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State Auditor Cindy Byrd's audit of Tulsa Public Schools alleges mismanaged money and that the district lacked oversight. She says the state's largest brick-and-mortar school district has had problems.
"We discovered that TPS consistently failed to properly verify and document the receipt of vendor services. A systemic lack of internal controls existed at TPS, which enabled mismanagement and potentially placed millions of additional tax dollars in jeopardy," said Byrd.
TPS had an independent audit and found nearly half a million dollars in misappropriated funds. The state audit found additional monies, bringing the total to $824,504.
The audit said, TPS frequently acted outside their policy, often bypassing approved procurement processes, to increase purchase order dollar amounts. Instead of placing change orders on the Board’s agenda to amend or increase previously board-approved purchase amounts, they would obtain approval for new purchase orders through the consent agenda thereby limiting Board oversight. In some instances, this process resulted in payments being issued on purchase orders with insufficient encumbrance amounts.
Byrd says she hopes the district will be able to properly track funds.
"I requested this audit in 2022, and today Auditor Byrd finally confirmed what myself and many other Oklahomans believed to be true— where there’s smoke, there’s fire. And it’s deeply troubling to see Tulsa Public Schools having engaged in such gross financial misconduct," said Governor Kevin Stitt. "The release of the audit is only the first step in holding wrongdoers accountable. The Attorney General needs to take immediate action and bring charges wherever possible. This can never be allowed to happen in Oklahoma again."
Stitt said the findings revealed the misuse of nonprofit partnerships, unauthorized teacher training programs, fraud, embezzlement, and extensive financial mismanagement, including:
- At least $1 million in expenses related to diversity, equity, and inclusion efforts.
- More than $500,000 in bonuses paid to TPS administrators without proper authorization.
- Nearly $5 million in reimbursements made with federal COVID relief dollars lacking proper documentation.
- More than $5 million on goods and services in likely violation of HB 1775.
- And more.