WINSTON-SALEM, N.C. (WGHP) — A state agency has released findings on the multimillion-dollar budget deficit at Winston-Salem/Forsyth County Schools.
According to the Office of the State Auditor, WS/FCS:
- failed to adjust its full-time equivalent staffing despite a decrease in its student population.
- used temporary COVID-era funds to pay staff salaries and did not remove positions when the temporary aid ended.
- regularly approved purchase orders that exceeded its account budgets and did not later revise these budgets.
- did not reconcile budgeted and actual revenue and expenditures in a timely manner. As a result, no corrective action was taken when there was a material difference in budgeted and actual revenue and expenditures during the fiscal period.
- did not reassess COVID-era bonus payments to ensure alignment with current financial conditions and fund availability.
- inappropriately uses suspense accounts—temporary holding accounts intended for transactions that could not be immediately classified—as fund equity or fund balance accounts across multiple funds.
- did not adequately consider its contracts when creating its budget.
All of these factors ultimately led to a $46 million budget deficit in the 2024-2025 school year.
“Beyond these findings, OSA assessed that the WS/FCS Financial Services Department’s failure to correct prior audit findings has contributed to poor accounting procedures, budgetary practices, and the FY 2025 budget shortfall,” the state auditor’s office wrote.
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