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Audit flags ESSER procurement issues; board reviews financial results and approves reallocations
Summary
External auditors reported an unmodified financial statement opinion but identified procurement exceptions in ESSER spending; trustees heard that the exposed amount was about $900,000 (covered by internal re‑coding) and approved several capital reallocations including funds to a District 4 stadium/track project.
External auditors presented results of the Charleston County School District financial statement audit for the year ended June 30, 2024 and reported an unmodified opinion while identifying compliance issues in the federal single audit.
"Our opinion is an unmodified opinion again this year," auditor Emily Sobchak told trustees during the Dec. 9 meeting. She said the district’s general fund fund balance increased by about $44.6 million to $230.9 million and that unassigned fund balance stood at roughly $71.7 million (about 8.5% of budgeted fiscal 2025 expenditures).
Sobchak also described single‑audit findings. The auditors found instances where local procurement exemptions were used for purchases made with ESSER federal funds. During committee discussion, district staff and auditors said the sample indicated roughly $900,000 in exposure; district officials explained they absorbed and reclassified expenditures so there was no net fiscal impact to operations.
Trustees pressed staff on corrective steps. Chief financial staff and counsel explained a new process between procurement and the Federal Programs office now requires coordination on federal‑funded procurements and that internal audits are underway to strengthen controls.
Separately, trustees advanced and later approved capital reallocation motions. Committee materials referenced reallocations to fund a D4 track/stadium project and to shift excess funds from several school projects to the James B. Edwards project; one committee motion referenced $2,500,001 for a D4 stadium/track allocation. Committee and board members indicated detailed line items were contained in attachments to the resolution.
Auditors reviewed long‑term obligations ($411.3 million), capital assets (about $1.7 billion) and noted the district issued $40 million in general obligation bonds and used refunding to reduce debt service. The auditors recommended continued attention to pupil activity funds and a cleaner financial close process after audit entries were required this year.
What’s next: district staff said they will implement the procurement‑federal programs workflow, continue internal audits, and provide trustees with the audit management letter and supporting materials already posted to board documents.
