EPISD audit puts blame on former CFO for financial issues

EL PASO, Texas (KVIA) -- The El Paso Independent School District released findings from its internal audit into the nearly $53 million budget deficit.

The audit found there were significant risks known within the financial management department, but they weren't communicated to Superintendent Brian Lusk or the rest of the board of trustees.

The audit also said former Chief Financial Officer Martha Aguirre didn't fulfill her key responsibilities, and the limited transparency from the department led to limited correction and public oversight.

Aguirre resigned amid financial pressure in May, as ABC-7 previously reported. The district's deputy superintendent, David Bates, started overseeing financial operations since.

June 4, the district voted to declare financial exigency, and later agreed to cut more than 50 contracted positions to bring the deficit don to around $4 million.

The audit was posted to the EPISD website and you can read it below.

ABC-7 spoke to EPISD Board President Jack Loveridge about the findings. Loveridge is also on the audit committee. He said that Aguirre told him and another board member about the deficit increasing in December of 2025, but never told the Superintendent. Loveridge and the other member were told she would notify him.

"In that conversation, the conclusion was that she would speak with the incoming superintendent about it. And by all accounts, everything was square," said Loveridge. "We understood that the superintendent had the information he needed to proceed, but as it turned out, she hadn't even communicated that fact with him."

Loveridge said he has talked about adding an item for an August board meeting to see if potential legal action could come.

"Have a conversation with council to understand where we can take this in terms of the law, to understand what our responsibilities and our abilities are as a board of trustees, and holding those who deceived the board and the administration accountable for that."

ABC-7 has reached out to Aguirre for comment, but she has not responded at this time.