Audit uncovers potential fiscal malfeasance at Stockton Unified; district attorney notified

A state audit of Stockton Unified finances has revealed evidence of potential fraud, misappropriation of funds and illegal fiscal practices, San Joaquin County Superintendent Troy Brown told the district’s board at a meeting Tuesday, according to The Stockton Record.

A report from the state’s Fiscal Crisis Management Team released that day details potentially illegal financial activities, including allegedly ignoring board policies to award a $7 million contract for air filters, according to The Stockton Record. The agency spent nearly a year working on the report.

The report found that 96% of the district’s business transactions between 2019 and 2022 had no documents showing there had been competitive bidding; 94% did not have a fully executed contract or formal board approval; almost 51% had no purchase order; 11% had payments not supported by an original invoice; and more than 9% showed an invoice dated before the purchase order or approval date.

Brown referred the report to State Controller Malia Brown, State Superintendent of Public Instruction Tony Thurmond and San Joaquin County District Attorney Ron Freitas, according to The Record.