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Extracted from Consolidated Report
This investigation was originally published as part of a larger consolidated report containing multiple investigations. View the consolidated PDF for the complete document.
⚠️ Translation Notice: This content has been automatically translated. The original English text is the official version. Translation may contain errors.
⚠️ Este contenido ha sido traducido automáticamente. El texto original en inglés es la versión oficial. La traducción puede contener errores.
Findings 8 findings
F1
Page 35
The Sierra College Foundation could legally operate as an intermediary organization funding the bond measures as defined in the FPPC Information Manual D, as advised by Gilbert & Associates, Government Financial Strategies Inc., Dr. Larry Toy (President/CEO Foundation for California Community Colleges) and without objection from the College District’s legal counsel, Marion Cantor.
F2
Page 35
The Foundation had no intent to suppress donor names as evidenced by its willingness to supply accounting records, the display of donor names on its websites, donor list notifications to the bond measure Committees, and supported by the testimony of all donors surveyed.
F3
Page 35
Filing errors for Measures E, G, and H were made due to inexperience, inattention to detail and confusing underlying documentation. a. The donors’ names should have been itemized in an FPPC filing by the Foundation as an Intermediary. b. The Committee Treasurers failed to notify the Foundation of its FPPC filing requirements due to their inexperience and lack of formal training in FPPC filing requirements. c. The omission of FPPC filing of itemized donor names was inadvertent and unintentional.
F4
Page 35
The FPPC filing errors were relatively minor and easily correctable. The Committees promptly made amended filings to correctly disclose donor names when the errors were found.
F5
Page 35
The former President was far removed from the detailed process of making filings and there is no evidence that he had knowledge of them.
F6
Page 35
Complainant failed to exercise due diligence before taking the serious step of making charges, and as a result, the complaint was inconsistent with the facts. The charges are unfounded, misleading and full of unsubstantiated allegation. The charges are utterly without merit.
F7
Page 38
has no legally required respondent, but the Grand Jury hopes that the press and the public will take note of it. This page intentionally left blank. APPENDIX 1: THE COMPLAINT 36 A,tnox I(IEIN - l i i:.iI Siera CollegeT rustee Decembe2r 0,2004 i': r i'i i ;,r Mr. McCauley i i . - r, l . i
F8
Page 36
Complainant’s insistence that the Foundation be barred from supporting Sierra College bond measures by donor solicitation as an intermediary is an unfounded opinion. The Foundation should not be prohibited from legal fund raising and bond measure contribution activities as the result of the erroneous view of a single Trustee. 32
Recommendations 6
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R1Page 29The Sierra College Board should extend the Grand Jury’s thanks and appreciation to the College and Foundation staff for persevering in the best interest of the College and the community through a difficult and trying time.
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R2Page 29The Board should publicly acknowledge that the complaint filed by one of its members was without merit and should offer an expression of regret to the College community, the former President, and the public.
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R3Page 29As a significant healing step for the college community, the Board should acknowledge in some tangible way the contributions of the former President’s tenure.
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R4Page 29Complainant should apologize to the College community and the public at large for filing charges, which the Grand Jury has proved to have no merit.
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R5Page 29It should be recognized, with support of legal counsel, that there may be substantial advantages to allowing the Foundation to raise funds for College bond issues as an intermediary as enabled by the IRS and FPPC rules. REQUEST FOR RESPONSES The Grand Jury requests responses to its Findings and Recommendations as follows: Sierra College Board of Trustees: Findings 1 through 6 and 8; Recommendations 1 through 3 and 5. Sierra College Interim President (or VP Finance and Administration) and Sierra College Foundation Executive Director: Findings 1 through 4 and 8 and Recommendations 1 and
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R13Page 33There is some caset o be made that the Foundation, a 501(h) otgatizztton, can legallym ake contributions to ballot measure committees, without losrng its tax exempt status.H owever, this does flot exempt the Foundation ftom the provisions of the Political Reform Act and its rmplementing regulations,f orbidding it to accept poliucal donations without the proper filing disclosures.