CBS 5 Investigates With Anna Werner

CBS5 Investigates: S. Bay School Funding Questions

SAN JOSE (CBS 5) ― There's anger and concern from some parents in one San Jose neighborhood. They want to know what's going on with the finances in their small financially-strapped school district. They're reacting to audit findings obtained by CBS 5.

At issue in the Luther Burbank school district? Tens of thousands of dollars in questionable credit card bills, and a mystery bank account that was controlled by the superintendent.

Pam Ortiz wants the best for her 6 year old son Nicholas, but raising him as a single mom is tough. "I live check to check and I have to budget everything I have," said Ortiz.

So when his local school started charging $10 per month for after school care, it hurt. And she wondered why it was mostly cash. "There was not one receipt. I don't think that is right," she said.

Then there were the fundraisers, where she says she also didn't see any receipts. "I don't participate in them any more," she said, "because I don't know where the money is going."

Now a 2007 audit also raises questions about accounting procedures, specifically about a district bank account that holds cash deposits. The man in charge of that account last year? Superintendent Richard Rodriguez.

The audit says the way the account is set up is risky, that "although nothing came to our attention that fraud exists, fraudulent transactions could occur and go undetected".

The audit also questions a more than $80,000 charge on the superintendent's credit card for furniture and equipment, for which auditors said there were "no purchase orders, invoices, or evidence of receipt".

So CBS 5 Investigates went to ask Superintendent Rodriguez. "You were unable to provide cash receipts?" we asked him. His response: "I don't know what they mean." "Are you saying they got all the documents they needed?" "Yes" Rodriguez told us.

Rodriguez told us the procedures for that account have been changed as a result of the audit. But he says there were no financial irregularities. When asked, "are you aware of any misappropriation of funds?" His response was, "no."

But Balbir Saini, the district's business manager, doesn't agree. "No, I do not agree with him," she told us. She said she has been pointing out problems with the account for months. "Nobody knows what's in there, where the money is coming, where the money is going, nobody has access to it."

And Saini said although she's in charge of the district's other accounts she is not allowed to handle this one. What explains that? "I have no idea," she said.

Saini says the situation deserves a full investigation. "Money is there to educate the children, so everything we do should reflect that. Parents like Pam Ortiz couldn't agree more. "I think we need change. If you're not looking out for the best interest of the child you don't belong."

Saini said Rodriguez is trying to retaliate and fire her for speaking out. He denies her allegations. Meanwhile the Santa Clara County's Office of Education says it's now launching it's own investigation.

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