Pasadena USD Financial Troubles SpreadDec. 8, 2012 |By Brian Charles & James Figueroa |PasadenaStarNews.com
EXCERPT: Allegations of improper billing, a school construction project more than $8 million above estimates and questions about the availability of timely financial audits have sent Pasadena Unified School District officials on a search for answers. The district launched two audits this week. A forensic audit will focus on the allegations of improper billing which led to the termination of four consultants' contracts, the suspension of a fifth contract and landed PUSD Chief Financial Officer David Azcarraga on paid administrative leave. ...
... Meanwhile, the Citizens Oversight Committee charged with keeping a watchful eye over expenditures on the $350 million Measure TT capital improvement project have a tough task in tracking the money. ...
"Something has to change about the system," PUSD board member Scott Phelps said Friday. "The system relies solely on the bond manager and facilities chief to say, `Yes I signed off on the time card,' ... maybe we need to have more frequent audits of the expenditures."
A whistle-blower within the district came forward with allegations that consultants and contractors were being paid for hours they didn't work, Phelps said. - The investigation began more than a month ago and is still ongoing, officials said.
The board moved quickly to place Azcarraga on leave, suspend bond manager Robin Brown and terminate the contract of Seville Construction Services, LCC3 Construction, Peter Contis and Arturo Arce. ...
"The school district has adopted a policy that they need to have union workers on the job, not prevailing wage, but union workers," said Ed Barnum, Citizens Oversight Committee member. "You get these policies that sound wonderful to the school board, but it makes the bids higher."
In the fall, the PUSD adopted a project labor agreement, which requires a certain level of union labor on projects and set a local hiring threshold. ...
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