Yuba, Sutter and Colusa schools lost millions of dollars for career technical training courses due to the negative findings of an audit of grants in 2021. Four grants in-progress were cancelled on April 1, 2021 jeopardizing future funding, as well.
The External Auditor recommended that Tri-County (Yuba/Sutter/Colusa) Regional Occupational Programs (TCROP) “remit the balance of $1,168,495 to Fiscal Agent, Butte-Glenn Community College District (BGCCD), pertaining to K-12 Strong Workforce Program funds.” The original grant award was $2,053,869.
The loss of the grant-funding affects 3,500 students and wastes thousands of tax dollars used to write the applications and collaborate with 71 partners.
School funding is complex from the taxpayer’s perspective. Education monies flow down to local school programs through a myriad of bureaucratic channels. Some monies are offered through grants that are audited to insure compliance. Compliance looks at the government rules, objectives of the funding, controls in place to prevent errors or fraud, and makes sure records are accurate, complete and done in a timely manner.
The current schools trouble resulted from Audit Findings of Certified Public Accountant Sheena Tran. The Findings involve two grant agreements between BGCCD on behalf of its Career and Technical Educational Department, and Sutter County Superintendent of Schools (SCSOS), Tri-County Regional Occupations Program (TCROP), and Local Education Agencies (LEA).
SCSOS Tom Reusser sent a six page response to Dr. Samia Yaqub, Superintendent and President of Butte College. His letter dated October 11, 2021 questioned Auditor Tran’s findings and asked that Tran’s “Final Audit Report be disregarded.” Reusser asked that more time be given to address the issues and understand the actual reason Butte College terminated the funding.
Reusser concludes, “Ms. Tran’s report contains numerous inaccuracies and appears to be an after-the-fact effort to justify a decision that was already made by Butte College – to cancel four grants.” Reusser did not explain other reasons why Butte College would want to stop the grants midway and prior to the released contrary Audit Findings.
Tran’s summary of Findings or problems were: 1) Partners were not aware of being included in the grants; 2) Falsified documentation; 3) Timesheets showing different signatures; 4) Guidelines for match requirements not met; 5) Funds were comingled and expenses were not being tracked separately for each grant; 6) Funds were not being reported correctly on NOVA; 7) Interim surveys not done; 8) Expenditures not being aligned with the objectives of the grant.
Reusser questions not having an opportunity to review and respond to the Findings prior to the cancelling of the grants and the Final Audit Report. He suggests that it was procedurally abnormal and unethical.
The Superintendent agrees on only one point with Auditor Tran saying that “a former employee did, in some cases, list community partners in grant applications without their written approval and, in two cases possibly without their knowledge.” However, Reusser argues one person’s mistake should not cause thousands of students to suffer.
The now terminated employee also signed participation documents in place of partner representatives. Tran talked with grant partners that responded to her inquiries and found that some knew nothing about the grants and their noted involvement. Reusser says that Tran talked to the wrong leaders at the schools / agencies / businesses and they were unaware of the grants.
Reusser points to a new online financial reporting system (NOVA) that gave the impression that figures did not balance. He says contrary to Auditor Tran that the district’s numbers are correct.
Though Superintendent Reusser uses the students’ well-being as leverage in his argument to keep the money, the plea has a hollow ring. Today, to be fair, students benefit from the chump change of education dollars left from bloated payrolls. A slew of bureaucrats at Sutter County Office of Education make $170,000 – 215,000 annually.
If Auditor Sheena Tran is close to accurate, the “brightest” and best paid people in town can’t meet the mundane requirements of multi-million dollar grants.
Some suggest the SCSOS is guilty of fraud. Is it fraud, incompetence, unprofessionalism or did Auditor Tran misinterpret what she saw and heard? Auditors are the taxpayers’ eyes on government. It’s the people’s money. Reusser blames the External Auditor, BGCCD and the North Far North Regional Consortium.
Whatever the final outcome, it is another expensive loss for hard-working taxpayers.
(Lou Binninger can be heard on No Hostages Radio podcast, live on KMYC 1410AM 10-1 Saturdays, read at Live with Lou on Facebook and at Nohostagesradio.com)
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