Highlands Community Charter and Technical Schools

CALIFORNIA STATE AUDITOR Report 2024-106 | June 2025 Table 1 Highlands Engaged in Unlawful and Wasteful Spending of Public Funds ITEM EXPENDITURE TYPE OF CONCERN DESCRIPTION HIGHLANDS’ PERSPECTIVE NUMBER AMOUNT 1 Conflict of interest $1,500 per month A director-level employee initiated The director was not aware that this was for two months a contract with his wife for a violation. mentor services. 2 Gift of public funds $8,750 Holiday blankets for students that Highlands purchased these student blankets Highlands purchased from a vendor as a gift for students at the holidays. This whose spouse is a director-level followed an internal tradition of giving a employee at Highlands. gift of small, nominal value to each student annually at the holidays. 3 Gift of public funds $137,900 Six thousand beanies, scarves, and The beanie, scarf, and glove sets were gloves as holiday gifts for students. designed to increase student engagement during the holiday season and demonstrated a token of appreciation from Highlands for being a part of the school. 4 Wasteful use of $1.96 million Total cost, including lodging, travel, The learning recovery grant allowed for learning recovery and food fees, to provide professional a unique and innovative way to hold emergency block development to employees at the training opportunities. grant Manchester Grand Hyatt San Diego over three days in August 2023. 5 Wasteful travel expense $2,600 Flight to Paris to attend a technology This travel was to promote the use of conference for an employee whose Highlands’ internal technology at a mother is on the board of directors. technology conference in Paris. 6 Wasteful travel $80,000 Travel registration for seven employees Attendance at this conference was to expense, questionable and one consultant to attend the hear concerns from legislators about their educational purpose Independent Voter Project conference constituents to help identify how Highlands in Maui. might be able to support those needs, rather than a traditional educational or professional development purpose. 7 Wasteful travel expense $1,900 One of fourteen employee hotel This travel was to attend the California stays at the Hilton Waterfront Beach Association of School Business Officials Resort in Huntington Beach to attend conference, and Highlands selected this a conference in Long Beach, 15 miles hotel because the on-site hotel option was away from the hotel. sold out. 8 Wasteful contract $4,500 for Project management of an internal Highlands paid this consultant to help build one month education game that lacked a clear out its in-house interactive learning game purpose and deliverables. Highlands for English learners. Highlands decided not spent a total of $147,500 on this to use a pre-existing game because school vendor from fiscal year 2020–21 employees did not think any existing game through 2022–23. met the curriculum needs at Highlands. 9 Wasteful contract $60,000 Contract for student recruitment and This payment was to ensure that awareness that lacked a clear statement partnerships with specific organizations, of work or contract deliverables. such as a cosmetology school, occurred when Highlands expanded into the cities of Garden Grove and Elk Grove. 10 Wasteful marketing $25,860 Sponsorship of Foothill High This sponsorship was to advertise to parents expense School Athletics with no proof that in the North Sacramento area because they marketing occurred. could be students of Highlands. 11 Wasteful marketing $50,000 Donation to the Asian Pacific Islander This donation was to receive training from expense Legislative Caucus Foundation with no the Foundation as well as for the Caucus to proof of specific marketing outcomes. do student outreach on behalf of the school. Source: Highlands’ accounting records, financial documents, and interviews with Highlands staff.