Residents press Lee County supervisors for forensic audit as board weighs $5.6 million in school carryover funds

LEE COUNTY, Va. — Residents at the Lee County Board of Supervisors’ Sept. 16 meeting urged the board to demand a forensic audit of the school division or decline to reappropriate $5,623,269.56 in state and federal carryover funds, saying taxpayers deserve transparency and oversight.

The board opened a public hearing on the school budget amendment that would reappropriate the carryover funds to the current fiscal year. The funds, the board packet states, require no additional local match. The proposed reappropriation followed a letter from the school division describing four separate pots of carryover money, including about $4 million in state basic aid.

Why it matters: The funds are state and federal dollars routed through the county that, if not reappropriated, may revert to the state treasury. Board members and members of the public said they were concerned that the school division sat on millions without public notice and that the county has limited ability to control how returned funds are spent elsewhere in Virginia.

‘‘They’re not transparent. They’re not trustworthy, and they are not good stewards of our money,’’ said Ben Richmond, a Jonesville resident. ‘‘I don’t think giving it back to the school board is a good idea.’’

Several speakers urged the board to pursue a forensic audit. ‘‘We need to get answers — not later, now,’’ said Donnie Lundgardner, who alleged the school board failed to advertise or follow requirements in some actions and called for stronger oversight.

Board members and staff described the technical and legal limits the supervisors face. County staff said the $5.6 million is split across four categories (state basic aid, ‘‘all in’’ money, textbook money and infrastructure/operations), and that some pots of money are required by code to be carried over. A report to the state is due Sept. 30, staff said.

‘‘If you don’t appropriate it, the $4,000,000 goes back to the state treasury,’’ the county attorney’s office noted in remarks relayed at the meeting. Board adviser Brian Dean explained the legal framework and said some funds are constrained by state rules; another board member said even if funds are reallocated back to the school division they would remain in the county account and draw interest until spent.

Several supervisors signaled caution about an immediate punitive response. ‘‘I don’t want punitive actions just to punish them,’’ Supervisor Brian Hogan (District 3) said, while adding he supported an audit to restore trust.

The board also discussed whether county general-fund dollars could be used to help pay for an audit or to temporarily protect funds. Staff said some general-fund money could be used for targeted audits but that restrictions apply to certain school funds.

What the board did: After extended public comment and discussion, a motion was made to table the request to transfer funds pending clearer legal guidance and answers from the state and school officials. The board agreed to seek written confirmation about deadlines and to pursue additional information; staff said they would confirm the state reporting deadline and follow up with the board.

Claims and responses: Multiple public commenters alleged mismanagement and possible missing funds; the board and staff said a state police investigation has been referenced in public comment but that the board’s actions must follow code and any active investigations. Several speakers urged cooperation between the board and the school division while pressing for transparency.

What’s next: Staff told the board it will contact the state Department of Education and the state treasury for written guidance, and the board may call a special meeting or emergency meeting to act before statutory deadlines if needed. The report that informs whether funds must be reverted is due Sept. 30, according to county staff.

The public hearing on the school carryover funds closed during the Sept. 16 meeting; the board recessed and later continued regular business before returning the matter for follow-up.

Sources: Public testimony and statements by board members and staff at the Sept. 16 Lee County Board of Supervisors meeting.