Audit Condemns College Practices at Van de Kamps Facility

A recently completed audit by the State Controller's Office of the Los Angeles Community College District (LACCD) reported $140 million in misspent bond funds and mismanagement of several facilities programs, including a project to convert the historic Van de Kamps building in Glassell Park to a community college campus.

On Wednesday evening, community members were given their chance to weigh in on the audit of the 10-year, $5.7 billion Measure J bond program, which called for the LACCD Board of Trustees to halt the outlay of all uncommitted Measure J bond funds until a spending master plan is devised.

Among those to attend the meeting were members of the Van de Kamps coalition, a Northeast Los Angeles group that has with LACCD to ensure that the historic Van de Kamps facility in Glassell Park is opened as a satellite campus of Los Angeles City College.

During a public comment portion of the meeting, Van de Kamps coalition members said that the findings of State Controller John Chiang's audit confirmed what they had been telling the LACCD board of trustees all along--that taxpayer funds were being appropriated to unapproved programs and that building projects had been inadequately planned.

"I can't tell you how many times I begged you not to put us in this situation," Jackson told the LACCD board in regard to Chiang's damning audit. "Did you ever think, 'Gee, if we listened to her we wouldn't be sitting here with egg on our faces.' We didn't lie to you, we told you the truth, and we backed it up with documents."

Van De Kamps coalition members allege that LACCD members poured an additional $10 million in Measure J bonds into the already $86 million Van de Kamps project in an effort to alter classrooms to the specifications of Alliance for College Ready Public Schools, a charter high school.

Jackson alleges that LACCD has attempted to turn the Van de Kamps campus into a cash cow by renting it to Alliance for College Ready Public Schools, rather than investing the funds needed to operate it as a community college satellite campus.

LACCD Response

In an official response to the audit report, LACCD Chancellor Daniel LaVista disagreed with the findings, saying that the "intent of [bond funds] can only be measured by the project list, which is flexible."

Trustee Mona Field also took issue with the findings, saying that LACCD conducted business like any other community college district.

"Nobody knows where the money is going to come from," Field said. "We're like any other community college district. Would you like us to start tearing buildings down because we built them with the wrong money?"

Jeff Brownfield, of the State Controller's Office, responded, saying "What's happened, is that it appears the district has overspent to construct one building, and then it's left with three more buildings to complete, and they end up saying, 'We don't have the money.'" He continued, "We're not asking you to tear down any buildings, but we did notice a district-wide lack of accountability."

The $86 million Van de Kamps facility was cited as a result of this lack of accountability.

"The district has poured $86 million into this facility and appears to have no plan to run it as a community college campus," said Andrew Finlayson, of the Controller Office's audits bureau. "... We didn't see any planning, and that's what sticks out to us as auditors. It all seemed to be up in the air, thinking it would all turn around."

Hiring of Inspector General Questioned

The audit also stated that LACCD ignored its internal procurement guidelines in the hiring of Christine Marez and her firm, Policy Masters Inc., as Inspector General.

The audit states that Policy Masters scored the second lowest of the 11 firms to apply, yet made the second highest bid.

"We believe the evidence presented in this report raised legitimate questions about the integrity of the process that led to the selection of the Inspector General," Brownfield wrote to LaVista in the audit report. "It is possible that the process was altered for valid reasons. … It also is possible that the process was altered because a preselected bidder was ineligible under established procedures and new criteria were developed to justify the selection."

Nine months into their contract, the audit found that Policy Masters had completed only one audit, that of the Van de Kamps property, a document "bore little resemblance, if any, to an audit by an independent firm," according to Brownfield.

The audit calls for an independent review of the hiring process, and on Wednesday night, Brownfield suggested an investigation by the district attorney's office would also be in order if action was not taken by the LACCD board.

Field, a longstanding member of the LACCD board of trustees who sat in on several interviews during the procurement process, said that the audit did not take into account that Policy Masters were an "up and coming company who were willing to go the extra mile."

District-Wide Abuse

The State Controller's Office reported four basic findings in their audit, all of which LACCD has officially disagreed with:

• Finding 1: Misuse of Measure J Funds

• Finding 2: Lack of District Oversight Over Spending Practices

• Finding 3: Disregard of Procurement Guidelines in Appointment of the Inspector General

• Finding 4: Inadequate Citizens Oversight Committee

Questions Remain

Not addressed in the audit is an accounting of expenses at the $86 million Van de Kamps facility.

According to the State Controller's Office, LACCD General Counsel Camille Goulet withheld this information, citing an environmental lawsuit filed by the Van de Kamps coalition.

On Wednesday, Daniel Wright, legal counsel for the Van de Kamps Coalition, urged the LACCD board of trustees to introduce a motion that would allow that information to be sent to the State Controller's Office.

"The pending litigation excuse only refers to documents that were produce after the lawsuit was filed," Wright said.

He urged the board to cooperate in any efforts to increase the accountability of LACCD staff.

"For too long you've been like happy mushrooms in the closet being fed manure," he said.

Recently elected Scott Svonkin appeared eager to enforce that accountability.

"It think it's time we found out who knew what was going on and didn't report it, or hid it," he said. "They need to be fired."