvey csilvey@cbh.com (919) 782-1040 - office phone (925) 918-0536 - mobile phone

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From: Diorio, Dena R. [mailto:Dena.Diorio@mecklenburgcountync.gov] Sent: Friday, May 22, 2009 11:56 AM To: Chris Silvey Subject: RE: DSS Polices and Procedures Report

that's fine for now-send me a PDF as well. thanks

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From: Chris Silvey [mailto:csilvey@cbh.com] Sent: Friday, May 22, 2009 11:30 AM To: Diorio, Dena R. Subject: DSS Polices and Procedures Report

How many copies of this report do you want. I have 8 listed but just wanted to double-check.

Christopher Silvey csilvey@cbh.com (919) 782-1040 - office phone (925) 918-0536 - mobile phone

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From: Diorio, Dena R. [mailto:Dena.Diorio@mecklenburgcountync.gov] Sent: Friday, May 22, 2009 8:53 AM To: Chris Silvey Subject: RE: Finding 4 Wording - I deleted the sentence referring to the 'unnaproved account'. Let me know if you want any other changes or if we can issue with this wording.

perfect - thanks

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From: Chris Silvey [mailto:csilvey@cbh.com] Sent: Friday, May 22, 2009 8:26 AM To: Diorio, Dena R. Subject: Finding 4 Wording - I deleted the sentence referring to the 'unnaproved account'. Let me know if you want any other changes or if we can issue with this wording.

Have a great weekend. _____

To the Audit Committee and Management

Mecklenburg County

Charlotte, North Carolina

Dear Committee Members and Management:

In planning and performing our review of the policies and procedures over cash receipts and disbursements for the Department of Social Services (the ìDepartmentî) at Mecklenburg County, North Carolina (the ìCountyî) for the period July 1, 2008 through March 31, 2009, we considered the Departmentís internal control over financial reporting as a basis for designing our procedures for the purpose of issuing a letter of comment and recommendation on the policies and procedures of the Department, but not for the purpose of expressing an opinion on the effectiveness of the Department or Countyís internal control. Accordingly, we do not express an opinion on the effectiveness of the Department or Countyís internal control.

Our consideration of internal control was for the limited purpose described in the preceding paragraph and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. However, as discussed below, we identified certain deficiencies in internal control that we consider to be potential significant deficiencies and other deficiencies that we consider to be potential material weaknesses.

A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or a combination of control deficiencies, that adversely affects the Departmentís ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more than a remote likelihood that a misstatement of the Departmentís financial statements that is more than inconsequential will not be prevented or detected by the Departmentís internal control.

A material weakness is a significant deficiency, or a combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the Departmentís internal control.

We believe that the following deficiencies constitute potential significant deficiencies and/or material weaknesses for the Department:

Finding # 1 - North Carolina General Statute 159-25(b) requires dual signatures on checks. This statute indicates that except as otherwise provided by law, all checks or drafts on an official depository shall be signed by the finance officer or a properly designated deputy finance officer and countersigned by another official of the local government or public authority designated for this purpose by the governing board. If the board makes no other designation, the chairman of the board or chief executive officer of the local government or public authority shall countersign these checks and drafts.

While testing disbursements at the Department, it became apparent that the separate checking account maintained by the Department (the ìaccountî) does not have two authorizing signatures on checks. It was noted that there is a lack of proper controls in place to determine compliance with this state statute.

Finding # 2 - North Carolina General Statute 159-28(b) requires that before a finance officer, or designee, approves a claim for a program function, or activity accounted for in a fund included in the budget ordinance or a capital project or a grant project authorized by a project ordinance they determine that the amount to be payable, determine that the budget ordinance or project ordinance includes an appropriation authorizing the expenditure and either (1) an encumbrance be created for the transaction or (2) an unencumbered balance remains in the appropriation to pay the amount to be disbursed.

During our procedures, it came to our attention that the Department appears to have spent funds that were not properly budgeted and appropriated. Fund appropriations for non-guardianship transactions, such as Good Friends and Volunteer Funds, are initiated and recorded in a fiduciary fund while the budget for these transactions is approved in the General Fund.

Additionally, the County Finance Department is transferring funds at the end of each month from the General Fund to the fiduciary fund to cover the transactions improperly disbursed from these accounts. Since these transfers from the general fund to a trust fund are not budgeted they are out of compliance with North Carolina General Statutes.

We recommend that controls be implemented to review checks for propriety before disbursement. Additionally, staff must determine that proper fiscal and budgetary controls be put in place to verify that disbursements are accounted for in the correct account coding with a budgeted balance available for appropriation prior to disbursement. Furthermore, finance staff should periodically review issued checks to verify compliance with statutory and budgetary requirements. Appropriate finance staff should be trained and obtain an understanding of compliance issues surrounding North Carolina General Statutes that are applicable to controls over the receipts and disbursement process.

Finding # 3 - The Social Security Administration, Publication No 17-013, "Guide for Organizational Representative Payees," (the ìGuideî) states the Department must keep beneficiary funds in an account that is separate from other organizational funds, and keep records that enable the Department to track each beneficiary's Social Security or SSI income, use of his/her funds, and remaining balances.

During our procedures, we noted that the account is not in compliance with the Guide. The Department runs various programs out of the account which is in violation with the Social Security Administrationís regulations. The non-guardianship expenditures made from the account are an inappropriate use of the guardianship funds and may be a violation of North Carolina general statues.

We recommend that all disbursements for programs be run through the General Fund account. This means there should be a reorganization of program disbursements to ensure that disbursements are not being withdrawn from Social Security Funds.

Finding # 4 ñ During our procedures, we became aware that the Department does not have an appropriate account title indicating that beneficiaries own the funds, and that the payee is handling them for the beneficiaries. The beneficiaries do not have access to the funds. Correctly titling the accounts ensures the beneficiariesí funds are protected by FDIC insurance. The Department must establish a bank account with the correct title for the collective account and provide proof of the title change to SSA. Correct account titling can be found in the SSA, Publication No 17-013, "Guide for Organizational Representative Payees.î An example of a correct account title would be, ìMecklenburg County Department of Social Services, Representative Payee for Social Security Beneficiaries Account.î

Finding # 5 - The Department has a program set up to provide vouchers to purchase items for clients in emergency situations, such as when a child is brought into protective custody with no clothing. An inventory of the clientís possessions and needs is completed and approved by program management which documents the needs of the client and then a voucher is generated authorizing an authorized store to sell the approved items to the client, or their guardian, and bill the County later. Once the purchase is made, the client, guardian, or social worker is directed to return the store receipt to finance. A monthly statement or periodic invoice is sent from the authorized store and all documentation including the inventory, voucher, store receipt, and statement/invoice are to be compared and approved before authorization of payment which is to run through normal finance controls and procedures for disbursements.

As part of our procedures, we noted wide-spread failures of adherence to controls in the voucher program spanning all participating programs and departments. With one exception, all transactions viewed had one or more of the following exceptions:

* Missing support for disbursement

* Vouchers not pre-numbered or missing any type of identifying number

* Same voucher number used multiple times

* Purchases over authorized dollar amounts

* Purchases of excess amount of items

* Purchases of unauthorized products

* Vouchers used and paid for incorrect vendor (Written to vendor A but used at Vendor B)

* Mathematical errors

* Missing receipts

* Source documents created after transaction

* Missing supervisor approval

* Use of emergency program for non-emergency office supplies

* Missing or confusing linkage between client inventory, voucher, and receipt or statement/invoice

* Inventory and voucher with different dollar amount, quantities, and items listed

The majority of vouchers tested had multiple exceptions. In addition to internal control breakdowns, it was noted on multiple occasions that the vendor would sell more than was clearly authorized on the voucher. In these circumstances the vendor was clearly at fault, yet the county paid the vendors more then the originally authorized amount with little or no documentation as to why.

In order to correct the breakdown in controls over the voucher program, it is recommended that clear written policies be put in place documenting the exact procedures to be followed in order for a voucher to be issued and paid. An approved vendor list should be created to inform finance and the program staff of stores that are authorized to participate and be paid by the program. Furthermore, finance staff should follow current county policies and procedures before paying vendors for voucher transactions including matching source documents to receipts and statements, checking all documents for propriety, and retaining all supporting documentation with payment.

Finding # 6 - County policies and procedures prohibit the creation of financial contracts without the knowledge of the Finance Director and/or the Board of County Commissioners.

During our procedures, we determined that the Department has two credit card accounts actively being utilized. We were unable to determine if the cards had been originally authorized. The Department finance staff is aware of the cards and appropriate management personnel have been paying the statements. Upon our notification to the Finance Director of the existence of the credit cards, a formal request was sent to Department management requesting the notification of any other credit card accounts. No additional accounts were noted.

We recommend that all credit cards, with the exception of P-Cards and other County Finance administered credit cards, be collected and destroyed and the corresponding accounts be shut down. Furthermore, although there is a policy regarding contract authorization, a clearer and more detailed policy prohibiting credit card and similar contractual obligations should be implemented.

This communication is intended solely for the information and use of audit committee, management, and others within the organization, and is not intended to be and should not be used by anyone other than these specified parties.

CHERRY, BEKAERT & HOLLAND, L.L.P.

Raleigh, North Carolina

May 21, 2009

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U.S. Treasury Department Circular 230 Disclosure: In accordance with applicable professional regulations, please understand that, unless specifically stated otherwise, any written advice contained in, forwarded with, or attached to this communication is not a tax opinion and is not intended or written to be used, and cannot be used, by any person for the purpose of (i) avoiding any penalties that may be imposed under the Internal Revenue Code or applicable state or local law provisions or (ii) promoting, marketing or recommending to another party any tax-related matters addressed herein.

Visit the CB&H Economic Recovery Resource Center at http://economy.cbh.com to stay informed about the challenges and opportunities available in a dynamic economy, as well as any implications of the recent stimulus bill on your business or personal situation This email may include information that is confidential and/or subject to the accountant/client privilege. If the reader of this message is not the intended recipient, please notify us by reply email and then delete this message and destroy any copies. This transmission is not intended to and does not waive any privileges.

_____________________________________________________________________

_____________________________________________________________________

U.S. Treasury Department Circular 230 Disclosure: In accordance with applicable professional regulations, please understand that, unless specifically stated otherwise, any written advice contained in, forwarded with, or attached to this communication is not a tax opinion and is not intended or written to be used, and cannot be used, by any person for the purpose of (i) avoiding any penalties that may be imposed under the Internal Revenue Code or applicable state or local law provisions or (ii) promoting, marketing or recommending to another party any tax-related matters addressed herein.

Visit the CB&H Economic Recovery Resource Center at http://economy.cbh.com to stay informed about the challenges and opportunities available in a dynamic economy, as well as any implications of the recent stimulus bill on your business or personal situation This email may include information that is confidential and/or subject to the accountant/client privilege. If the reader of this message is not the intended recipient, please notify us by reply email and then delete this message and destroy any copies. This transmission is not intended to and does not waive any privileges.

_____________________________________________________________________

_____________________________________________________________________

U.S. Treasury Department Circular 230 Disclosure: In accordance with applicable professional regulations, please understand that, unless specifically stated otherwise, any written advice contained in, forwarded with, or attached to this communication is not a tax opinion and is not intended or written to be used, and cannot be used, by any person for the purpose of (i) avoiding any penalties that may be imposed under the Internal Revenue Code or applicable state or local law provisions or (ii) promoting, marketing or recommending to another party any tax-related matters addressed herein.

Visit the CB&H Economic Recovery Resource Center at http://economy.cbh.com to stay informed about the challenges and opportunities available in a dynamic economy, as well as any implications of the recent stimulus bill on your business or personal situation This email may include information that is confidential and/or subject to the accountant/client privilege. If the reader of this message is not the intended recipient, please notify us by reply email and then delete this message and destroy any copies. This transmission is not intended to and does not waive any privileges.

_____________________________________________________________________

From: Diorio, Dena R. Sent: Tuesday, June 02, 2009 7:22 AM To: Spears, Cornita; Wilson, Mary Cc: Lancaster, Michelle Subject: RE: Report Draft

From: Wilson, Mary Sent: Friday, June 05, 2009 8:00 AM To: Diorio, Dena R. Subject: Re: Responses to Vouchers & Receipts/Disbursements

From: Wilson, Mary Sent: Friday, June 05, 2009 8:23 AM To: Hurlburt, Angela Subject: Re: Responses to Vouchers & Receipts/Disbursements

From: Wheeler, William Sent: Tuesday, June 09, 2009 8:57 AM To: Wilson, Mary Subject: RE: Giving Tree report

From: Wilson, Mary Sent: Tuesday, June 16, 2009 10:10 PM To: Fair, Andrew Subject: RE: Email

From: Wilson, Mary Sent: Wednesday, June 17, 2009 6:50 AM To: DSS-ALL Subject: Audits of DSS

Importance: High

From: Wilson, Mary Sent: Wednesday, June 24, 2009 11:04 AM To: Wheeler, William Subject: Re: Giving Tree Audit

From: Spears, Cornita Sent: Tuesday, June 30, 2009 12:45 AM To: Wilson, Mary; McGillicuddy, John Cc: Diorio, Dena R.; Jones, Harry L.; Waddell, Christopher Subject: RE: summary of audit review committee on DSS audits

Mary, You, Dena and I met on July 21, 2008 in Dena's office at your request. As I recollect, at the meeting you discussed an idea of creating an internal audit group within DSS that would be responsible for monitoring controls and activity relating to the department's finances. What you were recommending was to be totally separate from the programmatic end. It is my recollection that you requested to meet with both Dena and I because the focus of the unit that you had in mind was similar to functions performed by Finance and Internal Audit, and you wanted advice from Dena and I on how the unit should be structured and the most appropriate position to be accountable for it. I recollect suggesting that rather than call it an internal audit function, you consider calling it a financial compliance unit to make sure there would be no confusion with our department. You and Dena were going to discuss the idea further in subsequent meetings, and Finance was going to provide you with guidance on how the unit should be organized. Perhaps my recollection is in error. If so, Dena can refresh us all on what was discussed at the meeting when she returns; I understand that she's on vacation this week. If my recollection is correct, I think the unit you had in mind would address Commissioner James' concern.

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From: Wilson, Mary Sent: Mon 6/29/2009 7:16 PM To: Spears, Cornita; McGillicuddy, John Cc: Diorio, Dena R.; Jones, Harry L.; Waddell, Christopher Subject: RE: summary of audit review committee on DSS audits

Nita, We have a Compliance and Quality Assurance group which focuses primarily on the internal program audits and periodic monitoring internally to determine proficiency, accuracy and timeliness of performance on programs. I believe Commissioner James discussed having a financial compliance e person who would be accountable for controls, processes, etc. I think this is a good idea as we have areas which may "fall in the gap" of stand program monitoring and financial audits. In addition, as we move to strengthen our controls we will need to have a point person for reviewing them and drafting satisfactory language and implementing the correct processes across divisions. Thanks, Mary Mary E. Wilson Director Department of Social Services 301 Billingsley Road Charlotte, NC 28211 W) 704-336-Mary C) 704-649-0568 mary.wilson@mecklenburgcountync.gov "One Team, Many Services"

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From: Spears, Cornita Sent: Monday, June 29, 2009 10:07 AM To: McGillicuddy, John Cc: Diorio, Dena R.; Wilson, Mary; Jones, Harry L.; Waddell, Christopher Subject: RE: summary of audit review committee on DSS audits

A. Committee Conclusions I had to leave before the meeting adjourned so I'm not sure how the committee opted to summarize its conclusions, but where you had two separate bullets addressing internal controls and supervision, in my report I had them as one item because of their linkage, that being that internal controls and managerial oversight were insufficient to......... B. Additional Considerations and Questions 1. The Giving Tree - as requested by HR, I only looked at calendar year 2008. 3. Vendor charges - may want to expand by indicating the objective of vendor follow-up so that it's clear what we're looking for. 5. Good Friends additional review - if I recollect correctly, the additional review requested focused chiefly on checks made payable to employees, resulting from CBH being informed of 3 checks issued in the names of DSS staff. Mary indicated that there are several County employees who receive DSS services, so the payments may have been valid. CBH is to follow-up by determining the purposes of those payments and whether the check issuances and supporting back-up complied with policy. If I recollect correctly, given that CBH's testing only encompassed a small sample, Bill James questioned whether it may be useful to do an expanded review to determine if other checks were issued to County employees and whether those issuances were valid and in compliance with policy. 7. Compliance program for DSS - this was not discussed in the meeting, but I need additional clarification from Mary on this one. Mary, refresh my memory. In a meeting that you, Dena and I had when you first came on board, you were giving consideration to implementing a unit within DSS which would have responsibility for monitoring and ensuring financial compliance within the department's operations. I haven't been kept abreast of plans, but if those are moving forward, then steps may already be underway to address number 7. If so, the board can be updated accordingly; if not, perhaps moving forward with those plans could address this issue.

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From: McGillicuddy, John Sent: Monday, June 29, 2009 8:52 AM To: Diorio, Dena R.; Wilson, Mary; Spears, Cornita; Jones, Harry L.; Waddell, Christopher Cc: Lancaster, Michelle Subject: summary of audit review committee on DSS audits

As you know, the Audit Review Committee will report to the Board at the Board's July 7 meeting. Please review the draft summary and let me know if any changes are needed. The final draft will be distributed to the Audit Review Committee members for its review prior to the July 7 meeting. Therefore, please respond to this email as promptly as possible so the rest of the ARC has time to review as well. Thanks. John McGillicuddy General Manager Mecklenburg County 600 East Fourth Street Charlotte, NC 28202 704-336-2661 John.McGillicuddy@MecklenburgCountyNC.gov fax: 704-336-5887 From: Harry Lomax [hlomax2@carolina.rr.com] Sent: Tuesday, July 07, 2009 8:05 PM To: Roberts, Jennifer; Cogdell, Harold; Murrey, Daniel B; Bentley, Karen; Leake, Vilma; Cooksey, Neil; Dunlap, George; James, Bill; Wilson, Mary; Diorio, Dena R.; Jones, Harry L. Subject: Tonight's Meeting - DSS Comments

From: Wilson, Mary Sent: Friday, July 10, 2009 7:16 PM To: Cunningham, Darrell; Hurlburt, Angela; Risk, Paul M.; Benson, LaCinda Subject: Re: Responses to audit

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