Comptroller calls Memphis forensic audit 'the worst' he's seen; explains limits of routine audits

Jason Mumpower, the comptroller of the treasury, testified that forensic audits are a different, more intensive product than standard financial and compliance audits and that the forensic audit of Memphis‑Shelby County Schools has revealed extraordinary deficiencies.

"It would be an understatement to say that it showed a deficiency in management ... it's the worst audit we've ever seen," Mumpower said in committee testimony. He explained that the routine audits reported to the comptroller are contract audits performed by independent CPA firms under a three‑party contract; the comptroller's office reviews the audit and posts it but does not redo the contractor's work. He said forensic audits are more labor intensive and expensive and thus usually undertaken only with legislative interest or explicit authorization.

Committee members pressed the comptroller on why other counties with repeat findings (Polk, Murray) had not received forensic audits; Mumpower said his office could order forensic audits outside legislative direction but that the cost and labor intensity make that unlikely without legislative interest.