Portland School Board Chair Faces Removal Effort After Audit Questions How $1.83 Billion Was Managed

PORTLAND, Ore. — A draft independent audit of Portland Public Schools’ $1.83 billion bond program has prompted a recall effort against School Board Chair Eddie Wang. 

Former Board Member Launches Recall Effort Against Eddie Wang

Former board member Mike Rosen filed a prospective recall petition with the Multnomah County Elections Division after reports about the audit raised questions about the district’s decision to outsource management of the Portland Public Schools (PPS) bond program to Texas-based construction firm PROCEDEO.

Rosen will need to collect about 38,000 valid signatures to put the recall on the ballot. He said he decided to launch the effort after reading reports about the draft audit and plans to rely on a grassroots campaign rather than professional signature gatherers.

Wang declined an interview but disputed the audit’s allegations in a written statement, saying that “the bulk of these allegations are unsubstantiated and purely conjecture at best.” He said he stands by the board’s systems, oversight and leadership.

Draft Audit Questions Oversight of $1.83 Billion Bond Program

The draft audit, conducted by Sjoberg Evashenk Consulting, says PPS increased the bond program’s risk of fraud by outsourcing management to PROCEDEO without sufficient oversight.

Auditors found the district had not established a sound business case for outsourcing the work and had become overly reliant on the contractor.

The audit also found that PPS reduced its internal staff following PROCEDEO’s recommendations, potentially weakening the district’s ability to oversee the program independently. Auditors said PPS had overpaid PROCEDEO by more than $762,000 after failing to thoroughly review invoices.

The audit further identified about $193,400 in unallowable bond project costs and nearly $1 million in unsupported payroll changes. It recommends stronger fiscal controls and renegotiating the PROCEDEO contract.

PPS says the audit remains a work in progress and staff are preparing responses to its 38 recommendations. The district also says it has begun making improvements in response to the findings.