State Auditor investigating possible financial irregularities in CMS

CHARLOTTE, N.C. – The state auditor is taking a closer look at what he calls “financial irregularities” within Charlotte Mecklenburg Schools. The announcement comes one day after the stunning move by the School Board to fire Superintendent Dr. Crystal Hill. Dr. Hill had raised concerns about contracts and conflicts of interest in a 200 page report she sent to board members last week.

Inside the Charlotte Mecklenburg Schools headquarters, NC Auditor Dave Boliek had a message for the community.

“I’m here hopefully to help calm the chaos,” Auditor Boliek said.

Auditor Boliek says his office is putting a microscope on CMS finances. He says abruptly firing the superintendent has escalated their concerns.

“You have a really transformative change with superintendent, board members,” Auditor Boliek said. “The people of North Carolina need to know that there is a state auditor that is here on the job.”

In Tuesday’s CMS Board of Education meeting, a board member asked Chief Financial Officer Kelly Klutz to elaborate on potential non-compliance concerns and last minute budget amendments.

“The budget was fully expended,” Chief Klutz said. “Two months later, we got invoices that we weren’t aware of. There was no [purchase order], there was no contract, so we processed it with the compliance document that we have and escalated it to the chief then the superintendent.”

The state auditor’s office will take a closer look at budgets and contracts within the district to find any financial irregularities. The auditor says the documents Dr. Hill sent to board members regarding “Board of Education Governance and Contract Concerns” will be part of the investigation.

“We’re gonna take it all and put it together,” Auditor Boliek said. “Let the data and the facts lead us to conclusions, answers, and ultimately recommendations.”

The auditor says the district and the board have both been cooperative so far and he’s looking forward to bringing the truth to light.

“We’re gonna deliver the transparency and accountability that the people of this community deserve,” Auditor Boliek said. “We’re going help along with the professional team here and the citizens move, Charlotte Mecklenburg County schools forward.”

The Acting Superintendent Melissa Balknight sent out a statement reaffirming the districts commitment to students saying in part, “Charlotte-Mecklenburg Schools remains focused on our most important responsibility: serving our students and families and supporting our educators and employees each day. We recognize that recent events and the public conversations surrounding the district are important to our families, employees and community. CMS is fortunate to have a strong team of experienced leaders and dedicated staff who continue to move our work forward every day. Across our schools and district, our focus remains on teaching and learning, student safety, and providing the services and support our students and families deserve.
As Acting Superintendent, I want our families to know that I remain fully committed to the goals, priorities and actions outlined in our Strategic Plan. Our work to improve student outcomes, strengthen partnerships with families and create opportunities for every student continues without interruption.
I am honored to serve in this role and deeply committed to supporting our students, employees and families during this time. Today, I met with all school and district leaders, and we reaffirmed our shared commitment to meeting the individual needs of each of our more than 139,000 students. That commitment is at the heart of everything we do.
This work is made possible by every member of Team CMS. From teachers and school leaders to bus drivers, cafeteria teams, custodians, maintenance staff, safety personnel and the employees working behind the scenes, thousands of dedicated people come together each day to keep our schools running and our students moving forward.
We also understand that public trust is built through accountability, honesty and transparency. Most importantly, our commitment to the students we serve has not changed. Our schools are open and serving students, our work continues, and our employees remain dedicated to ensuring that every student has the opportunity to learn, grow and experience Endless Possibilities.
Together, we will continue to support one another, serve our students and families, and move forward with purpose and care.”

The state auditor is asking teachers and parents to reach out on his tip line if you know anything that can help his office moving forward with this engagement. The tip line number is 1-800-730-8477 or you can email at Tipline@ncauditor.gov.