More than two years after Gov. Kevin Stitt requested the examination, Oklahoma State Auditor and Inspector Cindy Byrd released a special audit of the Tulsa Public Schools District on Wednesday, finding “a systemic lack of internal controls and administration” over purchasing, while also revealing new details about un-indicted co-conspirators in a high-profile embezzlement scheme.
The 64-page audit (embedded below) examined TPS financial practices between 2020 and 2023 and found a “small group of TPS administrators” failed to make proper documentation of vendor receipts, routinely bypassed expenditure oversight by the district’s school board and mismanaged millions of dollars in state appropriations.
“No auditor wants to find evidence like this,” Byrd said at a State Capitol press conference. “It doesn’t serve anyone’s interest when a public school fails to act with financial responsibility, especially in the interest of wonderful teachers and students of that school district. Even though we uncovered substantial issues with internal controls and noncompliance with state law, the scope of our investigation was limited. We are still left with a number of unanswered questions.”
Byrd called the findings “significant” and said certain information has been relayed to the Attorney General’s Office for further inspection.
“This audit report provides a thorough assessment of the district’s internal controls and oversight mechanisms, revealing significant deficiencies in both policy adherence and legal compliance,” auditors wrote in the report. “Our investigation, which included detailed and extensive audit test work, identified systemic failures across multiple areas, demonstrating a breakdown in both accountability and governance. The findings point to a failure by both the board and the administration to effectively implement and enforce established policies, leading to serious lapses in oversight.”
Byrd, who has established a campaign committee to run for lieutenant governor in 2026, had been set to release the audit Feb. 11. At a press conference that day, she told media members that TPS had invoked a state statute that allowed the district 14 days to discuss the audit results before the information could be released to the public. She said she had never seen a school district invoke the statute in her 28 years of conducting government audits.
In a Feb. 11 statement about that decision, TPS director of communications and public relations Luke Chitwood said the district was exercising its statutory rights.
“Tulsa Public Schools did not pursue any legal action in response to the state auditor’s scheduled media appearance or report release,” said officials within TPS’ communications department. “In fact, the district was made aware of the auditor’s plans via media reports. The statute (Title 70, Section 5-127.1) in question provides for ‘at least 14 days prior to the release of the audit to the public.’ During that time, a school district under audit may work in cooperation with the State Auditor’s office to offer any clarifying information or additional context that would be important for its stakeholders to have a full understanding of the facts. Additionally, the district does not have the full audit report, has not seen it, and does not make the decision when (or when not) to release it.”
Despite invoking the statute, TPS leaders and board members did not receive a full copy of the audit prior to its release, which Byrd said was “standard operating practice for the 28 years I’ve been in the auditor’s office.” Byrd said she had “discussions” with TPS board members and had exchanged emails prior to Wednesday’s audit release.
Audit reveals severe financial discrepancies at TPS
Stitt requested the audit in July 2022 after two TPS board members sent a letter informing him of “troubling information” that had been disclosed to the board. Stitt specifically asked Byrd to examine the district’s use of $200 million of COVID relief funds.
The board members’ letter came amid allegations that a TPS administrator had embezzled hundreds of thousands of dollars from the district. Former chief learning and talent officer Devin Fletcher eventually pleaded guilty in federal court to conspiracy to commit wire fraud in October 2023. Prosecutors said Fletcher caused the district to lose at least $603,992 by fabricating purchase orders and invoices and inflating vendor costs.
But auditors outlined additional details of Fletcher’s fraud in their report, discussing, among other things, false invoices Fletcher created that TPS paid for work that auditors said was never done.
“Fletcher and S. Monee Kemp, Fletcher’s half-sister, received fraudulent payments totaling $448,125 in a scheme that spanned four fiscal years and went undetected by TPS and the foundation,” auditors wrote.
Fletcher was sentenced to 30 months in federal prison Nov. 25. As part of his plea agreement, he committed to pay restitution to TPS and the TPS Foundation equalling the amount he caused the entities to lose.
But Byrd’s audit seemed to reveal additional details about how, with whom and to what extent Fletcher contracted to divert school funds. In addition to enabling fraudulent payments to his half-sister, auditors wrote that Fletcher enabled $329,278 worth of “fraudulent” payments to Snickelbox, LLC, a company owned by Lauren O’Mara, with whom Fletcher had “attended the same fellowship class at The Broad Academy at the Yale School of Management.”
The audit also discussed Fletcher’s handling of invoices with other associates, including Kord Golliher of KAG Capital and a man named Isaac Domingue.
“Fletcher hired Isaac Domingue, another acquaintance, to support the Talent Management Department during the COVID-19 pandemic,” auditors wrote. “Again, as with Snickelbox and Kemp, Fletcher created and submitted false invoices to increase the payments to Domingue. On June 23, 2021, Fletcher emailed the purchasing department indicating Domingue’s submitted invoice was approved. The attachment file labeled “TPS- Invoice #152” was not the invoice Domingue had emailed Fletcher a month earlier. Domingue’s original invoice was for $10,800; however, the invoice Fletcher submitted for payment was inflated to $18,900, resulting in $8,100 of false billing.”
Stitt released a statement Thursday evening and called for Attorney General Gentner Drummond’s office to “bring charges wherever possible.”
“I requested this audit in 2022, and today Auditor Byrd finally confirmed what myself and many other Oklahomans believed to be true — where there’s smoke, there’s fire. And it’s deeply troubling to see Tulsa Public Schools having engaged in such gross financial misconduct,” Stitt said. “The release of the audit is only the first step in holding wrongdoers accountable. The attorney general needs to take immediate action and bring charges wherever possible. This can never be allowed to happen in Oklahoma again.”
When Stitt requested the audit, he was also publicly feuding with the district’s former superintendent, Deborah Gist, over her handling of the COVID-19 pandemic and the extended duration that TPS school sites were closed.
“As one of the largest districts in the state, TPS received over $200 million in COVID federal relief funds. TPS also stayed closed the longest — over 300 days,” Stitt said in a statement at the time. “Board members, parents, students and teachers deserve to know how that money was spent. I’m also concerned that TPS may have violated state law, specifically HB 1775, which bans public schools from teaching critical race theory.”
After Stitt’s own press conference Wednesday, which slightly overlapped Byrd’s release of the Tulsa Public Schools audit findings, Stitt lamented that those responsible for the district’s lack of financial responsibility could not be held accountable.
“That’s what’s unfortunate, is the old superintendent is long gone and will never probably be held accountable for failing those kids and not getting those dollars on target,” Stitt said.
Also during the summer of 2022, the State Board of Education downgraded TPS’ accreditation status to “accredited with warning” owing to allegations that the district violated HB 1775, the state’s ban “critical race theory” in schools.
Byrd clarified that her audit was only a financial review and did not reflect the quality of work done by many of the teachers and administrators in the district.
Among the findings listed in the Tulsa Public Schools audit were:
- “TPS had a systemic lack of internal controls and administration over their purchasing process. Both the administration and the Board failed to provide adequate oversight of the process. Audit results, identifying over 1,400 discrepancies, were concerning. These issues spanned almost eight years, documenting a long-term lack of management oversight;”
- “TPS and the Foundation were defrauded $824,503 through various transactions and schemes instigated by the chief talent and learning officer, Devin Fletcher;”
- “TPS staff utilized the (TPS) Foundation to pay for transactions that were not in compliance with law or policy;”
- “The Tulsa Teacher Corps program, launched in the summer of 2018, was operated for two years prior to receiving official authorization through legislation and the State Board of Education. During this period, Teacher Corps trainees provided instruction in summer classrooms without meeting the necessary statutory requirements;”
- “TPS paid Growing Together, a community partner, $1.2 million between [School Year 2020 and School Year 2023]. The invoices were not itemized and failed to provide sufficient detail to verify that all funds were utilized in accordance with statute and that contracted services were provided;”
- “TPS submitted ESSER claim reimbursements using invoices that provided little to no information about the services provided resulting in federal funds being used to reimburse questioned costs totaling $4.9 million;”
- “Outside vendors paid for travel and training costs for TPS employees in violation of Board Policy 4409;”
- “Two TPS executive administrators operated businesses outside their TPS employment in violation of board policy;”
- “Chris Hudgins, executive director of bond & energy management, conducted business through his personal company with a school vendor. There is also evidence that Hudgins engaged in personal business activities during work hours utilizing school resources;”
- “TPS did not retain all public records, limiting the district’s ability to fully comply with SA&I record requests and with the Open Records Act;”
- “TPS failed to meet statutory requirements requiring the enrollment of employees in the Oklahoma Teacher’s Retirement System (OTRS) and failed to correctly remit required contributions. Due to this failure, the District will be liable for unpaid contributions, including interest;” and
- “TPS did not correctly report all DEI related expenditures incurred during [School Year 2023] to the State Board of Education, as required by Board Order 2023-SR-02.”
Given the audit is only reviewing the district’s financial discrepancies between 2020 and 2023, Byrd said TPS has already begun to address many of the issues listed in the audit.
“It is important to acknowledge that the administration has already taken proactive steps to address some of these weaknesses,” auditors wrote in the report. “Over the course of the audit, the administration has been actively working to improve internal controls and strengthen oversight mechanisms. These efforts reflect a genuine commitment to resolving the issues highlighted in this report.”
In her own press conference Wednesday afternoon, TPS Superintendent Ebony Johnson said the district appreciates the release of the audit. Johnson succeeded Gist and was hired as superintendent in 2023.
“We welcome feedback. We welcome the ability to exercise what we call continuous improvement,” Johnson said at the press conference, which News 9 posted online. “We have a goal to become an exemplary district in the state and an exemplary district in the nation. In order for us to get there, we’ve got to shore up our practices — make sure things are done appropriately.”
As a former TPS teacher, Rep. John Waldron (D-Tulsa), which encompasses all of TPS, said he had “a lot of faith” in Johnson and the people she has surrounded herself with to overcome the challenges presented in the audit.
“I think TPS has been under a lot of pressure, and some of it warranted, as we’ve seen in the audit today, but a lot of it political as well,” Waldron said Wednesday. “And here I’m not referencing the auditor herself. I think she did excellent work, but the proud citizens of Tulsa who love and support their public schools, the teachers, the support staff, the administrators, the school counselors, the bus drivers who get kids to school every day — they work hard every day, and they achieve great results with a majority-minority school district that is more than 50 percent below the poverty level. Our urban school districts are centers of citizenship. They turn newcomers into American citizens. They turn young people into effective members of our workforce. They turn people into democratic citizens, capable of participating in public affairs, and that great work goes on every day regardless of what might have been happening.”
Read the full Tulsa Public Schools audit
(Update: This article was updated at 8:45 a.m. Thursday, Feb. 27, to include comment from Gov. Kevin Stitt. It was updated again at 12 p.m. Monday, March 3, to include more details about a Tulsa Public Schools audit finding.)
