The report shows the nation's third-largest district bought 30 cappuccino machines for a culinary arts program.
But several months after the purchases only three were in use, though not for the program. One has disappeared and 22 hadn't even been opened.
The report by school district inspector general Jim Sullivan reveals employees separated the purchases to stay under $10,000 so they wouldn't have to seek competitive bids or school board approval.
A school official says one employee was fired and disciplinary action is pending against three others.