Board says state auditors flagged possible misuse of federal funds; forensic audit firm hired

Board members discussed an ongoing fiscal review after state auditors flagged potential misuse of federal Title I funds. In a summary of the district's response, officials said they have cooperated with investigators, engaged an external forensic audit firm and filed a victim impact statement with prosecuting authorities.

What was said: Dr. Andes described the allegations during a broader budget discussion: "The allegation is that federal funds — Title I funds — were misused and abused," he said, and noted that the office of the state prosecutor had become involved. He said the district hired a firm to conduct a forensic audit at the recommendation of Superintendent Wallace and that the audit team will set the parameters for the review.

Why it matters: If federal funds were used improperly, federal reporting and compliance obligations and potential recovery actions could follow. Board leaders said they are cooperating with the investigation and pursuing a forensic audit to identify the facts. The meeting record includes no conclusion about culpability or case outcomes; the matter remained under investigation at the time of the meeting.

District response and oversight steps: Officials said they notified appropriate authorities, hired an external firm for a forensic review and submitted a victim impact statement to the court. The board emphasized transparency and said the audit will determine the scope and findings.

What the record does not show: The meeting transcript does not include findings from the forensic review or a law‑enforcement disposition. No individual was named in the public discussion as convicted or charged in the meeting record; the office of the state prosecutor was described as having been engaged.

Next steps: The district expects the forensic audit team to define the review parameters; board and staff said they will report developments as they become available.