Riverside County Superintendent of Schools Completes Extraordinary Audit of Val Verde Unified School District

RIVERSIDE – Pursuant to authority under Education Code section 1241.5(b), the Riverside County Superintendent of Schools, Dr. Edwin Gomez, has completed an Assembly Bill 139 extraordinary audit of the Val Verde Unified School District (VVUSD) concerning its relationship with Pegasus California School in Qingdao, China.

Education Code section 1241.5(b) authorizes a county superintendent to review or audit the expenditures and internal controls of a school district when there is reason to believe that fraud, misappropriation of funds, or other unlawful fiscal practices may have occurred.

The audit examined two primary areas:

• Whether VVUSD had legal authority to issue California high school diplomas to nonresident foreign students attending Pegasus; and
• Whether there is evidence of fraud, misappropriation of funds, conflicts of interest, breach of fiduciary duty, or other unlawful fiscal practices associated with that relationship.

The independent audit, conducted by Larson LLP and completed on February 19, 2026, spans more than 1,000 pages.

Key Findings

The audit identified serious compliance concerns, including:

• Evidence indicating that California high school diplomas may have been issued to students who did not meet applicable legal or residency requirements.
• Evidence raising concerns regarding internal controls, fiscal oversight, and the potential for unlawful financial practices associated with the district’s international program.

These findings are based on documented evidence reviewed during the audit and are subject to further review and determination by the appropriate authorities.

Required Notifications and Next Steps

In accordance with Education Code section 42638(b), the Riverside County Superintendent of Schools has formally notified the VVUSD governing board, the State Controller, the California Superintendent of Public Instruction, and the Riverside County District Attorney.

The County Superintendent and the Riverside County Office of Education will continue to cooperate fully with any further review or investigation and remain committed to ensuring appropriate corrective actions are taken where warranted.

Statement from Riverside County Superintendent of Schools Dr. Edwin Gomez

“Our responsibility is to safeguard the integrity of public education and ensure that taxpayer resources are used lawfully and transparently.”

“This audit identified serious concerns that merit further review by the appropriate authorities. We will continue to act with integrity, follow the law, and ensure that the interests of students and the public remain at the center of every decision.”

Commitment to Accountability

The Riverside County Superintendent of Schools and RCOE remain committed to lawful governance, fiscal accountability, and protecting the public trust in our education system.

The full audit report is available on the Riverside County Office of Education website: https://www.rcoe.us/about-us/publications/.