To provide up-to-date and transparent information about the district’s financial condition, this is the October 10 Community Budget Update.
County Debt Forgiveness
The Forsyth County Commissioners agreed to offer “conditional forgiveness” of the district’s debt to the county this week.
For every private dollar raised to assist Winston-Salem/Forsyth County Schools (WS/FCS) in paying its debt to the NC Department of Public Instruction (DPI) or vendors, the county will forgive an equal portion of the $5 million the district owes for school resource officers and nurses. The resolution adopted by the commissioners sets a deadline of December 31, 2025, for the funds to be forgiven.
Community leaders have been working to raise private funds to pay the district’s debt.
WS/FCS is $37 million in debt, including $3.4 million to DPI, $4.2 million to custodial contractor SSC, and $5.7 million to ESS, a company that managed the district’s substitute teachers.
WS/FCS has negotiated an option to expand its services with SSC, which would include an option to eliminate what the district owes the contractor. District staff continue to work with ESS on options for repaying what is owed.
Internal Control Review
State Board of Education approved a scope of work for a review of WS/FCS’s internal financial controls last week.
The NC Auditor recommended the State Board and the Local Government Commission prompt this review.
The review will independently evaluate whether WS/FCS’s financial controls are “effective and sustainable” and ensure “current controls and corrective measures implemented effectively address past deficiencies” and prevent future issues, according to the scope of work.
The review will go over fiscal policies and procedures, purchasing and contracting, financial reporting and transparency, and audit findings and corrective actions. Review the full scope of work here.
The WS/FCS Board of Education annually hires an independent firm to audit 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.
DPI staff will bring the State Board recommendations for audit firms to handle this review. WS/FCS will pay for the review.
WS/FCS Interim Superintendent Catty Q. Moore is a member of the State Board, but did not participate in the vote on the scope of work.
Central Office Reorganization
The reductions in force that district conducted this year have prompted a reorganization of Central Office. Review the most recent organizational chart for more details.
Find past updates, presentations, and more on the Community Budget Update portal.