After years of lagging construction, firm Fonder-Salari took over the Measure E and Measure BH bond program in July 2022. (Beverly Press/Park Labrea News file photo)

Representatives from the Citizens’ Bond Oversight Committee, a group of seven Beverly Hills residents that reviews expenditures for Measure E and Measure BH bond programs that fund Beverly Hills Unified School District construction, presented their annual report during the June 27 BHUSD board meeting.

Measure E, a $334 million bond, was approved by voters in November 2008, and the $385 million Measure BH bond was approved in 2018. Construction has been slow, and in July 2022, the district selected construction firm Fonder-Salari to oversee the taxpayer funded projects.

In their report, CBOC representatives wrote that while they have no decision making power, their report serves to hold district officials and staff accountable. The report covers fiscal year 2021-22, and includes findings from an annual financial audit and annual performance audit by the independent accounting firms Christy White and Moss Adams, respectively.

Committee member Jasmine Yadgari said the CBOC found several areas of concern, including issues with billing, missing planning documents and flaws in reporting.

“Lastly … the bond program has a potential shortfall of about $130 million,” Yadgari said. “The program had an updated potential shortfall of about $87 million, but no details were provided to document drivers for decreases from the prior projections.”

Yadgari also noted that the district “has made monumental strides in improving its management and tightening its oversight of the bond program” since the audits were released.

She applauded the district for hiring Fonder-Salari as the new bond manager and for hiring legal counsel to help reorganize the construction team, obtain requests for proposals and review contracts.

“In addition, the reporting structure was changed so that the new bond manager reports to the district staff rather than the school board, creating more robust oversight and tighter approvals of expenditures at the standard market rates,” Yadgari said.

The CBOC also recommended that the district conduct a forensic audit, as the district did not have a fraud detection program in place between 2016 and 2022, Yadgari said.

“A forensic audit could be costly, but when there’s a shortfall of about $130 million, I believe this cost is justified,” she added.

“I really appreciate the CBOC and I think it’s a really important committee,” board member Judy Manouchehri said. “It just plays such an important role and it’s so important for our district and our bond program.”

On June 27, the board also approved the fiscal year 2023-24 budget, which projects expenditures of approximately than $95 million and revenue of approximately $92 million.