July 18, 2013 Dear Rock Terrace Parent: I am writing you to provide an update on the investigation into the

handling of money that was provided to students as part of the transition to work programs and share information about the leadership of Rock Terrace School. I also want to invite you to attend a community meeting on Thursday, July 25, 2013. Montgomery County Public Schools (MCPS) has completed its initial investigation into the handling of stipends provided to students. A summary of our findings, thus far, is enclosed. To date, the investigation has found that there appears to have been no attempt to intentionally defraud students and their families of funds provided to students as part of their educational program. However, the investigation did find that the program at the Rock Terrace School was poorly managed and that money was inappropriately used to support the educational programs at the school. Please see the enclosed summary for more information. The Montgomery County States Attorneys Office is continuing to investigate this matter and MCPS is cooperating fully. Dr. Dianne G. Thornton, the principal of Rock Terrace School for the past 12 years, has announced that she will retire from MCPS, effective August 1. We will appoint an acting principal for the 20132014 school year soon and, in the coming months, will begin the process of finding a new principal for Rock Terrace School. I want to assure you that your input will be important in the principal search process. I would like to invite you to attend a community meeting on Thursday, July 25, at 7:00 p.m. at Rock Terrace School. At this meeting, MCPS staff will discuss the investigation and will answer your questions. I look forward to meeting with you next Thursday. If you have any questions, please do not hesitate to contact my office at 301-315-7379 or e-mail me at Christopher_S_Garran@mcpsmd.org. Sincerely,

Christopher S. Garran, Ph. D. Associate Superintendent of High Schools Enclosures

Summary of Rock Terrace School Investigation

July 18, 2013

Montgomery County Public Schools (MCPS) has completed its initial investigation into the handling of money provided to students with disabilities at Rock Terrace School as part of a transition program designed to provide work experiences. The Montgomery County States Attorneys Office is continuing an investigation into the matter, and MCPS is cooperating fully. The MCPS investigation, so far, has found that there appears to have been no attempt by Rock Terrace School staff to intentionally defraud students and their families of funds provided to students as part of their educational program. However, the investigation did find that the program at Rock Terrace School was poorly managed and that money was inappropriately used to support the educational programs at the school. The investigation also revealed some policy and practice questions that MCPS must resolve regarding money that is provided to students as part of the work experience of their transition program. Background and Findings The work programs at Rock Terrace Schooland other high schoolsare designed to teach students the skills they will need to foster independence upon school completion. The programs provide students an opportunity to gain work experience in schools and with community organizations and businesses. These programs also enhance life skills by having students, generally 18-21 years old, participate in activities, such as using public transportation, shopping, banking, and recreational activities. Some students at Rock Terrace School received stipends for participating in the work programs. These stipends were provided as part of the education program so that the students could have real-life experience in handling wages and using banks. Money for some of these stipends came from the MCPS Operating Budget. At Rock Terrace School, it was common for stipends to be deposited into accounts at the Educational Systems Federal Credit Union (formerly known as the Montgomery County Teachers Federal Credit Union). This is consistent with other work experience programs in MCPS high schools that provide stipends to students with disabilities. In general, these stipends are treated as funds that belong to the student. However, at Rock Terrace School, some of these fundsalong with money donated by parents and other organizationswere used to support the educational program, such as community activities and programs and events at the school. The MCPS investigation, to date, has found that, while the intentions of staff appear to be good, the use of the funds in this manner was inappropriate. Additionally, some Rock Terrace parents were not informed about the stipends or about the bank accounts set up in their childs name. This, too, was not appropriate and demonstrated poor management of the program.

Next Steps The MCPS investigation found that student bank account records at Rock Terrace School were incomplete. Using its subpoena power, the Montgomery County States Attorneys Office will request account records from the credit union. MCPS is providing information from its investigation to assist the States Attorneys Offices review of this matter. Work programs at Rock Terrace School and other high schools will continue next year. However, MCPS will temporarily stop providing stipends to these students until the district is able to clarify whether these stipends should be treated as earned income. Personal money management is an important aspect of these programs and we are hopeful that it can continue. But we want to make sure that any stipends received are distributed and spent appropriately and that no unintended consequences occur as the result of providing funds to students in these programs.