Audit finds late reconciliations, school-food loss and Title I overage; auditors urge stronger controls

Columbus County Board of Education members heard a presentation of the district’s draft audited financial statements for year ended June 30, 2024, and were told auditors issued a clean (unmodified) opinion on the financial statements while reporting several compliance and internal-control deficiencies.

Paul Carson of Anderson Smith and WACC PLLC, the district’s external auditor, told the board the firm plans to submit the financial statements to the Local Government Commission when outstanding items are cleared. Carson said the district’s general fund balance improved to about $2.0 million as of June 30, 2024, an increase from the prior year, and that maintaining reserves is important now that COVID relief funds have expired.

Carson reviewed six findings in the compliance/internal-control section. The most significant were repeated late reconciliations: general ledger accounts were not reconciled monthly and bank reconciliations were not brought current until March 2025, a repeat of a prior-year issue. That delay contributed to material adjustments the auditors proposed and to the audit’s late submission to the Local Government Commission.

Carson said individual school bank accounts also lacked timely reconciliations; he cited a $23,500 difference on South Columbus High School’s June 30, 2024 reconciliation and an unexplained $8,000 outstanding deposit. He recommended the district implement procedures to ensure school bank accounts are reconciled monthly.

The auditors also reported instances where purchase orders were not completed before expenditures were incurred, which Carson said violates the School Budget and Fiscal Control Act and risks unauthorized purchases.

On program-specific matters, the school food service fund reported a loss of about $396,000 for the year. Carson said food sales rose about $94,000 while USDA reimbursements dropped roughly $353,000; cash on hand for the program declined but the auditors concluded the program still appeared to be in sound financial condition as of June 30, 2024.

The audit identified a Title I administration/supervision over‑expenditure: the district spent 14.05% of its Title I allotment on administration and supervision, exceeding the 12% limit and producing questioned costs totaling $20,005.68. Carson recommended stronger controls to ensure program requirements are understood and followed.

Carson also noted a prior‑period adjustment related to construction in progress for HVAC work that was not properly reflected in the district’s capital asset records for the 2022–23 year; the adjustment added approximately $1,008,749 to governmental capital assets for that prior year.

Board members pressed finance staff about the reconciliation delays. Board member comments noted that turnover in the finance office (including an extended period without a finance officer) contributed to the problems; Carson and board members urged continued use of consultants and mentors while staff capacity is rebuilt. Finance director Mr. Nolan (district finance staff) told the board he has a plan in place to correct the issues.

The presentation concluded with auditors saying they will follow up on the findings as part of the 06/30/2025 audit.

Ending: Board members thanked the audit team and district finance staff for completing the 2023–24 audit work; the board later approved a contract for the 2024–25 audit with Anderson Smith and WACC PLLC.