Proposition 55 School Construction Funding Mismanagement – San Francisco, CA

Oracle Investigations Group was contacted by a San Francisco area school to investigate the internal handling of over $1,000,000 in Proposition 55 School Construction Funding. Specifically, the school stated they had received this funding from the State of California as an advance on a partial grant / partial loan to complete new school construction on a school project. Our investigators completed a detailed investigation and determined that the Proposition 55 funding had been received by the school and was marked as “unrestricted” funds when the funds should have been placed in a “restricted” account. Many of the funds originally earmarked for the Proposition 55 project had been spent on other general school-related expenses. No willful wrongdoing was uncovered during this investigation and the school self-reported their mistake to the California Department of Education. The California Department of Education allowed the school to repay the funds via a negotiated loan over several years and all parties were satisfied with the resolution.