Audit Ordered for Richland One School District Amid Deepening Financial Challenges

COLUMBIA, S.C. – An Audit Looms for Richland One School District Amid Financial Woes

In a surprising development, the South Carolina Department of Education (SCDE) has mandated an audit of the Richland County School District One, following a troubling review of its financial recovery plan. The plan, submitted last month, was deemed deficient and incomplete, leaving many in the local community concerned about the implications for their schools.

So, what led to this situation? In early August, Richland One was placed under fiscal caution, the second highest level of financial scrutiny according to state law. This came after a previous audit highlighted significant issues with the district’s purchase card system and raised alarms about mismanagement of funds. To add to these troubles, a State Inspector General (SIG) investigation uncovered serious procurement problems and instances of wasted money in a halted construction project for the multi-million-dollar Vince Ford Early Learning Center.

Timeline of Events

Richland One had been under fiscal watch since December 2022, a designation that indicates serious financial concerns. The State Department of Education took matters a step further in August when Superintendent Ellen Weaver classified the district’s financial health as requiring fiscal caution due to the ongoing issues surrounding the construction project. This situation prompted the district to submit a recovery plan to address these financial inadequacies.

The recovery plan was filed on October 11, giving Richland One just 60 days to respond to the SIG’s findings. Unfortunately, the SCDE’s latest letter, dated October 31, indicates that the district’s responses were not satisfactory and only seemed to emphasize their claims of no criminal wrongdoing in relation to the SIG’s findings. This has raised further concerns from the department.

Concerns About Fiscal Management

According to the SCDE’s letter, authored by Chief Financial Officer Kendra Hunt, the district’s recovery plan failed to adequately address the gravity of the SIG’s findings regarding mismanagement of $31 million for the early learning center project, which had started without proper permits. The SCDE pointed out that the district’s response was too cursory and lacked the depth necessary to alleviate the concerns surrounding fiscal accountability.

The alarming aspect of this situation is that if Richland One doesn’t manage to correct its course, there’s a risk of being elevated to fiscal emergency. If this happens, the SCDE could assume control over the district’s financial operations, a move that many local residents and officials wish to avoid. As Rep. Heather Bauer (D-Richland) stated back in August, “it would be horrible for our schools to be taken over by the South Carolina Department of Education.”

The Path Forward

The SCDE is hoping that the upcoming audit will provide the district with the insights and strategies needed to tackle the “multiple, overlapping areas of fiscal concern” that they face. Importantly, the audit will be financed by the SCDE initially, though the district may be expected to reimburse the costs later.

In response to the recent correspondence from the SCDE, a spokesperson for Richland One announced, “We are in receipt of the letter dated October 31, 2024, from the South Carolina Department of Education. The Richland One Board of School Commissioners will review the letter at an upcoming meeting.” This indicates that there is ongoing communication between the district and the state about these serious issues.

This situation highlights the importance of fiscal responsibility in our schools and the need for transparency to maintain community trust. As Richland One navigates this tumultuous period, the community remains hopeful that positive changes are on the horizon.