A new federal audit says the Santa Clara County Office of Education misused more than $135,370 in federal funds under the previous superintendent. But county leaders disagree on whether the error was an intentional cover-up or a simple mistake, another sign of deepening division and tension in an office plagued by controversy.
The report – dated Friday – comes amid months of chaos within the Santa Clara County Office of Education, sparked by the board’s shocking removal of former superintendent of schools Mary Ann Dewan in October. Subsequent lawsuits and investigative reports pointed to an alleged history of tension with board members.
In November, interim superintendent Charles Hinman called for investigations into the county office’s finances and operations over a possible misuse of public funds – now revealed to be money designated for the county’s Head Start program, which helps low-income children under the age of five access critical resources.
According to the new federal audit conducted by the Administration for Children and Families – part of the U.S. Department of Health and Human Services – funds designated for the program were used to pay the wages and credit card expenses of a non-Head Start manager to the tune of $135,372 from January through June 2024.
The report also found that the county failed to meet the standard in implementing its Head Start program, including engaging parents, providing appropriate training and providing adequate information to the board and program staff.
A Wednesday press release from the Office of Education criticized former leadership for the misuse of funds and said staff delayed orders to correct the error, scoffed at grant rules and rejected calls for oversight.
Governing board president Maimona Afzal Berta said Wednesday the county only reversed the error after “months of a failed cover-up” and said the misuse validates “the rightful concerns and actions” of the board and proves “intentional and illegitimate” efforts to undermine the board’s authority.
“These are precious public dollars meant to help the most vulnerable in our community and no administrator should ever be allowed to act in this manner ever again,” Berta said.
But the report makes no mention of a cover-up by former superintendent Dewan and does not indicate the error was intentional.
According to the report, the Office of Head Start informed county officials of the misuse of funds on April 9, with additional letters sent through June 6. The report said office staff investigated the error and reversed the charges on June 11.
Dewan said Wednesday in a phone interview the delay stemmed from an issue with the Office of Head Start’s communication system, which she did not immediately receive.
“As soon as the error was brought to my attention, we worked diligently to correct it immediately,” Dewan said. “There was no malintent.”
Dewan and board member Tara Sreekrishnan confirmed that Head Start staff reported no findings of financial wrongdoing at the end of their four-day review in July. Dewan also said she and board president Berta received the same communications from the Office of Head Start about the issue.
Sreekrishnan called the county’s press release announcing the error “another politically motivated attack” against Dewan and her supporters.
“(It was) not months of a failed cover-up. This was an issue that was immediately corrected. It doesn’t mean we couldn’t have done a better job,” Sreekrishnan said. “No funds were lost, no services were impacted…Any calls for further transparency and accountability are always welcomed. I just want to be sure that we’re not weaponizing this for political gains. And that’s what this looks like to me.”