PHOENIX — The Phoenix Union High School District said it self-reported allegations of improper payments and potential fraud to the Arizona Auditor General’s Office on October 25 after two separate audits revealed issues with the district’s hiring process.
PXU said there were concerns about the administration improperly hiring and promoting employees brought to the school board. One happened in July 2023, right after its former superintendent, Chad Gestson, resigned. More concerns came from the community after a survey in January 2024.
In a letter to the Arizona Auditor General’s Office, it said an audit found that some employees were moved up on the district’s salary scale without the governing board’s approval. Administrators were also appointed into positions without properly conducting the interview and selection process and the district’s personnel skipped the internal approval processes in the hiring or advancement process.
The report says the majority of those employees “who may have benefited from the failure to follow District processes are related to each other by blood or marriage.” The potential cost to the district could be more than $650,000 during the previous superintendent’s tenure.
PXU Superintendent Thea Andrade said in a statement, in part, “While this matter did not occur on my watch, rest assured, I intend to address it and to take the steps necessary to make sure this never happens again.”
The district says it has already taken steps to address the findings. Two leaders, the district’s former chief of staff and the former chief development officer, resigned earlier this year prior to the audit results. Three current PXU employees are on administrative leave while the investigations are ongoing.
In addition, other remedies have been in place:
- In August, the Board revised PXU's policy prohibiting nepotism to address concerns regarding the employment of close relatives. The revised policy prohibits a supervisory role between family members. It mandates that relatives may not work at the same work site and be evaluated by the same individual.
- The District is in the process of surveying all employees to determine family relationships. Any employees found violating the anti-nepotism policy will be transferred to a new position to avoid conflicts of interest.
- The District's Human Resources policies have been revised to strictly prohibit skipping approval processes for new hires and/or employee promotions. PXU will also undergo an annual talent audit to monitor adherence to these changes.
- Additional compliance steps will include adjusting salary placements for any employees believed to have been misplaced on the PXU salary schedule and steps to recoup all unauthorized benefits.
The district says it’s also attempting to recoup any funds improperly paid to employees.
“At PXU, we expect our more than 26,000 students and over 3,500 team members to act with and treat one another with integrity. Unethical behavior and improper conduct will not be tolerated here at PXU. We will act quickly to investigate such allegations and cooperate with other agencies to ensure that offenders are prosecuted to the fullest extent of the law,” Board president Ceyshe Napa said in part in a statement.
ABC15 reached out to Gestson for comment but has not heard back yet.
