MEMPHIS, Tenn. (WMC) – State officials released the final forensic audit of Memphis-Shelby County Schools (MSCS) on Wednesday morning.
The report includes a cybersecurity review, a separate investigation into the vacant Herbert STEM Center at Whitehaven High School, and a TennCare evaluation.
It provides more detail than the partial findings released in April. Those early findings flagged more than $1.1 million in waste or abuse after auditors had reviewed about 25% of district contracts.
The forensic audit reviewed district operations for fiscal years 2022 through 2024. Auditors identified about $54.2 million in transactions they said showed potential signs of fraud, waste, or abuse.
Auditors also identified about $65.1 million in transactions with evidence suggesting noncompliance with district…
Insurance fraud involves making false or exaggerated claims to an insurance provider.
- Hard Fraud: Someone deliberately causes a loss (e.g., setting fire to a warehouse or staging a car accident) specifically to collect a payout.
- Soft Fraud: More common and often viewed as “victimless” by the perpetrator. It involves exaggerating a legitimate claim, such as overstating the value of stolen items in a home burglary to cover the deductible.