Two Lauderdale County school district employees were named by Superintendent David Little for possibly using some grant and federal funds improperly.
Little has asked the state auditor's office to investigate.
Southeast Elementary Principal Joey Knight, who ran against Little for superintendent, said Monday that his lawyer has still not had time to fully examine the allegations.
Knight's wife, Denise Knight, the district's Director of Federal Programs, released an earlier statement that a March 2003 audit of her office was labeled "exemplary" by the State Department of Education.
The Lauderdale County school board has taken no action, nor has little yet made any recommendations.
The state auditor's office has also not released any findings in the case. Joey and Denise Knight remain in their positions with the school system.