No forensic audit – yet: Moses Lake School Board defends position as levy vote looms

(The Center Square) – In less than two weeks, voters will seal the fate of the Moses Lake School District’s proposed levy after two failed attempts last year and a whirlwind of financial turmoil. Prior failures unveiled a revenue shortfall totaling more than $20 million, but School Board President Kirryn Jensen reaffirmed the district’s commitment to transparency on Wednesday, but not a forensic audit.

Last month, the Moses Lake School Board unanimously endorsed the upcoming levy for which voters will decide on Feb. 11. If approved, MLSD would levy a $1.50 tax on every $1,000 of assessed property value from 2026 through 2029, generating around $51.3 million.

The district pushed an Educational Programs & Operations Replacement Levy twice last year, but both failed to reach the simple majority required to pass. State law limits districts to two failed attempts before requiring them to wait another year to ask again, but that time is up.

The last two failures revealed accounting errors and other issues, contributing to an over $20 million shortfall. Despite the long, ongoing process of remedying this, the board has continually declined to undergo a forensic audit but said Wednesday that it’s not out of the question.

“We’re in the middle of a deep dive with the state’s comprehensive audit. This isn’t just a quick once-over; it’s a full-scale review to figure out what went wrong, how we got here, and what needs to change,” Jensen wrote in a public statement. “I think it’s important to let that process play out before making any big decisions, like committing to a forensic audit. But let me be clear: I’m not ruling it out. If the state audit shows it’s needed, I will absolutely consider it.”

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She continued to list steps already taken to “make things better,” such as posting financial reports, double-checking ledgers, sustainable long-term planning, sharing updates and starting a Financial Oversight Committee. However, a former board member said otherwise last week.

While the former board member kept their name anonymous, the opinion editorial published by Source One News called for a forensic audit and alleged “falsification of financial reports.”

“Why are balances provided by the Grant County Treasurer (STAR report) not included in financial reports to the school board,” the alleged former member wrote in the op-ed. “The only real reason for NOT having a forensic audit is that someone doesn’t WANT to find out what happened, and who was responsible for the reserve fund being decimated and that fact being covered up.”

The op-ed claims that the staff facilitating the audit knows what the state does and doesn’t look for, meaning if the evidence they present looks good, it’s hard to catch underlying issues.

If approved, the replacement levy will cost roughly $366 annually for property owners with a 2022 median value of $244,500. Ryan Shannon, MLSD public relations director, previously told The Center Square that the success would also result in roughly $23.5 million in state Local Effort Assistance, or LEA funding.

If voters reject the levy again, MLSD will miss out on the $51.3 million it’s projected to generate and some of that LEA funding until a levy passes. Instead, voters would see the current rate of $1.69 per $1,000 of assessed value fall off their bill, with the state retaining that LEA funding.

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According to the district’s website, another failure would lead to further reductions of at least $5.1 million. The last two failures have already cost the district, its students and staff immensely after hundreds of educators and other staff were let go due to the fallout.

“I know these steps don’t fix everything overnight, but they’re part of us working to rebuild trust with you,” Jensen continued. “This has been a mess, and we’re working hard to clean it up. It’s going to take time, but we’re committed to being transparent and honest along the way.”

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