Fremont Unified School District Report

Bond Program Review September 7, 2023 Fremont Unified School District Michael H. Fine Chief Executive Officer September 7, 2023 Christopher Cammack Fremont Unified School District 4210 Technology Drive Fremont, CA 94538 Dear Superintendent Cammack: In October 2022, the Fremont Unified School District and the Fiscal Crisis and Management Assistance Team (FCMAT) entered into an agreement for FCMAT to conduct a review of the district’s school facility bond contracts. The agreement stated that FCMAT would perform the following: 1. Review operational processes and procedures related to school facility bond contracts for program and construction management, contractors, furnishing and equipment and other associated services, and make recommendations to align such processes and procedures to best practices. Examples include the following: • Solicitation and/or bidding of bond program-related services and materials • Approval of bond-related contracts • Processing and approval of bond-related change orders • Processing and approval of bond-related invoices This final report contains the study team’s findings and recommendations. FCMAT appreciates the opportunity to serve the Fremont Unified School District and extends thanks to all the staff for their assistance during fieldwork. Sincerely, Michael H. Fine Chief Executive Officer Michael H. Fine • Chief Executive Officer 1300 17th Street – City Centre, Bakersfield, CA 93301-4533 • Tel. 661-636-4611 • Fax 661-636-4647 www.fcmat.org Table of Contents Table of Contents About FCMAT ..................................................................................................iii Introduction .......................................................................................................v Background ............................................................................................................................v Study and Report Guidelines .............................................................................................v Executive Summary ........................................................................................1 Findings and Recommendations................................................................3 Transaction Testing and Selection Methodology .........................................................3 Solicitation and/or Bidding of Bond-Related Services and Materials .........3 Solicitation and Bidding Law .............................................................................................4 Construction Delivery Methods ........................................................................................6 District Board Policies and Administrative Regulations .............................................6 District Procedures and Practices .....................................................................................8 Observations ..........................................................................................................................9 Approval of Bond-Related Contracts ..................................................................11 District Procedures and Practices ...................................................................................12 Observations ........................................................................................................................13 Processing and Approval of Bond-Related Change Orders ........................15 Observations ........................................................................................................................15 Processing and Approval of Bond-Related Invoices ......................................17 Observations .........................................................................................................................17 Other Procurement-Related Topics ....................................................................19 Conflicts of Interest .............................................................................................................19 Board Bylaw 9270 and Form 700 – Statement of Economic Interests .................19 Fiscal Crisis and Management Assistance Team Fremont Unified School District i Table of Contents Gifts ........................................................................................................................................20 Hiring Individuals Previously Employed by Vendor ..................................................20 Communication .......................................................................................................22 Communication Between Vanir and the District .......................................................22 Staff and Vendor Turnover ...............................................................................................22 Accounting Systems ..........................................................................................................22 Purchase Order and Vendor Warrant Transparency .................................................23 Appendices ....................................................................................................25 Appendix A ..............................................................................................................26 Study Agreement ...............................................................................................................26 Appendix B ..............................................................................................................32 Contract Checklist .............................................................................................................32 Appendix C ..............................................................................................................34 Purchase Orders .................................................................................................................34 Appendix D ..............................................................................................................38 Change Orders ...................................................................................................................38 Appendix E ..............................................................................................................42 Warrants ...............................................................................................................................42 Fiscal Crisis and Management Assistance Team Fremont Unified School District ii About FCMAT FCMAT’s primary mission is to assist California’s local TK-14 educational agencies to identify, prevent, and resolve financial, human resources and data management challenges. FCMAT provides fiscal and data management assistance, professional development training, product development and other related school business and data services. FCMAT’s fiscal and management assistance services are used not just to help avert fiscal crisis, but to promote sound financial practices, support the training and development of chief business officials and help to create efficient organizational operations. FCMAT’s data management ser- vices are used to help local educational agencies (LEAs) meet state reporting responsibilities, improve data quality, and inform instructional program decisions. FCMAT may be requested to provide fiscal crisis or management assistance by a school district, charter school, community college, county office of education, the state superintendent of public instruction, or the Legislature. When a request or assignment is received, FCMAT assembles a study team that works closely with the LEA to define the scope of work, conduct on-site fieldwork and provide a written report with findings and recommendations to help resolve issues, overcome challenges and plan for the future. 90 80 70 60 50 40 30 20 10 0 FCMAT has continued to make adjustments in the types of support provided based on the changing dynamics of TK-14 LEAs and the implementation of major educational reforms. FCMAT also develops and provides numerous publications, software tools, workshops and professional learning opportunities to help LEAs operate more effectively and fulfill their fiscal oversight and data management responsibilities. The California School Information Services (CSIS) division of FCMAT assists the California Department of Education with the implementation of the California Longitudinal Pupil Achievement Data System (CALPADS). CSIS also hosts and maintains the Ed-Data website (www.ed-data.org) and provides technical expertise to the Ed-Data partnership: the California Department of Education, EdSource and FCMAT. FCMAT was created by Assembly Bill (AB) 1200 in 1992 to assist LEAs to meet and sustain their financial obligations. AB 107 in 1997 charged FCMAT with responsibility for CSIS and its statewide data management work. AB 1115 in 1999 codified CSIS’ mission. seidutS fo rebmuN About FCMAT Studies by Fiscal Year 98/99 99/00 00/01 01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 Fiscal Crisis and Management Assistance Team Fremont Unified School District iii About FCMAT AB 1200 is also a statewide plan for county offices of education and school districts to work together locally to improve fiscal procedures and accountability standards. AB 2756 (2004) provides specific responsibili- ties to FCMAT with regard to districts that have received emergency state loans. In January 2006, Senate Bill 430 (charter schools) and AB 1366 (community colleges) became law and expanded FCMAT’s services to those types of LEAs. On September 17, 2018 AB 1840 was signed into law. This legislation changed how fiscally insolvent dis- tricts are administered once an emergency appropriation has been made, shifting the former state-centric system to be more consistent with the principles of local control, and providing new responsibilities to FCMAT associated with the process. Since 1992, FCMAT has been engaged to perform more than 1,400 reviews for LEAs, including school districts, county offices of education, charter schools and community colleges. The Kern County Superintendent of Schools is the administrative agent for FCMAT. The team is led by Michael H. Fine, Chief Executive Officer, with funding derived through appropriations in the state budget and a modest fee sched- ule for charges to requesting agencies. Fiscal Crisis and Management Assistance Team Fremont Unified School District iv Introduction Introduction Background Located in Alameda County, the Fremont Unified School District is governed by a five-member board and serves transitional kindergarten through adult students at 42 schools, as well as preschool and adult edu- cation programs. According to Ed-Data, the district’s enrollment peaked at 35,777 in 2017-18 but has since declined to approximately 33,000 students in 2022-23. It is projected to continue to decline by approxi- mately 1.5% annually through 2024-25. According to DataQuest, in 2022-23, the district serves a diverse student population with an ethnic compo- sition of: 65.2% Asian; 15.6% Hispanic/Latino; 8% White; 4.3% Filipino; 1.9% African American; 0.5% Pacific Islander; and 0.3% Native American. Of the district’s students, 21.8% are socioeconomically disadvantaged, 15.4% are English learners, 9.2% are students with disabilities, 0.6% are homeless, and 0.1% are foster youth. In 2021-22, the district reported an unduplicated pupil count of 26.59%, which includes students who are English learners, foster youth, or qualify for free or reduced-price meals. As of the 2022-23 second interim report, the district’s general fund operates on a total budget of $543,941,835. The budgeted revenue consists of the following sources: 69.9% from the Local Control Funding Formula, 4.8% from federal sources, 21.2% from other state revenues, 2.6% from local revenues, and 1.4% from lottery funds. In alignment with school districts statewide, most of the district’s funds are allocated to staff compensation, with approximately 77.8% of its general fund budgeted for salaries and benefits. Measure E, a $650 million general obligation bond for the district, was passed by a 61.8% majority in June 2014. As approved by voters, the objective of Measure E is to improve the district’s schools by: • Updating technology and aging classrooms • Upgrading electrical wiring • Fixing and replacing leaky roofs, aging plumbing and restrooms • Removing asbestos • Repairing, constructing, and acquiring classrooms, sites, facilities, and equipment As of May 2022, the district had issued the entire $650 million in bonds authorized, and as of October 2022, all these bond funds were allocated to projects, with nearly $550 million encumbered, approximately $459 million of which had been expended. Study and Report Guidelines In October 2022, the Fremont Unified School District and the Fiscal Crisis and Management Assistance Team (FCMAT) entered into an agreement for FCMAT to conduct a review of the operational processes and procedures related to the district’s bond program. FCMAT visited the district on November 7-9, 2022 to conduct interviews with district and school staff, collect data and review documents. Following fieldwork, FCMAT continued to request, review and analyze documents. This report is the result of those activities. Fiscal Crisis and Management Assistance Team Fremont Unified School District v Introduction FCMAT’s reports focus on systems and processes that may need improvement. Those that may be func- tioning well are generally not commented on in FCMAT’s reports. In writing its reports, FCMAT uses the Associated Press Stylebook, a comprehensive guide to usage and accepted style that emphasizes con- ciseness and clarity. In addition, this guide emphasizes plain language, discourages the use of jargon and capitalizes relatively few terms. Study Team The study team was composed of the following members: John Von Flue Erin Lillibridge FCMAT Chief Analyst FCMAT Intervention Specialist Dean Bubar John Lotze FCMAT Consultant FCMAT Technical Writer Each team member reviewed the draft report to confirm accuracy and achieve consensus on the final recommendations. Fiscal Crisis and Management Assistance Team Fremont Unified School District vi Executive Summary Executive Summary In June 2014, voters in the Fremont Unified School District passed Measure E, a $650 million general obligation bond intended to improve the district’s schools. As of May 2022, the district had sold all $650 million in bonds, obligated approximately $550 million, and expended nearly $459 million. To ensure the district is managing the Measure E funds appropriately, FCMAT was asked to study the district’s practices and procedures regarding the solicitation of services and materials, approval of contracts, processing of change orders, and processing of invoices. FCMAT reviewed board policies and procedures for procurement to determine if they comply with statute and best practices. FCMAT reviewed a sampling of bond transactions to determine whether they adhered to the district’s established policies and procedures. The FCMAT study team also reviewed other concerns discovered during interviews to determine their validity, evaluate their alignment with best practices, and make recommendations for improvement. To help manage the extensive Measure E bond projects, the district hired a project management company, Vanir, to serve as its agent and to coordinate and manage most aspects of project budgeting, vendor selec- tion, and construction. Although Vanir manages the bond program, the district is ultimately responsible for legal compliance, ensuring the bond funds are used appropriately, and maximizing the value and benefit to the district. As FCMAT reviewed solicitation of vendors and the bidding of projects, it found that district policies com- plied with legal requirements and procedures and aligned with best practices. However, in some instances it appears the district relied entirely on Vanir for vetting and recommendation of vendors, with little over- sight or evaluation by the district. To protect its best interests, it is essential for the district to be actively involved in and knowledgeable about all solicitation and vetting of vendors. FCMAT’s review of approvals of bond contracts showed that policies and procedures complied with legal requirements and best practice. Staff and vendor representatives interviewed stated that the procedures for approval were not consistent over the years and changed as staffing changed. When testing trans- actions, FCMAT found some inconsistencies in the timing, sequence and signatures in the contract and purchase order approval process. FCMAT found that change orders were common and frequent throughout Measure E projects. Change orders were found to significantly increase initial contracts and in some cases happened just a short time after the initial contract or a prior change order was approved. Although procedures aligned with board policy, and documents clearly stated the rationale for the change orders, FCMAT found no documents to indicate that new solicitations or bids were considered; rather, original vendor contracts were adjusted to meet the project needs. When evaluating payment of invoices, FCMAT found detailed documents supporting invoices but found questionable and inconsistent district oversight. It appears that the district relied almost entirely on Vanir’s work of reviewing invoices. Based on the timing of signatures and on information from interviews, it appears district staff considered Vanir’s review and approval sufficient to process payment. To ensure pay- ments are valid, the district should perform a detailed review and approval of every district payment prior to processing the pay warrant. The district’s conflict-of-interest policy and procedures are to ensure that the district’s interests are pro- tected and that no individual’s potential benefit compromises that of the district. FCMAT found that the district’s disclosures of economic interest, which are required for board members and certain other posi- tions, did not include all designated positions, including positions at Vanir that are considered to have Fiscal Crisis and Management Assistance Team Fremont Unified School District 1 Executive Summary decision-making authority. In addition, the district did not ensure all Forms 700, Statement of Economic Interests were complete, nor did it ensure that they were completed for designated staff who begin or leave employment outside of the annual reporting period. Both district and Vanir staff interviewed expressed concerns about the lack of regular meetings and insuf- ficient sharing of information. Interviewees also stated that communication was challenging due to a high turnover of key staff, mostly at the district. Because Vanir and the district used separate financial systems, concerns had been shared about the validity of fund accounting. As a result, the district contracted with a third party to reconcile and maintain alignment of the two systems. This resolved any variances between the systems and alleviated many of the concerns. FCMAT also identified a concern about purchase orders and the transparency of payment warrants because the district had a practice of taking a list of purchase orders to the board for approval without details about vendors, funding, purposes or amounts. Once approved, the district assumed authority to process payment on the purchase orders. This purchase order approval process has recently been changed to provide sufficient detail and with it increased transparency. Fiscal Crisis and Management Assistance Team Fremont Unified School District 2 Findings and Recommendations Solicitation and/or Bidding of Bond-Related Services and Materials Findings and Recommendations Transaction Testing and Selection Methodology In addition to a standard document request that included policies, procedures, personnel, and financial data, and interviews with district staff, Vanir staff, and citizens bond oversight committee members, FCMAT conducted transaction testing. To determine transactions to sample, FCMAT reviewed board meeting agen- das and minutes from January 2020 through October 2022 and reviewed financial activity for the same period. Unfortunately, FCMAT was unable to interview prior district CBOs and the director of facilities, who might have been able to provide information on past procedures and transactions of potential concern. In selecting sample transactions to test for solicitation, contract approval, change order processing and invoice payments, FCMAT focused on 2020-22, with more samples selected for review in the more recent periods. FCMAT made efforts to test transactions for a variety of vendors and purchase types; however, transactions with frequently-used vendors and for significant dollar amounts were prioritized. FCMAT’s sample of transactions included 55 warrants and purchase orders representing approximately $65,460,000 in Measure E expenditures. Of the sample, 15% were from 2020, 30% from 2021 and the remaining 55% from 2022. In addition, FCMAT reviewed board agendas and minutes for January 2020 through October 2022. During this period, FCMAT reviewed approximately 70 separate agenda items related to Measure E that were on the board agenda for information and/or action. In the transaction review, FCMAT evaluated for process, information provided, and to determine alignment with statute, policy, district procedures, and best practice. No attempt was made to evaluate or judge rec- ommendations to the board or decisions made by the board. Solicitation and/or Bidding of Bond-Related Services and Materials School districts enter into a variety of contracts to purchase goods and services, and, depending on the type of purchase, each may have different rules that must be followed for those purchases to meet legal public purchasing requirements. The district’s purchasing process is dictated by statute and local board policy, and it is implemented through district procedures and practices. Sections of the Education Code, Public Contract Code, Government Code and California Code of Regulations provide the legal basis. Board policies and administrative regulations need to reflect the district’s compliance with the statutory require- ments and provide a basis for district procedures and practices. The goal of school district procurement is to meet the district’s needs at the greatest value by purchasing the highest quality good or service at the lowest reasonable cost. Further, the procurement process needs to be consistent, transparent, and fair to all responsive vendors. School boards provide direction through policies and oversight for the education professionals, who manage the district’s day-to-day operations through established processes and procedures. Day-to-day operational decisions are delegated to district staff through board policies with the expectation that their actions will comply with the related laws and meet the district’s needs while maximizing efficacy and cost savings. Fiscal Crisis and Management Assistance Team Fremont Unified School District 3 Findings and Recommendations Solicitation and/or Bidding of Bond-Related Services and Materials Solicitation and Bidding Law Public Contract Code (PCC) 20111 requires school districts to publicly seek bids for purchases of certain equipment, materials, supplies or services that are subject to bid thresholds and criteria. • PCC 20111(a) requires formal bidding for purchases of equipment, materials, supplies, services (not construction), repairs (non-facility) and maintenance on purchases costing $109,300 (2023 threshold, adjusted annually) or more. • PCC 20111(b) requires formal bidding on public projects of $15,000 or more. There are several alternatives to the public bid process depending on the type of goods and services sought: 1. California Uniform Public Construction Cost Accounting Act Districts that have frequent public projects can use a process authorized in PCC 22000- 22045, titled the California Uniform Public Construction Cost Accounting Act (CUPCCAA), also known as the Uniform Public Construction Cost Accounting Act (UPCCAA) and Uniform Construction Cost Accounting (UCCA). The CUPCCAA set of laws provides a standard process that allows for additional flexibility and relaxed bid limits to expedite public works projects by speeding up the process for awarding contracts and simplifying the paperwork involved. With the UCCA process, districts may expend public funds for public works projects, which are defined under California Labor Code Section 1720, which states in section (1) that it is any project consisting of: Construction, alteration, demolition, installation, or repair work done under contract and paid in whole or in part out of public funds. Under the CUPCCAA process, the district is required to annually create and maintain a list of qualified contractors, by the category of work they perform. Each calendar year, the district is required to publicly invite licensed contractors to submit their name for inclusion on the qualified list of potential project bidders. CUPCCAA allows the following increased purchasing thresholds for public works projects: For projects costing less than $60,000: • Contracting for construction services is exempt from bidding requirements; these projects are performed by negotiated contract or by purchase order. • The district may select a qualified contractor from the list for each project without going through an informal or formal bid process. For projects costing from $60,000–$200,000: • Contracts for public works projects are awarded to the qualified contractor submit- ting the lowest informal bid through an informal bidding process. • The district sends to its list of qualified contractors a notice to bid, along with an informal bid package, requesting informal bids. The district must award the contract to the lowest responsive and responsible bidder. • The district obtains and verifies required documents including certificates of insur- ance, bonds and contractor license, and then issues a notice of award, signed agreement and purchase order along with a notice to proceed. Fiscal Crisis and Management Assistance Team Fremont Unified School District 4 Findings and Recommendations Solicitation and/or Bidding of Bond-Related Services and Materials For projects costing more than $200,000: Contracts for public works projects costing more than $200,000 remain subject to standard formal bidding procedures. The California Uniform Construction Cost Accounting Commission reviews the informal bid limits for inflation and other factors to determine whether adjustments should be made. If an adjustment is made, the State Controller notifies the affected public agencies. The adjustment may become effective before it appears as a formal change in the Public Contract Code. Any local agency, including cities, counties, redevelopment agencies, special districts, school districts, and community college districts, can voluntarily elect to participate in CUPCCAA. Further detailed information on CUPCCAA can be found at the State Controller’s website at http://www.sco.ca.gov/ard_cuccac.html. 2. Piggyback PCC 20118 provides another alternative to public bid by allowing a local educational agency (LEA) to piggyback on the purchase contract of another public agency without soliciting for bids, “if the board has determined it to be in the best interests of the district.” Piggybacking allows an LEA to make certain purchases of equipment, materials, supplies and other property in the same manner as the original agency was authorized to do so. This process uses the original agency’s bid process and agreement as meeting the requirements for a public competitive bid. 3. California Multiple Award Schedules (CMAS) Similar to piggyback, PCC 10290-10299 allows the procurement of technology, goods and services using the schedule of maximum prices awarded by the California Department of General Services. 4. Professional Experts Several exceptions to the competitive bid process are allowed for professional experts, as indicated in the following statutes: • Government Code (GC) 53060 allows for exceptions to competitive bidding when contracting for special services and advice from professional experts who are specially trained, experienced and competent in financial, economic, accounting, engineering, legal or administrative matters. • PCC 20111(d) removes professionals including architects, engineers, construction managers and others from the competitive bid requirements. • GC 4526 states: Selection by a state or local agency head for professional services of private architectural, landscape architectural, engineering, environmental, land survey- ing, or construction project management firms shall be on the basis of demon- strated competence and on the professional qualifications necessary for the satisfactory performance of the services required. • GC 4529.5 requires firms that provide construction management services to pro- vide evidence of: Fiscal Crisis and Management Assistance Team Fremont Unified School District 5 Findings and Recommendations Solicitation and/or Bidding of Bond-Related Services and Materials ...expertise and experience in construction project design review and evalua- tion, construction mobilization and supervision, bid evaluation, project schedul- ing, cost-benefit analysis, claims review and negotiation, and general manage- ment and administration of a construction project. • GC 4529.10-4529.12 requires that all architectural, engineering and construction management services be selected through a fair and competitive process and in compliance with conflict-of-interest laws. To comply with these requirements for hiring professional experts, the district must advertise or send letters to a list of known professional experts using a request for qualifications (RFQ) to obtain a response and understanding of the respondents’ qualifications and experience, and a request for proposal (RFP) to obtain a cost proposal for the given scope of work. From the responses, the district should gain knowledge of qualifications and cost from which to determine the vendor best able to meet its needs. Construction Delivery Methods Several processes are available for construction project delivery including design/bid/build, construction management/multiprime, design/build, and lease-leaseback. The method chosen affects the competitive bid requirements that apply. Under the design/bid/build, construction management/multiprime, and design/build delivery methods, design and construction management services are provided under professional expert provisions, then the bid process or CUPCCAA process is used to solicit and procure construction services. Lease-leaseback, authorized under Education Code (EC) 17406, allows for construction by leasing out real property that belongs to the district with the agreement that the lessee improve the property then lease it back to the district and, at the end of the lease, the property title including improvements is to be held by the district. The design and construction management services can be secured via the professional expert provisions. However, this method gives great flexibility in choosing the lessee/construction contractor using EC 17406(a)(2), which requires the district to adopt procedures to ensure a competitive selection process that is fair, impartial, and brings the best overall value to the district. With the lease-leaseback method, the builder is responsible for delivering the project at or under a mutually agreed upon guaranteed maximum price. District Board Policies and Administrative Regulations In LEAs, including school districts, the process of purchasing supplies, equipment and services is dictated by statute, local board policy, and district procedures and practices. While sections of the Education Code, Public Contract Code, and Government Code provide the legal basis and parameters within which a school district must conduct its purchasing functions, board policies, administrative regulations, procedures and guidelines add controls that are designed to protect school districts by meeting various purchasing and contract needs efficiently at the best value. General guidelines and best practices for LEA purchasing include: 1. Board policies and administrative regulations to provide the foundation and expectation that purchasing follows legal requirements, provides strong internal controls, and meets procurement objectives. Fiscal Crisis and Management Assistance Team Fremont Unified School District 6 Findings and Recommendations Solicitation and/or Bidding of Bond-Related Services and Materials 2. Designation of staff members’ responsibilities and authority throughout the purchasing process. 3. Standard procedures for selecting vendors, generating requisitions, and issuing purchase orders. These procedures should also establish competitive bidding processes to ensure prudent and optimal use of funds, and minimum standards and compatibility requirements for supplies and services. In alignment with statutes and best practices, the district uses a system of board policies (BPs) and admin- istrative regulations (ARs) to provide a governing framework of rules for district operations in a wide variety of administrative and educational areas. The BPs and ARs related to the use of bond funds in construction projects include parts of several board policies, such as the delegation of authority for the purchasing of goods and services, the processes for purchasing goods and services, and the approval of those purchases by the board. Under EC 17604, only the governing board can delegate to an employee or officer the authority to purchase goods and services on behalf of the district using public funds. The district’s board policy extends the governing board’s authority to spend public funds to the superinten- dent and the associate superintendent: The Governing Board of Fremont Unified School District, in the interest of business effective- ness and economic efficiency, delegates authority to the Superintendent or the Associate Superintendent to enter into all contracts. — BP 3301, February 2022 and specifies that they: shall develop and maintain effective purchasing procedures that are consistent with sound financial controls and that ensure the district receives maximum value for items purchased. — BP 3301, February 2022 Purchasing procedures policy requires that the “Superintendent or designee shall maintain effective pur- chasing procedures in order to ensure that maximum value is received for money spent by the district and that records are kept in accordance with law” (BP 3310, July 2001). BP 3323 (July 2001), Soliciting Prices (Bids and Quotations), outlines the district’s bid process and states the following under paragraphs 2 to 5 of Regulations Relative to the Bidding Activity: 2. Bid instructions and specifications should be clear and complete, setting forth all necessary conditions conducive to competitive bidding. 3. The Purchasing Department shall seek bids from those sources able to offer the best prices, consistent with quality, delivery, and service. 4. The bids shall be opened in public at the prescribed time and place and tabulated for study. The bids shall be read aloud at the bid opening by the Purchasing Director or his/her designated representative. There shall be at least one other school official present at the bid opening. After bids are opened, they shall be available for public inspection. Whether or not the opening is exactly at the time advertised, no bids may be accepted after said advertised time. 5. Public projects of more than the amount allowed by Public Contract Code 22032 shall be let to contract by formal bidding procedure (in the amount established by the Fiscal Crisis and Management Assistance Team Fremont Unified School District 7 Findings and Recommendations Solicitation and/or Bidding of Bond-Related Services and Materials State Controller). If estimates of the cost of equipment, materials, supplies, services, except construction services, and repairs that are not a public project are more than the maximum amount established by the Public Contract Code 20111(a), it shall be advertised at least once a week for two weeks in a regularly established newspaper or approved publication. Such bids shall be publicly opened at a place designated by the Assistant Superintendent, Business Services, and the award shall be made to the lowest responsible bidder. (As of January, 2001, the amount was $56,900. The amount is increased annually by inflation.) BP and AR 7211 (April 2014), New Construction and Modernization, pertain directly to the procurement of architectural and engineering services and outline the required procedures for conducting that process, including selection of these services “at fair and reasonable prices, on the basis of demonstrated compe- tence and professional qualifications.” District Procedures and Practices Since Measure E passed in 2014, the district has entered into agreements with several vendors for con- struction management services. The district secured these services appropriately, using RFQs and RFPs in its solicitation process. In 2015 through 2022, the district employed construction management firm Vanir Construction Management, Inc. as program manager of Measure E bond-funded projects. The contract with Vanir identi- fied services “based on a construction manager / general contractor structure” to include, in brief, that the program manager will: • Act as the district’s agent and representative. • Provide budget recommendations. • Provide recommendations for predesign and preconstruction testing and analysis neces- sary to ensure the completion of projects within budget. • Develop an implementation plan for the program and its projects. • Develop methods to track, monitor and report project budgets, accounting records, time- lines and status. • Develop and maintain coordination with construction managers, contractors and other pro- fessionals, and district personnel as requested. • Assist in prequalifying bidders and completing the prequalification process for award of construction contracts including development of bid documents, interviewing, and recom- mending bidders lists to the district. Under this agreement, purchasing solicitation and contracting processes were conducted almost entirely by Vanir, with the district providing the final approval. Although the district relied almost entirely on Vanir, the district was still required to adhere to all solicitation and bidding laws and district policies. Based on FCMAT’s interviews and observations, the district’s process for soliciting vendors was as follows: • Vendors for the building projects were solicited through an RFP, RFQ, or bid process. The process consisted of a Vanir contracts manager developing an RFP, RFQ or bid package for each building trade in each project, then sending that solicitation to a pool of vendors in each building trade as developed in the CUPCCAA process. The contracts manager indi- Fiscal Crisis and Management Assistance Team Fremont Unified School District 8 Findings and Recommendations Solicitation and/or Bidding of Bond-Related Services and Materials cated that they often used a vendor, Quality Bidders, to facilitate this process of identifying and creating a list of qualified contractors. • After receiving completed RFPs from vendors, the contracts manager would send an RFQ to the responding vendors for project-specific prices depending on the scope of work. The scope of work was developed by the project manager and construction man- ager of the building project, who were also hired and assigned to the specific construc- tion project by Vanir. • Upon receipt of the completed RFQ, the contracts manager, program manager and the construction manager would review the informal RFQ bids. The Vanir contracts manager indicated during FCMAT’s interview that sometimes the district’s director of facilities was also involved in the review. • For bid projects, Vanir developed and advertised project bid packages, then vetted qualified responses and bid amounts and made recommendations to the district. Observations FCMAT reviewed a sample of district transaction records for adherence to solicitation and construction bid laws and district policies on initial contracts. Sampled transactions were tested to determine whether they complied with applicable laws and district policy. In addition, FCMAT reviewed board agendas and sup- porting records for the clarity of each recommendation and accompanying rationale for each Measure E contract taken to the board for action from 2020 through October 2022. However, FCMAT did not develop opinions about the recommendations or actions taken by the district’s governing board. The review of the solicitation processes, both formal and informal, found no material issues or discrep- ancies with the soliciting or bidding procurement processes used. Based on this sampling, the district, through Vanir, appears to have been meeting all local and state legal guidelines required for valid pur- chases using public funding for Measure E. The guidelines and procedures the district has developed and implemented should continue to be followed to continue ensuring compliance. The district’s governing board routinely approved the recommendations as presented to them. As stated previously, the director of facilities was sometimes involved in the solicitation and bid review, which includes rating and recommending vendors for district approval. When the director of facilities was not involved in the process, it appears the district relied wholly on Vanir for vetting and recommendations. The district’s involvement in vendor vetting is essential to ensure that its best interests are represented and the vendor that brings the best value to the district is recommended to the board for approval. Recommendations The district should: 1. Continue to monitor and remain current on legal requirements for solicitation and bidding. 2. Regularly review board policies and administrative regulations and make revisions as needed to adhere to legal requirements and best practices. 3. Regularly review district and vendor processes for solicitation and bid to ensure they align with district policies and administrative regulations, and revise as needed. Fiscal Crisis and Management Assistance Team Fremont Unified School District 9 Findings and Recommendations Solicitation and/or Bidding of Bond-Related Services and Materials 4. Continue to provide oversight to ensure that the solicitation and bidding procedures comply with legal requirements, board policies, and administrative regulations. 5. Ensure that a knowledgeable district staff member is actively involved in vetting vendors for recommendation to the governing board. Fiscal Crisis and Management Assistance Team Fremont Unified School District 10 Findings and Recommendations Approval of Bond-Related Contracts Approval of Bond-Related Contracts District Board Policies and Administrative Regulations BP 3310, Purchasing Procedures (July 2001), requires that all purchases be made by formal contract or pur- chase order. Although the district’s governing board authorizes the superintendent and the associate superintendent to enter into contracts, the board must still approve a contract for it to be valid. BP 3301, Delegation of Authority, Section 3, states: A contract made under this delegation is not valid and enforceable until it is approved and/or ratified by the Board, pursuant to Education Code section 17604. Further, Section 6 states: Prior Board approval is required for any purchase that requires expenditures of Board Reserves, Designated for Uncertainty funds, or the transfer of funds greater than $25,000 between program budgets. AR 3301 provides clarifications of this purchasing authority by specifying limits and purchasing guidelines. Section 3 of this AR limits the delegation of authority provided under BP 3301: 3. Delegation of authority to the Superintendent or the Associate Superintendent does not extend to the items listed below. The contract must be approved and/or ratified by the Board to be valid and enforceable, pursuant to Education Code section 17604. a. Superintendent’s contracts b. Negotiated labor agreements involving compensation and benefits c. All contracts of $25,360 or greater for professional services, that are exempt from competitive bidding and all contracts of $25,360 or greater involving technology, needs assessments not related to students, special projects and facilities improvement not within bond projects d. Sale or transfer of real property e. Inter-agency agreements f. All contracts for the purchase of equipment, material or supplies to be furnished, sold, or leased to the District for which competitive bidding is required under Public Contract Code sections [sic] 20111(a) g. All contracts for the repair of facilities, including maintenance, for which competitive bidding is required under Public Contract Code section 20111(a) AR 3301, Section 5, provides further purchasing guidance: 5. All Departments shall adhere to the following provisions regarding the purchase of goods and services. a. All expenditures shall be executed with an encumbered purchase order through the requisition system. Fiscal Crisis and Management Assistance Team Fremont Unified School District 11 Findings and Recommendations Approval of Bond-Related Contracts b. All expenditures for services from $1 to $599 will be processed with a purchase order, acknowledgement of receipt, and an invoice. c. All expenditures for services at $600 to $25,360 will be processed with a purchase order, a fully executed contract, an Internal Revenue Service (IRS) Form W-9, acknowledgement of receipt, and an invoice. d. All expenditures for services $25,360 or greater will be processed with prior Board approval, a purchase order, a fully executed contract, an IRS Form W-9, acknowledgement of receipt, and an invoice. e. All expenditures for services in excess of applicable State of California bid thresholds will be executed with Advertising and Formal Bidding, Board Approval, a purchase order, a fully executed contract, an IRS Form W-9, acknowledgement of receipt, and an invoice. BP and AR 3301 were last revised in February 2022 to adjust the contract limit for professional services and technology needs assessments to be exempt from competitive bid from $10,000 to $25,360. Additional board policies guide district bond fund procurement and operational procedures, and they should be reviewed continually and updated as needed: BP 3310, Purchasing Procedures, Section 3, specifies the following: The Purchasing Department shall not sign sales agreements until after the Board of Education has authorized the purchases, except in cases of emergency purchases which will then be submitted to the Board at the next Board of Education meeting for ratification. BP 3324 (August 2000), Contracts, states: The Superintendent or designee may enter into contracts on behalf of the District. All con- tracts must be approved or ratified by the Board to be valid or to constitute an enforceable obligation against the District. (Education Code 17604) All contracts between the District and outside agencies shall confirm [sic] to prescribed stan- dards as required by law. These policies align with current laws and best practices and provide a foundation for the district’s procure- ment and contracting practices. District Procedures and Practices After the solicitation and/or bidding process is complete, Vanir forwards the respondents’ documents and recommendations to the district for approval and contracted commitment. FCMAT was given a purchasing process procedures document titled Contract Checklist (Appendix B). This checklist is used to ensure all appropriate information and documents are collected for consideration of contracting. Interviews with district and Vanir personnel, as well as a review of the Contract Checklist document provided by Vanir, indicated a multilayered purchasing and approval process that involved both district and Vanir employees. After the solicitation process was completed, the contracting process was described and outlined as follows: 1. The Contract Checklist included a step-by-step process for reviewing a potential agreement. This process was customized based on the type of vendor involved to include Fiscal Crisis and Management Assistance Team Fremont Unified School District 12 Findings and Recommendations Approval of Bond-Related Contracts consultant, construction manager, construction, and architect. Depending on the vendor, documents reviewed included the agreement, scope of services, work and fee schedules, and required certifications, bond and insurances. 2. Once a vendor was selected, the contracts manager followed steps outlined in the internally-developed Contract Checklist to prepare a final contract package to submit to the district for approval. This internal process included obtaining vendor signatures and collecting required documents not yet received, including insurance certificates, various required legal certifications, payment and performance bonds, and a completed W-9 form. When the checklist of items was complete, Vanir submitted it for approval from their finance manager, then forwarded the final bid package to the district as a recommendation for approval and submission to the board for approval along with a request for a purchase order (PO) number for the contract. 3. Upon receipt of the completed contract documents from Vanir, the district’s director of facilities and associate superintendent of business reviewed and approved them. This approval consisted of electronic signatures on an internal tracking system. Once completed, the contract was placed on the board agenda for approval. 4. Following board approval, the district’s director of purchasing assigned a number for the PO. Vanir then contacted the vendor to provide them with the completed and approved PO, and the contracting process was complete. Following this process meets the requirements for adequate internal control and legal compliance. However, during interviews district personnel indicated that there were instances when this process was not followed. They indicated some contracts and purchase orders were entered into for goods and services using Measure E bond funds that were not taken to the board for prior approval, and in some cases were not taken to the board for approval at all. Interviewees, however, provided no specific evidence of instances when this may have occurred. Observations The approval of Measure E bond-related contracts was part of an overall procurement process that involved different levels of district approval. Following the selection of a vendor, the contracts and pur- chase orders had several levels of managerial approvals before being placed on the board agenda for final approval or ratification. FCMAT’s review of the documents provided indicates the approval process in past years had as many as five different levels of approval, but the process recently has been reduced to three levels as follows: 1. Following the selection of a qualified vendor, the contracts administrator from Vanir prepares an agreement or contract and forwards it to the project manager overseeing the project for their approval. Following approval by the project manager, it is returned to the vendor for their signature. 2. After the vendor returns the contract with all necessary supporting materials, such as required insurance or bonds and other legal documents, the contracts administrator creates a purchase requisition in the district’s accounting system for the district’s director of facilities to review and approve. Following the receipt of an approved purchase requisition from the district, the contracts administrator forwards the entire package to the district’s purchasing staff for their review and the assignment of a PO number. Fiscal Crisis and Management Assistance Team Fremont Unified School District 13 Findings and Recommendations Approval of Bond-Related Contracts 3. Following a review and approval from the purchasing department, the contract package is forwarded to the associate superintendent of business for approval and placement on the board agenda. District personnel interviewed also indicated to FCMAT that Vanir had access to the district’s purchas- ing system with sufficient permissions to assign themselves PO numbers without district knowledge or approval, a practice which they indicated the district had only recently stopped. Such activity is clearly in violation of both BP 3301 and 3310 and constitutes a breakdown of internal control; however, the interview- ees provided no evidence to indicate this occurred. Several interviewees indicated that the district’s director of facilities was the primary district employee involved in the approval process for contracts but that frequent changes in district personnel led to repeated changes in the approval process between the district and Vanir. One person interviewed stated that the process for contract approval was changed every time there was a new person in the associate superintendent position. Others stated that the processes were never followed closely, citing incomplete bid packages, the absence of signatures for approval, and contracts being awarded and work beginning without any board action or approval. No documents were provided to specifically substantiate these claims. In transaction testing of purchase orders and contracts, FCMAT found that the district generally followed its own policies and administrative regulations, as well as best practices. Two instances were found in which the contract approval was missing signatures: in one instance there was no signature to identify budget approval, and in the other a signature from the associate superintendent of business was missing. FCMAT also found several timing inconsistencies in the approval process, including one instance in which it appears the signature of the associate superintendent of business was four months after board approval, indicating it may have been an afterthought and not part of the actual approval process. Other instances in which approvals appeared out of approval process sequence included contracts signed before board approval, instances in which, due to vacancies in positions, staff signed at more than one level of authority, and one instance in which the invoice was received before the purchase order was approved. See Appendix C (Purchase Orders) for documentation. Recommendations The district should: 1. Regularly review and update BPs and ARs to ensure they comply with legal requirements and the board’s desires for delegated authority. 2. Regularly review, update and document its procedures to align with its policies and organizational structure for process approvals. Include contingencies in its contract approval procedures for vacant positions or for unavailability of staff. 3. Provide oversight of vendor practices sufficient to ensure they comply with legal requirements and district policies and procedures. 4. Follow its contract approval procedures faithfully. If exceptions occur, ensure they are well documented, including rationale and authority. 5. Control the assignment of purchase orders and contract commitments in adherence to board policy. Fiscal Crisis and Management Assistance Team Fremont Unified School District 14 Findings and Recommendations Processing and Approval of Bond-Related Change Orders Processing and Approval of Bond-Related Change Orders Change orders typically involve performing additional work because of unforeseen circumstances, omis- sions or errors in the original scope of work, ambiguous construction drawings, or district-requested changes. Changes in job site conditions, material substitutions, regulatory issues, and safety concerns are additional reasons change orders may be needed and unavoidable. It is best for the district to avoid or min- imize change orders through careful and diligent planning; however, many are unavoidable because one cannot foresee all variables that occur in construction projects. Change orders are typically generated first by contractors during construction, often when they identify a situation for which the original scope of the project needs to be modified. This is either followed by a request for information on how to proceed with a proposed change, which is prepared and given to the project architect for review and discussion with the district, or a request for change is made by the district. The district then must decide if the request warrants an official change in the scope and cost of the project; if so, then the architect prepares an official change order for the project, which will ultimately amend or be added to the original construction contract’s scope and cost. AR 3301, Section 6, provides for modifying contracts as follows: 6. Amendment and Modifications to Contracts a. For public works project contracts, the Superintendent or the Associate Superintendent are delegated authority to execute modifications, amendments, and change orders in amounts less than 10% of the original contract and less than $100,000. b. Public works project contracts, modifications, amendments and change orders in amounts 10% or greater of the original contract and $100,000 or greater, require Board approval. c. Staff will provide the Board with quarterly reports of executed amendments and change orders to contracts. PCC 20118.4 states that a board may authorize a contractor to proceed with performing the change without formal bidding if the cost of the change is not greater than 10% of the contract price or other limits as pro- vided for in PCC 20111. It is a best practice for districts to seek legal counsel for any exceptions. Observations FCMAT found frequent change orders for the district’s Measure E projects. In some cases, contracts had change orders shortly after the award of the original contract or a previous change order. In addition, many made significant adjustment to the original or previously-approved contracts. FCMAT found multi- ple board-approved change orders that increased contracts by an amount greater than the amount of the original contract, without evidence of any new solicitation or bid. There were no indications about whether new solicitations and/or bids were considered or legal opinions sought regarding the appropriateness of the increase in contracts. Although these changes complied with board policy, they may not have been in compliance with PCC 20118.4. FCMAT also reviewed and evaluated the description and rationale for change orders. Each change order request was accompanied by a detailed description and rationale regarding the need for the change. Fiscal Crisis and Management Assistance Team Fremont Unified School District 15 Findings and Recommendations Processing and Approval of Bond-Related Change Orders See Appendix D (Change Orders) for supporting documentation. Recommendations The district should: 1. Try to avoid or minimize change orders through detailed planning and design. 2. Work closely with the contractor and architect when a change order is requested to ensure the change is necessary, justified and/or desired. 3. Evaluate each change order to determine whether it can be made with or without formal bidding. Seek and follow the opinion of legal counsel on change orders costing 10% or more of the original contract to ensure compliance with the PCC. 4. Continue to document a detailed description and rationale for every change order. Fiscal Crisis and Management Assistance Team Fremont Unified School District 16 Findings and Recommendations Processing and Approval of Bond-Related Invoices Processing and Approval of Bond-Related Invoices BP 3326, Paying for Goods and Services (January 2004), states: Bills presented to the district for payment must be approved by the Superintendent or des- ignee for payment to be made. Each bill must bear evidence, from the employee who has received the goods or services covered by the bill presented, that the charge is a proper one and that it is for goods or services purchased in accordance with relevant purchasing policies and regulations. The district used different approval processes for invoices, depending on the type of invoice. One process was used for approval of a typical vendor invoice, a slightly different process was used for general contrac- tor or construction invoices, another for professional consultants, and another for invoices from Vanir. The district’s process for approval of regular vendor invoices is outlined in its Contract Checklist document as follows: 1. After a vendor invoice is received, a project coordinator from Vanir inputs the invoice into an internal invoice tracking system, then it is forwarded to the project’s construction manager for review and approval. 2. After the construction manager’s approval, the invoice is returned to the project coordinator, who checks for adequate account balance on the purchase order, obtains approval from the district’s director of facilities, updates information in the internal tracking system, scans and saves the invoice to the corresponding project file on the district’s Google drive, and then submits it to the district’s Business Services Department for payment. 3. The district’s Business Services Department reviews and approves the invoice, then forwards it to accounts payable for processing and mailing to the vendor. 4. After the invoice is processed by accounts payable, the project coordinator requests a payment report and updates the internal tracking system with the warrant number. The pay applications submitted by general contractors followed an approval process similar to that of reg- ular vendor invoices, except that they needed to be submitted on a special pay application Form AIA G702 and required the additional approval and signature of the project architect and a notarized signature from the contractor. Observations In interviews with FCMAT, employees indicated that the approval process in the accounting department consisted mainly of the accounts payable clerk making sure all the required signatures were present, and that the director of accounting and the accounting supervisor had no approval authority over the process- ing of invoices using Measure E bond funds. They indicated that the district’s associate superintendent and director of facilities determined whose signatures needed to be on the invoices for approval before final processing. The accounting supervisor was responsible for auditing batches of invoices processed by the accounts payable clerk but was not checking for signature approval authority. The accounts payable clerk was notified of whose signatures needed to be on the invoices and checked them for the signatures but not Fiscal Crisis and Management Assistance Team Fremont Unified School District 17 Findings and Recommendations Processing and Approval of Bond-Related Invoices for anything else. Others indicated that the director of facilities made all decisions regarding who needed to approve invoices and was the final authority on which invoices were paid from bond funds. In documents provided to FCMAT, the district indicated that all bond fund invoices had to be approved by the finance administrator from Vanir. This requirement was not indicated on any other documents provided to FCMAT, such as the process outlined in the Contracts Checklist, but was corroborated by employees during interviews. Despite a multilevel approval process, the district did not seem to have one employee who was ultimately responsible for the reasonableness and accuracy of all invoices. When a vendor sent an invoice, it appears the Vanir representative was the only individual who verified its accuracy in terms of cost and services pro- vided. The Vanir project coordinator was also responsible for checking budget availability. District account- ing personnel checked only for required signatures. Although others such as architects, engineers or construction managers can assist in verifying the accuracy of construction invoices, the director of facilities or the associate superintendent need to have final signatory approval for invoice payment. Similarly, the accounting department or purchasing department needs to check not only for required signa- tures but also check the amount of the invoice against a purchase order for encumbered costs and account accuracy, and for adequate budgeted account balances, before processing payment. To prevent duplicate payments, district staff also need to check for duplicate payment amounts for vendors who submit invoices frequently. In its transaction testing of warrants drawn by the district, FCMAT found that sufficient detailed support was included in the invoicing, as well as a series of approval signatures. Invoices submitted through the project management firm, Vanir, included a signature from the Vanir project manager. FCMAT found that typically the signatures of Vanir’s project manager, the district’s director of facilities, and the district fiscal approval all happened in quick succession, many times on the same day. This indicates that either the signers were all up to date and aware of the status of work being invoiced or that they relied on the prior signatures as sufficient review. After the Vanir project manager and then the district’s director of facilities signed, it is FCMAT’s under- standing that the district’s accounts payable staff assumed the claim for payment was valid and that suffi- cient support to validate the claim was in order. The district’s fiscal approval and payment followed based on those two signatures. See Appendix E (Warrants) for detailed documentation. Recommendations The district should: 1. Review and update board policies and district procedures as needed to meet legal requirements and provide for the best interests of the district. 2. Require that all invoices be signed by a district representative who ensures goods and services have been received and that the invoice is reasonable and accurate. 3. Require its accounting staff to verify, before processing payment, that invoices are complete and accurate, goods/services were received, payment is made against the appropriate purchase order, sufficient budget is available, and no prior payment has been made for the invoiced goods and/or services. 4. Ensure that all approval signatures are legitimate and legible. Fiscal Crisis and Management Assistance Team Fremont Unified School District 18 Findings and Recommendations Other Procurement-Related Topics Other Procurement-Related Topics Conflicts of Interest Statutes that govern conflicts of interest include the Political Reform Act of 1974, Government Code (GC) 1090, GC 87100, 87302, 87306, 87500, Corporations Code 5233 for nonprofit organizations, and Education Code (EC) 35107(e). GC 1090 is a prohibition against financial interests by board members, officers, or employees in contracts “made by them in their official capacity, or by any body or board of which they are members,” and applies to an employee who prepares or negotiates a contract or recommends its approval. The prohibition is abso- lute; therefore, such a contract is voidable and has no legal effect. It is not legally possible to abstain from a contract that violates GC 1090 unless the contract meets specific criteria as a remote interest under GC 1091 or noninterest under GC 1091.5. The Political Reform Act (GC 81000-91014) was enacted by Proposition 9 in 1974 and revised in 2015, resulting in several significant changes to conflict-of-interest rules that became effective in November 2016. It requires every state and local government agency to adopt a conflict-of-interest code. The stated intent of the act was to establish a process for most state and local officials, and certain designated employees, to publicly disclose their personal income and assets “which may be materially affected by their official actions,” and, “in appropriate circumstances the officials should be disqualified from acting in order that conflicts of interest may be avoided.” The Fair Political Practices Commission (FPPC) is the state agency responsible for enforcing the act, interpreting its provisions, and issuing California Form 700 – Statement of Economic Interests. A district’s governing board and management need to demonstrate financial integrity. When considering potential conflicts of interests of a public official, such as a board member, administrator, or consultant, it is important to consider applicable board policies that may be more restrictive than the statutory mandates. Therefore, FCMAT also reviewed and used the district’s board policies, specifically Board Bylaw (BB) 9270, Conflict of Interest, to evaluate district board members, staff and consultants regarding conflict-of-interest issues. Board Bylaw 9270 and Form 700 – Statement of Economic Interests The district’s governing board adopted BB 9270, Conflict of Interest, on August 9, 2000, revised it on March 23, 2016, and revised it again on December 16, 2020. The bylaw includes a comprehensive con- flict-of-interest code that adopts the Political Reform Act and outlines requirements for governing board members and designated employees to annually disclose any conflict of interest that would preclude them from participating in a district-related decision that includes that interest. Governing board members and employees designated in the district’s conflict-of-interest code are required by GC 87500 to file a Form 700 by April 1 annually to disclose any assets and income that may be materially affected by official actions. The district provided FCMAT with completed Forms 700 collected from January 1, 2018 to December 31, 2021. FCMAT’s review of the forms identified deficiencies in each calendar year, including forms not dated or signed after April 1, forms not submitted, or forms not completed correctly. For example, the individual completing one form did not provide their position in Section 1, which establishes the employee’s applicable disclosure categories pursuant to the district’s conflict-of-interest code. Fiscal Crisis and Management Assistance Team Fremont Unified School District 19 Findings and Recommendations Other Procurement-Related Topics Each version of the district’s conflict-of-interest code contains an appendix that defines disclosure cate- gories and designated positions. Designated positions are identified and applicable disclosure categories are assigned based on the level of decision-making authority: positions with broad authority are required to disclose more interests than those with limited discretion. FCMAT identified inconsistencies between designated positions listed in the appendix and the Forms 700 collected for 2018 and 2019: many position titles did not match or were missing from the appendix in place as of March 23, 2016. Designated positions should align with the administrative structure in the district’s organizational charts. The district’s revision in December 2020 corrected this issue. BB 9270 and GC 87306 require the district’s conflict-of-interest code to be updated and submitted to the district office within 90 days of a change, such as amendments, revisions, or the creation of new positions. In addition, the bylaw and GC 87306.5 require the governing board to review the conflict-of-interest code in even-numbered years and amend it, or notify the reviewing body of no change, by October 1 of that year. The district needs to follow these review requirements and update BB 9270 accordingly to ensure employ- ees in designated positions are aware of and fulfill their disclosure responsibilities. Although the district was able to demonstrate some due diligence in complying with the conflict-of-interest code, it did not provide Forms 700 for some designated positions. BB 9270 and GC 87302 require the filing of Form 700 annually, as well as within 30 days of assuming office and within 30 days of leaving office. For positions that require it, the district does not have a process to ensure that employees complete Form 700 when assuming or leaving their position. Forms 700 were not provided to FCMAT for most appointments to designated positions during the period under review. In addition, although several positions were vacated during the period under review, no Forms 700 within 30 days of their departure were provided for those individuals. Certain consultants may be required to file Form 700 if they qualify as a district official who makes or participates in making district decisions, or acts in a staff capacity for district decision-making. BB 9270 describes participating in a decision to include “taking part in discussion, advising on, making recommen- dations or otherwise influencing or attempting to influence other decision-makers on matters where an individual has a financial interest.” Further, it indicates consultants are designated employees who must disclose financial interests as determined on a case-by-case basis by the superintendent or designee. That determination is to be in writing and include a description of the consultant’s duties and a statement of the extent of the disclosure requirements based on that description. No statement of economic interest was provided for any Vanir personnel. FCMAT considers Vanir’s program management role to have broad deci- sion-making authority. Gifts BB 9270 and BP 3315, Purchasing and Staff Relationships, specify that governing board members and des- ignated employees shall not accept gifts in any calendar year if the employee would be required to report the receipt of income or gifts from that source on their statement of economic interests. Contrary to this policy, FCMAT found three instances in which a governing board member or designated employee reported the receipt of a gift or gifts on their Form 700. Hiring Individuals Previously Employed by Vendor The district hired as its director of facilities an individual previously employed by the construction manage- ment firm it contracted with. One of the main responsibilities of this position is to oversee the vendor’s work as the district liaison. There is clear advantage to hiring individuals who have extensive industry knowl- Fiscal Crisis and Management Assistance Team Fremont Unified School District 20 Findings and Recommendations Other Procurement-Related Topics edge, experience, and established relationships. However, there is also potential for conflicts of interest because the employee’s allegiance may be with established relationships and with the prior employer rather than the current one. If an employee who is hired for a position subject to BB 9270 is from a vendor, the employee needs to use Form 700 to disclose any conflicts of interest and/or any economic gain they might have in working with their prior employer, and the district needs to implement strong internal controls to ensure no bias or preferential treatment is provided to that vendor. While no system is foolproof, trans- parency and oversight are essential to ensure the district’s best interest and benefit remain the primary focus and goal. Recommendations The district should: 1. Require all designated positions to complete Form 700 upon hire, annually, and upon separation from employment. 2. Ensure the designated positions listed in BB 9270 match the positions maintained by the district. 3. Establish and maintain a list of designated positions identified in BB 9270 as responsible for completing Form 700. Ensure that the list identifies all individuals employed in those positions during the calendar year and includes their dates of hire or assignment and dates of separation; update the list any time position titles change and when staffing changes take place. 4. Ensure it follows requirements to review and update its conflict-of-interest code as often as needed, or at least by October 1 in even-numbered years. 5. Develop a procedure to collect Forms 700 from individuals who assume and leave designated positions; consider including this procedure in the hiring and separation processes managed by its Human Resources Department, then forwarding it to the staff member responsible for collection. 6. Ensure the employee(s) assigned to collect Forms 700 are trained on the submission rules, including the period covered by the forms, who should complete the form, and how to review submissions to ensure they are complete and properly prepared. 7. Ensure that all board members and staff are aware of and follow board bylaws and policies. 8. Ensure that employees hired from vendors disclose any personal interest in or economic benefit from their prior employer. In addition, establish internal controls and oversight in these situations to ensure its best interests are protected. Fiscal Crisis and Management Assistance Team Fremont Unified School District 21 Findings and Recommendations Communication Communication Communication Between Vanir and the District Another area of concern was the level of regular communication between the district and Vanir. In inter- views with district personnel, FCMAT learned that until recently there was little in the way of regular formal meetings or communication with Vanir. Most individuals interviewed stated they had points of contact with the district or Vanir, but no regularly scheduled formal meetings between Vanir and the district. The direc- tor of facilities served as the key liaison and intermediary. Some interviewees believed this arrangement made for questionable district representation and insufficient sharing of information with the district. Staff and Vendor Turnover As stated previously, some interviewees commented that various approval processes changed with each personnel change in the associate superintendent position, as the district had five different individuals serving in the role from 2020 through 2022. This difficultly in establishing consistency of processing was also affected by personnel changes in other roles that were part of the approval processes, such as the construction manager and other district office personnel. Many of the individuals FCMAT interviewed for this report were relatively new to their positions and had little knowledge of past processes. At the time of FCMAT’s interviews, the district’s director of facilities had been placed on administrative leave for undisclosed reasons, and there was no direct liaison or supervision over Vanir’s activities. The district also indicated it was not renewing its contract with Vanir, which was due to expire at the end of December 2022, and was seeking a new construction management firm. The district was also developing in-house positions to oversee and manage the bond fund construction program in the future. As part of this planned reorganization, the district will need to conduct regular meetings with all key personnel involved in the approval process at least every two weeks to ensure all involved have up-to-date information on the status of all projects. Accounting Systems The accounting of funds and activities in a bond program needs to be maintained in detail for accuracy, accountability, decision making, and confidence that expenditures are appropriate. During interviews with FCMAT, some staff members noted their concerns about having had two different accounting systems for Measure E bond funds. Concerns were expressed about the reconciliation between the two systems, including the practice of recording negative budgets to balance budget totals within the fund. Vanir used an accounting software known as Account-Ability to record all of the fiscal transactions for the bond funds, whereas the district used an accounting system known as ESCAPE software. Periodic efforts were made to reconcile the two systems, but the district encountered difficulty with timely and com- plete reconciliation. However, in 2021 the district hired Key Analytics to complete and maintain a comprehensive reconciliation of the two systems for all building projects in the bond fund and to continue coordinating the systems reg- ularly. Key Analytics reviewed and reconciled completed projects through June 2021 and found balances aligned for most projects; however, some projects had small variances due to miscoding of projects on the same site. The continuing work to ensure alignment of financial systems data has alleviated many of the concerns. Fiscal Crisis and Management Assistance Team Fremont Unified School District 22 Findings and Recommendations Purchase Order and Vendor Warrant Transparency In its review of board agendas and minutes, FCMAT found that board approvals for all district purchase orders, including those of the bond fund, are being placed on the consent calendar portion of the agenda. The purchasing information provided to the board, however, consists only of a list of purchase order num- bers and an aggregate amount by the fund under which they will be encumbered. Documents do not indicate any additional information such as the amount of the purchase order or the name of the vendor to which the purchase order is being issued. Although this may be enough to gain approval from the board, the governing board has no detailed information about for whom the funds are encumbered or the amount encumbered for each individual purchase order. The district contends that the approval of the purchase order also extends approvals to all warrants for payment on the purchase order. According to the director of accounting, “When the Board of Education approves the purchase orders and contracts, processing payments/warrants is part of the board approval.” Therefore, the pay warrants attributed to approved purchase orders are not taken to the board for approval. It is a best practice to, at minimum, always include the vendor names and proposed obligated amounts on the published board agenda when approving purchase orders, and to include warrants lists with payees and amounts paid to each so it is clear to the board and the public what funds are being committed and paid to whom. Although the district has never received an audit finding in any of its independent audits for the period under review, the practice of providing only the purchase order numbers to the board for approval is not a best practice and may not provide sufficient information for the board to grant its discretionary approval. The absence of relevant and pertinent purchasing information, including amount and vendor, prevents members of the board and the public from determining if the obligation of district funds is appropriate; this practice lacks the most basic level of governmental transparency in the expenditure of public funds. In addition, it can create the appearance of impropriety because neither the amounts being spent nor their purpose can be easily determined and thus there could be undisclosed conflicts of interest. One of the documents received in response to FCMAT’s request for information was a report produced from the district’s financial system titled RegPay11a, which included a list of purchase orders from February 1, through February 28, 2022, along with vendor name, brief description, fund-object code, and amount. Such a report, if included in the board documents, would provide sufficient information to meet the trans- parency and best practice recommendations. As of the May 10, 2023 board meeting, at which the April 2023 purchase orders were approved, the district had changed the agenda information to include greater detail. Recommendations The district should: 1. Prioritize and ensure thorough and timely communications with and oversight of all vendors, especially project management firms responsible for serving as the district’s agent and representative for bond-related projects. 2. Establish contingency and succession plans that allow for continued adherence to board policy and district procedures in case of staff vacancies and/or turnover. 3. Continue efforts to ensure the accuracy and validity of financial information to ensure it is always aware of its current financial status. Fiscal Crisis and Management Assistance Team Fremont Unified School District 23 Findings and Recommendations Communication 4. Ensure regular reconciliations between the accounting system used to track bond projects and the district’s accounting system. 5. Continue the newly implemented practice of including detailed information in purchase order listings being taken to the board for approval, to include, at minimum, vendor name, dollar amount, and brief description of items being purchased. 6. Consider taking all pay warrants to the board for ratification. Ensure that information provided to the board for approval is sufficient to provide transparency regarding who is being paid, amount paid, description of products and services received, and funding or purchase order. Fiscal Crisis and Management Assistance Team Fremont Unified School District 24 Appendices Appendices Fiscal Crisis and Management Assistance Team Fremont Unified School District 25 Appendices Appendix A Study Agreement Fiscal Crisis and Management Assistance Team Fremont Unified School District 26 Appendices Fiscal Crisis and Management Assistance Team Fremont Unified School District 27 Appendices Fiscal Crisis and Management Assistance Team Fremont Unified School District 28 Appendices Fiscal Crisis and Management Assistance Team Fremont Unified School District 29 Appendices Fiscal Crisis and Management Assistance Team Fremont Unified School District 30 Appendices 10/3/22 Fiscal Crisis and Management Assistance Team Fremont Unified School District 31 Appendices Appendix B Contract Checklist Fiscal Crisis and Management Assistance Team Fremont Unified School District 32 Appendices Fiscal Crisis and Management Assistance Team Fremont Unified School District 33 Appendices Appendix C Purchase Orders Fiscal Crisis and Management Assistance Team Fremont Unified School District 34 Appendices Fiscal Crisis and Management Assistance Team Fremont Unified School District 35 OP dengis ot roirp .tssA riD tcejorP deliateD draob draoB tpuS/.tpuS tegduB seitilicaF reganaM /tcartnoc setoN lavorppa lavorppa lavorppa lavorppa lavorppa lavorppa OP sredrO esahcruP tnuomA rodneV rebmuN OP etaD ,325,49$ lanigirO tnemdnema siht :latoT 548,754$ 863,255$ 1202/42/3 1202/13/3 1202/1/4 1202/62/3 1202/62/3 1202/13/3 00.863,255 $ PUORG AMR 75600-12OP 0202/51/7 ;nwonknu etad PFR dn2 54( 6.54 derocs k002$ eef )ecalp REILLIVAD )ecalp dn2 006,401$( x 0202/21/21 0202/03/11 0202/32/11 0202/32/11 0202/32/11 0202/03/11 00.000,002 $ CNI NAOLS 51620-12OP 0202/03/11 6 - 02/41/9 PFR ABODROC sesnopser 0202/82/01 0202/8/21 0202/11/21 0202/03/11 0202/03/11 0202/8/21 00.203,342 $ NOITAROPROC 39320-12OP 0202/2/21 05.908,41$ lanigirO etercnoc rof neht gnireenigne selbatrop owt dedda yb dengis( 12/82/4 ELIBOM .)12/01/2 caF riD x 1202/91/5 1202/82/4 1202/82/4 1202/6/2 01.788,416 $ RALUDOM 42240-12OP 1202/21/4 lanigirO ,006,889,35$ PORHTAL yb desaercni NOITCURTSNOC 12/91/5 000,535$ 1202/91/5 1202/02/5 1202/91/5 1202/91/5 1202/91/5 1202/12/5 00.006,325,45 $ COSSA 98340-12OP 1202/03/4 ,048,345$ lanigirO 000,264$ desaercni dedda( 12/12/7 rotcepsni rehtona loop PFR .)nalp ot .12/42/2 devorppa tnemdnema tcartnoC 62/7 FN yb devorppa )erutangis tcartnoc( deined OP neht 12/72/7 FN yb REIMERP yb devorppa neht NOITCEPSNI ”PEIBBOR“ 1202/12/7 1202/62/7 1202/6/8 1202/32/7 1202/22/7 1202/62/7 00.048,500,1 $ SECIVRES 41340-12OP 1202/6/5 devorppa loop PFR XIS91 .detceles 2 - 02/02/5 1202/5/5 1202/51/6 1202/71/6 1202/11/6 1202/11/6 1202/51/6 00.087,006 $ STCETIHCRA 43600-22OP 1202/11/6 Appendices Fiscal Crisis and Management Assistance Team Fremont Unified School District 36 OP dengis ot roirp .tssA riD tcejorP deliateD draob draoB tpuS/.tpuS tegduB seitilicaF reganaM /tcartnoc setoN lavorppa lavorppa lavorppa lavorppa lavorppa lavorppa OP sredrO esahcruP tnuomA rodneV rebmuN OP etaD ,002,59$ lanigirO 007,68$ dedda dedda 22/42/3 ot setis tcirtsid TSOPEDIUG sisylana ytiruces 1202/71/11 2202/42/3 1202/21/7 1202/8/7 2202/42/3 00.002,361 $ CLL SNOITULOS 05600-22OP 1202/1/7 KCORDILOS TNEMPOLEVED 1202/42/6 1202/13/8 1202/51/21 1202/6/21 1202/52/8 1202/13/8 00.003,521 $ CNI PRG 52430-22OP 1202/03/8 tnemnrevoG WDC x 1202/8/21 1202/22/11 1202/92/11 1202/01/11 1202/01/11 1202/92/11 57.796,83 $ cnI 05030-22OP 1202/5/11 llexorT x 2202/62/1 1202/6/21 1202/7/21 1202/61/11 1202/61/11 1202/7/21 07.642,45 $ snoitacinummoC 85230-22OP 1202/22/11 etouq ADAMAY ? 2202/32/3 2202/41/2 2202/51/2 2202/52/1 2202/52/1 22/42/1 52.680,06 $ SESIRPRETNE 58140-22OP 2202/2/2 DOOWREDNU - sesnopser 2 - PFR DNA erocs pot 2202/32/2 2202/3/3 2202/51/3 2202/3/3 2202/3/3 2202/3/3 00.009,98 $ CNI MULBNESOR 85840-22OP 2202/3/3 ENO etouq L ECALPKROW ? 2202/51/6 2202/52/4 2202/62/4 2202/92/3 2202/92/3 22/32/3 04.326,422 $ CLL IRARREF 71850-22OP 2202/92/3 ENO etouq L ECALPKROW ? 2202/51/6 2202/92/3 2202/62/4 2202/92/3 2202/92/3 22/82/3 03.008,981 $ CLL IRARREF 81850-22OP 2202/92/3 x 2202/51/6 2202/52/4 2202/82/4 2202/21/4 a/n 2202/82/4 89.079,57 $ .CNI ASU MUULB 26850-22OP 2202/11/4 retal ta defiitar draoB ycnegru ot eud etad 2202/92/6 2202/03/6 2202/61/6 2202/61/6 a/n 2202/6/7 09.286,114 $ TEN.SMA 81160-22OP 2202/8/6 NOSSUM 2202/32/3 2202/52/7 2202/52/7 2202/52/7 a/n 2202/52/7 00.078,87 $ CNI LACIRTAEHT 15900-32OP 2202/32/6 REIMERP NOITCEPSNI x 2202/42/8 2202/62/7 2202/52/7 2202/52/7 a/n 2202/02/7 00.057,543 $ SECIVRES 66900-32OP 2202/02/7 Appendices Fiscal Crisis and Management Assistance Team Fremont Unified School District 37 OP dengis ot roirp .tssA riD tcejorP deliateD draob draoB tpuS/.tpuS tegduB seitilicaF reganaM /tcartnoc setoN lavorppa lavorppa lavorppa lavorppa lavorppa lavorppa OP sredrO esahcruP tnuomA rodneV rebmuN OP etaD tuohtiw dezirohtua* fo riD rep sdnuf ROBAL EHT dengis ,gnitnuoccA ECNAILPMOC tpuS cossA sa x 2202/21/01 *2202/91/9 a/n 2202/91/8 00.525,89 $ SREGANAM 29810-32OP 2202/61/8 ENO L ECALPKROW ,22/2 PFR 2202/51/6 2202/8/11 2202/3/11 2202/03/9 2202/82/9 2202/51/11 08.977,711 $ CLL IRARREF 10810-32RV 2202/03/8 TNEMUCOD CRA 2202/62/01 2202/9/11 2202/01/11 a/n 2202/61/11 00.716,381 $ CLL SNOITULOS 70030-32RV 2202/7/11 Appendices Appendix D Change Orders Fiscal Crisis and Management Assistance Team Fremont Unified School District 38 Appendices Fiscal Crisis and Management Assistance Team Fremont Unified School District 39 % egnahc morf egnahc roirP lanigirO egnahc rof elanoitaR lanigiro tcartnoc weN redro egnahC sredro tcartnoc etad draoB rodneV ot eud tsoc krow ni egnahc ,epocs dedda sbaL gnireenignE detadilosnoC noitacol %766 195,136 $ 000,44 $ 839,294 $ 386,49 $ 02-naJ )LEC( esahp noitcurtsnoc rof esaercni %534 495,17 $ 831,55 $ 654,61 $ 02-naJ tnega gninoisimmoc camulG etadpu deriuqer etadpu edoc gnidliub puorG lacinhcetoeG aerA yaB ASD ot noissimbus %711 719,24 $ 059,4 $ 063,1 $ 706,63 $ 02-naJ sreenigne krow fo epocs dednapxe %921 194,07 $ 678,51 $ 516,45 $ 02-beF setaicossA dna iccelleB stnemeriuqer edoc wen %702 334,428 $ 873,69 $ 082,923 $ 577,893 $ 02-beF snoitacinummoC ytinfinI puorG lacinhcetoeG aerA yaB stnemeriuqer edoc wen %621 790,36 $ 005,8 $ 005,4 $ 790,05 $ 02-rpA sreenigne stnemeriuqer edoc wen %521 791,024 $ 059,57 $ 008,8 $ 744,533 $ 02-yaM stcetihcrA ACL syaled ASD ,epocs dedda %281 720,361 $ 727,26 $ 009,01 $ 004,98 $ 02-yaM sredliuB nadoR noitcurtsnoC nelebbeoR eludehcs tcejorp ot eud ffats dedda %911 419,933,3 $ 043,66 $ 027,293 $ 456,108,2 $ 02-nuJ tnemeganaM tnemetaba tam zah rof deriuqer emitrevo %394 070,121 $ 005,31 $ 999,28 $ 175,42 $ 02-nuJ snoituloS latnemnorivnE elbisneS epocs dedda %792 127,121 $ 667,08 $ 559,04 $ 02-nuJ egarotS dna gnivoM sretaW dib rednu detelpmoc tcejorp a/n 033,273,3 $ )802,731( $ 835,905,3 $ 02-luJ ygrenE eulB raelC epocs dedda %021 676,806 $ 299,45 $ 803,54 $ 673,805 $ 02-guA ecnarusnI lautuM ytrebiL puorG lacinhcetoeG aerA yaB epocs dedda %541 795,27 $ 005,9 $ 000,31 $ 790,05 $ 02-guA sreenigne epocs dedda %5049 047,136,83 $ 852,243,82 $ 227,878,9 $ 067,014 $ 02-tcO noitcurtsnoC hcalB epocs dedda %741 006,84 $ 005,51 $ 001,33 $ 02-ceD erooM dnA oniN epocs dedda %981 566,37 $ 516,43 $ 050,93 $ 02-ceD gnitlusnoC latnemnorivnE atsiV epocs dedda %743 543,31 $ 994,9 $ 648,3 $ 12-beF gnitlusnoC latnemnorivnE atsiV noitcurtsnoC nelebbeoR epocs dedda %121 206,593,3 $ 886,55 $ 060,954 $ 456,108,2 $ 12-beF tnemeganaM epocs dedda %916 214,585 $ 548,754 $ 325,49 $ 12-raM puorG AMR epocs dedda %854 519,95 $ 528,64 $ 090,31 $ 12-raM tnega gninoisimmoc camulG epocs dedda %121 175,72 $ 558,4 $ 617,22 $ 12-rpA gnitlusnoC muinnelliM epocs dedda %241 327,651 $ 365,64 $ 061,011 $ 12-rpA puorG siloS %01 naht sseL %101 006,325,45 $ 000,535 $ 006,889,35 $ 12-yaM noitcurtsnoC porhtaL Appendices Fiscal Crisis and Management Assistance Team Fremont Unified School District 40 % egnahc morf egnahc roirP lanigirO egnahc rof elanoitaR lanigiro tcartnoc weN redro egnahC sredro tcartnoc etad draoB rodneV noitadnemmocer ASD ot eud ffats dedda %581 048,500,1 $ 000,264$ 048,345 $ 12-luJ secivreS noitcepsnI reimerP epocs dedda %171 002,361 $ 000,86$ 002,59 $ 12-voN snoituloS tsoP ediuG epocs dedda %181 052,271 $ 050,77$ 002,59 $ 12-voN stcetihcrA CLW/KBP epocs dedda %533 652,47 $ 522,74$ 558,4 $ 671,22 $ 22-naJ gnitlusnoC muinnelliM sredro egnahc elpitlum %682 067,384 $ 007,413$ 060,961 $ 22-naJ sredliuB nadoR tcartnoc lanigiro/sredro egnahc elpitlum raelcnu tnuoma ? 440,749 $ 440,749$ 22-naJ noitcurtsnoC porhtaL sredro egnahc elpitlum %441 628,063,1 $ 387,314$ 440,749 $ 22-raM noitcurtsnoC porhtaL sredro egnahc elpitlum ? 800,032$ 22-raM sredliuB nadoR segnahc deriuqer ASD %211 180,292 $ 565,03$ 615,162 $ 22-raM secivreS gnitseT noitcurtsnoC tcartnoc fo noisnetxe %624 524,530,1 $ 321,297$ 203,342 $ 22-raM noitaroproC abodroC stnemeriuqer ASD ,epocs dedda %051 356,377,1 $ 525,08$ 064,015 $ 866,281,1 $ 22-rpA stcetihcrA APL ni segnahc ot eud epocs ni egnahc snoitidnoc %251 872,797,4 $ 556,064$ 146,561,1 $ 289,051,3 $ 22-rpA stcetihcrA AKQ sredro egnahc elpitlum ? 095,875$ 22-rpA sredliuB nadoR epocs dedda %496 623,423 $ 673,56$ 002,212 $ 057,64 $ 22-nuJ erooM dnA oniN sredro egnahc elpitlum ? 184,551$ 22-nuJ sredliuB nadoR stnemeriuqer ASD ,epocs dedda %471 609,250,2 $ 977,953$ 589,095 $ 866,281,1 $ 22-nuJ stcetihcrA APL syaled ASD ,epocs dedda %7201 073,335,3 $ 945,247$ 568,644,2 $ 659,343 $ 22-nuJ noisnemiD htxiS sredro egnahc elpitlum ? 254,784$ 628,631 $ 22-nuJ noitcurtsnoC porhtaL sredro egnahc elpitlum ? 299,291$ 495,851 $ 22-nuJ noitcurtsnoC hcalB epocs dedda %493 009,46 $ 492,8$ 051,04 $ 654,61 $ 22-nuJ tnega gninoisimmoc camulG stnemeriuqer ASD ,epocs dedda %291 944,514 $ 863,321$ 565,03 $ 615,612 $ 22-nuJ secivreS gnitseT noitcurtsnoC stnemeriuqer ASD ,epocs dedda %971 345,605,1 $ 833,566$ 508,048 $ 22-nuJ srotcepsnI loohcS ASD stnemeriuqer ASD ,epocs dedda %392 634,092 $ 639,091$ 000,99$ 22-nuJ gnitlusnoC ACEM syaled tcejorp ,epocs dedda %221 500,381 $ 505,33$ 005,941 $ 22-luJ secivres tnemeganaM GMBC stnemeriuqer ASD ,epocs dedda %261 071,938 $ 070,223$ 001,715 $ 22-peS srotcepsnI loohcS ASD sredro egnahc elpitlum ? 712,435,1$ 22-peS noitcurtsnoC porhtaL snoitidnoc ni segnahc ot eud epocs dedda %253 611,87 $ 002,1$ 047,45 $ 671,22 $ 22-tcO gnitlusnoC muinnelliM Appendices Fiscal Crisis and Management Assistance Team Fremont Unified School District 41 % egnahc morf egnahc roirP lanigirO egnahc rof elanoitaR lanigiro tcartnoc weN redro egnahC sredro tcartnoc etad draoB rodneV tcirtsid yb epocs ni egnahc %621 686,332,4 $ 086,7 $ 660,658 $ 049,963,3$ 22-tcO stcetihcrA APL snoitidnoc ni segnahc ot eud epocs dedda %251 872,308,4 $ 000,6 $ 692,636,1 $ 289,061,3$ 22-tcO stcetihcrA AKQ snoitidnoc ni segnahc ot eud epocs dedda %161 231,124$ 386,5 $ 339,351 $ 615,162$ 22-tcO secivreS gnitseT noitcurtsnoC stsoc desaercni %251 070,444,1 $ 070,494 $ 000,059$ 22-tcO noitaroproC abodroC epocs dedda %752 464,001 $ 997,62 $ 516,43 $ 050,93$ 22-tcO gnitlusnoC latnemnorivnE atsiV Appendices Appendix E Warrants Fiscal Crisis and Management Assistance Team Fremont Unified School District 42 Appendices Fiscal Crisis and Management Assistance Team Fremont Unified School District 43 dengiS tcirtsiD tcirtsiD draoB .riD dengiS dengiS lacsiF deliateD eciovnI no diaP setoN lavorppA seitilicaF rinaV tcetihcrA lavorppA eciovnI etaD O.P tnuomA rodneV # tnarraW etaD dna rinaV enO dengis tcirtsiD ecalpkroW yad emas 0202/11/5 0202/11/5 a/n x 0202/81/2 80320-02OP 97.892,302 $ CLL irarreF 80043315 0202/31/5 dna rinaV dengis tcirtsiD yad emas 0202/1/7 0202/1/7 a/n 0202/1/7 x 0202/03/6 57900-71OP 10.337,24 $ TEN.SMA 73994315 0202/03/6 riD dna rinaV seitilicaF fo emas dengis KO yad 0202/13/8 0202/13/8 a/n 1202/81/8 x 0202/81/8 85600-12OP 00.050,28 $ noitcurtsnoC 06806315 0202/9/9 dna rinaV dengis tcirtsiD stnarraW ibloC yad emas ton era 0202/21/11 0202/21/11 a/n 0202/21/11 x 0202/9/11 10640-71OP 00.000,03 $ seigolonhceT 70367315 0202/42/11 eht ot nekat yhtraCcM rof draob 1202/8/1 1202/7/1 1202/7/1 1202/7/1 x 0202/52/21 09110-91OP 86.201,853 $ gnidliuB 72709315 1202/3/2 .lavorppa dna rinaV tcirtsiD dengis tcirtsiD taht setats nielebbeoR yad emas lavorppa 0202/21/11 0202/21/11 a/n 0202/21/11 x 0202/6/11 91550-71OP 02.514,68 $ tgM tsnoC 67539315 1202/71/2 ro OP fo dna rinaV TI osla tcartnoc dengis tcirtsiD tnemeganaM sevorppa yad emas 1202/8/3 1202/8/3 1202/8/3 1202/8/3 x 1202/3/3 46960-81OP 72.472,952 $ proC 39689315 1202/01/3 .tnemyap nadoR 1202/31/8 1202/01/8 1202/9/8 1202/01/8 x 1202/9/8 03720-12OP 00.991,416 $ sredliuB 62264415 1202/81/8 slaitini elbigellI -1202/12/01 tcartnoc M yb dengis eciovni ,elttaB ot dessserdda reffiefP N x 1202/41/01 05700-22OP 00.000,57 $ scitylanA yeK 53926415 1202/62/01 2202/91/01 2202/81/01 a/n 1202/81/01 x 1202/51/01 50500-22OP 00.054,63 $ puorG RLD 60926415 1202/62/01 2202/91/01 2202/81/01 a/n 1202/81/01 x 1202/51/01 60500-22OP 00.079,92 $ puorG RLD 60926415 1202/62/01 dna rinaV dengis tcirtsiD xiS91 yad emas 1202/91/01 1202/91/01 a/n 1202/91/01 x 1202/11/01 43600-22OP 05.260,32 $ stcetihcrA 27826415 1202/62/01 Appendices Fiscal Crisis and Management Assistance Team Fremont Unified School District 44 dengiS tcirtsiD tcirtsiD draoB .riD dengiS dengiS lacsiF deliateD eciovnI no diaP setoN lavorppA seitilicaF rinaV tcetihcrA lavorppA eciovnI etaD O.P tnuomA rodneV # tnarraW etaD atsiV 1202/8/11 1202/4/11 a/n 1202/4/11 x 1202/2/11 52350-02OP 00.066,24 $ latnemnorivnE 80886415 1202/71/11 eciovnI roirp deviecer esahcrup ot redro .devorppa esahcruP noitisiuqer yb detseuqer seitilicaf fo rid devorppa OP elbigellI veD kcordiloS 1202/51/21 1202/31/21 slaitini a/n 1202/41/21 x 1202/92/01 52430-22OP 00.060,52 $ prG 83628415 2202/21/1 dna rinaV dengis tcirtsiD ereimerP stnarraW yad emas 2202/2/2 2202/2/2 a/n 2202/2/2 x 2202/1/2 41340-12OP 00.083,42 $ noitcepsnI 23139415 2202/9/2 ton era eht ot nekat H&S rof draob 2202/2/3 2202/1/3 2202/42/2 2202/1/3 x 2202/61/2 94700-22O:P 00.112,631 $ noitcurtsnoC 08310515 2202/9/3 .lavorppa deyaled tcirtsiD - gnissecorp taht setats devorppa lla lavorppa emit emas 2202/11/3 2202/11/3 a/n 2202/11/3 x 1202/61/6 74330-12OP 00.505,02 $ proC abodroC 76130515 2202/61/3 ro OP fo deyaled osla tcartnoc - gnissecorp sevorppa devorppa lla .tnemyap emit emas 2202/11/3 2202/11/3 a/n 2202/11/3 x 1202/3/11 74330-12OP 00.575,1$ proC abodroC 76130515 2202/61/3 deyaled - gnissecorp devorppa lla emit emas 2202/11/3 2202/11/3 a/n 2202/11/3 x 1202/4/01 74330-12OP 05.771,9 $ proC abodroC 76130515 2202/61/3 htxiS noisnemiD 2202/62/4 2202/52/4 a/n 2202/52/4 x 2202/13/3 73320-02OP 08.853,18 $ CLL 09761515 2202/4/5 doowrednU dna rinaV dna dengis tcirtsiD mulbnesoR yad emas 2202/32/5 2202/32/5 a/n 2202/32/5 x 2202/42/4 85840-22OP 00.054,8 $ cnI 21922515 2202/62/5 Appendices Fiscal Crisis and Management Assistance Team Fremont Unified School District 45 dengiS tcirtsiD tcirtsiD draoB .riD dengiS dengiS lacsiF deliateD eciovnI no diaP setoN lavorppA seitilicaF rinaV tcetihcrA lavorppA eciovnI etaD O.P tnuomA rodneV # tnarraW etaD doowrednU dna rinaV dna dengis tcirtsiD mulbnesoR yad emas 2202/42/5 2202/42/5 a/n 2202/42/5 x 2202/31/5 85840-22OP 00.056,5 $ cnI 21922515 2202/62/5 fo riD oN seitilicaF erutangis a/n 2202/31/7 x 2202/21/7 95900-02OP 00.283,861 $ rinaV 15393515 2202/02/7 fo riD oN seitilicaF -020OP erutangis 2202/6/7 a/n 2202/31/7 x 2202/21/7 06900 00.817,23 $ rinaV 15393515 2202/02/7 fo riD oN seitilicaF APL stnarraW erutangis 2202/81/8 a/n 2202/81/8 x 2202/01/8 42350-02OP 52.122,012 $ stcetihcrA 43084515 2202/52/8 ton era fo riD oN eht ot nekat seitilicaF rof draob porhtaL erutangis .lavorppa 2202/61/8 2202/01/8 2202/71/8 x 2202/61/8 98340-12OP 69.347,674,2 ‎$ noitcurtsnoC 72084515 2202/52/8 tcirtsiD fo riD oN taht setats seitilicaF xiS91 lavorppa erutangis 2202/21/8 a/n 2202/21/8 x 2202/21/8 43600-22OP 33.101,2$ stcetihcrA 85974515 2202/52/8 ro OP fo fo riD oN osla tcartnoc seitilicaF sevorppa xiS91 erutangis .tnemyap 2202/51/8 a/n 2202/51/8 x 2202/51/8 43600-22OP 09.036,7$ stcetihcrA 85974515 2202/52/8 fo riD oN seitilicaF xiS91 erutangis 2202/51/8 a/n 2202/51/8 x 2202/1/6 43600-22OP 07.298,62$ stcetihcrA 85974515 2202/52/8 fo riD oN enO seitilicaF ecalpkroW erutangis 2202/11/8 a/n 2202/11/8 x 2202/11/8 81850-22OP 04.855,151 $ CLL irarreF 34084515 2202/52/8 yb devorppa nosidraH OBC 2202/03/9 2202/03/9 x 2202/13/7 67910-91OP 61.012,93 $ ustamoK 23916515 2202/21/01 lavorppa oN atad ssecorp ssoR .dedivorp x 2202/13/8 42600-32OP 65.871,19 $ dlanoDcM 24117515 2202/9/11 elbigellI lavorppa -2-21 slaitini -320OP nossuM 2202 x 2202/51/11 15900 00.078,87 $ lacirtaehT 88718515 2202/41/21