Big Oak Flat-Groveland bond measure audit sought

The Citizens’ Bond Oversight Committee for the Big Oak Flat-Groveland Unified School District voted at its Monday night meeting to ask the BOFG governing board for an in-depth audit, and plans to do its own informal audit of the district’s bond projects.

In November 2005, district residents passed a $9.3 million general obligation bond for repairs, upgrades and new construction at the district’s three school sites, Tenaya, Tioga and Don Pedro. Additional state matching funds, interest accrued and developer fees increased the pot to about $16 million, said project manager Travis Kirk.

There is approximately $2 million remaining in the fund and the three main projects — the Tenaya Elementary modernization, Tioga High gymnasium and Don Pedro High multipurpose building — are complete.

“I assume the intent is still to renovate Tenaya’s gym,” Kirk told the committee.
   

There was concern by the committee expressed in a April 8, 2009, letter to the district board that the June 30, 2008, audit report completed by Vavrinek, Trine, Day & Co., LLP, an independent school auditing firm, was not in-depth enough and contained a typo in the financial summary that was later fixed by the auditor. The auditor in an e-mail said it did not change the revenues or expenditures nor did it affect the conclusions.

The committee Monday signed a letter it will send to the district board asking for a new audit. If the board does not provide another audit, committee members JoAnn Prieto and Miriam Martin, both of Groveland, will go through the Measure M invoices themselves, as they are public record.

An in-depth audit for three years could cost around $20,000, committee members said.

The committee must submit an annual report on bond projects and feels they cannot make a report with an audit Prieto referred to as “bare bones.”

“I’m so confident that everything was spent appropriately according to the bond language I’d go through every invoice with auditors if necessary,” Kirk said.

In discussion about the project, Martin asked Kirk if he reviewed every single invoice for the project and Kirk replied he only reviewed invoices “pertinent to construction,” including invoices from the project architect and engineers. Kirk said he had nothing to do with other items — like two stages that were purchased. The board and superintendent approve contracts and where to spend the bond money, he said.

As Kirk left the meeting, BOFG board member Mike Malloy arrived and presented the board with copies of two invoices for Measure M that were paid a year late. The invoices from CS & Associates were both for $1,866.27 and dated Sept. 10, 2008, and April 9, 2008, and were bills for labor compliance management services for the site work at Tioga High School. The total amount the district was to pay CS & Associates was $28,294.07 and was to be paid in 15 installments of $1,866.27.

According to the California Department of Industrial Relations, labor compliance is required on public construction projects to enforce prevailing wage laws.

The two invoices were paid May 29, 2009.

Malloy said he has been reviewing district invoices and found two that were almost double-paid, but gave no supporting documentation.

“I bring this up because I think it’s very odd,” Malloy said. “There’s a lack of separation of duties and a lack of internal controls. There appears to be a lack of oversight in terms of invoice dates and double payment.”

  In a telephone interview after the meeting, Kirk said the two invoices to CS & Associates were part of a batch of invoices misplaced, and it took months for the vendor to bring it to the district’s attention.

“It was minor and was resolved,” Kirk said.  

 Malloy elaborated on his point and said he did not think the district’s ever reconciled the contract amounts with the invoices paid for Measure M.

“I do want to pore through invoices,” Prieto said. “Somehow it must be reviewed.”

In other district and bond project news, committee chair John Olson said district Chief Business Official Tonya Midget has given her 30-day notice and will resign Aug. 13, 2009.

The committee also accepted a letter of resignation from member Victor Afanasiev, who will be on the county Grand Jury. The Measure M committee now has two openings. Those interested can contact the district office.

The next committee meeting is scheduled for 5 p.m. Aug. 17 at Tenaya Elementary School.