SC district auditor finds potential unauthorized buying, purchase order misuse
Still under “fiscal caution” by the South Carolina Department of Education, Richland School District 1 may have had more issues with district purchasing and procurement.
The Columbia school district received an anonymous tip that asserted “too many upper-level managers” commit unauthorized procurements for fiscal year 2024 and between July 2024 and March 2025, according to documents from the internal auditor obtained by The State. No other specific concerns were mentioned.
According to documents, an unauthorized procurement occurs when someone without proper authority commits the district to an obligation by ordering or receiving goods/services without issuance of a purchase order.
The district’s internal auditor noted the number of procurement ratifications and the “repeat offenders,” and forwarded the information to the “appropriate department” for an internal investigation. However, because of the nature of the allegations and previous audit findings, the internal auditor continued an independent review.
A report was still being drafted as of June 2025, and it was supposed to be submitted to administration by the end of the month. It is unclear whether that happened.
The internal auditor also noted that during audit fieldwork related to a follow-up review of procurement card operations for fiscal year 2023, it noted a “potential issue” with the misuse of open and blanket purchase orders, which is a contractual agreement between a buyer and a supplier. The office also later received a call about the issue.
As of December 2024, the requested information had not been provided by district Chief Financial Officer Sherri Matthews-Hazel. But given the information already gathered and reviewed, an audit advisory was issued.
The internal auditor paused the project, according to a June 2025 update, as review of blanket purchase orders could be within the purview of the external auditor that was investigating the school.
District spokeswoman Karen York said the report was shared with the board and the findings were addressed, and has established internal procedures to ensure compliance and improve communication.
“The District remains committed to maintaining healthy financial practices through ongoing monitoring, transparency and adherence to best practices in fiscal management,” York said in a statement. “Being placed under fiscal caution has reinforced our focus on proactive measures and continuous improvement to safeguard the District’s financial health.”
History of financial impropriety
Richland 1 is still under “fiscal caution” by the state Department of Education, which began with criticism over the district’s financial practices three years ago.
An audit discovered “significant deficiencies and material weaknesses” that could affect the financial well-being of the district and improper use of procurement cards — or “p-cards.” The department put Richland 1 on “fiscal watch” in December 2022, the least serious level of concern. The school board attempted to appeal the department’s decision, but was denied.
In August 2024, the district’s “fiscal watch” status was escalated to “fiscal caution.” It is the second-highest level of financial and budgetary concern. It followed a report by the state Inspector General. Though it did not uncover any criminal activity, it said the district broke procurement law and cost taxpayers more than $350,000 when it began construction on a $31 million early learning facility in Lower Richland without the proper permits. That project has since been scrapped.
Superintendent Ellen Weaver, who had requested the Inspector General investigation, called the findings “concerning.”
District officials submitted a recovery plan. It was rejected for being “incomplete.”
“Some of the District’s seemingly cursory responses have amplified the Department’s concern regarding the District’s apparent failure to grasp the gravity and full implications of the SIG’s findings,” Kendra Hunt, the department’s chief financial officer, wrote in an October 2024 letter to the district.
The state department ordered an independent forensic audit of Richland 1. Those audit findings have not been released yet.
This story was originally published November 14, 2025 at 5:45 AM.
