The Alabama Department of Examiners of Public Accounts released an audit of the Baldwin County Board of Education (BOE) that flagged a professional consultant agreement as a violation of the board's own policy, though the school system strongly disputes the finding.
The audit covered the period of Oct. 1, 2024, through Sept. 30, 2025. The report did not identify internal control issues but focused on payments made to a professional consulting company. The Examiners did not identify the company, but in its response to the audit, the school system identified it as Strategy, Inc., a company owned by political consultant Jon Gray. The audit claimed that an agreement with the company exceeded the board's policy and was made without prior board approval.
The Examiners publicly released the report this month, but notified the BOE of the findings on March 25.
"The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards," the report stated. "However, we noted a certain matter that we have reported to the management of the Baldwin County Board of Education in the Schedule of State and Local Compliance and Other Findings."
BOE policy at the time allowed the superintendent to engage professional consultants for up to 90 days, not to exceed $15,000, without prior BOE approval. However, the audit report stated Examiners found Strategy, Inc. was paid $66,500 from October 2024 through April 2025.
"The Board failed to follow its established policies regarding professional service contracts," the report stated. "As a result, the Board engaged the services of a professional consultant without a properly executed contract for an amount and time period that exceeded Board policy."
In a response to the finding, Baldwin County Schools disagreed, stating, "the audit has inappropriately combined two policies in an attempt to make a finding.
The BOE said the policy did not require a contract but merely BOE approval. The response stated that before a recent policy change, Policy 3.9.5 provided that the superintendent may engage consultants without prior board approval, provided expenditures remained within the approved budget.
The BOE claimed the audit "neglects to contemplate that the word 'contract' does not appear" in the policy.
The school system provided a copy of an agenda item from the Nov. 21, 2019, meeting and a professional service agreement signed by then-Superintendent Eddie Tyler on Nov. 19, 2019, showing the BOE approved engaging and paying. In a 5-1 vote, the BOE approved $9,500 per month for the professional consultant and stated that the action did not violate policy.
"The Board approved an open, month-to-month expenditure, much like a professional services agreement with an attorney," the school system responded.
The school system noted that the findings do not cite any legal authority that was violated, as all funds were accounted for. The response called the statement "a hallucination combining and misconstruing the two Policies."
The agreement in question has since been terminated following Gray's resignation last year, citing "personal attacks and threats." Gray said he passionately worked with the school system and turned down opportunities to focus on it.
In a statement to 1819 News, Gray said he respects state auditors and noted his company has provided millions of dollars in work for the state and has never had a finding in an audit.
"I'm glad the auditors found no issue with Strategy's responsibilities or obligations here either, but as to what they cited on the board's approval of our agreement - I have no idea why that would be an issue, as that's beyond our control," Gray stated. "I know the auditors have done an audit every year at BCBE and it's never been an issue before, and there wasn't anything new or different in 2025, so it does seem strange."
Strategy, Inc. began work with the school system in 2017, and Tyler signed a professional service agreement in 2019. Gray said that the agreement was intentionally set on a month-to-month basis so that services could be immediately terminated in the case of a "change in the board, superintendent or direction." Gray said the plan worked as intended when he resigned last year.
"The agreement we had was in writing, and it was approved by the board, and it was reviewed by three or four of their lawyers over the years, so if there was an error, I certainly don't think it was intentional on the system's part," Gray added. "Whatever their reason, I'm told the auditors were very specific in stating that our services were properly rendered and we were due to be paid. Most importantly, they told the board that no monies were due to be repaid. It seems like an administrative issue on how they did or didn't follow a specific process or procedure for 2025 only."
Although the school system disagreed with the audit findings, the policy language was changed in August 2025 "in an effort to make sure a board-approved written agreement is utilized with professional consultants from this point forward."
Still, the Alabama Department of Examiners of Public Accounts said it considered the school system's response and reaffirmed its finding.
"We appreciate the Board's response and have considered the reasons for the Board's disagreement; however, it is the Board's responsibility to comply with established policies regarding contracts for professional services to ensure proper accountability for public funds," the Examiners wrote. "We reaffirm our finding."
The full audit report is available below.
After Tyler announced his retirement, Marty McRae was named interim superintendent. Tyler was not the only school leader to leave the system in the past year. Chief school financial officer John Wilson and BOE attorney Sarah Young also resigned in 2025.
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