Woodland Park board selects Eide Bailly for forensic audit after debate over timing and cost

The Woodland Park School District RE-2 board voted to engage the accounting firm Eide Bailly LLP to perform a forensic audit of the district's FY2024 finances, resolving a months-long debate about whether to start now or wait for the FY2025 audit.

Board members said the forensic work aims to determine whether problems flagged in the FY2024 audit reflect fraud or documentation and process errors. The vote to engage Eide Bailly carried on roll call with the board approving the engagement; staff will open contract discussions and return with a timeline and billing plan.

The vote followed extended discussion about cost, timing and operational impact. Several trustees and staff said the firm identified in proposals provided a relatively firm, not-to-exceed price of about $35,000, which the board cited as informed by a prior review Eide Bailly had performed. Other firms proposed different approaches: one proposer described a two-phase approach with an initial evaluation followed by a separate price for deeper work, and another proposed a shorter, more rapid review. Estimates the board discussed ranged from six weeks up to roughly 120–150 days depending on scope and approach.

Supporters of an immediate forensic audit said the district needed an independent review now to resolve public concern and to determine whether FY2024 problems were the result of poor documentation or something more serious. ‘‘We need to double-check those potentials that have already been identified in FY24 and dig in deeper and say, OK, was this just bad documentation, or was there fraud,’’ one trustee said during the meeting.

Members who urged postponing or slowing the start said the district's finance staff are already handling end-of-year and annual audit work, and that waiting for FY2025 audit results could let the district budget the work more efficiently or combine findings. Several board members and staff raised concern about the operational capacity to support the forensic team now and about additional expenses beyond the audit fee, including the cost of hiring an independent project manager to facilitate the process — board members estimated that role could add roughly $12,000–$15,000.

Board and staff speakers also discussed the district's broader capital needs while weighing audit costs. Trustees referenced deferred facilities repairs in the millions — with specific comments about roughly $14 million in backlog at the high school and districtwide deferred work trustees described in the tens of millions — and noted reserves and operating priorities would constrain available funding. Staff said the district trimmed positions and capital allocations in the approved budget to balance it and that any additional outlays would likely require drawing on reserves or reprioritizing other spending.

After selecting Eide Bailly, the board directed administration to open engagement discussions with the firm, ask about scheduling (including the possibility of beginning work in January), and return with contract and timeline details. Staff also said they would ask firms about billing practices, whether partial costs could be charged in the current fiscal year and best practices to reduce real or perceived conflicts of interest in communications between district staff and the audit firm.

Next steps include negotiating an engagement letter with Eide Bailly, returning to the board with a recommended start date and contract terms, and considering a separate board vote if the final schedule or cost differs substantially from the current estimates.