Maricopa County supervisors commission audit of school Superintendent Steve Watson

Maricopa County officials on Wednesday confirmed an independent auditor is digging into allegations of financial mismanagement by School Superintendent Steve Watson.

The review is being conducted by Heinfeld, Meech & Co., a Tucson-based firm that specializes in governmental and nonprofit auditing. Their two-phase audit will include a reconstruction of Watson's financial activity and a review of budgeting, finance and procurement practices.

County supervisors commissioned the firm in October and officials expect a report in the spring, said county spokesperson Fields Moseley.

The news comes after county supervisors alleged in May that Watson repeatedly flouted standard accounting principles, misreported funds and failed to submit audited financial statements for the accommodation school district his office runs within the time frame required by state statute.

That district currently administers Hope Academy, a high school that serves roughly 80 students with unique challenges, including youth in the foster care system.

County officials also said Watson may have to repay up to $2.8 million in juvenile detention center education program funds to the Arizona Department of Education and $1.6 million in grant money to the federal government because his office failed to report program operations accurately. Money for juvenile detention education was improperly comingled with money for Hope Academy, county staff said.

Watson has long denied the claims. He said the county isn't looking at the district's most recent financial reports while analyzing the numbers and that the accommodation district is always working to comply with financial practices.

Watson said he repeatedly asked county staff to create a fund for juvenile detention money to avoid comingling it with Hope Academy finances, but they never did.

He agreed to a forensic audit after a two-hour public back-and-forth with county supervisors during a May budget meeting.

Spokesperson Tim Sifert said the School Superintendent's Office is "assisting diligently" with the review and anticipates "the first deliverables from the audit later this month." Watson and his staff "don't expect any major findings," Sifert said.

County officials estimate the audit could cost up to $160,000.

Sasha Hupka covers county government and regional issues for The Arizona Republic. Do you have a tip? Reach her at [email protected]. Follow her on X, formerly Twitter: @SashaHupka. Follow her on Instagram or Threads: @sashahupkasnaps.

This article originally appeared on Arizona Republic: Maricopa County School Superintendent Steve Watson under audit