Possible Fraud, Financial Misappropriation at Alum Rock
A recent report of the Alum Rock Union Elementary School District reveals possible fraud, misappropriation of funds, among other accusations.
The audit was conducted by the Fiscal Crisis and Management Assistance Team in conjunction with the Santa Clara County Office of Education after the county superintendent received tips about possible financial mismanagement.
The 150-page Extraordinary Audit notes that the “findings should be of great concern” to the district and the County Office and “require immediate intervention.”
Allegations that DelTerra Real Estate Services, Inc., double-billed the school district for services and has even billed the district for services that have yet to begin. Additionally, the ability to track services and financial reporting has also raised concerns. During the investigation, FCMAT notes that Del Terra Group was uncooperative and “requests for documents from Del Terra Group have also gone unanswered.”
The investigation was initially supposed to cover a random sampling of transactions from July 2013 to November 2016. But based on findings, FCMAT extended the review period to include March 2017 and include all related transactions, not just a sample.
The County Superintendent must now report these findings to the board, after which the board will have 15 days to reply with a course of action.
Alum Rock Union currently enrolls more than 11,000 students, more than 10,000 of which are labeled socioeconomically disadvantaged, according to State Department of Education data.