School board hears audit finding saying system 'under investigation,' members press comptroller clarification

The Johnson County Board of Education spent more than an hour Dec. 12 discussing a financial update and a state audit that flagged a $2.6 million cash shortage and stated the school department "is currently under investigation." Board members pressed district staff and the auditor’s office for clarification and said they will pursue additional legal review.

Finance director Tina (last name not specified in the transcript) told the board that some funds have not yet been released to Connections Academy because federal investigators have not completed their work. She said federal agencies including the FBI have been engaged in recovering money and that recovered funds will be released only after investigators complete their process.

On the audit language: The board asked the state comptroller’s office to remove or clarify text that reads "the Johnson County School Department is currently under investigation." According to Tina and Superintendent Dr. Simcox, the comptroller’s office said it could not provide names or additional details and refused to change the published wording because the office must report the status of any active investigation.

Why it matters: Board members said the audit language — posted publicly — creates reputational and governance concerns for the district. Several members said they had not been told details of any investigation and asked whether the board’s attorney or the district’s legal counsel had followed up.

Key points the board heard - Connections Academy funds: Tina said money related to Connections Academy had been recovered by federal authorities but could not be released until investigators finish their work; the funds were not part of the district’s day-to-day operations findings. - Audit findings and scope: Tina said there were no findings related to day-to-day finance operations — payroll, time sheets and routine purchasing — but one audit finding listed a cash shortage of about $2.6 million as of June 30 and noted an active investigation. She said auditors would not change the wording or reveal names. - Legal follow-up: Board members said they expected the board attorney to pursue clarity; board leadership confirmed attorneys had been asked to follow up with the auditing body and investigators.

Board reaction: Several board members voiced frustration that the published audit report reads as if the school system as a whole is under investigation. The finance director and superintendent repeatedly said the audit’s second finding concerns an investigation the comptroller would not describe and that the district has not been informed of details. The board asked that the comptroller’s office be contacted for clarification and that legal counsel pursue additional information.

Ending: Board members asked staff to obtain the comptroller contact who provided the audit language and to bring any new information back to the board. Several members said they expect counsel to pursue additional detail so the board can respond publicly if needed.