The Loophole That Allows Local Government To Use Fed Funds On Banned PRC Products
School districts are breaking the law by spending Federal funds on banned Hikvision products. When called out on violations, districts paper over the purchases with a questionable accounting loophole, while keeping the Federal money and the equipment.
Inside this note, we examine 3 California and 1 Minnesota purchases, potential 800+ other situations, and why one sales expert called this practice 'shenanigans'.
Executive *******
****** ********* **** ********* **** ******* funds ** *** **** ****** ********, when **********, * ********* '*******' *** purchases ** ***-******* *****. *********, **** violates *** ****** ** *** *** letter ** *** ***, **** *** expert ******* ** '***********' *** **** having ******** ** ** *** ******* government.
**** ***** ***+ ********* ** ****-****** products, *** * ***** ** $*.* million ***** *** ******* *** **** into ******. **** ** **** *** likely ** **** **** ******* *****.
Hesperia ******* ****** ********
** ******** ****, **********'* ******** ******* School ******** (****) ******** *** ******* (known) ********** ******** *** ****** ********* since *** **** **** **** ******, spending $***,***.** *** ** ********* ******* cameras.
* ****** ***** ********************** *** ******* ****** ** ******* CARES *** ***, ***** **** ************** David ***** ********* ** ****. *******, he ********* ** ***** **** * violation *** ********:
*** ******** ******* ****** ******** **** Elementary *** ********* ****** ********* ****** (“ESSER”) ***** ******** ***** *** ******* Coronavirus ***, ******, *** ******** ******** (“CARES”) *** ** ******** ******* ******* to ****** ******* ************ ******* ***** devices ******* ************ ******* *** ******* the ****** *********** ********* ** ********** public ****** ******** ** **** **** staff *** ******** *******. *** ******* take *********** ******** ****; **** ** not ******* ****** *********** ** ******* any ******** ****.The ******** ******** ** ******** **** *** ***** *** *** *** ** ***** ***** ** **** ********** *** **** ****** ** **-****** ***********. [emphasis added]
** ******** **. ***** **** *********** on *** ***. ** ***** ******* his ********, ******* **** **** “********” the ******* ******:
* ***** **** ** ****** *** that ** **** ******** ******* *** this ********; ** ** ** ****** being ****** *** ** ***** ***, or *** ***** ******* *****.
Rocori ****** ********
** ****** ****, **** - * days ***** *** *** **** **** effect - ****** ****** ******** ** Cold ******, **, ********* $**,***.** ** Hikvision ******* ******* *** *******, *** GovSpend:
**** *******, ******'* ******** ** ********, confirmed **** **** ******* ***** *** funds. ******* **** *** ****** *** aware ** *** **** ***, *** believed ** *** *** ***** ***** they *** *** *** **** ********* directly, ******* ****:
***, ** **** *****. ** *** our **** ****** *** *** ****** look **** **** ** **** **** we ******** *** *****, *** * believe ** *** ****** *** *****.
*** **** ******* ** *** ********* of ********* ** *****, ************ ** the ******. ** ***** ************** **** Kelvington *** **** ********** ** *** purchase *** *****:
* **** ****** **** *** ******** Manager, **** ******* *** ** ***** this ******** *** ** ***** *** funding *******. [**** ********] ** ** longer ********.
**. ********** ***** *****:
** *** ******* **** ** *** purchase *****, ** **** *** ***** that *** ******** ****’* **** *** allowable *** ** *** *****. ** knew ***** **** ************, *** ** did *** ******* *** ******* **** under **** ********.
** ******* ** ******* ******* **** Rocori **** ** *** **** ***** the ******** ** ****** ********* **** Federal *****.
Mountain **** ****** ********
******** **** ****** ******** (****), ** Ontario, **, ****** $**,***.** ** ********* thermal ******* *** ******. *** **************'* office ********* ********* **** *** ***** that ******* ***** **** ****, **** explicitly ********* ** *** ***** *** by ****. *******, ************** **. ******* Moss ***** ******** **** *****:
*** ***** ** ******** **** ********* from ******* ** ** *******, **********. I **** ***** *** *** **** to ** ****** *** ******** ** our ***** ********* *******. *** ****** indicated ****Federal ***** **** *** **** *** ******** ** *********. *** ******** ************ ***** **** **** ** *****. Thank you for your inquiry. [emphasis added]
** *****:
** *** ***** ***** ** ********* nor **** ** **** ***** ** any *********** ** ********. ** **** the ******** **** *******. ******* *** disclosed ** ** ***** *** ******.
** ***** ** *** ******** ********** drew **** ******* *****, *** *** been ******** ***** *** *******. **. Moss ******* ** *******.
Likely * ****** *******
***** *** ***** ******** **** ******** 800+ ********* *** ******* ********* ******** since *** ****** **, **** ********* date ** *** **** ******* ******* ban, ********* ** ********. **** ** without ********** *** *** ********** ********. Given *********** ************* ** ******* ***** to ***** ******** **** *** **** period, ***** *** ****** **** ***** violating *********.
Modesto ***
** *****, ******* **** ******* **** the **** ******** ********* ************* ** ********* *********** ********* **** Federal *****.
Problem ****** **** ******
***** *** ***** ******** **** **** 800+ ********* *** ******* ********* ******** since *** ****** **, **** ********* date ** *** **** ******* ******* ban, ********* ** ********.
**** ** ******* ********** *** *** relabelled ********. ***** *********** ************* ** Federal ***** ** ***** ******** **** the **** ******, ***** *** ****** many ***** ********* *********.
"Shenanigans" **** ***** ******
***** ******, ** ****** ** ***** ********** sales, ********* **** ******* ** ************ how *** ********* *** ****** ** their ********** *******. ** **** *** mean ***** *** ******** ** *** Federal **********.
****** ********* **** ** "***********", ****** "If * *** ***** ** *** Paul *** **** ***** ***** ***** by ******* ****, ****'* ********."
****** ******** ** **** *** ****** the **** **** ******* ***** **** used, ** ******* **** ********* ******** accounts *** ********* ******* *******. "**** already ***** *** ***** *** ** their ******* *****. ******** ***** ***** the ***** **** ***** ******** *** Federal."
********, **** ** *** ******* *********** process ** ** ****** * **** explaining *** ******* ***** **** ** spent. "*** ****** ** [*** *****] is **** **** **** ** **** you ******* **** *** ******* *****," Eatmon ****, "*** *** ****** ** that ***'* ******. *****'* ** ****** that ****** *** ****. *****'* ** precedents **** ****'** ***** ** ** held ***********."
Fever *********** *****
******* ********* ******* ***, ***** **** purchases **** **** ********* *** ***** screening ******* **** **** ******* *** a****-******** ***** ********* ** *** ******* of ********** ********** ***** ** **** *********** *********** risks. **** ********* *** **** **** the ***** *** ****** ***** ********** risk ** ****** ******.
School ********* **** ****** ******* *****
********* **** ***** *********** **** ******* funds ** *** ******.. *************** ******* *** ****’************ ** **** *** ***** *********** *** ******* ***** “********** *** subrecipients” ****** “******* ** ******”, “****** or ***** * ******** ** ******* or ******”, *** “***** **** * contract […] ** ******* ** ******” covered *********/********.
IPVM ******* *** ** ******* ***********
**** ******* *** ** ******* *********** in *** **** ***** ** ***** them ** **** ******** *** ** request **** ****** **. ** ** when *** ******** ** ****** ** taken, ** **** ****** **** *********.
**'* **** * ********* ******** ****** GovSpend. ** *** *** ** **** the ***** ** ******, * *** check *** *******.
********, ** *** ******** * *** of ********** ***** *********, *** *** check *****:
* ******, ** ** **** ** the ****** ** *** ********** ** flag ****? * ***** **** ****** on *** ***** ****** ********* *** a **** ** ** *** ********* is ** **** **** **** ******. It's *** ** ****** *** ******** the ***, *** *'* **** ****** to ****** *** *** ** ** whom ** ***** *** ******* **********.
"* ******, ** ** **** ** the ****** ** *** ********** ** flag ****? * ***** **** ****** on *** ***** ****** ********* *** a **** ** ** *** ********* is ** **** **** **** ******. It's *** ** ****** *** ******** the ***, *** *'* **** ****** to ****** *** *** ** ** whom ** ***** *** ******* **********."
** ** ********** *** ************** ** the *** ******** ******* *** ****** for **** ****** *****. ***** ** no ******; ****** ****** *** ***** responsible *** ********** ******** ********** ***** other ********. **** ***** ***** * have **** ****** **** "********* ** the *** ** ** ****** *** will *** ** ******* ** ****". This ** ********** **** *** ********** funded ************. ***** ******** ********* *** simply **** *** *** ***** ***** jobs. ** **** *** ****** ******* or *** **** **** **-****** ******* consultants ** ***********; ** ** ***** on **** ** ******* ******* ** not * *********** ** *****.
********, **** ****** ***** **** *** causing **** ** **** *** ******* around ******** ***** ***** ********* * huge ********. **’* ** **** ** navigate **** *****, *** **** ** it ******** **** ******** **********, *** fact **** ***’** ******** **** ******* them ** ******* ****** ******* ***** and ** *** *** **** *** money ********* ****. ****** * ****** service ** **** *****.
**** *** **** **** **** ****** and **** ** ***** ********** *****'* alert **** **** **** **** *** to *** ***** ******** ***** *******.
"**’* ** **** ** ******** **** issue, *** **** ** ** ******** some ******** **********, *** **** **** you’re ******** **** ******* **** ** prevent ****** ******* ***** *** ** use *** **** *** ***** ********* else. ****** * ****** ******* ** this *****. "
**** ******* ** **** ***** ******* funding ********** ** **** *** *** doing ***** **** ** ***** *** diligence.
#* ***** *** *********, *** ******** professionals. ***** **** *** ** ******* our ********. ** ****** *** ****** them ** **** **** ******* **** been ****** ** *** ** ********** when **** ******** ***'* **** *** difference ******* **** *** ***. **** a ******** ***** ** ** ** my ************** ** **** **** *** best ******** ******** *** ***** *****. If ** ********** *** ******** ** these ********* **** * **** *** blame ****** **** ** ****. ** the ******** ******* ** ******** *** cameras ****** *** **** *******, **** perhaps **** *** ** ***** *** why ****** ****? * ******* ***** certainly **** ***********. ** ** **** experience ** **** ****** * *** tell *** **** ********* *** **** followers, *** **** ********* **** ******.
**** *** ********* *** ******** *** what ***** ********* ** ***** ******* them ******? **. ** *** *** hired ** * ********** ******** ** are **** ** **** ********* ** an ******** ** * ******, *** the ******, *** *** *** ****** are ***********. ****** ********* *** ********* put ***** ***** ***** ***** **** they ***'* ****** ******, *** **** is ********** **. ** *** ***** to **** ************** *** ***** *********; then ***'* **** * *** **** puts *** ** * ******** **** falls *** ******* **** *********.
"** ** **** ********** ** **** sector * *** **** *** **** educators *** **** *********, *** **** generally **** ******"
**** *** **** *** ** **** experienced; **** *** *** **** *********, but ******, **** ** **** *** rules *** *** ********* ***** ****** and ******* ****** ******* ******* ** politics ** *** **** **** **** and ******* *** **. ** *** classify ***** ***** ** ****** ** "good ******" **** * ******* ***** good ******, *** **** *****'* **** them *** ****** ** ********* ********** and ****** ****** ********* **** ***** people's *****. *** **** *** **** my **** ********** **** ** *****.
**** ******** **** *** **** **** angry ** *** ********* ******.
********** ********, ******* ******, ****** ******* decisions **** ******** ***** ******** ****** make ** *** *****. ***** *** aren't * ********.
**** *** ********* *** ******** *** what ***** ********* ** ***** ******* them ******? **.
**** - *****.
*** **** **** ********** ********** **** prosecuted **** ***** *** '****-*******' ********* already *********** ********* *** **** ** on ** **** ******, *** ************** that **** ***** ****** *** **** regularly **** **** *** ******** ***** bartenders ** ****-*****, ***** ** * provably ************ ****** **** ********* ***** for *** ******** **** ****** ** any ********* ********* ****.
* ** *** ******** **** **** position **** *** *** **** ***** to ** ***** *** *********... *** like ***, * ***** **** *** integrators ******* ******** ********* ** *** users *** **** ** **** *** not ***** ***** *** *** ********* and ******** ********* ** ********* **** could *** **** ** * ******** of ****.
"*** **** **** ********** ********** **** prosecuted **** ***** *** '****-*******' ********* already *********** ********* *** **** ** on ** **** ******"
******? **** ***? *****? *** *****, 800+ *****?
* ******* * ***** **** "*** over-serving". *'* ********* ** * ********* simply ******* ********* ******* ** * paying ********. *** **** ** ** an *******.
******* **** ****:
**** **** **** **** * ******** liable *** ******* ** ******* ******* to ****** ** *********** ******* *** later ***** *****, ******, ** ******** damage ** ******* ******.
***:
********* ** ****** *** *** ******** of ******** **** **** **** ** dram **** *** ** ******, ******* in *****. ***** ****** ******* **** shop **** *** ********, ******, *********, Maryland, ********, ******, ***** ****** *** Virginia
******* ** ***** *** ********* ********* ethically *** ******** ******* **** * responsibility ** ****** ***-***** ** **** risks, ******* ** * ********* ** a ********** *********** ********.
*** ** ****, *** *******. *** end ***** *** ***** *** **** responsible **********. ********** ** ********** ************ it's ********** **** **** *** ******* of *** ***** ** **** *** such **** *********. *** **** *** not. **** *** **** ************ ******* for **** ** ***** *** ***** which ** **** **** **** **'* not ***** *** *****.
*** *** ***** *** ***** *** most *********** **********.
* ***** **** ****. *** ***** should ** **** *********** ****** ******* should **** **** **************. * ***** it's *** *** ******* *** ******* (whether ** ******* ** ************) ** simply ***** ********* *** *** "*** that's *** *****'* *******." **'* *** hard *** * ****** *** ****** easily **** *** ********* **** *** NDAA ** ** ***** ******* ** to *** ********. **** ** *** customer ***** ** ***** ** **, that's ** *** ********.
** ***** ** *** ******* **** be ****** ** *** ****** *** they ****** **-********** *** *** *****/**** are ********. *** ***, ************ *** Integrators, ***** ** *** *** ******** up ****** *********.
** *** **** **** *** ******* Register ** * ********* ********? *** you **** * *********?
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