Laurens 55 board approves financial recovery plan after audit finds reconciliation weakness

The Laurens County School District 55 board voted to submit a financial recovery plan to the South Carolina Department of Education after auditors reported a material weakness in financial reconciliation and the district was placed on fiscal watch.

Auditor Matt Phillips summarized the finalized audit in the meeting, saying the audit covered all funds and showed total revenues of about $90.6 million and total expenses of about $85.7 million, yielding an increase in net position of roughly $4.9 million for the year. He told the board the audit identified a financial-statement material weakness (reference 2025001) related to reconciliation procedures and noted that a single-audit was required for major federal programs including Title I and ESSER.

"The audit was conducted in accordance to auditing standards generally accepted in [the United States]," Phillips said, outlining capital assets, cash and current assets, deferred outflows and total liabilities including pension and OPEB obligations.

Superintendent Dr. Penland told the board the districthad timing and staffing challenges during the audit close, including the absence of a chief financial officer during a critical period. "Since the appointment of our new CFO, Miss Leanne London, she and her team have worked diligently with you to collaborate and get this closed," Dr. Penland said, asking the board to accept the corrective plan.

Board member Joe (moved motion) made a motion to accept the financial recovery plan and the finance director seconded; the board approved the plan by voice vote. Board members requested regular updates on recovery progress be added to future agendas and noted the plan must be submitted to the state by the stated deadline.

The board also heard finance staff report that for the year ending 2025 the general fund had an overspend of approximately $2.3 million, and that April 2026 balances and flows were affected by timing of invoices (including about $500,000 in school resource officer invoices received in May). The finance presenter noted a coding correction for a homestead-exemption posting that affected the classification of ad valorem taxes and state revenue on the ledger.

The board approved the recovery plan and directed district staff to submit it and provide ongoing status reports to the board.