The Winston-Salem/Forsyth County Schools Board of Education heard an update on the budget and cost saving measures during their meeting on Tuesday night.
By end of day on June 25, the district will have completed check printing/mailing on over $2.6 million worth of payments to vendors. Inbound revenues have raised the balance in the district’s checking account to about $2 million, and a request for reimbursement from unemployment overpayment has yielded a higher than expected $1.8 million.
Since the board’s previous meeting, principals have met with their area superintendents and human resources to identify positions to reduce through allotment. This process is expected to save the district $8.75 million.
The board members approved an interim budget resolution that will allow the district to operate with guaranteed funds until the state legislature finalizes their own budget. Moving forward, teacher paystubs will separately reflect funding from Article 46, which varies year to year based on local sales tax revenue.
WS/FCS requested documentation from the IRS about federal withholding payments, and initial review found that all payments have been made, but some were sent late and incurred penalties. Some required reports were also absent from payments, and the district is cooperating with the IRS to reconcile.
The district is also cooperating with the North Carolina State Auditor’s Office in their investigative audit, which should produce a public report later this year. Interim Superintendent Catty Moore expects the report will highlight insufficient oversight and responsible spending practices in the district’s finances.
“I don’t think it’ll be a flattering report,” Moore said. “I think it will be important for us to look at it from the perspective of not only how we got here, but how we make sure we never end up here again.”
WS/FCS staff are already training with a new enterprise resource planning system that will offer numerous tools to support proper financial management. WS/FCS will implement budgeting, accounts payable, accounts receivable, purchasing, and warehousing modules on July 1 and will have payroll modules ready in January of next year.
The board will not request funding from the Forsyth County Board of Commissioners to help with the deficit at this time, but they will consider asking for flexibility in the use of capital outlay funds and bond interest earnings.
Community members can stay up to date on the budget with weekly Friday updates posted here.
The board also heard updates on Crosby Scholars, a memorandum of agreement with Forsyth Technical Community College, and a request for proposals from superintendent applicants. They approved a change order for the Brunson Elementary School project, the State Mental Health Plan, a contract with Forvis Mazars, LLP, Auditor for next fiscal year, and several other action items.
The Board of Education will hold a special called meeting on Tuesday, July 8, and their next regular meeting will be on Tuesday, August 12.