San Diego Unified School District

The School used ASB funds for curricular and administrative purposes, and for the benefit of faculty, which is contrary to District Procedures.3

The School has disregarded and failed to apply required internal controls. District Administrative Procedures 2225, 2227, 2245, 2247, 2250, and 2375 regarding Administration of Student Body Funds and Associated Student Body Accounting Manual & Desk Reference, published by Fiscal Crisis & Management Assistance Team, 2005 (FCMAT ASB Manual), 10 Things You Should Know (ASB) Office of Audits and Investigations. District Procedure Number 2225, effective January 29, 2002, provides, in relevant part: that student body funds are to be used to finance non-curricular activities beyond those provided by The District, that under no conditions shall student body money be expended for the benefit of faculty, and that student body funds in secondary schools may not be used to purchase instructional supplies and equipment for instructional use. 3

School personnel are not following the 10 Things You Should Know publication.

Approximately seventy-five percent of district schools, audited by the District Auditor, misused ASB funds for curricular and administrative purposes and for benefit of faculty, in violation of District Procedure 2225 regarding ASB funds.

Various district schools have disregarded internal control procedures required by The District and set forth in the FCMAT ASB Manual.

The Certified Public Accountant serving as District Independent Auditor repeatedly found common internal control deficiencies in the handling of ASB funds at various district schools.

The District Auditor, with a staff of only seven auditors and investigators (one dedicated to the Hotline), identified at least 4.1 million dollars in recoverable district funds over a period of twenty months, thus saving The District approximately three times the annualized cost of the staff of the District Auditor.

The Hotline, established contemporaneously with the District Ethics Code, is an essential enforcement arm for the guidelines set forth in the District Ethics Code.4

The combined effect of the audits and investigations undertaken by the District Auditor and the Hotline are necessary to combat waste, abuse and corruption and to maintain the efficiency, transparency and reputation of the District.

The Hotline has contributed an invaluable service for the District, but an additional Hotline investigator is needed to deal with the backlog.

The reports from the Hotline indicate that there are some district employees at all levels who have engaged in unethical, and sometimes illegal, activities. The District Ethics Code is composed of 10 principles, dealing for example with conflicts of interest, nepotism in hiring, waste, fraud, abuse and corruption, and abuse of authority www.sandi.net/depts/ethics/. 7

An annual six hour site visit once per year is insufficient oversight for District charter schools.

The District is empowered and directed to exercise oversight in order to assure the efficient and effective academic, financial, governance and management performance of District charter schools.

The 2009/2010 catalog requirement that students of The School purchase choir outfits and provide their own instrument and text for brass, woodwinds, and small strings is in violation of California law10 and the guidelines issued by District Counsel.

To the extent that the 2010/2011 policy implicitly requires that students of The School for whom no instruments for loan are available must purchase or otherwise provide their own instrument and text for brass, woodwinds, and small strings or forego the class, the policy is unlawful.11

The assessment of student fees for activities, including mandated purchases of services, materials, supplies, equipment, or uniforms associated with the activity, is prohibited, except as expressly allowed by law.14

The shortfall resulting from those who cannot or will not donate must be filled. Otherwise, many activities may well be reduced or even canceled.