Audit Finds $13.7M in Underreported Education Spending

Connecticut taxpayers should note repeat audit findings at SERC, a state education agency with incorrect vendor figures in the state database.

Updated on Nov. 6, 2026 in Administration

Audit Finds $13.7M in Underreported Education Spending

Live Poll

Do you trust state agencies to accurately report how they spend public money?

State auditors found that the State Education Resource Center (SERC) underreported its vendor expenditures by $13.7 million to the state comptroller, producing incorrect information in a state database. The audit covered fiscal years 2023 and 2024 and noted six deficiencies, three of which were repeat findings from prior audits.

Why it matters

For Connecticut households, the audit points to weak financial controls at a quasi-public education agency that receives public money, which bears on how taxpayer dollars tied to school support are tracked. SERC attributed the problems to staff turnover in its fiscal department and to a lack of funding for timely audit filings.

State auditors found SERC underreported vendor expenditures by $13.7 million, and the agency failed to review and approve 69 of 72 bank reconciliations. Three of the six deficiencies were repeat findings from earlier audits.

The players

State Education Resource Center (SERC)

A quasi-public Connecticut agency that supports school districts and educators, which became a quasi-public agency in 2014 and relies on discretionary State Department of Education funds.

Connecticut State Comptroller

The state office that receives vendor expenditure reporting and maintains the state financial database affected by the underreported figures.

The details

SERC's expenditure information submitted for the State Open Checkbook database was not sufficiently reviewed to ensure accuracy and completeness, which led to the incorrect figures in the state system. The agency also failed to perform a physical inventory or reconcile its inventory listing to its accounting system, and it did not submit an annual report with complete financial statements to the Governor and the Auditors of Public Accounts. SERC has since submitted the missing audits and amended its agreement with its auditing firm to cover 2025, 2026 and 2027.

2014: SERC became a quasi-public agency without a dedicated funding line other than discretionary Department of Education funds.
Fiscal years 2023 and 2024: the period covered by the state audit.
2025, 2026 and 2027: the years SERC amended its auditing agreement to cover.

The Home Front

Three of the six deficiencies in this SERC audit were repeat findings from earlier state audits, showing the same control gaps persisting across audit cycles. Those recurring findings sit within the broader pattern of Connecticut's quasi-public agencies operating with limited dedicated funding.

If you are a Connecticut parent or taxpayer, you can check how your school district and state education agencies report spending through the state's public checkbook database. Keep copies of school-related financial notices so you can compare future audit results against what was reported.

The takeaway

Repeat audit findings are a signal that a fix has not stuck, so they are worth tracking over several reporting cycles. Watch whether SERC's amended audit schedule for 2025 through 2027 is met on time.