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Policy Memo
To: Stockton Unified School District, Business Services Department
From: Brittany Smith
Date: February 7, 2024
Subject: Policy and Compliance
Dear SUSD Employees,
In early 2023, the Fiscal Crisis & Management Assistance Team performed an Assembly Bill (AB) 139 exceptional audit of the Stockton Unified School District to identify the presence of fraud, theft of funds, and other illegal fiscal activities. Concerns were raised with the San Joaquin
County Office of Education in 2021 about the district's use of irregular federal procurement methods. It was discovered that the district failed to adhere to Board Policy, create a formal procedure manual for operating processes, internal controls, and procurement, and did not provide documentation for all procurement actions. According to the FCMAT findings, there is sufficient evidence of fraud, abuse of funds, and other illegal fiscal activity.
To prevent increasing deficits and takeover by the San Joaquin County Office of Education, the following steps are advised:
Align the business department accounting software with San Joaquin County Office of Education
Develop new policies and processes to address specific issues within the purchasing department.
