Illegal Bank Accounts
In 2011, it was discovered that there were 5 illegal bank accounts associated with our schools. In fact there was one legal AND one illegal bank account for each of the 5 schools. Wayland's Town Counsel advised our new Business Adminstrator, Geoff MacDonald to close them down at once. However, he didn't do that. It wasn't until many months later when these accounts were made public as a result of the work of The Abrahams Group that they were finally closed.
Why this is wrong
These accounts were set up by individuals using tax Employer Identification Numbers (EINs) that were different than the schools' and were not managed by the Town Treasurer, as required by law. Monies were drawn upon by multiple individuals for seemingly unauthorized uses. There were many checks written to "Cash" by certain staff members with no receipts or substantiation, checks were made out to restaurants and other establishments, whose connections to public education seem dubious. In addition, staff members were paid stipends out of these accounts, with no federal or state tax withholdings, presenting a very sticky situation between all parties concerned and the IRS. These accounts were off the General Ledger, had little, if any, oversight, and have never been fully audited.