Forensic audit finds misclassifications and large transfers but no evidence of fraud in Bridgeport schools

A forensic audit of the Bridgeport School District's general fund for fiscal years 2024 and 2025 found accounting misclassifications and large transfers that reduced transparency, but the auditors reported "no evidence of fraud or misappropriation," presenters told the Bridgeport Board of Education on Aug. 4.

The audit, performed by CliftonLarsonAllen LLP (CLA) at the Connecticut State Department of Education's request, reviewed policies, interviews, Munis financial data, board minutes and a risk-based sample of transactions to assess whether spending aligned with budgeted categories. "Our focus was on the operational budget expenditures," said Emily Debero, signing director at CLA. The engagement was not a financial statement audit under AICPA standards and did not include a full budget-to-actual review of the special revenue fund.

CLA said it obtained read-only access to the district's Munis system, reviewed board meeting minutes, conducted 10 interviews, and performed data analytics to identify anomalies and trends. From that analysis the team selected 60 high-risk transactions, totaling about $14 million, for detailed testing. The auditors also performed a targeted search of more than 97,000 emails and reviewed procurement files.

Key findings included multiple instances where expenses were moved between budget categories and where transactions had been recorded under…