State auditor's office investigates Winston-Salem/Forsyth County Schools' finances
FORSYTH COUNTY, N.C. (WGHP) — Financial distress is how the North Carolina Department of Public Instruction characterized Winston-Salem/Forsyth County Schools following the 2024 audit.
FOX8 received a copy of the letter from State Auditor Dave Boliek that was sent to WS/FCS Superintendent Tricia McManus on April 21.
The letter states that the state auditors' office will conduct an investigation of the school district's financial records.
According to the audit of 2024, the district is short $16 million.
The state auditors' office used strong language in the letter, stating that anyone with any knowledge of fraud should come forward.
An investigation has been launched into the WS/FCS budget by the state of North Carolina.
In the letter, Boliek informed McManus that the school system is being audited, and it is centered around the district's financial records and transactions, including payroll and use of federal grants.
On May 1, the NCDoPI sent a letter to the district with a detailed breakdown showing the school system overspent by $16 million.
Where did that money go? That's the question a newly hired financial firm is trying to answer for the district. The state is giving the school system until May 15 to get to the bottom of it.
There's a lot on the line for the district. That May 1 letter says the district needs to make changes or face sanctions.
North Carolina Board of Education Chairwoman Deanna Kaplan was copied on that letter. She declined to answer questions or provide an interview.
She sent the following statement.
We are deeply concerned about the issues raised by the State. We want the community to know that the Board is committed to adopting and maintaining a balanced budget. We take this responsibility seriously. Being in good financial standing is something we are all committed to achieving. We will develop a plan to submit to the State Board of Education that will address the financial concerns as well as outline steps to mitigate future budget issues.
North Carolina Board of Education Chairwoman Deanna Kaplan
Forsyth County Board of Commissioners Chairman Don Martin says he is hopeful the school system can figure it out.
'Because never has the county had to bail out a school district in any situation, and I'm really hoping that's not going to happen in any way this time,' Martin said.
Martin said that he doesn't think this will impact the county receiving grants further down the road.
'Doubtful that would be a limitation. Essentially, the district is a large organization that is stable aside from this one little blip at this point. I think that could be corrected and would not inhibit a federal reward in any kind of way,' Martin said.
The school system said in an email that they are working with a financial firm to come up with a plan. Martin said he has been invited to sit in on the meeting next week to get a plan underway.
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