San Ysidro School District freezes life insurance accounts of ex-administrators
The audit completed this month discovered former Superintendent
The audit found there was evidence to indicate the two men may have engaged in "fraud, misappropriation of funds or other illegal fiscal activities." The findings were turned over to the
In a letter to the
"Additionally, we will review our options as to the feasibility (of) recovering the additional identified overpayments," Potter said in the
In addition to the life insurance payouts, the audit by the state-created Fiscal Crisis & Management Team found the two former administrators were overpaid for vacation days. Fonseca received
Sanchez-Macias also was overpaid
The audit discovered revisions were made to the contracts of Fonseca and Sanchez-Macias, including some amendments that were not approved by the school board or discussed in public meetings.
A key revision allowed Fonseca and Sanchez-Macias the option to forgo district-paid life insurance and instead direct the amount allocated for monthly premiums into a deferred compensation account.
In the revised contracts, "language was reworded in ways that maximized personal benefit and provided for the most immediate access to cash contrary to language or practices used for all other employees," the audit noted.
The report also found the revisions "were virtually identical and were proposed simultaneously, suggesting that the two administrators worked together to modify their contracts in ways that were mutually beneficial."
Fonseca and Sanchez-Macias, who worked together at the
Fonseca resigned abruptly in September. Sanchez-Macias, who stepped into the top post after Fonseca's departure, resigned a month later. Attempts to reach them for comment were unsuccessful.
Potter's letter to the
In her letter, Potter, who last month was hired as the first permanent superintendent since Fonseca resigned, said the district plans to cooperate with the agencies notified of the findings if they seek additional information.
Potter said she appreciates the audit's "candid review" of the district's systems and processes.
"We look forward to the opportunity to improve our practices in our efforts to meet the needs of our children and our community," she said. "It is our intention to complete a comprehensive review of these areas and make corrections where needed."
She also noted the audit provided the district "with a framework to develop robust administrative and governance structures."
"As the newly appointed superintendent, I am committed to creating the highest level of leadership, systems and supports to best serve our community and understand that process starts with the superintendent and the board," Potter said.
In light of the audit findings, the
Meanwhile, a second audit is underway. The county office requested a second audit that will focus on contracts and payments made to outside vendors for facility-related services at the school district.
Email: [email protected]
Phone: (619) 293-1876
Twitter: @D4VIDHernandez
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