Joint Legislative Audit Committee (JLAC) Hearing Responses

In the 2018–19 school year, the Fiscal Crisis and Management Assistance Team (FCMAT) identified CVUSD as a “High Risk” for insolvency, citing a projected negative unrestricted general fund balance by 2020–21.

The district undergoes annual independent audits, and FCMAT has conducted multiple reviews, including the most recent audit in 2025. Additionally, the Riverside County Office of Education (RCOE) has assigned a fiscal advisor to the district to provide ongoing oversight and support.

In FY 2024–25, RCOE formally warned of a possible state takeover if budget reductions were not enacted. In response, the district developed a fiscal stabilization plan aimed at addressing ongoing financial challenges and restoring long-term fiscal health.

In the years leading up to the current shortfall, Coachella Valley Unified School District maintained a positive budget outlook, with its unrestricted fund balance increasing from $58.3 million in 2022–23 to $71.1 million in 2023–24, primarily due to increases in LCFF and local revenue sources.

Additionally, restricted fund balances remained elevated, largely due to one-time COVID relief funding. These reserves were intentionally carried over to support learning loss mitigation efforts and to fund planned capital outlay projects, including HVAC system upgrades, athletic field improvements, and the installation of shade structures at school sites.

The planning and implementation of these projects required time for proper design, approval, and coordination with external agencies, which contributed to the carryover of funds across fiscal years.

Since the onset of the budget shortfall, the district has implemented a fiscal stabilization plan that included program reductions and organizational restructuring. These efforts were carefully designed to minimize the impact on student learning.

A significant portion of the reductions focused on services and programs previously supported by one-time COVID relief funds, which are no longer available.

Decisions regarding budget reductions were made through a collaborative process involving district Cabinet members, with final approval by the Board of Trustees. This decision-making process considered factors such as funding sustainability, program effectiveness, and alignment with the district’s educational goals to ensure that core instructional services remained prioritized despite financial constraints.

The CVUSD Foundation was found to be out of compliance with state regulations due to its failure to meet annual registration and reporting requirements with the California Registry of Charitable Trusts.

The Foundation last filed taxes in 2023. As a result of its non-compliant status, the district set aside the $1.5 million donation from Golden Voice and has not utilized those funds. The district is waiting for all required filings and registrations to be completed. Once the Foundation regains compliance and is reinstated, the funds will be transferred to the Foundation’s designated account.

It was also discovered that approximately $12,000 from the Foundation account was used during the 2023–24 fiscal year by prior district administration to pay for the CVUSD State of the District event. This expenditure occurred without proper approval from the Foundation’s Board of Directors.

Once the current district administration and Foundation Board were made aware, the decision was made to reimburse the Foundation account from the district’s general fund, which should have been the original funding source for the event.

On May 19, 2025, the Foundation held a meeting to re-establish itself and begin the necessary steps to return to good standing.

Since fiscal year 2014–15, Coachella Valley Unified School District (CVUSD) has adhered to California’s Public Contract Code (PCC), including Sections 20110–20118.4, which outline formal bidding procedures for school districts.

Non-Public Works Contracts

CVUSD provided reports from its Bid Manager program, which captures formal contracts that are not related to Public Works. These include contracts for services, materials, and equipment that exceeded the mandatory bid thresholds and required a formal solicitation process.

• 64 contracts were processed through the Bid Manager system between 2015 and 2025.
• These contracts were competitively bid, reviewed with legal counsel, and awarded by the Board of Trustees to the lowest responsive and responsible bidder.
• Contracts awarded through piggyback agreements, which are exempt from formal bidding, are not included in this report. These agreements utilize pricing and terms from bids conducted by other public agencies. Information on piggyback contracts is available upon request.

Public Works Contracts

Separately, the Facilities Department manages contracts related to Public Works projects, including construction and major facility improvements.

• Since 2015, 166 Public Works contracts have been awarded through the formal bidding process.
• These projects follow strict Public Works bidding requirements and are awarded in compliance with applicable laws and regulations.
• A total of 47 different companies have been awarded Public Works contracts through this formal bidding process.

CVUSD remains committed to ensuring all contracts are processed with transparency, fairness, and in alignment with legal and fiscal standards.

Between 2015-2025, Coachella Valley Unified School District (CVUSD) has awarded 61 contracts to Desert Concepts Construction, Inc. Each was selected as the lowest responsive and responsible bidder, with no subcontractors listed.

The total amount awarded to Desert Concepts Construction, Inc. was $51,002,990.69.

Of these projects, only one exceeded the original budget:

Palm View Elementary School Phase 5

The project went over budget by $2,160,000. The cost overrun was attributed to a combination of engineering design flaws, unforeseen site conditions, and an expanded project scope mandated by local agencies and district administrators during construction.

Yes. Bidders are required to submit, along with their bid, a list of designated subcontractors using the form provided in the Contract Documents, as mandated by the Subletting and Subcontracting Fair Practices Act (California Public Contract Code Section 4100 et seq.).

All listed subcontractors must be duly licensed under California law to perform the specific trades required by the project.

Over the years, several prime contractors have submitted bids and identified subcontractors to complete portions of the work. These subcontractors are disclosed at the time of bid submission and are documented as part of the district’s contracting records.

The Coachella Valley Unified School District received a one-time payment of $448,488.83 from the City of Coachella to support the Coachella Promise Program, a summer internship initiative designed to provide students with hands-on work experience and professional development.

The program reflects a strong community partnership focused on youth empowerment, career readiness, and educational equity.

Funding for this initiative originated from a grant titled the American Rescue Plan Act (ARPA) State and Local Fiscal Recovery Funds (SLFRF) program. Under this program, the City of Coachella may contract with subrecipients such as school districts.

The Coachella Promise Internship Program operated for six weeks, from June 17, 2024, to July 26, 2024, with 117 student interns participating.

Students participating in the program:

Were at least 15½ years old, held a GPA of 2.5 or higher, and obtained parent and counselor approval.
Worked a six-hour shift, four days a week, with a 30-minute lunch and 15-minute break.
Took time off for the holidays on June 19 and July 4–5, 2024.
Were placed at school sites, local businesses, and/or a department within the district office and were always supervised by an adult.
Received a free iPad, a storage pouch for their charger, and a weekly stipend totaling $44,025.75.

Every Friday, except July 5, 2025, the student interns participated in professional learning and development training led by local community members who volunteered their time to teach financial literacy and work development. Breakfast and lunch were catered for students at these Friday events.

Catering Cost: $22,615.00.

The Community Engagement Manager received no compensation for organizing or supporting the program. Evenings and weekends were donated to ensure the success of the initiative and to support students.

Additional expenses covered under the grant included:

Supplies: $2,115.33 for water, soft drinks, snacks, baked goods, certificate paper and holders for student recognition, and a storage pouch for each iPad charger.
Overtime: $4,700.41 paid to custodial staff for cleanup following events and to Parent Community Liaisons who assisted with student interviews and paperwork during their contractual year, which ended June 30, 2024.
Extra Services: $2,911.56 paid to liaisons who supported the program throughout the summer months.

A culminating celebration was held on July 26, 2024, at Cahuilla Desert Academy, a CVUSD middle school. Tables and chairs were rented from an approved CVUSD vendor for this event.

Rental of Tables, Chairs, and Centerpieces: $2,595.00.

The Coachella Promise Program was made possible through the dedication of educators, staff, city leadership, and community members who came together to provide students with valuable, real-world learning experiences and a strong foundation for future success.

Board Approved through CVUSD: June 13, 2024.

CVUSD pays a premium to Keenan Insurance for settlements and lawsuits. If the district is found to be at fault, CVUSD pays one-third of any settlement or lawsuit.

Student-Related Settlements/Lawsuits Paid
$140,000 — Sexual Misconduct Claim; one-third paid by CVUSD and two-thirds by Keenan.
$4,500 — Bus vehicle accident; paid by CVUSD only.

Schools Excess Liability Fund (SELF)

CVUSD was a part of the Schools Excess Liability Fund (SELF) from 1987 to 2008. This was a pool of districts that paid claims through the SELF pool. Any claims currently charged are from 1987–2008 because there was a change to the statute of limitations for sexual assault and molestation. Claims dating to 1987–2008 mean districts within the SELF pool are responsible for those settlement amounts. CVUSD’s contribution was $250,183.00.

Employee Settlements

In 2020–21, there was a lump-sum settlement for a released superintendent position for no cause. Because the superintendent was released prior to the end of the contract term, the employee was awarded $259,000 in 2021. The settlement also included an extension of health benefits for 12 months that ended in 2022, totaling $25,291.44 for the employee and eligible dependents.

In 2022–23, there was a settlement agreement for a released Assistant Superintendent of Business Services for $12,467.05. In addition, the employee was provided an additional two months of health coverage totaling $5,403.03.

ELO-P is funded by California’s state budget and remains financially solvent.

ELO-P supports extended instructional time after school, summer school, and the extended school year for students with special needs. The program helps support efforts to close learning gaps and provides integrated supports, staff training, curriculum for summer and extended learning programs, and transportation, as the district encompasses approximately 1,200 square miles.

ELO-P also supports the nutrition program offered after school, during summer school, and during the extended school year.

The expenditure reports for FY 2021–22 and FY 2022–23 were due on October 31, 2024, and those reports were submitted. The district is aware that unspent funds must be liquidated by June 30, 2025, or returned to the state.

Expenses are within program guidelines, and all districts are required to create a Board-approved ELO-P plan outlining the goals for the program.

CVUSD’s ELO-P Plan outlines adherence to these standards, including support for:

• TK–6 enrichment
• Social Emotional Learning (SEL)
• Meals and snacks
• Staff training
• Summer programming