Investigators: Fraud, misappropriation may have occurred at Orland Unified School District

Aug 22, 2014 6:09 PM by News Staff

A seven-month investigation into allegations of financial misleadings and gross mismanagement at the Orland Unified School District has concluded that fraud and misappropriation of district funds may have occurred.

Glenn County Superintendent Tracey Quarne released a full report on the investigation Friday. In January, the Glenn County Office of education and the Fiscal Crisis & Management Assistant Team began the investigation.

The Orland Unified District has about 2200 students, and has been under major financial pressure with a more than $1 million dollar deficit that surfaced more than two years ago.

The report stops short of assessing specific responsibility, but it does point out the lack of financial controls, including "questionable" transactions and business practices by the administration under former superintendent Chris von Kleist, who left the district with a $247,000 severance package in 2013.

Quarne said the matter of assessing responsibility is now in the hands of the local district attorney, the State Controller and State Superintendent of Public Schools.

The report recommends the superintendent examine the system of checks and balances in place within the district, as well as the internal controls, a process Quarne said has been under way since the District went into financial distress after von Kleist left his post.

Click here to read the entire report.


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