June 8, 2017, Hayward, CA- Alameda County Superintendent of Schools L. Karen Monroe has received the completed AB139 Extraordinary Audit of the Tri-Valley Learning Corporation (TVLC). The audit, conducted by the Fiscal Crisis & Management Assistance Team (FCMAT), was commissioned by Superintendent Monroe in November 2016.
FCMAT’s analysis concluded that, among other findings, TVLC’s management may have:
- failed to disclose numerous conflict of interest relationships;
- diverted, commingled and/or misappropriated public funds with various private entities, including tax-exempt public bonds totaling over $67 million; and
- contributed to an environment of significantly deficient internal controls.
“Given the extent of the findings contained in the Extraordinary Audit, I have provided the full report and all supporting materials to the District Attorney’s office for their review,” stated Superintendent Monroe.
Superintendent Monroe has also provided the report to the TVLC Board of Directors, Livermore Valley Joint Unified School District, State Superintendent of Public Instruction, State Controller, State Treasurer, and U.S. Bankruptcy Trustee to inform them that fraud, misappropriation of assets, or other illegal activities may have occurred, so that each agency may act within their respective authority.
In accordance with Education Code provisions, Superintendent Monroe will formally report the findings and recommendations of the audit at the next regularly scheduled meeting of the TVLC Board of Directors, which is tentatively scheduled for June 29th. TVLC then has 15 days to inform the county superintendent and its charter authorizer, Livermore Valley Joint USD, of its proposed response to the Extraordinary Audit’s recommendations.
Under Education Code 1241.5, county superintendents may review or audit the expenditures and internal controls of a school district or charter school within their county if there is reason to believe that fraud, misappropriation of funds, or other illegal fiscal practices have occurred. When concerns of misappropriation by TVLC initially surfaced, the Alameda County Office of Education staff conducted a preliminary investigation to determine whether there was reasonable suspicion that such illegal fiscal practices may have indeed occurred. Based on that initial review, Superintendent Monroe contracted with FCMAT to conduct the AB 139 Extraordinary Audit.
Access the full AB 139 Extraordinary Audit Report of TVLC.