COLUMBIA, S.C. — Richland School District Two has been released from being on fiscal watch, a level of concern that was issued after an audit of the district wasn't turned in on time.
South Carolina State Education Superintendent Ellen Weaver sent a letter to district leadership letting them know that the watch had ended. A fiscal watch is the lowest level of financial and budget concern that can be issued against a school district by the state education department.
The district had been under the watch since March 27, 2023. It was issued over an audit was not delivered to the district by December 1, 2022. However, this time, the education department said the new audit was received by the deadline, meaning it was no longer necessary to keep the district on watch. Additionally, the state found the audit satisfactory about the district's finances.
"[The audit had] no material weakness or significant deficiency findings," Weaver said in her letter to the district. "The SCDE recognizes the District's efforts and steps taken to implement the items identified in your approved recovery plan."
Prior to be placed on fiscal watch, the district had been dealing with the fallout and scrutiny of a South Carolina Inspector General report that pointedly criticized the district’s finances and the leadership, including the board. The report was ordered by South Carolina Gov. Henry McMaster in 2022 after there were allegations of mismanagement.
The final report was issued last November, just days before the school board election. It looked at the school from a time period from July 2018 to June 2022.
In it, the inspector found the district didn’t have a policy on the use of purchasing cards, which led to improper use of funds, and sometimes comingled in the district with District Two foundation bank accounts. It also said that same foundation did not supply an annual audit.
Responding to that report was one of the key reasons the audit was late to the education department, which triggered the watch.