Stanly County Schools misappropriated Medicaid dollars

According to an article in the Stanley News & Press,

At a finance committee meeting Tuesday night it was revealed the district finds itself in financial straits after charter school enrollment exceeded early projections and Medicaid misappropriations.

As for the latter, SCS?finance director Nancy Hatley further explained in follow-up questions how the district had been inappropriately using Medicaid proceeds to pay for other expenses rather than for services and programs for the system’s Exceptional Children. Instead of using the proceeds for restricted EC purposes, the district used the funds to pay for such expenses as electricity, natural gas, network services, insurance premiums and lighting replacements.

It seems that past leadership was the blame for the issue.

According to Hatley’s findings, SCS?began misappropriating the FFS funds when Bill Josey was the district’s finance director. He was named superintendent in July 2016. Josey resigned last September.

The school board’s decision to reopen a school despite enrollment decreases appears to have been a foolish plan.

Gray Stone Day School announced one year ago it planned to open a middle school in 2017-18. The middle school would complement the charter school’s high school.

School leaders knew then the opening would mean more SCS students could leave for Gray Stone. Early projections showed the impact to SCS’ enrollment would be significant.

Nevertheless, a newly-elected majority on the Board of Education decided to proceed with the reopening of Oakboro School, which had been shuttered to help offset the district’s perennial reduction in funding and shrinking enrollment.

With this track record of poor leadership, it is no wonder why parents are opting for Gray Stone Day School.

Terry Stoops / Vice President for Research and Director of Education Studies

Terry Stoops is the Vice President for Research and Director of Education Studies at the John Locke Foundation. Before joining the Locke Foundation, he worked as the progra...

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