A forensic audit prompted by a shortfall in the budget of the Bridgeport Public Schools has found no evidence of fraud in the district, but noted that a lack of oversight from the Board of Education coupled with questionable budgeting practices created an inaccurate portrait of the district’s finances. 

The audit, performed by the firm CliftonLarsonAllen LLP and released on Thursday, was ordered by the state of Connecticut in response to a $39 million budget shortfall that the district announced last year. District officials have claimed the reason for the shortfall was the loss of federal coronavirus money coupled with flat-funding from the city. In spring of 2024, the district adopted a budget with the plan to draw from its savings to fill an already existing $26 million hole. 

A district of nearly 20,000 students, Bridgeport has been plagued by bitter disagreements between Board of Education members and has cycled through six superintendents in the last eight years. Former Superintendent Carmela Levy-David went on a leave of absence in November 2024 and eventually left the district after parents and teachers complained about her leadership. 

When Chief Financial Officer Nestor Nkwo and Interim Superintendent Royce Avery took the helm in September and November 2024, respectively, they began looking for ways to downsize. This included cutting 27 administrative positions in December 2024, with 18 assistant principals to be eliminated in June 2025.  

In April 2025, the board voted for more cuts, including the loss of 20 teaching positions, kindergarten paraprofessionals, busing for over 2,000 students, a performing arts program and all the district’s librarians. 

The report noted that there was no evidence of fraud or that the district was using money for anything that wasn’t “legitimate district business.” But the auditors did discover that the district had incorrectly classified certain expenses, which they said was a “deliberate tactic” done with the aim of making their expenditures line up with what was written in the budget. 

Additionally, the auditors said the district had made transfers within its budget as a way of “artificially” covering up budget shortfalls. Board of Education members, the report said, either didn’t know about these practices or did nothing to stop them. 

“The board’s failure to exercise appropriate oversight allowed these financial manipulations to persist unchecked, contributing to systemic issues in transparency and accountability,” the report read. 

Board of Education Chair Jennifer Perez told The Connecticut Mirror in an email that they had only just received the report and couldn’t yet comment on its findings. 

“We will work closely with the state and the audit firm to ensure the report is formally presented and discussed at an upcoming Board meeting,” she said. 

The audit noted that the district had taken $16 million out of its account for retirees and used it to pay for human services, medical services and payroll. The auditors warned that this transfer could “ jeopardize the ability to meet future obligations.” 

An investigation into payroll accounts found no indication that any employee had received excess pay or benefits. But the auditors said that the cost of payroll had remained relatively consistent over the last three years, which did not explain why the budget had increased. 

The report noted that individual schools and departments have very little say in the budgeting. Schools are given a certain amount of money based on the number of students they have and average employee salaries, but the amount doesn’t account for any outside factors, like student achievement or the percentage of students who are identified as needing special education. Departments have complained about a lack of clarity around the budget, and said they have been “met with resistance” when asking for information. 

District administrators did not respond to requests for comment. 

State Department of Education Commissioner Charlene Russell-Tucker thanked the auditors and said that Bridgeport was at a “critical moment.” 

“The audit provides a clear and necessary roadmap to strengthen Bridgeport’s financial systems, including greater local board of education oversight, and restore confidence in its budgeting practices. This moment presents an opportunity to reset expectations and refocus our shared efforts on building a system rooted in stability, transparency, and trust—one that fully supports the 20,022 students in Bridgeport,” she said in a statement. 

In January, prompted at least partly by a letter from former board chair Christine Baptiste-Perez, state officials called district leaders and board members to a meeting in Hartford. The State Board of Education later voted to allow the state to intervene in the Bridgeport Public Schools by providing a “technical assistance team,” required training for Board of Education members and having the state approve the district’s permanent hire for superintendent. 

The state also expressed concern about the district’s ability to address special education needs, noting that the state was receiving an increased number of complaints and legal filings related to special education in Bridgeport. As of November 2024, the district had estimated a shortage of 31 special education teachers. 

Russell-Tucker said in a statement on Thursday that the state’s technical assistance team and other state partners will make sure that the district follows the 34 recommendations made in the audit. 

The recommendations include technical changes designed to create more transparent accounting practices, training for new employees and giving department heads greater input on the budget and the ability to review it regularly.