Richland Two faces fiscal watch after tardy audit

COLUMBIA, S.C. (WIS) - The Richland Two school district is flagged for fiscal watch after a late submission of a required audit.

The district held a meeting Wednesday evening that discussed the audit which was roughly three and a half months late from the Dec. 1 due date.

The meeting provided a timeline of events

• Sept. 2022, planning meeting held, first audit request list sent
• Oct. 2022, single audit procurement request lists sent, procurement compliance testing
• Nov. 2022, Compliance testing
• Dec. 2022. Request list items received
• Mid-late Jan 2023, Request list items received
• Late Jan: 2023, Fund financial statements provided to Burkett CPAs
• Feb/March, adjustments made to finalize the annual financial report
• March 21, ACFR submitted to SC Department of Education

The audit found 56 teachers had been underpaid by approximately $294,000. Some of the underpayments dated back as far as 2010. Payments are being made retroactively during 2022 and 2023.

The audit also found general fund expenditures had been overstated by $73,000. Accrued salaries were understated by $174,000. The beginning fund balance was overstated by $247,000.

During the presentation, it was stated, “The auditor found multiple Procurement Card transactions for educational supplies and materials that could have been purchased through state and district contracts and documentation was not provided to explain the use of an alternative supplier.”

It was recommended to, “Disallow the purchase of educational supplies and materials using a Procurement Card unless approval has been received from the procurement director.”

The auditor also found other Procurement Card issues, which found departments had been listed as cardholders instead of current employees. The audit recommended only current employees are cardholders of Procurement Cards.

The full meeting can be listened to below.

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