Truth matters. Community matters. Your support makes both possible. LAist is one of the few places where news remains independent and free from political and corporate influence. Stand up for truth and for LAist. Make your year-end tax-deductible gift now.
This archival content was originally written for and published on KPCC.org. Keep in mind that links and images may no longer work — and references may be outdated.
LAUSD audit finds $2.7M fraud at Canoga charter
New Academy Canoga Park Elementary School.
(
nacpdolphins.org
)
Listen
0:53
LAUSD audit finds $2.7M fraud at Canoga charter
LAUSD audit finds $2.7M fraud at Canoga charter
Los Angeles Unified School District auditors accused administrators of a Canoga Park charter school of gross mismanagement and fraud that could total nearly $3 million.
The LA Unified audit says the board members of New Academy Canoga Park Elementary School failed to effectively monitor the school’s finances. At least $1.6 million can’t be accounted for, and there are unanswered questions about $1.1 million the school spent with the OK of the former principal.
L.A. Unified auditors concluded that minimal oversight of New Academy Canoga Park Elementary’s finances by L.A. Unified and campus administrators allowed the person or persons who committed the fraud to feel they could get away with it.
L.A. Unified Superintendent Ramon Cortines requested a public hearing to issue the school a Notice of Violations, a first step toward stripping the school of its charter to operate.
“The misappropriated and unaccounted public funds of $2.7 million are egregious. As a result of this mismanagement, NACP students have been inexcusably deprived of funds that were designated solely to further their education,” Cortines said in a written statement.
The 450-student school has improved test scores significantly in the last few years. New Economics for Women — an L.A. housing nonprofit founded by Chicana activists 26 years ago — built and promoted the charter school.
The school referred questions to Maggie Cervantez, a member of the school's board who's also Executive Director of New Economics for Women. She was not available for comment about the fraud allegations.
Sponsored message
According to the district, the audit found public funds totaling more than $1 million were deposited into the former principal's personal investment account. Thousands of dollars in public funds were also unaccounted for, with no evidence they were ever deposited in the school's accounts, the audit found.
KPCC wire services contributed to this report.
You come to LAist because you want independent reporting and trustworthy local information. Our newsroom doesn’t answer to shareholders looking to turn a profit. Instead, we answer to you and our connected community. We are free to tell the full truth, to hold power to account without fear or favor, and to follow facts wherever they lead. Our only loyalty is to our audiences and our mission: to inform, engage, and strengthen our community.
Right now, LAist has lost $1.7M in annual funding due to Congress clawing back money already approved. The support we receive before year-end will determine how fully our newsroom can continue informing, serving, and strengthening Southern California.
If this story helped you today, please become a monthly member today to help sustain this mission. It just takes 1 minute to donate below.
Your tax-deductible donation keeps LAist independent and accessible to everyone.
Right now, LAist has lost $1.7M in annual funding due to Congress clawing back money already approved. The support we receive before year-end will determine how fully our newsroom can continue informing, serving, and strengthening Southern California.
If this story helped you today, please become a monthly member today to help sustain this mission. It just takes 1 minute to donate below.
Your tax-deductible donation keeps LAist independent and accessible to everyone.
Senior Vice President News, Editor in Chief
