District Response to Forensic Audit

July 28, 2025

Dear NECSD students, families, faculty, staff, and community members,

I am writing to provide important information and context regarding the recent forensic audit and other financial reviews conducted within the Newburgh Enlarged City School District this year. Audits are a regular part of the district’s operations as required by law for every school district. Internal and external audits occur yearly, with a special area review being done by the internal auditor, which looks more closely at a specific area such as Medicaid compliance (done FY24) or procurement (done FY23). This area of focus is chosen by the Board’s Audit Committee. 

This year, in addition to our annual audits, a forensic audit was performed by an accounting and assurance firm, PKF O'Connor Davies, hired by the Board of Education to review the fiscal year 2023-2024 (July 1, 2023-June 30, 2024). The report was recommended and accepted by the Board of Education on June 30, 2025 in a Special Meeting of the Board of Education. (Forensic Audit Report | Video)

In conjunction with this forensic audit, the district participated in the following audits and financial reviews for 2024-25: 

• Internal audit (mandated budgeted expense), 
• External audit (mandated budgeted expense), 
• Budget Consultant (approved by the 2024-2025 BOE, not to exceed $25,000), 
• Forensic audit (approved by the 2024-2025 BOE, not to exceed $316,000)

On July 17, 2025, BOE President, Mr. John Doerre, invited representatives from PKF O'Connor Davies, who conducted the forensic audit, to present and discuss their recommendations with the Board of Education. (Forensic Audit Presentation | Video)

In a standard audit, it is customary for auditors to review their preliminary recommendations with district administration prior to releasing a final report. This collaborative step allows for clarification of any misunderstandings and the opportunity to provide additional context or information related to the auditors' concerns. Unfortunately, that process was not followed during this audit. 

Had this dialogue occurred, it would have offered a more accurate and complete picture to the community. Notably, more than half of the recommendations included in the final report pertain to procedures and practices that were already in place prior to the audit. The district’s responses to all the items are provided below, along with notes from administration and answers to frequently asked questions.

Link to Recommendations and Responses | Link to FAQs

We appreciate the community’s engagement and the opportunity to clarify key items raised in the report. It is essential to reaffirm that no fraud or malfeasance was identified by the forensic auditors, and that all expenditures, including budget transfers and grant spending, were made in accordance with state requirements and Board policy.

District leadership remains committed to upholding transparency, ensuring financial integrity, and aligning its practices with both legal mandates and best practices in school governance. We will continue to collaborate with the Board of Education, the Audit Committee, and the broader community.

The District encourages all stakeholders to review the full set of responses to the forensic audit recommendations as well as the FAQ document and welcomes continued dialogue grounded in facts, accountability, and shared commitment to the Newburgh Enlarged City School District.

Sincerely,

Ms. Onyx Peterson
Acting Superintendent

ATTENTION: Are your scholars or colleagues doing something great? Please contact the district Communications Team at communications@necsd.net. We’d love to visit your class or event and/or post your pictures and recap to highlight the amazing accomplishments throughout our district!