Audit Finds Financial Mismanagement in Birmingham City School System

A state audit of the Birmingham City school system, covering October 2024 through September 2025, found evidence of financial mismanagement. The audit detailed that the district overpaid two fitness vendors by a combined total of $254,468 beyond board-approved limits. Additionally, the system allowed an employee to collect student fees using a personal Apple Pay account.

The findings were part of an examination by the Alabama Department of Examiners of Public Accounts. While the district maintains a fund balance of $219.9 million and received an unmodified opinion on its financial statements, the audit documented 11 compliance and internal control findings, including eight repeat violations.