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Independent audit gives Horry County Schools a clean opinion; trustees and auditor discuss fund balance and investments
Summary
Malden & Jenkins LLP delivered an unmodified (clean) opinion on the district’s financial statements and single audit, reported federal expenditures of roughly $110.5 million, and noted a general‑fund unassigned balance of about 20.4%. Board members pressed staff for more detail on investment maturities held with the county treasurer.
Malden & Jenkins LLP, the accounting firm that performed the fiscal year audit for Horry County Schools, told the board it issued an unmodified (clean) opinion on the district's financial statements and the federal single audit.
Adrian Berg, who presented the audit, said the district "was considered a low risk auditee" and that auditors issued clean compliance opinions on major federal programs. Berg told the board the district reported roughly $110,500,000 in federal expenditures and that auditors tested a reduced sample because of the low‑risk designation.
The auditor also highlighted trend figures for the general fund: fund balance grew from about $127 million in 2020 to roughly $168 million in 2024, and unassigned fund balance represented approximately 20.4% of general fund outflows — well above the Department of Education rule cited in the presentation (8.9%). Berg said the unassigned balance equates to roughly 75 days of expenditures.
Board member Howard Barnard and others pressed district financial staff for a breakdown of investments the audit lists as "cash and investments," especially U.S. Treasury notes shown as maturing within one year and those maturing in one to five years. Berg explained the audit disclosure groups cash and investments into bank demand deposits, cash held by the county treasurer, the South Carolina Local Government Investment Pool, and investments held in the county's name; he said detailed maturity schedules would be available in working papers and that staff could provide a maturity breakdown on request.
Nut graf: The audit found no material weaknesses, no disagreements with management, and no audit adjustments; auditors commended district financial staff for timely and accurate closing of the books. Still, board members sought more granular information on the maturity profile of the district's investments, noting the importance of liquidity and alignment with the district's cash needs.
The board later received the quarterly financial report through Dec. 31, 2024. District finance staff reported a large property‑tax receipt in early January (roughly $122 million) that affects cash‑flow timing. A board member asked that the quarterly packet be provided earlier for better review on tablets and iPads.
Ending: Auditors and staff agreed to provide supplemental details on the investment maturity schedule, and the district will post audit reports and related materials on the district website as previously distributed to trustees.
