SACRAMENTO, Calif. — Members of the California legislature are requesting an audit of Highlands Community Charter School (HCCS), their online division the California Innovative Career Academy (CICA), the Doc Smith Legacy Foundation and the Twin Rivers Unified School District (TRUSD) in the wake of ABC10 Originals investigation, “The Wild West of Education.”
The letter, directed to the Joint Legislative Audit Committee, is co-authored by Assemblymembers Dawn Addis, Al Muratsuchi, David Alvarez and Senator Josh Newman.
"I am joining with the Chair of the (California) Senate Education Committee, the Chair of the Budget Subcommittee on Education Funding and another member of the Assembly Education Committee," said Asm. Muratsuchi, who serves as California's Assembly Education Committee Chair. "That should speak for itself. That this is a serious audit request that deserves full consideration."
The state legislators say concerns were first raised about Highlands when a FCMAT audit through Sacramento County was conducted in 2018. While the audit concluded there was no sufficient evidence to demonstrate fraud or misappropriation happened, it indicated “other illegal fiscal practices may have occurred” due in part to “significant material weaknesses in the charter’s internal control environment.”
While the FCMAT audit had no subpoena power, if approved, this new audit will. A measure education experts have told ABC10 is crucial in determining whether fraud is occurring within an educational institution.
The letter cites ABC10’s investigation and the concerns raised by the reporting, “ABC10 news coverage has raised questions about the potential falsification of student attendance records, poor student outcomes, conflict of interest, and misuse of state funds for gifts to staff and students, luxury travel, staff bonuses and political contributions.”
"Based on the complaints that we saw in the ABC10 investigative reporting we know there are concerns about the improper use of enrollment funding for luxury travel... these retreats to San Diego... trips to France," said Asm. Muratsuchi. "I'm a former school board member and I've never heard of any abuses like that - and so we want to make sure we investigate this fully (and) thoroughly."
The legislators say an audit is needed to determine if California’s K-12 education funding is being fraudulently spent and if other charter schools authorized by Twin Rivers have proper oversight.
So, what is the scope of the audit being requested?
They’re seeking to answer questions related to 11 categories: enrollment and attendance, teacher credentials, student-to-teacher ratios, instructional materials, political contributions and foundation spending, housing, employment contracts, TRUSD oversight, childcare, fire code, and human assistance documents.
"We just want the facts - and the facts speak for themselves. But if they do find fraud, waste and abuse of public-school dollars, not only should it lead to further actions to hold the relevant actors accountable but also to lead to any regulatory and legislative changes we need to make to strengthen our accountability and oversight process," said Asm. Muratsuchi.
Highlands Community Charter and Technical Schools provided ABC10 with the following statement from their Board of Directors Chair Ernie Daniels:
“Highlands Community Charter and Technical Schools welcomes the legislature’s Joint Legislative Audit Committee audit request. We are committed to transparency and accountability. We fully cooperate with the boards and agencies tasked with overseeing the school and take their concerns seriously. After a recent internal review of our policies and procedures, we have made or are in the process of making the following changes:
- Approving new fiscal policies that ensure public transparency regarding all expenses.
- Approving a new travel policy consistent with norms and standards recommended by the Fiscal Crisis Management Assistance Team.
- Hiring a head of Human Resources to improve personnel practices and procedures.
“The mission of Highlands Community Charter and Technical Schools is to provide our diverse community of adult students with access to education and technology that empowers them to improve their lives.”
Twin Rivers Unified School District provided ABC10 with the following statement in response to the audit request:
"Twin Rivers Unified operates within the bounds of the law in our oversight of both independent and dependent charter schools. In addition to the district’s oversight process and procedures, we enlisted the services of an independent auditor on April 16 to conduct a thorough examination of Highlands Community Charter and Technical Schools after receiving formal complaints. The audit is currently underway. Transparency and accountability are of utmost importance in our district, and we are committed to cooperating fully with any legislative process to address concerns and maintain public trust."
What is the “Wild West of Education?”
For over a year, ABC10 investigated Highlands Community Charter and Technical Schools and found millions of public-school funds being used liberally. Yet, with little oversight, the school keeps expanding across California. In what insiders call an unregulated school system, over 30 current and past employees came forward for this ABC10 Originals investigation, "The Wild West of Education."
WATCH MORE ON ABC10: Teachers take concerns over Highlands Community Charter and Technical Schools to Twin Rivers Unified
