In a decisive step towards financial accountability, Winston-Salem/Forsyth County Schools addressed significant findings from a state auditor’s report that highlighted budgeting errors leading to a substantial deficit. The school district is implementing corrective measures to rectify years of financial mismanagement.
The recent documentation from the state auditor scrutinizes the district’s past financial practices, revealing overspending and delayed budget reconciliation that precipitated a $46 million shortfall. Superintendent Don Phipps emphasized at a Board of Education meeting that the district is already tackling these issues.
“The information here is information that many folks in our community probably have heard to some degree,” Phipps stated. “May have been phrased a little bit differently, may have had a little more clarity to it, but these are things that we knew were issues that we had to be working on, and we certainly have responded to that.”
Crucial steps have been taken, including the adoption of a new budgeting software with enhanced controls and the introduction of monthly budget-to-actuals reporting to the school board. This aims to bolster financial transparency and oversight.
Another point of concern was the ambiguous terms of a loan from the child nutrition department, which the board resolved in January by agreeing to a repayment plan with interest within the current fiscal year.
During the meeting, the school board also moved forward with appointing four community members to an Audit Advisory Committee. This committee will play a vital role in addressing future audit findings and guiding the district towards financial stability.
Additionally, the board has opted to engage in ongoing litigation against social media companies. This legal action seeks compensation for the alleged adverse mental health impacts on students, potentially securing critical funds for district support.
General Counsel Dionne Jenkins remarked on the potential financial implications: “If there’s a $50 billion judgment or settlement out there, and it’s appropriated to districts, we’re a larger district, more than likely, we’d get a larger cut of that. Those can be very valuable funds that could be used to support students.”
Winston-Salem/Forsyth County Schools joins other North Carolina districts, such as Guilford, Wake, and Charlotte-Mecklenburg, in this litigation effort.
