SC district audit: ‘Exorbitant’ reimbursement, budget changes, but no fraud
Columbia school district Richland 1 made vendor payments inconsistent with award contracts. At least nine capital project budgets changed by more than $100,000 in a year. School board members received “exorbitant” reimbursements.
These are just a few of the findings detailed in a report from external auditors at Greene Finney Cauley, LLP.
However, no criminal fraud was identified.
Richland 1 audit findings
Richland 1 paid school board members “elaborate or exorbitant” reimbursements at least 16 times, according to the audit, and in eight instances, supporting documentation was not completed or retained. Reimbursement to board members was outside the normal scope of such payments in at three instances.
The district also failed to follow procurement code and did not put out a public bid for some solicited services, according to the audit, and some vendor payments were inconsistent with awarded contracts, or had missing documentation.
One district vendor, the audit found, was hired for stump grinding, but was then paid an excess of $100,000 for other services that it had not been contracted for.
Budgets of at least nine Richland 1 capital projects changed by more than $100,000 between 2024 and 2025, the audit noted.
The audit did not find any notable debit or credit card activity, wire transfer improprieties or unusual expenditures.
Why was Richland 1 audited?
South Carolina state Superintendent Ellen Weaver ordered the audit of the district in October 2024 after escalating concerns about the district’s financial practices. The district, which had been operating with a “fiscal watch” status for more than a year, was saddled with a “fiscal caution” status, the second-highest level of concern.
It stemmed from a July 2024 report from the state inspector general, which determined Richland 1 broke state law and wasted more than $350,000 in taxpayer dollars when it began construction on an early learning center without proper permits. The district also had trouble with unauthorized or illegal procurement, the report said.
The financial recovery plan submitted at the time was rejected by the state education department for being “deficient” and “incomplete.”
The newly released audit, Weaver wrote in a letter dated Nov. 24, highlighted “significant gaps” that existed in communication, documentation, internal controls and process standardization. However, Weaver also acknowledged the district had made “meaningful progress,” since she had ordered the audit.
“The SCDE has noted with appreciation your cooperation and growth mindset, grounded in ownership of outcomes, transparency, and continuous improvement,” Weaver wrote. “That commitment was especially evident in the corrective action plan ... proactively developed after reviewing the preliminary report findings.”
What is next for Richland 1?
Richland 1 may be released from its “fiscal caution” status as early as next fiscal year, Weaver wrote, if the district implements its corrective action plan “with fidelity,” demonstrates compliance and provides documentation of remediation.
“We appreciate the assistance we have received from State Superintendent Weaver and her team,” the district said in a statement. “We are confident that we will be able to strengthen the district’s practices in the areas in which a need for improvement was identified.”
Richland 1 will share its corrective action plan after it is formally approved by the S.C. Department of Education.
Superintendent Todd Walker, who began his tenure after the audit was ordered in late 2024, will address its findings on Dec. 8 at W.J. Keenan High School, where he will also present the findings of his 90-Day Strategic Entry Plan. This is separate from the district’s regularly held school board meetings.
“While the past cannot be changed, it can be learned from,” Weaver wrote. “It is my hope and belief that Richland One is on a promising trajectory to do so.”
This story was originally published November 25, 2025 at 4:24 PM.
