To provide up-to-date and transparent information about the district’s financial condition, this is the October 31 Community Budget Update.
Debt Reduced
District financial decisions, paired with community fundraising efforts, reduced WS/FCS’s debt by $11 million this week.
On Tuesday, Winston-Salem Foundation Inc.’s WS/FCS Futures Fund paid the NC Department of Public Instruction $3.4 million to pay the district’s entire remaining debt to the state. The funds were raised from private donors and paid before November 1, when the state was due to begin charging interest on the debt.
Forsyth County agreed to reduce the district’s debt to the county dollar-for-dollar for private funds raised to pay debt to the state or vendors. This means the foundation payment to the state will also reduce the county debt by another $3.4 million.
The foundation continues to raise private dollars to support the schools through its All in For Our Schools campaign.
The WS/FCS Board of Education also voted to expand its custodial contract with SSC – a deal that includes a process to erase the district’s $4.2 million debt to the business over the contract period.
WS/FCS is scheduled to present a plan to repay its remaining debts next week at the State Board of Education meeting.
Board Updates
At this week’s meetings, the Board of Education:
Adopted a final, balanced $707.1 million budget. This is about a seven percent decrease from what the district spent last fiscal year. View the Budget Book or presentation to learn more.
Reviewed the districts September Budget-to-Actuals report.
Received a report from the district’s independent auditing firm, Forvis Mazars. The firm’s initial analysis shows the district overspent by $45.5 million last fiscal year. The annual audit will be finalized early next year.
Got a budget update from Interim Supt. Catty Q. Moore, including the latest on the status of a review of Internal Revenue Service (IRS) payments. WS/FCS is currently up-to-date on payments but is still working with the agency to determine whether penalties are due and what can be appealed or reduced.
You can watch these meeting and committee presentations on YouTube and read about other news from this week’s board meetings in the Board Wrap Up.
Internal Control Review
On Monday, the State Board of Education (SBE) chose Mauldin &Jenkins LLC to conduct a review of WS/FCS internal controls.
The review evaluates the adequacy and effectiveness of current controls, including any new controls, policies, and procedures implemented since the deficit was uncovered in the spring.
The review costs $97,770, which the district will fund. A public report of the findings will be completed by February 2026.
Read more financial news, including past updates, videos and presentations, at the Community Budget Update web portal.