Stockton Unified School District (Follow-Up)

SUSD Trustees reduce the dollar cap that can be spent for non-instructional and administrative consultants without Board approval. Trustees or a committee of Trustees review consultant contracts to ensure there is a need that employees can not fill and that a meaningful product will be produced. Board of Education Response: The recommendation requires further analysis. 2008/2009 Grand Jury Finding: This recommendation has been implemented. The Superintendent now gives all consultant contracts to the Board for approval. The Board receives professional, well-prepared documents containing adequate information to make informed decisions.

SUSD Trustees limit the use of non-instructional and administrative consultants to specific, short term jobs. The primary responsibility of running the District belongs with SUSD employees. Board of Education Response: This recommendation was implemented prior to the Grand Jury’s investigation. 2008/2009 Grand Jury Finding: This recommendation has been implemented. The Superintendent created and filled several new positions with SUSD employees to perform tasks formerly done by consultants.

SUSD Trustees re-examine the policy of allowing the Superintendent to create positions and hire employees without a competitive application process. Board of Education Response: This recommendation will not be implemented at this time. 2008/2009 Grand Jury Finding: This recommendation has been partially implemented. The Superintendent retains the ability to create positions and hire without competitive process. The Grand Jury believes the Superintendent used the power wisely when reorganizing SUSD administration. Most administrative positions were filled with qualified personnel from the pool of current SUSD employees, rather than going outside the District.

SUSD Trustees conduct a thorough, independent audit of restricted (categorical) funds received from State and Federal sources with extra emphasis placed on AB1113 funds. In addition, an audit of purchases made by management be conducted on an annual basis until public confidence is restored. Board of Education Response: This recommendation is being implemented at this time. 2008/2009 Grand Jury Finding: This recommendation has been implemented. SUSD retained the Fiscal Crisis and Management Assistance Team who conducted an audit of all operations and prepared a 195 page report. Most facets of SUSD operations received high ratings. However, the section of the audit dealing with categorical funds 27 did not. Section PA 5.6 of the report contains 9 findings and 12 recommendations for improvement of SUSD’s management of categorical funds. The conclusion of the section reads simply: “Standard Implemented: Not Implemented, Rating: 0.” The range of ratings are from 0 (lowest) to 10 (highest).

SUSD Trustees or a committee of Trustees periodically review purchases made by management as a whole and by individual management team members to ensure strict written guidelines are enforced. Board of Education Response: This recommendation was implemented prior to the Grand Jury’s investigation. 2008/2009 Grand Jury Finding: This recommendation has been implemented. The Board of Education receives a thorough report entitled “General Ledger Transactions - Superintendents Location” that lists all purchases. The level of detail provided in the report has improved dramatically under the current Superintendent.

SUSD Trustees carefully review the budget and question policy decisions made by SUSD management to ensure the District is being run in a prudent, economical, and legal manner. Board of Education Response: This recommendation requires further analysis, which will take place as the Board and staff prepare the 2008-2009 budget. 2008/2009 Grand Jury Finding: This recommendation is being implemented. The Superintendent is providing concise, reliable data to the Board of Education.

SUSD Trustees review and approve plans for future District-wide fund raising activities.

SUSD management provide thorough and accurate accounting of all district-wide fund raising activities undertaken by SUSD. The information must be made available to the public on demand. Board of Education Response: This recommendation was implemented prior to the Grand Jury’s investigation. 2008/2009 Grand Jury Finding: The recommendation is likely to be implemented if SUSD conducts district-wide fund raising with a foundation. With additional oversight 28 from an independent organization, it will be much more difficult to conceal the source of funds and how they were spent.

SUSD Trustees ensure SUSD management is held accountable for their actions. Board of Education Response: This recommendation is being implemented. 2008/2009 Grand Jury Finding: This recommendation has been implemented. Three new Trustees were elected in November 2008 and a new management team is in place.

SUSD Trustees and management work as a team to accomplish common objectives and not lose sight of the District’s mission which is to educate the children of the District. Board of Education Response: This recommendation has been implemented. 2008/2009 Grand Jury Finding: This recommendation has been implemented. SUSD has a solid management team in place. The Superintendent has vision and is a strong proponent of improving student outcome. He is looking at all facets of SUSD and implementing necessary changes.

The Board of Trustees manage the recent bond measure in a timely and effective manner and regain the public’s confidence. Board of Education Response: This recommendation has been implemented. 2008/2009 Grand Jury Finding: This recommendation has been implemented. The Board established a Citizen’s Bond Oversight Committee to oversee both Measure C and Measure Q Bonds. The Superintendent has proposed numerous changes to proposed bond projects. Current plans for high school renovation may be replaced with plans to build new high schools. 12. (No recommendation #12 from the 2007\2008 Grand Jury) 2008/2009 Grand Jury Finding: The Superintendent and Trustees took a calculated risk in using the Success for All program. The program was not approved for use by the California Department of Education. The Grand Jury believes this risk was justified. 13. (No recommendation #13 from the 2007/2008 Grand Jury) 2008/2009 Grand Jury Finding: The Superintendent and Trustees took a calculated risk in offering SAT testing and preparation training at no cost to students. Approximately 70% of seniors participated, up from 8% the year before. Again, the Grand Jury believes the risk was justified. 14. (No recommendation #14 from the 2007/2008 Grand Jury) 2008/2009 Grand Jury Finding: The Superintendent resides within Stockton city limits and within the Lodi Unified School District. A family member was enrolled in a SUSD 29 pre-school program targeted to disadvantaged youth. All supporting documentation was reviewed by the Grand Jury and appeared to be in order. Further, the Superintendent kept a promise he made to enroll family members at SUSD.