RALEIGH, N.C.
Financial oversight within the Winston-Salem/Forsyth County Schools (WS/FCS) has come under scrutiny following a recent audit by the North Carolina Office of the State Auditor (OSA). The audit’s follow-up report reveals that improper budgeting and accounting practices have led to significant financial discrepancies.
Following an earlier investigation into a $46 million budget shortfall, this subsequent report highlights additional issues, such as $15 million in expenses from the fiscal year ending June 30, 2025, that were not recorded until three months later.
State Auditor Dave Boliek expressed concern over the findings, stating, “Winston-Salem/Forsyth County Schools remains far from having healthy budgeting practices in place. Approximately $15 million in expenditures were not properly recorded for months, and the school system yet again failed to complete monthly reconciliations.” He emphasized the need for the district, noted as one of the largest in North Carolina, to improve its financial accountability to parents, teachers, and students.
Key Findings from the Audit
- The Finance Office of WS/FCS conducted a budget transfer of $16.99 million on September 20, 2024, from the Non-Instructional Support Program to the Restart Schools Program. This move led to an immediate overdraft as the available funds were only $13.92 million, resulting in an $11.34 million overdraft by April 30, 2025.
- Monthly reconciliations of budgeted versus actual revenues and expenditures were not completed by the Finance Office.
- Significant costs remained unrecorded throughout Fiscal Year 2025, only to be backdated in September 2025 to reflect the fiscal year ending June 30, 2025.
- An internal loan of up to $6 million from the Child Nutrition Fund was approved by the WS/FCS Board of Education without clear terms regarding interest, repayment, or penalties, raising compliance concerns.
WS/FCS has acknowledged the audit’s findings and plans to implement corrective measures with specified completion dates. This report follows an initial one that led to the State Board of Education identifying management failures within the school system. For more details on the previous report, click here.
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