BALTIMORE — A newly released audit alleges a taxi company fraudulently charged Baltimore City Public Schools over half-a-million dollars.
In early 2022 the Office of the Inspector General for Education (OIGE) received a tip about drivers with Z Trip, formerly Yellow Cab, forging fare vouchers and billing for trips that never took place.
For various reasons the school system uses cab services to transport certain students who are homeless, in foster care, or have special needs.
Auditors discovered dozens of billing discrepancies while comparing them to student attendance and enrollment records.
Investigators found 3,907 instances when Yellow Cab invoiced for rides exceeding documented student attendance.
The report also mentions a time in February 2022 when Yellow Cab invoiced 18 roundtrip fares for a particular student who showed up at school only nine days that month.
Further review revealed invoices for 25 students dated after they withdrew from a school, or transferred to another system.
For example there was one student who only attended school for one day, yet the cab company reportedly charged the school system $9,158.13 for 317 one-way trips between September 2018 and June 2019.
Records from the Maryland State Department of Education confirmed the student was enrolled in a Baltimore County school during that time, not Baltimore City.
Then there was at least a month when the school system was being billed for 46 students who'd already graduated.
The school system pushed back on this finding in their response to the report.
City Schools acknowledges the OIGE’s findings with some clarification. Many of the students who receive taxicab services are students in special circumstances, including those with disabilities whose education is guided by Individual Education Plans (“IEPs”) and who often receive Extended School Year (“ESY”) services during the summer. For example, the OIGE identified 46 students who were set to graduate in a specific year, and its report flagged that Yellow Cab billed for taxicab transportation after the last day where seniors were required to attend school and through to the end of the school year. Even after this last day for seniors, however, there are still many reasons why seniors have the option to attend school, including to participate in events and activities, and if they were eligible for transportation, City Schools was required to transport those students during this period. Significantly, at least 38 of these 46 students had active IEPs. In accordance with state law, students with IEPs are entitled to continued educational services and supports for the entire school year, even if they are cleared to graduate, and some even qualify for ESY services through the summer, after graduation. City Schools would welcome an opportunity to discuss this issue further with the OIGE and determine whether any revisions to its report are warranted.
On more than 1000 occasions the school system paid taxi companies rates that differed from annual cost reports, potentially costing $86,754 in overage fees.
Finally some questions whether the school system complied with its own contractual terms for minimum trip rates.
During the 2021-2022 school year cab drivers were supposed to be paid a minimum rate of $15. Yet auditors detected that rate was exceeded by at least $4,383.90.
As result of all these missteps, auditors concluded the school system overpaid $600,000 in cab fees since 2018.
All of this follows a separate 2018 investigation conducted by the Office of Legislative Audits.
That found cab companies received $1.2 million in overpayments from schools.
In response Yellow Cab signed an agreement letter with the school system, promising to pay back $1,123,030.26.
As of February 10, 2023 the school system is still owed $479,030.26.
Meanwhile WHC MD, LLC, who Yellow Cab assigned all liability to in 2019, denied being a part of the agreement and therefore says it has no obligation to pay the remaining balance. In fact, they say the school system still owes them $230,000.
Since the audit City Schools says it's reduced student taxicab usage by approximately 90 percent, from over 1,000 students to less than 100 students.
To read the full report, click here.
