SC Education Department escalates Richland 1 fiscal concerns after state investigation
After more than a year on a state-designated “fiscal watch” status for improper use of procurement cards, Richland School District 1 is facing further financial scrutiny from the South Carolina Department of Education.
The school district’s status has been escalated to “fiscal caution” following an investigation by the Inspector General, according to an Aug. 2 letter from state Superintendent Ellen Weaver. It is the second highest level of financial and budgetary concern.
While on fiscal watch, Richland 1 broke the law and cost taxpayers more than $350,000 when it began construction on an early learning center without proper permits, according to a July 25 report by the South Carolina Inspector General’s Office.
“The (Inspector General’s) July 25, 2024 report outlines multiple procurement findings, including violations of state law, in addition to other concerning non-procurement issues,” Weaver wrote to the district. “The finding of significant and unremedied procurement deficiencies require me to escalate your District to a declaration of Fiscal Caution.”
Weaver asked the Inspector General to probe the district in January after Richland 1 failed to obtain permission from Richland County and the state Education Department before beginning construction on a $31 million early learning facility on Caughman Road in Lower Richland. Construction continued even after the district was told the building couldn’t be considered a school because the initial plan called for the center to serve children as young as infants. Work continued until the county issued a stop work order in January.
The district is now required to submit a financial recovery plan to the state Education Department within 60 days, according to Weaver’s letter. The superintendent must then evaluate and approve the plan, and may also order an audit.
“We have received the letter, and we will review it and determine next steps,” Karen York, a district spokesperson, told The State Friday afternoon.
Richland 1 was first placed on fiscal watch in December 2022 by former state Superintendent Molly Spearman, following an audit by the state Education Department.
The audit found “significant deficiencies and material weaknesses” that could affect the financial well-being of the district, Spearman wrote in a letter to the district.
Richland 1 attempted to appeal the department’s decision. It was denied.
“The District appreciates those identified opportunities to improve,” York said in a statement at the time. “However, in our opinion, none of the findings were significant or rose to material impact.”
Richland 1 has “internal controls” that review all transactions on a monthly basis, the district said.
“Those checks and balances discovered issues concerning a former employee that were turned over to law enforcement,” York said.
York didn’t identify the employee. But former Richland 1 procurement manager Travis Braddy was indicted in 2022 on embezzlement and misconduct in office charges after being accused of misusing $23,170.41 in public money to make personal purchases. The state attorney general’s office said the embezzlement occurred primarily through misuse of procurement cards — or “p-cards.”
Braddy had paid $9,388 to a “sham company” controlled by someone close to him, disguised $3,358 in hotel charges as personal protective equipment purchased for the district and billed the district over $10,000 for a rental car, according to the attorney general’s office.
Braddy’s case is pending.
This story was originally published August 2, 2024 at 4:40 PM.
