Amid Charlotte-Mecklenburg Schools’ leadership turmoil at last week’s board meeting, a separate financial issue went barely noticed.
CMS staff told the board last week that the district had to move money to cover a $1 million overcharge in the Exceptional Children's department — raising broader concerns about the department's financial compliance.
CMS Chief Financial Officer Kelly Kluttz said the department had spent all its money budgeted for the 2025-26 fiscal year. Then the $1 million in invoices came in two months after the fiscal year had ended.
To cover the costs, the board approved budget amendments from elsewhere in the budget. But some board members questioned Kluttz about the situation. Kluttz told them the expenses were not tied to a contract or purchase order. She added that the invoices capped off a year of recurring compliance issues within the department, and that not making the budget amendments could turn up in an audit.
"We've had some noncompliance issues with our EC Department over the last year," Kluttz said. "There were some concerns, and those have been being addressed over the period of time."
An email obtained by WFAE shows CMS had previously identified $4 million in Exceptional Children's department expenditures that did not comply with purchase order or pre-audit requirements. That, combined with the newly disclosed $1 million, brings the total amount of noncompliant spending identified by the district to $5 million.
Kluttz told the board that the superintendent was unable to follow the district's normal accountability process because she was suspended at the time the issues surfaced.
Board member Charlitta Hatch questioned this, suggesting other administrative officials could have handled the situation.
“I would hope that even you as the chief financial officer would have implemented accountability and oversight,” Hatch said.
Kluttz said she can't evaluate employees she doesn't directly supervise. “There’s record keeping, and it goes to the chief and the superintendent because they are the evaluators of the employees,” Kluttz said. “I have no control or ability to discipline or evaluate or put anyone on a plan that isn’t under my leadership.”
It remains unclear what the expenditures were for and CMS did not immediately respond to a request for comment.
