Worcester County Board of Education approves independent audit after county cuts $2.8M from budget

The Worcester County Board of Education on Monday approved hiring CliftonLarsonAllen, LLP to perform a comprehensive independent financial and forensic audit of district systems, accepting a proposal capped at $205,000 and authorizing the contract to begin immediately upon award.

The vote came as Superintendent Dr. Annette Wallace told the board the meeting was convened on an expedited timeline to address urgent financial issues and to ensure public accountability. "This independent review will provide an objective and thorough assessment of our financial practices, internal controls, and procedures, and we will follow the findings where they lead," Dr. Wallace said.

Why it matters: Board members said the audit is intended to strengthen safeguards after recent problems and to restore community confidence. The approval also arrived amid a separate and consequential fiscal development: county commissioners voted 4-3 to reduce the board's FY27 appropriation by $2,798,302, a cut the superintendent said far exceeds the county's reported budget shortfall and that will require difficult choices affecting programs, staffing and services.

Details of the audit and procurement: Mr. Tolbert summarized the request for proposals process, noting six firms responded to the RFP issued May 1. CliftonLarsonAllen received the highest score from the audit selection committee; Tolbert said the firm's proposal is "not to exceed $205,000" and estimated about 640 hours of work. Keith Hume, the district budget manager, outlined the firm's five-phase approach: planning and strategy; data collection and validation; systemwide evaluation using advanced analytic techniques; expanded forensic testing in high-risk areas such as procurement and payroll; and reporting with draft and final reports and executive summaries.

Board members asked how the district would be updated. Tolbert said the firm would provide updates as work progresses and that the board would receive regular updates at monthly meetings and by email when appropriate; he also said final reports would be posted online after contract approval. On-site work is expected because the auditors will need access to systems, documents and staff, Tolbert said.

Funding the audit: Board members asked where the $205,000 would come from. Tolbert said the district typically relies on year-end surplus funds and is hopeful FY26 surplus will cover the cost; recent surpluses have varied, he said, citing past amounts between roughly $567,000 and $800,000. He warned the district holds limited reserves and any use of fund balance will be made conservatively.

Budget reductions and program impacts: Tolbert reported the commissioners' 4-3 vote reduced the district appropriation by $2,798,302 compared with the board's adopted request. Among the specific line items omitted was $322,950 to maintain existing pre-K seats at Pocomoke Elementary; Tolbert and Dr. Wallace said cutting that line would jeopardize an $877,000 grant intended to expand pre-K at other schools. Other items the commissioners did not include were increases for dual enrollment ($305,538), technology ($254,890), the new elementary RISE program ($602,239), summer school ($50,000), and an increase in OPEB expense ($298,133). Dr. Wallace warned these reductions "will affect programs, they will affect resources, they will affect staffing," and that the district will work to identify budget solutions before the county's June 9 deadline.

Actions taken: By motion of Mr. Buchanan and second by Ms. McComas, the board approved the comprehensive independent financial examination and the award to CliftonLarsonAllen, LLP, with the contract capped at $205,000. The approval was recorded by voice vote in open session; the transcript does not include a roll-call tally. Earlier in the meeting the board also moved into closed session under Article 3-305B of the Annotated Code of Maryland to discuss legal and contract matters.

Next steps: Board members set a special meeting for Monday, June 8, at 9:00 a.m. to consider revisions to the adopted budget so the district can meet the county's June 9 deadline. The district said it will provide updates on the audit process to the board and the public as information becomes available.

Votes at a glance: approve audit contract to CliftonLarsonAllen, LLP (motion by Mr. Buchanan; second by Ms. McComas) — approved by voice vote; enter closed session under Article 3-305B (motion by Ms. Cutler; second by Mr. Buchanan) — approved.

No roll-call vote tallies for the audit award were recorded in the transcript; formal budget revisions were not adopted at this meeting and will be considered at the special meeting on June 8.