Tennessee school audits reveal potential fraud in Memphis

An independent audit of Memphis-Shelby County Schools (MSCS) has uncovered evidence of potential fraud and significant fiscal mismanagement, involving approximately $54.2 million in questionable spending. A major portion of this involves a $48.4 million contract with the custodial firm ServiceMaster Clean. The audit notes that the district's former Chief of Business Operations, Genard Phillips, allegedly ignored recommendations to diversify custodial providers, opting instead for a single firm that was later terminated for poor performance. Allegations have surfaced regarding potential kickbacks, and the matter has been referred to the FBI.

Following these findings, Tennessee lawmakers are considering a similar exhaustive audit for Metro Nashville Public Schools (MNPS), which has not undergone such a review in nearly a decade. State Comptroller Jason Mumpower described the Memphis findings as “ludicrous and not defensible in any way,” citing years of poor management and weak internal controls. As MSCS faces a potential state takeover, educators and officials are discussing whether similar intervention may be necessary for the Nashville school system.