Debby, I can't tell you how tired I am of this person. That said, I've been around the block a time or two and I really suspect her days are limited. I've spent a lifetime training people to become leaders. She fails virtually every benchmark. And her most common practice: "lying to the boss" will certainly not end well for her.
That kind of 'practice' doesn't bode well for her...she can only lie and cover up for a certain amount of time before she's found out.
Hang in there Bob, she'll eventually blow it and then you won't have to deal with her any more.