(Editor’s note: This story has been updated to clarify that the district itself is not under investigation.)
North Kansas City School District is scrambling after an audit showed over half a million dollars paid to a mystery IT vendor, according to The Beacon News.
The school district released its annual audit on Tuesday after a board meeting to briefly discuss it. Superintendent Rochel Daniels told The Beacon the board reviewed the audit in a closed session beforehand.
The district discovered payments to an IT vendor that didn’t meet the procurement requirements, alerting them to investigate the issue further.
An IT employee was said to be approving invoices for a vendor charging the district $9,000 per month for “potentially fake consulting services,” The Beacon reported. The payments started in 2019, costing the district $630,000 total.
The district discovered the IT employee was the brother to one of the executive employees with the vendor in September. The person’s employment was immediately terminated, Daniels told The Beacon.
The district has since closed its investigation, but law enforcement’s investigation is still ongoing.
“The audit should be public,” an observer commented on X. “The tax payers should know where and to who the money went. The tax payers should know who was let go at NKC schools.”
Daniels said the investigation caused the audit to be submitted after its due date of Dec. 31. This will cost the district two points on its 2025-26 Annual Performance Report from the state Department of Elementary and Secondary Education, she said in an email obtained by The Beacon.
Daniels said the point deduction is disappointing and doesn’t meet the district’s expectations “in contrast with the tireless work of our students and staff who take great pride in how this state report card reflects personal and district success.”
The compliance report, says The Beacon, cites the district’s weak “internal controls over procurement policy,” noting improper procedures in purchasing.
The district contracted with a cybersecurity expert who confirmed no sensitive data was released from the incident, Daniels said.
The district reviewed vendors receiving $50,000 or more from the school in 2025 and found 25 of the 27 were cleared, having proper board approval. However, two of them didn’t have proof.
The district is now reviewing and updating its policies and expects to be finished by June 30. It also hired a financial consultant to strengthen its procurement process, making sure payments can’t be approved without an attached contract of approval from the board.
