An external audit delivered to the Fabens Independent School District board last week turned up nearly $41,000 in credit-card charges that auditors flagged as potentially unauthorized, dropping a financial headache squarely in trustees' laps. The report also cited a deficit budget and the loss of federal ESSER money, findings auditors say leave the small El Paso County district with a lowered financial rating. Investigators told auditors they suspected a former employee used the card and that a credit-card statement may have been altered to scrub out charges at a local casino.
As reported by KFOX14/CBS4, the external auditor said the district's corporate card activity was examined for two windows: Sept. 20–24 and then from Sept. 25 through the end of June last year. Those were the only dates reviewed, and nearly $41,000 in questionable charges were identified. The station's summary says investigators suggested the card may have been used by a former employee and that a statement was allegedly altered to remove casino charges. The audit also warned the district's financial rating would not exceed a C.
Audit Presented To Trustees
The audit appeared on the Fabens ISD board agenda for the Jan. 21 meeting under the title "2024 - 2025 Annual Financial and Compliance Audit Report," confirming trustees received the findings as part of their regular session, according to the district's public BoardBook posting. The meeting packet lists the audit as a standalone item for trustee review and possible action.
Board Reaction And Next Steps
KFOX14/CBS4 reported the station reached out to Fabens ISD for comment and that the auditor's presentation raised pointed questions about the district's internal controls. According to the station's account of the audit notes, a statement was alleged to have been altered to remove charges from a local casino, and investigators suspect a former employee may have used the district card.
Potential Oversight And Funding Fallout
Findings that include missing federal funds and evidence of altered records can trigger heightened scrutiny from state officials and complicate an already tight budget. The Texas Education Agency has, in other cases, appointed conservators or taken other interventions when districts showed systemic financial or governance failures, the Texas Education Agency notes. In Fabens, trustees and district leaders now face pressure to shore up internal controls and decide whether further investigative or legal steps are necessary to protect classrooms and services.
