The Tennessee Comptroller’s Office announced Wednesday it received an interim forensic audit of Memphis-Shelby County Schools (MSCS), uncovering what Comptroller Jason Mumpower said was “clear evidence of management failures” and widespread operational breakdowns that raise serious concerns about the district’s ability to ensure accountability and properly manage public funds.
The report, commissioned by the Tennessee General Assembly and conducted by accounting firm CliftonLarsonAllen LLP, identified nearly 175 deficiencies across the district’s operations.
“In my opinion as Comptroller, [the Memphis-Shelby County School District] is the worst management of any organization I have seen in my career. I would say, in fact, that it is unprecedented for an organization of this size and scope.” pic.twitter.com/EVAYic2Rzi
— Shelby County GOP (@GOPShelby) April 1, 2026
Auditors flagged $1,145,909.97 million in disbursements deemed consistent with waste or abuse, including over $1.11 million tied to contracts and more than $33,000 related to payroll transactions.
An additional $1.73 million in spending was found to be noncompliant with district policies, though it did not rise to the level of fraud or abuse.
Furthermore, auditors were unable to locate 100 out of 250 requested employee Form I-9 records, and personnel files were reportedly stored in an unsecured room without a door, highlighting significant lapses in recordkeeping and internal controls.
The audit, which currently represents about 25 percent of the total contract review, is expected to expand as investigators continue their work. A final report is anticipated later this year, the comptroller’s office noted.
Director of Local Government Audit Bryan Burklin called the results “staggering” and “some of the worst I’ve seen in my 45-year career,” citing breakdowns at nearly every level of MSCS’s business and operational management.
Dr. Roderick Richmond, who was officially appointed permanent superintendent of MSCS on Tuesday, said the district takes “full responsibility for any system challenges brought to light.”
Richmond added that the district plans to release a detailed progress report on April 6 and confirmed it has requested a joint meeting with state leaders.
State Senator Brent Taylor (R-Memphis) sharply condemned the district’s operations following the release of Wednesday’s interim audit.
“Memphis-Shelby County Schools is about as organized as the $5 bin at Walmart,” Taylor said while speaking to reporters.
Taylor also suggested the findings could trigger federal scrutiny, indicating he plans to share the report with U.S. Representative Tim Burchett (R-TN-02), who chairs the House DOGE Committee, to examine whether federal funds were misused.
Burchett responded publicly, stating, “I look forward to receiving that report Senator. Thank you for your work Brother!”
Taylor has advocated for significant state intervention, including the possibility of dissolving the current school board or establishing an oversight body. He has previously pointed to the substantial state funding the district receives, which he said amounts to approximately $1 billion annually, as justification for increased oversight.
The final audit report, expected later this year, is anticipated to provide a more comprehensive picture of the district’s financial and operational health and determine whether further action, including state legislative intervention, will be necessary.
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Kaitlin Housler is a reporter at The Tennessee Star and The Star News Network. Follow Kaitlin on X / Twitter.
