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Critical Report
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An 18-page final TEA special investigations report on the 8,600-student DeSoto ISD in Dallas County concludes that the district incurred a $21.6 million deficit mainly due to the financial mismanagement of former DISD Superintendent David Harris (who was superintendent from March 2012 to April 2018), the members of Harris’ administration, and actions by DISD’s board.

The report, released on Aug. 14, by TEA Special Investigations Unit Director Adam Benthall also concludes, among other findings, that:
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  • DISD employees approved 50 credit card transactions totaling $330,000 to three fictitious merchants that the employees had created. Criminal investigations may be occurring or otherwise be imminent.

  • DISD’s board failed to oversee the management and fiscal performance of the district, as required by state law, including instances where the district did not follow the state’s procurement laws.

This failure, the report says, contributed to the district receiving an F state fiscal 2018-19 accountability rating, which had plummeted from an A rating only two years before. (Note: DISD’s preliminary 2019-20 fiscal rating is a C.)

The report rejects various arguments DISD made in its defense, such as that the district should not be sanctioned for actions taken under the administration of its former superintendent and the fact that the district took steps to address the various issues of concern, such as by arranging for an independent “forensic audit” to be conducted after the discovery by the new administration of the $21.6 million budget deficit from Fiscal Years 2017 to 2019.
The report cites more recent problematic fiscal decisions made by the district, and notes that the board’s current president and vice president were board members during the prior superintendent’s tenure.

Conservator’s Appointment Recommended
The report concludes by recommending that the education commissioner appoint a conservator to help the district to identify the noncompliance issues identified, and to report to the agency the district’s progress in implementing a corrective action plan.

The DISD board reportedly held a required public hearing, virtually, on Aug. 20 on the report.