To provide up-to-date and transparent information about the district’s financial condition, this is the September 5 Community Budget Update.
State Board Actions
This week, the North Carolina State Board of Education voted to reduce the interest penalty on debt owed by Winston-Salem/Forsyth County Schools with the expectation that the district would present a repayment plan by November.
The State Board also voted to hire an auditing firm to review the internal financial control processes of the district.
WS/FCS overspent state funds for non-instructional support by $11.3 million. It recently paid $7.925 million of that debt with funds provided by Forsyth County. The remaining $3.4 million debt was set to begin incurring one percent interest on September 20. The WS/FCS Board of Education requested the State Board waive that penalty, as the district is exhausting its options to repay the debt and additional fees would make that harder.
At the board’s meeting earlier this week, State Superintendent Maurice “Mo” Green recommended the State Board strike a balance between helping the district and making it clear that overspending state funds is not allowed.
Board members voted to reduce the monthly penalty to .4 percent. The penalty will begin to be assessed in October. WS/FCS must begin repaying the debt no later than January 2026.
WS/FCS Interim Superintendent Catty Q. Moore is a member of the State Board, but did not participate in the vote.
The NC Auditor requested the State Board and the Local Government Commission hire an audit firm to review the internal financial control procedures of the district.
The WS/FCS Board of Education annually hires an independent audit firm to review its finances. That type of audit does not review some of the areas considered by the NC Auditor’s recent investigative audit, which showed the district’s failure to reduce staff as student enrollment declined and to eliminate staff positions funded by temporary COVID relief.
The State Board requested that audit firms be identified for its approval in October. The Local Government Commission will discuss the issue at its September 9 meeting.
External Audit Committee
At the next WS/FCS Board of Education Policy Committee meeting, September 9, members will consider Moore’s recommendation to create an External Audit Committee.
Moore proposed a committee of people appointed by the School Board, superintendent, and Forsyth County Commissioners. The committee would act as an advisory body and review the district’s annual independent audit.
This would be part of the district’s efforts to provide more financial transparency and oversight to ensure staff are working to rebuild WS/FCS’s fiscal health.
Find past updates, presentations, and more on the Community Budget Update portal.