2010-2011 Santa Clara County Civil Grand Jury Report East Side Union High School District’s Progress in Response to the

Conclusions 3

• CL1
  ESUHD has been slow to implement the recommendations of the January 28, 2010 FCMAT audit.
• CL2
  According to the FCMAT report, some employees fear reprisal when speaking out. This may prevent them from reporting incidents that could cost the district.
• CL3
  The Grand Jury found that the District has made some efforts to update procedures in line with the January 2010 FCMAT report recommendations as shown in Table 1. In addition, the Board of Trustees recently hired an internal auditor who is required to report directly to the Board. The District also rejuvenated their audit committee to oversee the day-to-day fiscal operations of the District. The SCCOE is and has been meeting quarterly since February 2010 with the District to monitor progress in implementing the FCMAT recommendations. The Grand Jury concluded that the District has been slow to implement the recommendations made in the January 28, 2010 FCMAT report. In these times of severe budgetary deficits and cutbacks, it is disheartening to see that after SCCOE spent close to $50,000 to commission an audit, the District has not completed the implementation of the FCMAT recommendations. Findings and Recommendations Finding 1 ESUHD has been slow to implement the recommendations of the January 28, 2010 FCMAT audit. Recommendation 1 ESUHD needs to make the FCMAT audit a priority and implement its recommendations. Finding 2 According to the FCMAT report, some employees fear reprisal when speaking out. This may prevent them from reporting incidents that could cost the district. Recommendation 2 The District should establish a whistle-blower hotline process directed to the Internal Auditor. 7 This report was PASSED and ADOPTED with a concurrence of at least 12 grand jurors on this 9th day of June, 2011. Helene I. Popenhager Foreperson Gerard Roney Foreperson pro tem Kathryn Janoff Secretary 8