Bonds and Construction > Measure F > 2003 Annual Report

SJUSD 2002 Measure F Citizens' Bond Oversight Committee
2003 Report to Residents and Taxpayers

On behalf of the members of the San Jose Unified School District Measure F Citizens' Independent Bond Oversight Committee I submit this report to the taxpayers and residents of the San Jose Unified School District.

The Committee and I wish to thank the District staff and the School Board members who have so diligently worked with us to maintain the processes established in 2002, and to create the Implementation Plan and procedures to manage the expenditure of the $429 million dollar bond passed in 2002.  We appreciate this opportunity to serve the children, voters, and taxpayers of the District.

Respectfully submitted.

David R. Fadness, Chair
San Jose Unified School District
2002 Measure F

Citizens' Bond Oversight Committee

Executive Summary

Our Committee has two primary responsibilities:  to review and to inform the public about the District's management of Measure F funds. The following summarizes the Committee's fulfillment of those responsibilities in 2003:

 Management:

  • The Committee asked the District to prepare a detailed Implementation Plan indicating how much money would be spent and on what projects, at each school.  This Plan was completed in October of 2003, and is available for review at the District Office and on the Committee's website. The Implementation Plan is a working document with cost estimates based on the currently best available information and will be subject to revision as changes occur in the economy and District needs.  The Committee recommended approval of this plan at its October 12 meeting.
  • The District is required to provide annual Financial and Performance Audit Reports to the Committee.  These audit reports describe the allocation and care taken in spending the bond monies.  These reports, covering Measure F funds through June 30, 2003, were provided to the Committee in December, and reviewed and accepted by them on January 12 2004. The text of these reports is available on the Committee’s website.
  • In 2002, the Committee and the District agreed upon an Exception Plan to be followed for critical expenditures of Bond money which needed to be made before the Implementation Plan was completed.  This plan was followed in 2003. All spending exceptions were made public and were agreed to by the Committee.

Informing the Public

  • The Committee asked for, and the District provided, a set of community meetings at which drafts of the Implementation Plan received public comment.  These comments were collected and, along with the District's responses, are posted on the Committee's website.
  • In the latter half of the year, the Committee held several of its monthly meetings on site at several district high schools.
  • The Committee continued to provide agendas, minutes, and copies of all its formal documents on its website.

The Committee's major goal for 2004 will be to negotiate and document a formal process with the District to identify and advise the public about any significant departures from or changes to the Plan.

 Management Details

  • The Implementation Plan, a document of several hundred pages, provides a detailed breakdown of the planned expenditures for each school over the next 7 years.  It includes a keyed map showing where and when a construction activity is planned to take place and how much it is expected to cost.  Derivation of all figures is explained.  This, and its revisions, is the primary document against which the Bond expenditures will be measured in the coming years.
  • The Financial Audit was performed by Vavrinek, Trine, Day and Company, LLP.  Their declaration:  "In our opinion, the financial statements referred to above present fairly, in all material aspects, the financial position of the Measure F Building Fund of San Jose Unified School District at June 30, 2003, for the year then ended in conformity with accounting principles generally accepted in the United States of America."  The Fund shows a balance of $80,739,339 with expenditures as of June 30 in the amount of $4,891,734.
  • The Performance Audit was performed by Moss Adams, LLP. From the Executive Summary: "Our performance audit found no exceptions with Bond Program expenditure purposes or compliance."  The report recommended improvements in three areas:  1) Better definition and documentation of control processes; 2) An increase in staffing, and 3) An improvement in the District's data management systems.
  • At its November meeting, the Committee reviewed the possible adoption by the District of a Project Labor Agreement.  In the opinion of many on the Committee, this agreement made no contribution to the efficient expenditure of Measure F funds.  By a vote of 8 to 1, the Committee recommended to the District that they not adopt a Project Labor Agreement.