Audit Reveals Important Issues with LLESD Spending, Board Commits to Reform
A recent audit of the Las Lomitas Elementary School District (LLESD) revealed widespread issues with financial oversight and documentation, prompting a commitment from the Board of Trustees to implement corrective measures. The audit, conducted by the fiscal Crisis & Management Assistance Team (FCMAT), found that 76% of reviewed transactions failed to meet at least one established criteria, raising concerns about the validity of those expenditures.
The report highlighted several areas of concern, including $5,775 spent on items deemed potential gifts of public funds, such as retirement parties, flowers, gift cards, custom birthday cakes, and condolences. Twenty-six transactions lacked documentation demonstrating an educational purpose. Specific examples included $1,035 and $3,004 purchases from left Bank and Draeger’s supermarket respectively, attributed to staff events, and a $160 birthday cake charged to a $10,812 Dream Inn hotel invoice during a leadership retreat. An employee explained the cake purchase was mandated by the hotel’s policy prohibiting outside food.
Auditors also identified significant documentation gaps, noting 156 transactions totaling $63,018 were missing receipts. Furthermore, 18 out of 57 reviewed credit card statements lacked the required expenditure log form. The audit found that even when used, these log forms were frequently enough incomplete and lacked necessary employee and supervisor signatures.
The audit’s findings stemmed from concerns raised by the community during labor negotiations in October 2024, which led to a public records request for credit card statements. In response, the Board suspended Polito’s credit card use, formed a budget advisory committee, and eventually placed Polito on administrative leave.
Board members expressed gratitude for the audit’s thoroughness and acknowledged the district’s shortcomings. Trustee Heather Hopkins, former board president, detailed the timeline of events leading to the audit. Trustee Kimberly Legg acknowledged the district’s “mistakes, insufficient policies and carelessness” and the resulting frustration within the community.
“Systems in place did not provide the oversight and accountability that our community deserves,” Legg stated, emphasizing the board’s commitment to rebuilding the system “thoughtfully and publicly.”
The LLESD Board of Trustees is now tasked with creating a corrective action plan within 15 days,to be discussed in a public session on November 18th at 2 p.m. The county requires implementation of the plan within 120 days of the presentation. Hopkins also indicated a desire to develop detailed guidelines for reimbursements, building on recently approved policies regarding administrative credit card use.