Laurens 55 School District Accused of Mismanaging Nearly $1M

Overview

Laurens, South Carolina – A recent report by the South Carolina Office of the Inspector General (SIG) has unveiled that nearly $1 million was mismanaged by the Laurens County School District 55 over a timeframe of three years. While the report does not suggest any criminal or fraudulent activity, it highlights the risk of fraud within the district as being moderate to moderately high.

The investigation initially stemmed from concerns that payments were being directed towards an unlicensed speech therapist. Subsequently, the SIG’s findings revealed that approximately $973,000 had indeed been inappropriately spent across various channels.

Breakdown of Mismanaged Funds

According to the SIG report, the largest portion of these funds (around $530,000) was allocated to three vendors who were not under contract with the district. The Inspector General noted that the district failed to observe basic contract management and lacked internal controls, leading to this mismanagement of funds and increased susceptibility to fraud. Due to the absence of contractual agreements, the report could not conclusively establish the appropriateness of these payments.

Furthermore, more than $200,000 was allegedly spent on provisions for district employees. The SIG clarified that this over-expenditure resulted from the district’s failure to stipulate guidelines for the procurement of food items. The report also disclosed that this practice had become commonplace among district staff, ostensibly encouraged by a prevailing culture of food provision at meetings.

The report shed light on the issues surrounding the hiring of an unauthorized speech-language therapy provider. The district had paid nearly $6,000 to a contractor who illegitimately used the license of another individual with the same name. The district was absolved of responsibility as the vendor eventually reimbursed the funds and took appropriate action regarding the incident.

Last but not least, an alarming discovery of over $63,000 in contractor bonus payments was made. Despite the official authorisation from the district board, the report notes that such approval only extended to district employees, leaving the bonuses for contractors signed off by the former superintendent unauthorized.

Response and Moving Forward

In response to the findings, the school district issued a statement expressing gratitude towards the Inspector General for the comprehensive review. The district upheld that the report will serve as a blueprint to guide the leadership team and board towards better education delivery. Despite the notable absence of criminal or fraudulent conduct, the report underscored critical deficiencies in internal control policies and procedures. Subsequently, the district pledged its commitment to adopting the recommendations of the report in order to safeguard the fiscal stability of the district, and ultimately to ensure the provision of the best possible education for its students.