Stockton Unified School District investigated for possible fraud following state audit
STOCKTON -- The interim superintendent for the Stockton Unified School District said Monday that the district welcomed the opportunity for an investigation into alleged fraud that was revealed in a recent state audit report.
Shortly before the district held a press conference on Monday morning, San Joaquin County District Attorney Ron Freitas announced his office was initiating an independent investigation into Stockton schools following two grand jury reports and the Fiscal Crisis and Management Assistance Team (FCMAT) auditor's report.
"We are not afraid of this news; in fact, we welcome this news so we can get back to the business of having our focus on student achievement and student learning instead of the adults of this organization getting us sidetracked," said Traci Miller, interim superintendent for Stockton Unified School District.
The FCMAT is a state agency that works with California's education agencies to identify and resolve financial and operational problems.
Earlier this year findings of their "extraordinary audit" had been released and allegedly showed sufficient evidence of fraud, misappropriation of funds and other possibly illegal fiscal practices within the school district.
Miller said the district is happy to have outside investigation, because if there are issues the organization needs to deal with, or if there are adults that are doing something on the backs of the children, then they need to address it.
Following the FCMAT report, the agency recommended that the San Joaquin County superintendent notify the governing board of SUSD, the state controller, the state superintendent of public instruction, and the county district attorney about the possible findings of fraud and possible violations of the state's Brown Act laws regarding public meetings.
In response to what the school district has done regarding the recommendations, Miller said they have already started working towards getting training for staff. She said policies and procedures have to be revamped that are in the best practices.
The district is working with the California School Boards Association and is in the process of doing trainings, Miller said.
The FCMAT report stated that in May 2021, a district employee met with members of the San Joaquin County Office of Education to discuss concerns about "procurement irregularities in a contract with IAQ Distribution Inc."
IAQ Distribution Inc. is a distributor of indoor air quality monitoring and disinfection devices.
Allegedly three months later, another employee reached out to the county office with similar concerns.
Freitas said during his press conference that anyone who attempts to commit fraud in the district will be prosecuted to the fullest extent of the law.
