EPISD Audit Reveals Financial Mismanagement and Leadership Failures

An internal audit of the El Paso Independent School District (EPISD) has uncovered significant financial mismanagement, revealing that the former chief financial officer and her team were aware of a worsening budget situation for months but failed to inform the board and superintendent. The audit, presented by Chief Internal Auditor Mayra Martinez, highlighted a $10.3 million shortfall in expected savings and an additional $11.1 million in unauthorized expenditures. The findings point to a culture of silence within the district, where employees hesitated to report issues. To address these problems, the board is expected to implement 18 recommendations aimed at improving financial oversight and accountability. The formal audit report will be released shortly after the administration develops a corrective action plan.

Key Details: • Audit findings reveal $10.3 million in unrealized savings and $11.1 million in unauthorized spending. • A total of 800 positions were eliminated to address the budget crisis, resulting in 195 layoffs. • The district's projected deficit for the 2026-27 budget is approximately $4.3 million. • The formal audit report will be available within 48 hours after a corrective action plan is developed.