Board approves forensic and internal-controls review despite objections about cost

The board audit committee recommended that the Fabens ISD Board approve two engagements with Gibson Consulting Group: (1) a forensic internal audit billed hourly, not to exceed $50,000 with prior board authorization, to evaluate whether any improper use of district funds occurred beyond previously identified financial issues; and (2) an internal-controls review (ICR) for a fixed fee of $48,450 to assess the adequacy of financial and operational controls.

Trustees debated the costs and value of the engagements. Several trustees opposed spending on an external forensic audit while the district faces a budget deficit, arguing annual financial audits already occur and questioning whether the extra expense would produce actionable results. One trustee said, "I just don't feel like we're spending our money wisely," and another urged prioritizing other needs. Proponents, including members of the audit committee and the consultant on the line, countered that an annual financial audit is designed to render an opinion on financial statements and is not intended to uncover wrongdoing or to perform granular internal-control testing. The consultant explained the forensic and ICR work is a more granular review specifically designed to detect misappropriation risks and recommend process improvements.

After discussion the board moved and approved the professional services agreement; staff said forensic findings would be presented in executive session and the internal-controls report would be presented publicly. The forensic engagement will require prior board authorization for expenditures up to the stated cap, and the internal-controls review is a fixed fee that includes travel and related expenses.