State board approves nearly $100,000 to examine district financial woes

(The Center Square) – Examination of financial controls for the Winston-Salem/Forsyth County Schools has been done by North Carolina’s first-term Republican state auditor.

On Monday, the State Board of Education said it would spend $97,770 to hire an accounting firm to examine internal financial controls of the district.

Mauldin & Jenkins was chosen by the state board to perform the review, which will be completed by the end of the year. A public presentation of the findings has been scheduled for Feb. 15.

Last spring, the audit of Dave Boliek’s office showed bonuses of $75 million over two fiscal years contributed to an estimated $46 million budget deficit. The district of 50,500 students since 2017 has had four superintendents, four chief financial officers, three different schools boards and “considerable turnover across several departments.”

From 2018 to 2025, enrollment declined 6.2% and staffing rose 3.7%.

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The state auditor found numerous problems with the school system finances, including failure to adjust staffing levels to accommodate declining enrollment, relying on “temporary COVID-era federal funds to support permanent positions,” and continuing discretionary staff bonuses despite “limited resources.”

The school district, the fourth largest in North Carolina and among the nation’s 100 most populous, has a new school superintendent and chief financial officer Amanda Lehmert told The Center Square last month. The school system welcomes help from the state, she added.

“The district is taking corrective action and working with county and state officials to resolve these issues,” the school system says on its website. “Maintaining the financial health of WS/FCS is essential as we strive to support student achievement. Responsible stewardship of public dollars is – and will continue to be – a district priority.”

The new superintendent, Catty Moore, stressed that there was no fraud or misappropriation of funds and all of the dollars were spent on educational services.

“We simply did not have enough revenue to match these expenses,” the superintendent said in a statement.

Two firms placed bids. Mauldin & Jenkins’ bid was slightly lower than Jennifer Tobin, Cherry Bekaert LLC.

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The contract was awarded based on “lowest cost meeting expectations,” state documents said.

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