Lexington County School District 1’s general fund balance grew by $8.2 million during the 2022 fiscal year, but there were still some financial issues to be cleaned up when the Board of Trustees received the results of its most recent procurement audit.

The board and Superintendent Gerrita Postlewait heard about the audit and the district’s latest comprehensive financial report from Mathew Hodges, a CPA with the Burkett Burkett & Burkett accounting firm, during the board’s regularly scheduled Dec. 13 meeting.

As of June, the district’s general fund balance was $86.8 million.

The procurement audit covered from July 1, 2021 to June 30, 2022, with sampling including a two-month sample of P-Card purchases, a block sample of 200 numerical purchase orders, five disposals and sales of surplus property, 60 procurement transactions, eight procurements relating to major construction, and change orders from construction projects.

The audit found multiple P-Card transactions for students, their families and employees in need with no supporting documentation besides purchase receipts. The firm recommended creating a standardized form detailing the need to use funds provided by local organizations to assist students, their families and employees, with the form being signed by all parties involved.

Hodges then shared that there were multiple P-Card transactions for educational supplies and materials that could’ve been purchased through state and district contracts, and documentation wasn’t provided to explain the use of an alternative supplier. The firm recommended disallowing the purchase of educational supplies and materials using a P-Card unless approval has been received from the procurement director.

The CPA told the board that there were no disagreements with management while performing the audit.

Hodges also shared two instances of deficiencies in internal control. 

The first instance was with special revenue funds, including the ROTC and Coronavirus Relief Funds. The ROTC fund had a negative balance, with expenditures overstated by $170,079. The Coronavirus Relief Fund had a positive fund balance, with expenditures understated by $263,825.

The second deficiency was that the district did not properly maintain bus drivers’ driving records. According to Hodges, only 16 out of 30 records were reviewed, and four of the records were not printed until after the audit.