An audit of Phoenix Union found a history of nepotism in hiring and promotions

The Phoenix Union High School District contacted the Arizona Auditor General on Friday to report “potential fraud and misuse of funds” after an external audit found problematic hiring and promotion practices.

According to board president Ceyshe Napa, who joined the board in January 2023, the audit was commissioned by the Phoenix Union due to public concerns about a culture of nepotism in the district.

The audit found that several employees were moved up the pay scale without board approval, resulting in increased salaries, that district administrators were appointed to positions “without an interview or selection process,” and that district employees “bypassed internal approval processes.” in hiring or promoting employees, Jennifer MacLellan, a district attorney, wrote in a letter to the auditor general.

“Most of the employees who may have benefited from not following district processes are related to each other by blood or marriage,” MacLennan wrote.

The audit shows the district has identified more than a dozen employees to be reviewed by the external auditor, some of whom were hired or promoted in fiscal years 2019-20 and 2023-24. For six administrative positions in fiscal years 2020-2023, the positions were filled “without advertisement” and candidates were selected without evidence of an interview. The audit shows that these positions included the chief of staff and the director of development.

The letter indicated that the district is calculating the possible cost of problems identified in the audit, which “could exceed $650,000.”

“These are funds that could go directly to teachers, directly to students and directly to campuses,” Napa said.

MacLellan wrote in her letter that the district asked her to investigate “who may have approved the unauthorized raises,” adding that she hopes to complete the investigation in November.

MacLellan’s letter shows the district has taken a number of actions this year to correct troubling hiring and promotion practices, starting in February, when the first part of the audit was completed. The second phase of the audit, which focused on problematic hiring and promotion practices among family members in the district, ended on September 25.

Reform efforts outlined by MacLellan included a planned annual audit of the human resources department and a conflict of interest policy that was unanimously adopted by the board in August. This policy prohibits employees from supervising or evaluating family members and prevents family members from simultaneously working in the same workplace and being evaluated by the same person.

The Phoenix Union is currently surveying all employees to determine family connections, MacLellan wrote, and is also assessing how to address issues identified in the report, including “addressing promotions not approved by the Governing Board; adjust pay periods; remove unauthorized services; and initiate redressal efforts.”

The district “will seek to pursue all legal remedies to address the overpayments,” MacLellan wrote. She said the district asked the auditor general for help in developing a corrective action plan.

Two employees named in the audit – a former chief of staff and a former development director – resigned over the summer. Three additional employees were placed on administrative leave after the September inspection, according to a district spokesman.

MacLellan wrote that leadership changes are among the district’s remedial actions and noted that former Superintendent Chad Gestson no longer works for the district.

Gestson, who announced his resignation from Northern Arizona University in March 2023, said in a statement that he was not aware of any fraud or allegations of fraud. After receiving a copy of the letter and audit, he did not immediately respond to a request for additional comment.

Current superintendent Thea Andrade became the district’s interim superintendent in May 2023. his probation officer in March 2024. She has been associated with the district since 2011, previously serving as its development director.

President of the Management Board: External audit resulting from community concerns

Napa said the “entire community” has expressed concerns about nepotism and hopes the district can restore trust.

In late 2023, as the district was searching for a new superintendent, a survey of more than 1,800 people — including more than 600 parents, 260 community members, 255 current or former students and a number of staff and administrators — found that questions “were consistently raised.” employment policies and practices.”

“Terms like favoritism AND nepotism were widely shared,” according to a summary of responses to a survey prepared by an executive search firm. “Many groups shared a desire for transparency, consistency and training in recruiting, hiring and placement policies and practices that ensure equal access and opportunity.”

During the board’s first reading of the revised conflict of interest policy in June, Andrade described the policy changes as “minor changes,” saying that “we were asked repeatedly to consider the issue of employee relations, conflict of interest – I believe it was touted as a policy of nepotism – and asked to the board to really dig into the current policy and look at its current changes and developments.”

Napa said she hopes the ongoing investigation will determine “how these things actually happened.”

“Leaders create culture. It’s the leaders who are either doing it consciously or turning a blind eye to it,” Napa said, adding that she hopes they will be “held accountable.”

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