THE ANNUAL CHICAGO PUBLIC
SCHOOLS INSPECTOR GENERAL'S
REPORT IS RELEASED.
NEARLY A MILLION DOLLAR STOLEN
FROM CPS, HUNDREDS OF DROPPOUTS
FALSELY LISTED AS TRANSFERS AND
ADMINISTRATION GETTING COZY WITH
POTENTIAL VENDORS AND SCHOOL
EMPLOYEES LYING ABOUT WHERE THEY
LIVE TO HELP THEIR KIDS GET INTO
A BETTER SCHOOL.
CPS SAYS IN A STATEMENT THAT IT
IS COMMIT TO THE ELIMINATING
CORRUPTION, FRAUD, AND WASTE AND
ALL THE ISSUES IN THE REPORT
HAVE BEEN OR WILL BE ADDRESSED.
JOINING US IS NICHOLAS SCHULER
THE CHICAGO PUBLIC SCHOOLS
INSPECTOR GENERAL.
WELCOME BACK TO "CHICAGO
TONIGHT."
SOME OF THE KEY FINDINGS OF THE
REPORT.
IF YOU WANT TO AMPLIFY SOME OF
THE THINGS.
>> HAPPY TO.
THE MANY FINDINGS BRECK DOWN TO
TWO CATEGORIES, OPERATIONAL SIDE
AND WHAT I CALL THE EDUCATIONAL
SIDE.
INVOLVE HIGH SCHOOLS.
ON THE OPERATIONAL SIDE, THAT IS
LARGE STEPS, ALMOST $900,000
WORTH OF THEFT ORCHESTRATED BY A
OPERATIONS EMPLOYEE AND IN TWO
SCHOOLS OVER A PERIOD OF ABOUT
FIVE YEARS.
>> HOW IS IT DONE?
>> YES.
HE BASICALLY OPENED VENDORS AND
MES ON THE VENDOR SIDE, HE
OPENED BASICALLY FAKE PURCHASE
ORDERS, AND GOODS AND SERVICES
THAT WERE NEVER PERFORMED.
AND YOU KNOW WE HAVE HUNDREDS OF
THOUSANDS THERE, AND ON THE
EMPLOYEE'S SIDE THE SMALLER
SIDE, HE BASICALLY, THEY HAD
FALSE REIMBURSEMENTS FOR THINGS
THAT WERE NEVER PURCHASED.
AND A HANDFUL OF OTHER
EMPLOYEES.
>> LET'S GET TO ANOTHER AREA
THAT YOU ADDRESSED.
MISCLASSIFYING DROPPOUTS.
HOW DOES THAT WORK AND WHY IS IT
IMPORTANT?
>> SO, YOU KNOW, IT GOES TO THE
SCHOOL'S DROPPOUT RATE.
THAT IS WHY IT'S IMPORTANT.
POEM ARE, ALL THESE CASES OF
PEOPLE SAYING THEY WERE
TRANSFERED FROM THE CPS SCHOOL
SYSTEM TO PRIVATE SCHOOLS OR
OUTSIDE OF CHICAGO ALTOGETHER.
THEY ARE USINGED CODE AS THAT
TRANSFER BUT IN THE MARGINS THEY
WERE STATING THEY WERE
TRANSFERED TO A GED PROGRAM OR
PLANNED TO ENROLL IN A GED
PROGRAM.
REALLY THEY DROPPED OUT AND
SHOULD BE CODED AS
APPROPRIATELY.
>> ALL TO MAKE THE SCHOOLS
STATISTICS ON THE DROPPOUT RATE
LOOK BETTER?
>> THAT IS WHAT WE CONCLUDE.
ALSO A COMPOUNDING ISSUE, THAT
THE TRANSFERS WERE FALSELY
VERIFIED.
SO THEY WERE BASICALLY, SOMEONE
IS GOING IN THE DATA BASE AND
SAYING THEY HAVE BEEN VERIFIED,
MEANING THEY RECEIVED
DOCUMENTATION WHEN THERE WASN'T
ANY IN THE FILES.
A PROBLEM THAT AFFECTED A BIGGER
BRUP THAN THESE GED TRANSFERS.
AND TELL US ABOUT THE ISSUE,
TALKING ABOUT LYING ABOUT
RESIDENCY TO GET KIDDED-- KIDS
IN SELECTIVE ENROLLMENT SCHOOLS.
>> FAMILIES ARE SAYING SOMEONE
LIVED IN A DIFFERENT
SOCIOECONOMIC AREA THAN THEY DID
TO GAIN FAVOR.
THE ENTRY SYSTEM TAKES ACCOUNT
DIFFERENT SOCIOECONOMIC TIERS
AND BASED ON CENSUS TRACKS AND
PEOPLE ARE SAYING THEY LIVE
WHERE THEY DIDN'T TO GAIN AN
ADVANTAGE.
SEVERAL KIDS, SEVERAL STUDENTS
WERE ALLOWED TO SCHOOLS BASED ON
THAT BUMP UP FOR THE CENSUS
TRACK THEY CLAIMED WHERE THEY
LIVED WHEN THEY DIDN'T.
THEY SAID THEY LIVED IN POOR ARE
NEIGHBORHOODS THAN THEY LIVED IN
BECAUSE THAT WAS FACTOR IN
ADMISSIONS?
>> WRE.
WE LOOKED AT SOME, SOME FAMILIES
AND SOME OF THE FAMILIES WERE
THE PARENTS WASHINGED AT CPS,
YES.
>> WHEN YOU LOOK AT THE RANGE OF
MISCONDUCT WHAT WAS MOST
DISTURBING TO YOU?
>> I THINK THE THINGS THAT GO TO
THE EDUCATIONAL CORE.
THE CASES INVOLVING FRAUD,
PEOPLE INSIDE THE SYSTEM TAKING
ADVANTAGE OF THE SYSTEM, THAT IS
PARTICULARLYING A REGION I
THINK.
ANYONE THAT WE TRY TO GAIN THE
METRICS OF THE DROPPOUT RATE,
THOSE ARE PARTICULARLY TROUBLING
BECAUSE IT GOES TO THE CORE OF
WHAT THE CHICAGO PUBLIC SCHOOLS
IS TRYING TO DO.
EDUCATE KIDS.
>> SOME OF THE NUMBERS, THEY ARE
ALL VERY DISTURBING, BUT HOW IS
IT THAT SOMEONE CAN GET AWAY
WITH EMBEZZLING OR STEALING
ALMOST A MILLION DOLLARS?
AREN'T THERE CHECKS AND BALANCES
AND REVIEW OF PACE WORK?
>> YES.
YOU KNOW, IN LARGE PART IT IS
NOT THAT IT WASN'T A $100,000
PURCHASE TIMES EIGHT, HUNDREDS
OF SMALL TRANSACTIONS, A COUPLE
OF THOUSAND, IN THE AGREE GATE
FALLS BELOW THE RADAR AND
QUESTIONS THAT REMAIN ABOUT YOU
KNOW, WHETHER THE ADMINISTRATORS
WERE PAYING PROSECUTE ATTENTION.
>> CPS SAYS THE PROBLEMS HAVE
BEEN ADDRESSED AND THE
INDIVIDUALS WILL BE ADDRESSED,
ARE YOU SATISFIED WITH THE STEP
THAT WERE TAKEN TO DEAL WITH THE
PEOPLE INVOLVED IN WRONGDOING?
>> YOU KNOW BY AND LARGE YES,
ESPECIALLY IN THE CASES OF
THEFTS.
PEOPLE HAVE BASICALLY RESIGNED
OR BEEN TERMINATED AND ONGOING
CRIMINAL INVESTIGATION.
>> AS FAR AS CRIMINAL
INVESTIGATIONS ARE CONCERNED,
DIAGNOSIS THAT AUTOMATICALLY
KICK IN, IF YOUR OFFICE FINDS
THAT SOMEONE HAS STOLEN
SOMETHING?
>> YOU KNOW, I THINK CRIMINAL,
THAT IS A GOOD QUESTION,
SOMETHING TO BE CONSIDERED.
AND CERTAIN CASES, YOU KNOW,
PROSECUTORS WILL HAVE TO BRING
IT TO THE PROSECUTOR'S DESK.
>> IS THERE A PATTERN OF THIS
CONDUCT IN CPS?
>> A PATTERN OF THIS CONDUCT.
>> OR ARE THEY ROGUE EMPLOYEES?
OR IS THERE A PATTERN OF ROGUE
MES?
IT'S A BIG SYSTEM AND THIS WILL
BE CASES AND I THINK THE
PATTERN, AMONG INDIVIDUALS AND
YOU KNOW THERE ARE CERTAIN
REPEAT THINKINGS THAT WE HAVE
SEEN A LOT.
BRINGING CASES AND VENDORS
HAVING FAKE ALTER EGOS AND GET
MORE SPENDING LIMITS AND
THINKINGS LIKE THAT.
THERE ARE CERTAIN REPEAT THINGS
THAT TO HAPPEN FROM
YEAR-TO-YEAR.
THEY DON'T INVOLVE THE SAME
PEOPLE TYPICALLY.
>> ASIDE FROM THE CONSEQUENCES
TO THE INDIVIDUALS WHO MAY HAVE
BEEN INVOLVED WHAT STEPS ARE
BEING TAKEN TO PREVENT THIS FROM
HAPPENING?
ANY TWEAKS TO THE SYSTEM?
>> THAT IS ALWAYS A BIG PART OF
WHAT THEY DID ACROSS THE WORD
BOARD, TRY AND FUNDS WHERE THE
SOFT SPOTS ARE AND MAKE
RECOMMENDATIONS.
AS FAR AS THINGS LIKE STRINGING,
WE ARE RECOMMENDING MORE
TRAINING.
>> STRINGING IS WHEN PEOPLE
STRUCTURE PURCHASES THAT STAY
BELOW A COMPETITIVE PURCHASE
LIMIT.
>> WE HAVE A GRAPHIC THAT SHOWS
SOME OF THE TOP COMPLAINTS THAT
YOUR OFFICE RECEIVED, AND LET'S
LOOK AT THE NUMBER OF
COMPLAINTS.
ON DUTY CRIMINAL CONDUCT, 95.
CONTRACTOR VIOLATIONS, 70.
MISAPPROPRIATION OF FUNDSES 63,
OFFDUTY CRIMINAL CONDUCT, 61.
HOW MANY TIPS DOES YOUR OFFICE
RECEIVE?
>> WELL OVER A THOUSAND A YEAR.
LAST YEAR WE RECEIVED 1335.
HOW MANY DID YOU FOLLOW UP ON?
>> I THINK AROUND 280.
JUST OVER 20%.
>> WHY IS THAT, IN TERMS
RESOURCES HOW ARE YOU DOING?
>> OUR OFFICE IS LEANLY STAFF.
WE REPORTED THAT FOR YEARS.
WE HAVE 17 PEOPLE.
AND OF THOSE HOW MANY DO
INVESTIGATIONS,?
THIRTEEN.
>> THERE IS NOT A LOT OF BLOAT
THERE.
>> WE ARE VERY LEANLY STAFFED
OFFICE.
ARE THERE TIPS THAT ARE VIABLE
THAT YOU CANNOT GET TO?
>> THAT IS MY SENSE FOR SURE.
>> I WOULD ASK YOU ABOUT A
COUPLE OF THINGS THAT ARE NOT
INCLUDED IN YOUR REPORT BUT HAVE
BEEN IN THE NEWS.
THE "SUN-TIMES" INVESTIGATION
FOUND THE COMPANIES IN WHICH
SCHOOL BOARD MEMBER DEBORAH WAZ
AN INVESTOR TRIPLED THAT
BUSINESS WITH CPS SINCE HER
APPOINTMENT BY THE MAYOR.
AND THEY SHOWED CHUY WANTS HER
FIRED.
IS YOUR OFFICE INVESTIGATING
THAT?
>> I FOUND THE RECORD AND WE
ARE.
>> YOU ARE INVESTIGATING.
THE SECOND QUESTION WHAT IS THE
STATUS OF THAT INVESTIGATION?
>> ONGOING.
>> AND ANOTHER WITHIN HAS TO DO
WITH THE CUSTODYIAL CONTRACT.
MANY SCHOOLS ARE IN THE GETTING
ADEQUATELY CLEANED UP BY MALL
STAFFS AND THESE SAME WILL HAVE
THE CUSTODIANS WILL CLEAN UP THE
SNOW AS WELL.
WAS THAT IN THE CONTRACT
IMPROPERLY AWARDED?
>> I'M NOT IN A POSITION TO
COMMENT ON THAT.
>> GETTING BACK TO THE REPORT,
WHAT DID YOU WANT PEOPLE TO TAKE
AWAY FROM IT?
>> I THINK IN GENERAL, I THINK
IN GENERAL, A GREAT DETERRENT
VALUE AND I WANT PEOPLE TO KNOW
THERE ARE RULES.
WE EXPECT PEOPLE TO FOLLOW THEM
AND THEY WILL BE HELD