- Temple City Unified School District
Board Announces Results of Audit Investigation
The Board of Education has received the results of the forensic financial investigation conducted by CliftonLarsonAllen. In the interest of transparency, we are posting the investigation report on our website so it is accessible to all staff and members of the public. Click here to view full audit report.
The Board thanks everyone who cooperated in the investigation.
Questions about the report? Contact the Interim Superintendent Richard Tauer, at the District office: (626) 548-5120.
TEMPLE CITY, CA - The Board of Education of the Temple City Unified School District has received a report prepared by the accounting firm of CliftonLarsonAllen. The Board retained CLA through its legal counsel to conduct a forensic accounting investigation into perceived financial irregularities that occurred under the administration of the former superintendent, particularly involving certain construction projects and Measure S bond expenditures.
The investigators interviewed current and former administrators and managers. The former superintendent, Kathy Perini, declined to participate in the investigation. The investigation led to several disturbing findings that confirmed the Board’s concerns about the operation of the District under the former superintendent’s management.
The primary construction project involved the Senior Circle at Temple City High School in the summer of 2015. After reviewing the evidence, the CLA investigators concluded the project was not properly initiated or documented. The Board was never asked to approve the project or the accompanying expenditures, and although the project met the criteria and monetary threshold ($15,000) to require competitive bids under the California Public Contract Code, no bids were solicited or received. The contractor, Craftsman Construction, completed the project in August 2015 without submitting a formal proposal or entering into a contract, and without Board approval. Required documentation, such as proof of insurance, was not received until long after the project was completed.
The cost of the Senior Circle project was split into multiple invoices in a process known as “bid splitting” which is often used to avoid compliance with the Public Contract Code. The investigators specifically concluded the former Superintendent knew or should have known the project was awarded to Craftsman Construction in an improper and irregular manner, and made false statements to LACOE in order to get Craftsman Construction paid for its work.
The investigation also found excess costs totaling $846,258 for furniture and technology related to Measure S bond projects at TCHS and Longden Elementary School, which were not brought to the attention of the Board. Other less costly projects were also found to have been initiated or completed without proper documentation, notice, or approval.
In the interest of transparency the report has been posted on the District’s website where it is accessible to the public and to District staff.
The Board appreciates the cooperation of everyone who participated in the investigation. While the investigation was painstaking and lengthy, the Board accepts the results as necessary and valuable. Each member of the Board pledges to ensure the next administration is fully aware of the Board’s expectations — that all work performed in our District and all services provided by our District meet legal requirements and ethical standards, and that the Board will be apprised of the costs, status, and nature of all future projects.
The Temple City Unified School District intends to use this information to better serve the educational community as we enter the new school year and in the years to come.