The Delmarva Parent Teacher Coalition received a overwhelming response from school board members across Maryland, Delaware, and Virginia when we released our article titled: "Public Schools are Wasting & Abusing Our Tax Dollars." The first thing they all wanted to know is how waste, fraud, and abuse can be addressed in their district. We told them that they can be their own DOGE by having a professional team conduct a forensic and performance audit of the entire school system.
When you're on this track, the first excuse school Administration will try to do is derail the board by saying, "The school district has an audit performed every year, and it's required by law. We have passed our audit each year without issue." That's exactly why no issues are found. The first problem is that you're listening to Administration.
A standard audit conducted by an accountant is ONLY looking for the reconciliation of dollars and cents, making sure accounts are in balance. What these basic annual auditors don't look for is misappropriation of funds, the shell game of transfers, secret accounts, waste, fraud, abuse, or program compliance standards to make sure that the funds are spent accordingly.
It's important to know the difference in audits.
Financial Audit - A financial audit is an attestation that the client's financial statement is accurate.
Forensic Audit - A forensic audit involves scrutinizing the financial records of a person or organization to find evidence of fraud, misconduct, or other financial anomalies, often for legal purposes. This process uses specialized methods and is usually carried out by forensic accountants or auditors.
Performance Audit - A performance audit is an independent review of a program, function, operation, or the management systems and procedures of a government or non-profit organization to evaluate if the entity is utilizing its resources economically, efficiently, and effectively.
There's waste, fraud, and abuse in every public school district.
If a child is left unchecked, is never disciplined, and gets whatever they want, will end up being a spoiled brat. They'll end up talking back, making demands, and throwing temper tantrums. Sound familiar? That's human nature. School systems have gotten away with bloody murder, and a blind eye has been turned. But it doesn't have to remain this way.
How much does a forensic and performance audit cost?
These specialty audits are very expensive, but worth if if they've never been done or done a long time ago. Our greatest advice to you is, you can't afford not to have it done. What's discovered for future recovery and correction will more than pay for itself SEVERAL times over. The good news is, some of the federal audits can be done alongside the specialty audits with little to no cost if you call in the feds. USDA can audit food services and Medicaid for Special Education.
As board members are preparing their 2025-2026 school budget, we recommend that you amend the draft budget NOW to include a line item to have a forensic and performance audit done of the school system. Depending on the school size, cost may vary. For starters, you can budget $200-500K(+/-). You can always conduct these audits over the course of 2-3 years to spread out the cost.
Tips to help pay for a forensic and performance audit:
Don't do a standard audit this year. Instead, put the money towards a forensic audit.
Cut all unnecessary administrative positions, DEI/SEL-related programs and training, and other obvious pork from the budget.
Take away that gas-guzzling SUV that the superintendent drives and replace it with a Ford Focus.
How do I find a forensic / performance auditor?
Talk to your personal CPA and see if they know of any firms or research forensic performance auditors yourself. It's advised to stay away from referrals or suggestions from the Superintendent, Chief Financial Officer, the State of Maryland, the Maryland State Board of Education, or Maryland Association of Boards of Education. They are politically compromised and influenced by lobbyists and the teachers' unions. They have been known to rig the outcome. You want independent third party auditor(s) that specialize in these types of audits, preferably from another state.
Fellows & Editors
February 27, 2025
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