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Parent alleges $1.8 million missing from cafeteria fund; board approves centralizing bank accounts
Summary
A public commenter alleged $1.8 million was written off from the Stockton Unified cafeteria fund and urged an audit; the board approved a motion to centralize certain district bank accounts at Bank of Stockton after discussion and a roll-call vote.
At Monday’s Stockton Unified School District board meeting a public commenter alleged serious financial irregularities in the district’s cafeteria fund and urged the board to order an audit, while board members later approved a motion to transition certain district bank accounts to Bank of Stockton.
Frank Galo, a member of the public, told trustees the cafeteria fund had been reduced by $1.8 million and said the district had “quietly closed” the account rather than conduct an audit. Galo referenced a prior state designation that labeled the district high-risk for fraud and said he had shared handwritten checks and other materials with the board and state investigators; he urged an investigation.
"There has been so many grand jury investigations and [FMAT] reports… it now appears... there’s more than one person with their hands in the SUSD $1 billion cookie jar," Galo said, calling for the board to request an audit or an investigation.
Later during item 12.2, staff and trustees discussed a proposed transition of certain district bank accounts from Bank of Agriculture and Commerce to Bank of Stockton to centralize revolving accounts, student body (ASB) accounts and the district’s 1852 account. Interim CBO Joanne Orz said the change was intended to centralize accounts and was unrelated to the public comment request for a cafeteria audit.
Trustees asked staff questions about the scope and amounts in the accounts. A trustee asked whether the move was intended to close cafeteria funds; staff responded that the move was a centralization effort and that legal advice had been sought because some accounts are student-body accounts.
The roll-call vote on item 12.2 recorded: President Stevens — yes; Vice President Colon — yes; Clerk Dair — yes; Trustee Flores — abstain; Trustee Rico — no; Trustee Zulueta — yes; Trustee Mendes — absent. The chair announced the motion passed with four yes votes, one no, one abstention and one absent.
The board did not announce a new audit or direct staff to open an immediate forensic review during the meeting. Frank Galo’s request that the state audit division investigate remains a public comment and was not converted into a formal board directive in open session.
The board continued with other agenda items after the vote.
