State Audit Flags $254K Overpayment to Fitness Vendors

Birmingham City Schools paid two fitness training vendors more than the amounts the Board had authorized, according to a state audit.

Updated on Nov. 10, 2026 in Administration

State Audit Flags $254K Overpayment to Fitness Vendors

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A state audit found Birmingham City Schools paid two fitness vendors $254,468 above the amounts the Board authorized. The district identified the vendors as BeDrive and Xtreme and agreed with the audit finding.

Why it matters

The audit classified the overpayments as a significant deficiency in internal financial controls, raising questions about how spending above Board authorization was approved. Public oversight of school district contracts depends on purchases staying within the limits the Board sets.

The Board authorized up to $150,000 per vendor, yet one vendor received $313,068 and the other $241,400. District policy requires Board approval for purchases above $50,000, and the audit found no executed contracts were provided to auditors.

The players

Birmingham City Schools

The public school district serving Birmingham, Alabama, which governs its own purchasing and contracting through an elected Board.

Department of Examiners of Public Accounts

Alabama's state agency responsible for auditing public entities, including local school districts, for financial compliance.

The details

The audit covered the period from October 1, 2024 through September 30, 2025 and was filed September 25, 2026. The district said the vendors were paid for legitimate, documented services, but the costs exceeded authorized amounts before an administrator returned to the Board for additional approval.

October 1, 2024 through September 30, 2025: Audited fiscal period.
September 25, 2026: State audit filed by the Department of Examiners.
November 5, 2026: District provided a written response identifying the vendors.

Legal Context

State audits of Alabama school districts routinely test whether spending stays within Board-authorized limits, and this finding fits that pattern of control-level deficiencies. The classification as a significant deficiency signals a weakness short of the more serious material weakness category.

Parents and taxpayers in the Birmingham district can ask the Board how future vendor requests are routed for approval before spending exceeds authorized limits. The district said it is taking steps to submit future funding requests to the Board before authorized amounts are exceeded.

The takeaway

Oversight of school spending works when approval happens before money is committed, not after. Residents who want to track district purchases can review Board minutes and state audit reports for their local school system.