Audit Targets Principal’s Use of School Funds

An elementary school principal accused of spending tens of thousands of dollars in campus funds for personal purchases later returned nearly $4,000 after being confronted by auditors, city school district records show.

But Los Angeles Unified School District officials say she may be liable for thousands of dollars more.

As much as $30,000 worth of appliances, office equipment, books and food that were bought by the principal cannot be accounted for, according to district audits obtained by The Times.

San Fernando Elementary School Principal Candida Fernandez used checks and a personal credit card to buy a dishwasher, desktop computer, 13-inch TV and a word processor--among the hundreds of items for which she was reimbursed with district money but that cannot be found, the audits said.

Fernandez, who was transferred earlier this week pending the outcome of the investigation, probably owes far more than the $3,912.19 she paid the district on Jan. 29 in response to the investigation, district officials said.

She denied misusing school funds in an interview earlier this week.

And in a written response to the audits, Fernandez said the missing items were probably lost during the Northridge earthquake or three school burglaries. She also blamed an office manager, who no longer works at the school, as well as other campus workers.

No decision has been made whether to report the 20-year district veteran to police, school officials said. The district audits, which covered the past five years, found Fernandez had sought reimbursement for food, beverages and personal items, such as razors and lipstick. In addition, Fernandez allegedly sought reimbursement for two and three times the value of some purchases and inflated the sales tax.

District auditors are also reviewing whether Fernandez had the school pay for her two children to accompany a fifth- and sixth-grade class on a trip to Valley Forge, Pa.

Art Tang, who heads the district’s internal audit unit, said record-keeping problems at the school made it difficult to match purchases with receipts.

“The question becomes: Is it clerical or deliberate?” Tang said. “These appear to be patterns.”

District lawyer Howard Friedman said the audit raises “a number of questions.” But, he cautioned, “I don’t think the auditors--or anyone else--are in any position to make a direct accusation against anybody.”

Fernandez said in her written response to the audit that because of the 1994 Northridge earthquake, “I was not as careful or aware of procedures as I would have been under normal circumstances.”

She was reimbursed for the alleged purchases with money from accounts set aside for classroom supplies and field trips, as well as money raised by schoolchildren selling popcorn and candy, according to the audit. She wrote in response: “I lament that the time and money of both the staff of San Fernando Elementary and the district auditors was not better spent on the needs of our children and their academic programs.”

Fernandez explained that some items--including the word processor and TV--were stolen from the campus and should be included on police reports. She also said the auditors were shown several items but still listed them as missing.

The district audits, however, contradict Fernandez’s account in other cases.

Some reimbursements were described as “film purchases,” for example, but cash register receipts show instead the purchase of such items as flowers, groceries and deli foods. Also, reimbursements for film developing were submitted two or three times, according to the audits.

Auditors examining the school supply fund said the purchase of a dishwasher was described as “emergency supplies, audiovisual” in paperwork filled out by Fernandez. She later said she bought the appliance for herself but unintentionally sought district reimbursement.

Fernandez obtained a Circuit City credit card in her name to make purchases for the school following the earthquake, she said. Her husband bought the dishwasher with the card, and the bill was inadvertently submitted to the school.

“It [the dishwasher purchase] was an innocent and unfortunate mistake,” she said in her written response. “However, I believe the office manager should have caught the error and brought it to my attention prior to paying the account.”

A desktop computer also was purchased by her husband with the Circuit City charge card, she wrote in her response to the district audit.

Other items Fernandez charged to the school’s instructional materials and supplies account include a Koran and other religious books--which district officials say cannot be found--as well as dental floss and an indoor grill.

Fernandez also made purchases while on trips to Egypt, Spain and Tijuana, Mexico. Those items appeared to be unreasonably expensive and could not be located on campus, according to the audit. One video, for example, called “Egyptian Museum” cost $125, the audit showed.

Fernandez said she routinely buys “motivational materials” while traveling but offered to stop. “I will no longer purchase these items nor create inconvenience and discomfort for myself by carrying them halfway around the world,” she wrote.

Fernandez shopped for school advisory council meetings, buying refreshments for parents and teachers. But reimbursement for those meetings include the purchase of fruit baskets, cooking oil, soy sauce, cake mixes and eggs and other grocery items.

Fernandez said all the items were used for school functions such as child-care programs and parent meetings.

Many parents and other school administrators have rallied to support Fernandez over the past few days, saying she has been an exemplary principal.

Eli Brent, president of the Associated Administrators of Los Angeles, said he is meeting next week with the district to discuss the audit and Fernandez’s transfer.

“We don’t know what the hell’s going on and why she was pulled out of school,” Brent said. “We’re angry about due process. I feel there’s been a hit made.”

District officials, most of whom declined to discuss details of the audits, deny that any effort is being made to discredit Fernandez. She was in her seventh year, all as principal, at the 1,150-pupil school.

“She’s a good principal,” said Deputy Supt. Ruben Zacarias. “But the allegations are serious.”