Federal investigators were examining Charlotte-Mecklenburg Schools before Mecklenburg County’s district attorney asked North Carolina’s State Bureau of Investigation to open a criminal inquiry, according to people familiar with the federal investigation. The FBI and the U.S. Attorney’s Office confirmed this week that they have an active investigation related to CMS, North Carolina’s second-largest school district. Authorities have not said what the federal probe concerns or identified the specific financial issues under review. On Sept. 18, District Attorney Spencer Merriweather requested an SBI investigation into alleged financial irregularities at the district. Subpoenas have been issued, and the state inquiry is broad, according to the available information. The North Carolina Office of the State Auditor is also investigating. State officials have not publicly detailed the suspected irregularities. The investigations coincide with questions about compliance in CMS’s Exceptional Children department, which supports students with disabilities. At a Sept. 22 school board meeting, the same meeting at which board members voted to fire Superintendent Crystal Hill, district staff disclosed compliance issues over the preceding year. Chief Financial Officer Kelly Kluttz told board members that unexpected invoices arrived after the fiscal year ended, requiring a budget adjustment of about $1 million. She said concerns had been escalated to the superintendent and board because they could become an audit finding if not addressed properly. District budget records show that in fiscal year 2023, more than $7 million in federal CARES Act funds went to incentives connected to math, science and Exceptional Children programs. The records do not establish that the spending is part of any investigation. Hill had also raised separate questions before her dismissal about payments to consultant Raki McGregor. In a memo to board members, Hill questioned why McGregor appeared to be receiving district payments without a contract or purchase order. McGregor, his wife Kim McGregor and her tutoring company, SYDKIMYL, had previously received about $500,000 annually from Mecklenburg County for contracts benefiting CMS students. The source of any alleged wrongdoing has not been established, and investigators have not publicly described the payments as a focus of their inquiries. CMS did not respond to questions about the latest developments. The district has said it knows of the FBI and U.S. Attorney’s Office investigation and would seek to cooperate if asked. It also said work continues at its 185 schools, serving about 139,000 students. The North Carolina Department of Public Instruction and State Board of Education have said they intend to coordinate and cooperate with the investigations. No agency has publicly specified the financial irregularities under examination.