MLSD board backs away from forensic audit

MOSES LAKE – At the Moses Lake School District meeting Nov. 7, there was an announcement from board member Paul Hill regarding the need for a forensic audit. Hill originally brought up the need for the forensic audit in the closing comments of the Aug. 22 meeting. However, in the most recent meeting, he said he no longer believes it necessary.  

“In light of recent events surrounding our district's financial situation, I want to take a moment to update our community on where we stand and my perspective on the need for the forensic audit,” Hill said. “As you may know, I initially called for a forensic audit to address significant concerns about the accuracy of our financial records and management practices. At that time, I believed a thorough independent investigation was necessary to fully understand and address these issues.” 

The board has since had several discussions regarding the potential for a forensic audit. During the Sept. 26 meeting, Hill listed four reasons that he believed the district needs an audit: people need to be held accountable, proper checks and balances needed to be established and the school board needed to know what happened so it could prevent similar circumstances moving forward. 

The other side of the conversation was the cost of the audit, especially with the current financial situation. The audit would cost around $180,000 and there would be a need to hire more financial staff. The forensic audit would also take up to two calendar years to complete.  

“However, since then, our newly appointed executive director of business and operations, Mitch Thompson, and our Interim Superintendent Carol Lewis, have undertaken an extensive review of our finances,” Hill said. “Their diligent efforts and transparency have provided us with a clear and accurate picture of our financial situation. This deep dive has restored my confidence in our ability to manage and oversee our finances effectively ... given their findings and the corrective actions already underway, I am now convinced that a forensic audit is no longer necessary.” 

During the meeting, Interim Superintendent Carol Lewis also gave an update on the community survey the district put out regarding the need for a forensic audit. There were a total of 690 responses.  

Of the people who completed the survey, 15% or 106 people said they were confident in the financial information provided by MLSD. Then, 46% or 314 people said that the district should do an extensive state audit only, which will cost approximately $70,000. Then, 32% or 219 people said that an extensive state audit and forensic audit are both needed, which would cost around $250,000 for both. Finally, 7% or 51 people selected "other" on the survey.  

The state audit began in October and will take about a year to complete, district officials previously told the Columbia Basin Herald. 

“I am confident that the measures we have in place will ensure a responsible and sustainable financial path forward as we prepare for our upcoming Levy,” Hill said. “I want to assure you that the board and the administration are committed to transparency, accountability and prudent financial stewardship. Your trust is important to us, and I am committed to maintaining it through ongoing oversight and transparency. Thank you for your continued support for our schools and our community.” 

The board then did a roll-call vote on whether each member wanted to sign off on the statement Hill read during the meeting. All members were in agreement.