Inquiry Into Management and Oversight of San Jose Unified School District 1997 Measure C Bond Funds

The SJUSD has exercised suitable financial management and oversight of Measure C expenditures, while providing appropriate reporting to the public. There is no evidence of any inappropriate use of funds.

Although administrative and support (soft) costs are reported at quarterly BOC meetings, this information is not included in quarterly progress reports issued by the district.

Change Order No. 3 for Contract No. 7030 (in the amount of $54,326.00) was approved without securing bids, in violation of Section 20118.4 of the California Public Contract Code, in that it exceeded 10% of the original contract price ($494,233.00). Corrective action is being taken as a result of the Grand Jury inquiry and new contracting practices are being developed to prevent inadvertent violations in the future.

Participation in the Measure C BOC had declined to the point where only four of the original sixteen members remained active before the BOE took action to appoint new members. In addition, no formal membership process existed to acknowledge resignations from the Measure C BOC or to remove members who had become inactive. Five new members have been appointed to the BOC since October 2002, and the district is developing formal BOC membership guidelines.