An audit of the DeKalb County school system's purchasing card program identified instances of employees exceeding spending limits and making purchases from restricted vendors. These findings were presented just weeks before Superintendent Devon Horton was federally indicted for charges that include misusing a similar card in his previous school district.
The audit, conducted by the firm Forvis Mazars, reviewed a sample of transactions and highlighted several policy and control weaknesses within Georgia's third-largest school district. While district officials described the audit results as largely positive, the report points to specific areas needing improvement, particularly regarding spending oversight for top leadership.
Key Takeaways
- An audit in DeKalb County Schools found P-card users exceeded spending limits and made prohibited purchases.
- The audit report was released shortly before Superintendent Devon Horton's federal indictment, which includes allegations of P-card misuse in a prior role.
- District officials stated the audit was "clean" but confirmed they will work to implement stronger spending controls.
- The audit noted that purchasing policies for the superintendent and school board are not clearly defined.
- Horton is on paid administrative leave following the indictment related to his time in an Illinois school district.
Audit Identifies Gaps in Spending Controls
The DeKalb County Board of Education commissioned an $85,000 audit to examine its purchasing card (P-card) policies and transactions. The review, conducted by Forvis Mazars, analyzed a sample of transactions from a recent fiscal period starting July 1, 2023. The district has more than 200 active P-cards, with one issued to every school principal.
During a September 4 audit committee meeting, auditors presented their findings. Jamie Amos, the principal auditor for the external group, reported that the review uncovered several compliance issues. "We did find a few instances where that happened," Amos said, referring to cardholders who surpassed the established spending limits.
The standard limits for P-card holders in the district are $5,000 per day and $20,000 per month. The audit confirmed that some employees were able to spend beyond these caps. Additionally, the report found cases where individuals made "prohibited transactions," meaning they purchased items from merchants that should have been blocked by the system.
Background on P-Cards
Purchasing cards, or P-cards, are a type of commercial credit card used by government and corporate entities to streamline small purchases. They are intended to reduce the administrative burden of processing purchase orders and invoices for routine expenses. However, they require strict internal controls to prevent misuse.
District Officials' Reaction to Findings
Despite the identified issues, DeKalb's internal audit leadership framed the report in a positive light. Joel Thibodeaux, the district’s executive director of internal audits, conveyed his reaction at the committee meeting.
"There was a lot of surprise about how clean this audit was," Thibodeaux stated, suggesting that the findings were less severe than anticipated.
This sentiment was shared by Audit Committee Chair Allyson Gevertz, who contrasted the report with previous, more critical audits. She noted that the issues found were a significant improvement over past problems.
"(We’ve) had multiple audits over the last three-ish years and pretty much all of them have been extremely troubling," Gevertz said. "This is really good news for us... The complaints generally that I hear (about P-cards) are that we’re too strict. So I will take that any day!"
In response to the findings, district officials said they plan to collaborate with their banking partner to implement stricter, automated controls on the cards to prevent future overspending and prohibited purchases.
Superintendent's Indictment Adds New Scrutiny
The audit's findings have gained increased attention following the recent federal indictment of Superintendent Devon Horton. The charges stem from his tenure as superintendent of Evanston-Skokie School District 65 in Illinois, where he worked from 2020 to 2023 before being hired by DeKalb.
The federal indictment alleges that Horton engaged in a scheme to hire friends for district work and accepted thousands of dollars in kickbacks. Crucially, it also accuses him of misusing his district-issued P-card for more than $10,000 in personal expenses.
According to local reporting in Illinois, some of these expenses may have been for travel to Georgia after he had accepted the position in DeKalb. Officials from District 65 told the Evanston Roundtable that several "erroneous" expenses were identified and subsequently repaid immediately.
Timeline of Events
- 2020-2023: Devon Horton serves as superintendent in Evanston-Skokie School District 65, where alleged financial crimes occurred.
- 2023: Horton is hired as Superintendent of DeKalb County Schools.
- Sept. 4, 2024: DeKalb audit committee discusses findings of P-card review.
- Late Sept. 2024: Horton is indicted on federal charges. He is placed on paid administrative leave.
Following the news of the indictment, the DeKalb school board placed Horton on paid administrative leave. His arraignment was scheduled for late September. The district has not commented on whether it is pursuing termination of his contract.
Unclear Policies for Top Officials Highlighted
A significant finding from the Forvis Mazars audit was the lack of clarity in purchasing policies for the district's highest-ranking officials. The report stated that the district’s policies do not clearly outline the purchasing limits for members of the school board and the superintendent.
This particular finding is notable given the allegations against Horton in his previous role. While Horton's spending in DeKalb County was not a subject of the audit presentation, the policy gap suggests a potential vulnerability in financial oversight at the executive level.
Auditors did not publicly disclose specific details about the cardholders or transactions that violated policy. Instead, they indicated that this sensitive information would be shared with board members during a closed-door session. The lack of explicit spending rules for top leadership remains a key area for the district to address as it works to strengthen its financial controls.
