Portland Public Schools board members vote Tuesday on the district's response to a draft audit flagging its $1.83 billion bond program as a heightened fraud risk.
The special virtual meeting begins at 6 p.m. Tuesday, Sept. 29. The sole agenda item is Resolution 7382, which would approve the district's formal responses to 38 recommendations in the draft bond performance audit covering fiscal years 2024–25 and 2025–26.
The audit, conducted by Sjoberg Evashenk Consulting, found PPS outsourced bond management to Texas-based firm Procedeo without sufficient oversight, as Willamette Week first reported Sept. 15. The district signed a $61.5 million contract with Procedeo to manage the bond program.
Auditors found PPS overpaid Procedeo by more than $762,000 due to inadequate invoice reviews. The district also charged roughly $193,400 in unallowable costs and nearly $1 million in unsupported payroll changes to the bond program.
About 15 of 30 employees in the district's Office of School Modernization were terminated in January 2026 on Procedeo's recommendation, according to the audit. Auditors called that an "inherent financial conflict" because Procedeo stands to benefit from fewer staff costs being deducted from its invoices.
Procedeo CEO Brian Johnson said in a Sept. 14 statement to Willamette Week that his firm brought "disciplined financial tracking, contract oversight, and program reporting" to the bond program. A PPS spokesperson told the outlet the district does not agree with every finding but values the opportunities the audit identifies.
The audit's 38 recommendations include rebuilding the district's internal bond management capacity, renegotiating the Procedeo contract and adjusting the firm's invoices. The specific content of the district's written responses has not been made public. Auditors also noted PPS met obligations on its 2012, 2017 and 2020 bonds and is off to a good start with the 2025 bond.
Portland voters approved the $1.83 billion bond in May 2025 with 55% support. It funds modernizations of three high schools: Ida B. Wells ($449 million budget), Cleveland ($472 million) and Jefferson.
The meeting agenda lists Resolution 7382 as the sole substantive item. Residents can sign up for public comment by emailing [email protected] or calling 503-916-3741.
