Auditors give Columbus County Schools a clean opinion but flag repeated control weaknesses

Paul Carson, CPA, the lead auditor for the district, told the Columbus County Board of Education the draft audited financial statements for the year ended June 30, 2025, include a clean, unmodified opinion on the financial section, indicating the district’s reported financial information is reliable and free of material misstatements.

Carson said the general fund balance as of June 30, 2025, was $2,000,005.37, a year-over-year decrease of about $135,000. He said other funds, including capital outlay and school activity funds, showed healthy balances and overall the district appears to be in sound financial condition as of the audit date.

But the audit identified five findings in the compliance and internal-control section. The lead auditor described Finding 25-1 as a repeat observation: general ledger accounts were not reconciled timely each month, which created situations where management decisions could be made using inaccurate information and necessitated several material adjustments to the financial statements.

Carson said Finding 25-2 showed general fund expenditures exceeded appropriations by $511,790. He attributed much of that variance to untimely requests to the North Carolina Department of Public Instruction for employer health insurance premiums, noting about $450,000 of premiums were paid from local funds because DPI requests were not made within the permitted timeframe. He also cited position allotment overdrafts of approximately $81,000.

Finding 25-3 involved instances in which purchase orders were either incomplete or were created after expenditures occurred. Carson characterized these as procedural weaknesses and said the audit found no improper purchases, but he recommended controls that ensure purchase orders are completed and approved before goods and services are procured.

The audit also noted insufficient documentation of timely consultation with private school officials (Finding 25-4), which could affect Title I and related federal program obligations, and an overspend in federal program PRC 103 of $64,007.32 (Finding 20-4-5), representing roughly 17% of that program’s approved budget. Carson said there were no questioned costs identified and he did not expect repayment to DPI based on the work performed.

Carson said the firm issued a separate communication letter listing material adjustments that management had already corrected and a second letter offering opportunities to strengthen internal controls and operating efficiencies. He thanked district finance staff for their cooperation and said the draft report would be submitted to the Local Government Commission for final approval.

The board raised no substantive questions following the presentation. The audit will be followed up in the 06/30/2026 audit cycle to assess remediation progress.