Appoquinimink board hears auditor findings, approves July financial reports amid calls for independent review

The Appoquinimink School District Board of Education on Sept. 9 reviewed a state auditor's report that documented accounting errors and approved the district's July monthly financial and internal accounts reports as the board outlined steps to tighten financial controls.

The district's superintendent, Dr. Burrows, told the board the auditor's report was released Sept. 3 and "mirrors the same findings we've been sharing throughout the summer" about understated expenses and mismatches between reported expenses and the state financial reporting system. He said the district had already brought in outside financial experts, hired a new finance director in August and planned additional training and governance changes to prevent a recurrence.

The report and public comment prompted calls for deeper review. Corey Underwood, a member of the public who spoke during the meeting's public comment period, said the district's special inquiry "uncovered a $4,900,000 undisclosed budget shortfall" and demanded resignations, "an independent legal and financial review of the district," public disclosure of federal and state reporting documents, and a corrective plan to restore transparency.

Why it matters: The board is responsible for approving budgets and ensuring public funds are managed consistent with state reporting rules. The auditor's findings and the district's subsequent corrections affect the school system's ability to plan spending, maintain required carryover reserves and present accurate information to voters and taxpayers.

What officials told the board - Dr. Burrows said outside experts concluded the district's projected carryover at the June 25 workshop would be about $3,100,000, which he said was less than the state-required $4,200,000 two-payroll reserve. The superintendent said the district first became aware of the full impact of the budgeting errors in June and has been focused on a "path forward" since then. - Financial presenter Chuck Longfellow said the district is building an amended preliminary budget, will provide revised revenue figures to the financial advisory committee in October and an amended expenditure budget in November, and is producing new reports (a monthly salary tracker and a discretionary-cashflow report) to increase transparency.

Board actions and next steps The board approved routine items tied to financial oversight during the same meeting. Votes at a glance: - Approval of the Aug. 12, 2025 Board of Education meeting minutes. Motion by Dr. Graham; second by Mr. Higgins. Miss DeWitt recorded an abstention; motion passed. - Approval of the Aug. 21, 2025 special meeting minutes. Motion by Dr. Graham; second by Miss DeWitt; motion passed. - Approval of the July 2025 monthly financial report (presented by Chuck Longfellow) on the recommendation of the financial advisory committee. Motion by Mr. Higgins; second by Miss DeWitt; motion passed. - Approval of the July 2025 internal accounts report (expanded to include elementary internal accounts). Motion by Mr. Higgins; second by Dr. Graham; motion passed. - Approval of the personnel report, including the addition of a name disclosed in executive session. Motion and second not specified on the public record; motion passed.

District clarifications and context - Superintendent Dr. Burrows said the district's timeline included referendum campaigns in December 2023 and April 2024; he said the district had signaled deficit spending risks to the public during that cycle and that, after the failed 2023 referendum, district staff cut roughly $400,000 and later pared approximately $2,500,000 in planned spending. - Longfellow warned tax receipts timing will be affected by recent state legislation (passed Aug. 12) that authorized split tax rates and extended payment deadlines; he said October normally brings the bulk of tax receipts but receipts may lag this year. - The district has engaged outside finance experts and is meeting with the state auditor's office to implement recommendations; an internal report from the outside experts is expected in the coming weeks.

Community response and board remarks Corey Underwood's public comment demanded resignations and a public accounting of federal and state reporting documents. Board members repeatedly said they take the findings seriously, echoed a commitment to transparency and described immediate steps: adding finance committee members with school finance expertise, centralizing financial advisory documents for public access, and expanding training for staff and board members.

What remains unresolved The board said a more detailed internal report and additional briefings with the state auditor will be presented at upcoming meetings, including a focused workshop planned for October to review improved financial reporting.

Ending note The board asked the public to review posted reports on the district website and encouraged residents with questions to contact board members. The district said it will continue to publish updated financial documents as the amended budgets and internal reports are completed.