Audit: 2024 deficit warning was wrong; records could not be found

What happened

Forensic accountants told the board on August 18, 2026 that the $24 million deficit warning given in February 2024 was not supported. Cash was off by about $43 million, and the projection files could not be produced. They called it a breakdown in budgeting accuracy and oversight, not a fraud finding.

Why it matters to families

Tax increases and a state loan request followed that warning. The audit committee was also weakened in 2025 when it was allowed to be the whole board.

The evidence

The superintendent said the audit 'found that the 24 million deficit reported in February of 2024 was not substantiated'. The auditor said projections were 'materially inaccurate', cited a 'discrepancy of approximately $43 million in the beginning cash balance', said it 'is not a fraud finding', and made seven recommendations including monthly reconciliations and an independent audit committee.

The source