Hello everyone – Hope you had a great weekend.

In this update I will go over the following items:

1. Some Redflags in 2022-2024 contracts (that are made public on MHUSD website so far)
2. District’s hired auditor (Eide Bailly LLP) report of 2022 financial statements, their identified area of “Significant Risk” and my phone conversation with the main person at Eide Bailly LLP in charge of this audit/report.

Please know anyone can post an update on this petition. So please feel free to update as often as you need.

In the meantime, the following items are in the works – I will update when more information is available.

1. FACE center funding information – another parent request for information from Ms Timboe and her response.
2. A parent submitted an FOIA request to the district for 7 specific items.
3. During my discussions with each board member 1-1, I discovered that one of them is currently attending an event in Washington, D.C. The district has paid for their plane ticket at least. It’s possible that this board member will still be in D.C. for next meeting on April 16. My objective is to gain a clearer understanding of the event’s scope and to hear the board member’s report on their findings.
4. Investigating if March 22 Special meeting violated California Code, Government Code - GOV § 54956 section (a) for not having informed local media (along with rest of the board members) 24 hours prior
5. SACs (financial statement) second interim budget update in 2021-2022 & 2023-24 General Fund update – Areas of concern with “Services and Other Operating Expenditures” (object codes 5000-5999) – High allocation of travel, membership and consultation services adding up to nearly $21M.
6. State Auditor’s response to me regarding my request for their audit. And next steps for a Whistleblower complaint request with documentation.

Another reminder to please mark your calendar for April 16 meeting.

1- Some of the Redflags in 2022-2024 contracts:

Today, I dedicated time to meticulously review some of the MHUSD contracts for 2023 (signed and approved in December 2022) and 2024 (signed and approved in Dec 2023 and January 2023). These contracts are publicly accessible on the MHUSD website. During my examination, I encountered numerous red flags—so many, in fact, that listing them all would be impractical. However, I can share some observations from the most recent list discussed during the meeting on February 7, 2023. I strongly recommend that you delve into the remaining items specified in the July/Aug 2022, October 2022, September 2022, and November 2022 lists. Pay particular attention to this unclear $144K contract in Oct 2022 with Luis F Cruz of CRUZ & ASSOCIATES CONSULTING, INC which is a domestic stock company based out of a home address: 16 Rancho Jurupa Place, Pomona, CA 91766. The extended contract with HopSkipDrive Inc, a private transportation company based out of LA. Look into $350K plus special ed contracts in 2022. Also see details when FACE center expanded into offering Adult Education. 

Please note the summarize list contracts stop being posted publicly shortly after 2/7/23. Nevertheless, the budget review for March 19, 2024, still indicates an “Other Operating Expenditure” (object code 5000-5999) in the 2023-24 Second Interim budget, amounting to nearly $21 million. In my previous update, I had specifically requested further clarity regarding this category. It is crucial to emphasize that neither the board nor the district has provided a response to my inquiry yet.

• During 02/07/2023 board meeting, the board was presented with list of “signed” contracts in Jan 2023.
  • A one-time contract in amount of $25,000 for less than 6 months duration in 2023 made with “Living Above the Influence” based in MH and founded by Dori Ann Prado (who is a full time program manager at Cisco…). This contract was later extended into 2024 total $112K. The website offers minimal information on their offering and services. Similarly, a motivation speaker and counselor from Empowering the Fatherless, that was paid in amount of $12,000 in 2022-2023 school year. 
  • First line item specifies a $15,000 contract with Leadership Associates for most of 2022-2023 school year for providing Superintendent and the board with advisement services. During 1/19/2023 Special Board meeting at 9am at Hampton Inn in MH, Leadership Associates’ Tom Armelino facilitated the Governance Norms and Protocols discussion/workshop  focused on developing an understanding of the roles of the Superintendent and Board. A resource that can be found at no cost from various sources such as this article. Also worth noting Tom Armelino was the former executive director of the National Association of School Superintendents and Leadership Associates is an advising firm focused on Superintendent leadership coaching and development.
  • One list item on this list specifies hiring of one board certified behavior analyst from 1/30/2023 to 6/9/2023 (94 business days - minus two weeks break in that period = 84 school days) for amount of $85,280.00 (breaking this rate down per school day is $1,015.24 daily) for this individual. To just put this to perspective this individual's annual salary at above rate would be $263,962.40. According to Indeed.com the average salary for a board certified behavior analyst is $100,157 per year in the San Francisco Bay Area, CA. Making this rate more than double of the average.
  • Another line item specifies a one-time $40,000 contract with Aedis Architectural Services from 1/25/23 to 4/15/23 for “Programming” of the FACE center. Unclear what “programming” scope with an architectural firm entail.
  • The superintendent department hired Voler (Strategic Advisors) for most of 2023 for amount of $96,000 for communication strategy and support services. This service feels a lot like a public manipulation strategy. On Voler website they specify their support for communication in following way: Voler Strategic Advisors specializes in designing clear, powerful messages and shaping issues to capture the intrigue of the public and targeted media outlets. We strategically position our clients [MHUSD] and their issues within the context of each story, viewing every media contact and exposure as an opportunity to build positive momentum and reinforce messaging leading up to critical decisions and deadlines.
  • The superintendent has the authority to enter into contracts with a value up to $100,000 on behalf of the District. These contracts must be subsequently ratified by the Board. However the list of some of the “signed” contracts for 2023-204 was presented to the board during 02/07/2023. Past the date many of these contracts has started.
• During 1-23-24 board meeting. List of signed contracts in Dec 2023 was presented. 
  • Allen Alson (a former superintendent) - was hired for $30k for coaching/consulting to the superintendent. 
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Its worth noting the above contract lists all were signed and approved by the board prior to 03/07/2023 board meeting where MHUSD proposes the first reduction of classified personnel in response to projected deficit. Subsequently the board continues to approve of all on-going, extended contract into 2024. 

2- District’s hired auditor (Eide Bailly LLP) report of 2022 financial statements

• Significant Risk Identified as Management Override of Controls – professional standards require auditors to address the possibility of management overriding controls. Accordingly, we identified as a significant risk that management of the organization may have the ability to override controls that the organization has implemented. Management may override the organization’s controls in order to modify the financial records with the intent of manipulating the financial statements to overstate the organization’s financial performance or with the intent of concealing fraudulent transactions.
• In my phone conversation with Ahmad Gharaibeh, the main partner at Eide Bailly LLP in charge of this audit/report informed me he paused and mentioned he cants disclose what findings/analysis led to this identified risk. He stated he needs to get approval from MHUSD to provide this information. His contact info can be found at the end of this presentation.