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Four months after financial questions surfaced at Amarillo College, the institution’s leadership is working to reassure the public following the release of an independent forensic audit that found no missing money but identified gaps in communication and oversight tied to major construction projects.
On Friday afternoon, Board of Regents Chairman Jay Barrett delivered a formal response addressing the findings and the concerns that have circulated since last fall, when then–Vice President of Business Affairs Chris Sharp was placed on administrative leave before resigning in November.
“Our goal today is to provide clarity,” Barrett said.
The audit, conducted by national accounting firm Weaver and completed Feb. 13, examined financial data spanning 2019 through 2025. Investigators reviewed investment and bank account activity, expenditures, bond-funded construction projects, and the college’s financial reporting practices to its governing board. The scope also included email records from Sharp, whose suspension triggered the review.
No Missing Funds, But Financial Strain Emerged
According to the audit, “All funds are accounted for. No funds were found to be missing. No payments were found to be made to unknown vendors.”
That conclusion resolves one of the most serious concerns raised when financial irregularities first came to light. However, the report simultaneously points to rising project costs and internal reporting shortcomings that contributed to the institution’s declining financial reserves.
Bond-funded construction projects — central to campus expansion in recent years — exceeded original cost projections. The audit found that construction costs increased as project scopes expanded and contracts were renegotiated without formal approval from the Board of Regents.
Barrett said those renegotiations amounted to approximately $700,000 in additional costs.
“These increased expenses were paid primarily out of Amarillo College’s unrestricted funds,” the report stated. “The payment of these costs out of unrestricted funds was not adequately and timely reported to the Board of Regents.”
While college leaders emphasized that the work was completed and directly benefited campus facilities and the broader community, the report makes clear that financial decision-making processes did not always include timely oversight.
Why the Audit Was Commissioned
Barrett stressed that confirming whether money was missing was not the primary motivation behind commissioning the audit.
“That was not the reason, at all, the board commissioned this audit,” he said.
Instead, he explained that regents became increasingly concerned as overall fund balances declined without a clear explanation.
“We commissioned this independent audit to prove that funds are accounted for so our community would have full faith and confidence that their tax dollars did not go missing,” Barrett said. “But more notably, we wanted to understand exactly how our financial reserves dwindled to a critical level without the board’s knowledge.”
The audit shows that Amarillo College draws funding from multiple sources, including state appropriations, grants, investments, and voter-approved bonds. Within that structure, the unrestricted fund balance — a key measure of financial flexibility — began to shrink during the 2023 fiscal year and continued declining into the current fiscal cycle.
“Most notably, the Unrestricted Fund balance was below $10 million from August 2025 to November 2025, whereas in prior years the Unrestricted Fund balance averaged over $25 million during these months,” the report noted.
Barrett described the challenge of identifying the cause as a moving target.
“Every time we tried to identify the source, we never could find it. It was always being moved around, and so that was a concern of ours,” he said.
Transfers Raise Governance Questions
Among the report’s findings was a $3.6 million transfer from the college’s investment account through multiple internal accounts before ultimately being moved into a bond-related bank account.
“We don’t know why that happened,” Barrett said.
The audit determined that Sharp authorized these transfers as well as certain additional expenses tied to construction projects. According to Barrett, those financial actions were not presented to the Board of Regents for approval beyond the early phases of the bond program.
“The finances were always approved at each board meeting,” Barrett said. “However, the ones particular to the bond project were hidden from us. They were kept from us.”
Barrett also indicated that had those cost changes been brought forward, the board would have considered approving them or renegotiating contracts.
The situation intensified when regents noticed that short-term investments had been significantly reduced.
“That is a huge concern,” Barrett said. “Obviously, we don’t want to get below a certain level where we can’t operate this college. Luckily, we found out in time.”
Credit Line Approved as Safeguard
In October, as concerns mounted, the Board of Regents approved a $5 million line of credit from Amarillo National Bank to ensure operational stability.
Barrett said the move was precautionary and tied to declining investment balances.
Despite the approval, the college has not needed to draw on the credit line, as state funding allowed Amarillo College to continue covering payroll and operating expenses.
“We weren’t trying to hide anything then, and we’re certainly not trying to hide anything now,” Barrett said.
Leadership Defends Decision to Investigate
College President Jamelle Conner defended the decision to initiate the forensic audit, emphasizing the importance of transparency when financial uncertainties emerged.
“When procedural questions came to light, it was important not to assume, but to investigate,” she said. “We are committed to accountability to our taxpayers, employees, and our students — and want to give our community the full facts provided by this report.”
The audit was commissioned in October after internal reviews raised questions about a $2.3 million shortfall tied to construction projects funded through the college’s 2019 bond program.
Sharp Calls Audit “Vindication”
Sharp, who was placed on administrative leave Oct. 3 and resigned Nov. 12, has publicly responded following the report’s release.
In a statement, he said:
“This audit is vindication that I did nothing wrong and I’m happy that the truth has come out. I was placed on administrative leave (I still haven’t been told why) and forced to resign my position unnecessarily.”
Sharp also disputed conclusions suggesting insufficient communication with the board, asserting that financial reports were provided regularly.
“I have been made the scapegoat for decisions that the Regents made,” he said. “I was simply trying to do my job and navigate the College through a financial crisis of their own making.”
Sharp further stated that he presented a cash flow plan to Conner shortly before his leave and noted previous praise from regents for his performance.
He is now calling for a public apology from the institution, saying:
“AC leadership should be ashamed at what they put me and my family through.”
Broader Financial Pressures
In prior communications with leadership, Sharp outlined several institutional expenditures he believed contributed to financial strain, including:
Approximately $2 million tied to Innovation Outpost and Sharpened Iron Studios
Roughly $1 million annually spent on athletics without corresponding revenue
Between $300,000 and $500,000 annually for childcare centers
He also cited challenges related to the Health Science Simulation Center and changes to fundraising strategies.
“At the time, everyone knew that we didn't have enough money in the bond funds to complete this,” Sharp wrote in correspondence.
A Governance Issue, Not a Fraud Case
The audit ultimately frames the situation less as a case of financial misconduct and more as a governance challenge.
It found that cost overruns and contract changes were legitimate but not consistently communicated to decision-makers in a timely manner.
This distinction has implications beyond Amarillo College.
Public institutions undertaking large capital projects must balance flexibility in execution with transparency in oversight. Even justified expenses can create public concern when reporting mechanisms lag behind financial decisions.
The findings illustrate how internal processes — rather than missing funds — became the central issue.
Moving Forward
Barrett said the college is implementing new safeguards designed to prevent similar situations in the future. These include:
Multi-step financial verification procedures
Enhanced monthly reporting to the Board of Regents
Additional details are expected during a public meeting scheduled for Feb. 24 in the Palo Duro Room at the College Union Building on the Washington Street Campus.
The Board of Regents will also receive a full presentation from Weaver outlining both conclusions and recommendations.
Community Trust and Institutional Stability
As Amarillo College moves ahead, leadership has framed the audit as both a resolution and an opportunity.
For the board, it confirms that public funds were not misappropriated.
For Sharp, it serves as personal vindication.
For the institution, it underscores the importance of communication and oversight when managing complex funding structures.
In the months since Sharp’s suspension, public attention has shifted from fears of missing money to deeper questions about governance and transparency.
The audit closes one chapter — confirming that no funds were lost — but opens another focused on improving systems designed to ensure accountability.
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