The South Carolina Department of Education (SCDE) has placed the Clarendon County School District (CCSD) under Fiscal Caution, citing continued delays in completing required financial audits. The designation follows a previous Fiscal Watch declaration in February 2024, after the district failed to submit its FY23 audit within the required timeframe.
According to a letter sent by State Superintendent of Education Ellen Weaver to district officials, CCSD did not submit its FY24 audit within 60 days of the December 1 deadline, prompting the escalation to Fiscal Caution. The district now has 60 days to submit a financial recovery plan, which will be reviewed by the SCDE.
Audit delays linked to former districts
Dr. Keisa Carr, Director of Communications & Community Relations for CCSD, explained that the audit delays stem from financial issues inherited from former districts prior to the county-wide consolidation.
When Clarendon One and Clarendon Three merged to form Clarendon Four, unresolved financial issues remained. “Clarendon Two has never had a fiscal issue with any documents, anything. Well, the issue came with Clarendon One initially, and then Clarendon Four, that consolidated district.” Carr went on to compare the consolidation to a marriage, if one partner has financial troubles, those challenges affect the entire household.
Carr noted that the Clarendon One and Clarendon Four audits had to be completed before the newly formed CCSD audit could be finalized. “We couldn’t move forward until the previous audits were done,” she said, adding that the 2022-2023 audit is near completion.
The district’s independent auditor, Elizabeth C. Inabinet, CPA, CFE, confirmed that the delays stemmed from late FY21 audits for both Clarendon One and Clarendon Four, which created a snowball effect that impacted subsequent years.
“Clarendon Four’s [June 30, 2021] audit was issued on July 5, 2023, and Clarendon One’s was issued on October 11, 2023,” Inabinet stated. “The delay in completing these audits hindered our ability to proceed with subsequent work; specifically, we could not begin any audits without the correct beginning balances from the previous audits.”
Once the FY21 audits were completed, auditors had to ensure the correct balances were brought into Clarendon Four's FY22 audit, but staffing changes in the district made this process even more difficult. “Due to the time that had passed and the subsequent consolidation of the district, none of the individuals originally responsible for posting, recording, and reconciling Clarendon Four's books were still with the district,” Inabinet explained. “As a result, bank reconciliations were incomplete, and records were either missing or misplaced, necessitating considerable time and effort to clean up the financial records from the point they were left.”
Consequently, Clarendon Four’s FY22 audit was not completed until August 8, 2024. Only after that was finalized could the audited balances be incorporated into CCSD’s FY23 books, delaying the overall district audit.
Despite the Fiscal Caution designation, Carr emphasized that daily operations remain unaffected and that the district is fully compliant with financial processes moving forward. “Our daily operations, our financial operations are going great,” she said. “Any advice from our auditor along and along, they have found that we’ve already corrected.”
New board takes responsibility for oversight
The CCSD Board of Trustees, which recently seated new members, will now attempt to monitor the audit process and ensure compliance with state deadlines.
“Even though this happened before the newly elected school board, we know that we are responsible. We will resolve this issue when we submit audits to the State Department of Education,” said Board Chairman John Bonaparte. “The new board members will ask for updates in the audit process, in advance to the due date to the Department of Education.”
Bonaparte also noted that the financial recovery plan referenced in the SCDE letter was initially drafted in September 2024 and will be reviewed by the new board. “The recovery plan mentioned in the letter was written in September 2024. [The board] will ask for a copy to understand what is stated for the district to provide SCDE and ensure they are completed and sent for review,” he said. “If the original plan needs updates, then we will update and submit changes to the Department of Education.”
To prevent future delays, Bonaparte said the board will increase financial oversight, ensuring audits begin on time and that all necessary documentation is provided to auditors in a timely manner. “We will make sure the auditing session begins on time and have all our employees provide information to the audit team in a timely manner to ensure the audit is submitted according to the statute,” he said.
New legislation aims to improve financial accountability
The district’s financial struggles have prompted legislative action at the state level. On March 7, 2025, Governor Henry McMaster signed H. 3792 into law, a measure aimed at improving fiscal oversight in CCSD.
The bill, sponsored by Representative Fawn Pedalino and Senator Jeff Zell, amends Act No. 106 of 2021 to revise the election process for school board members and ensures the district’s annual budget remains under the approval of the Clarendon County Council.
“This legislation ensures our school district operates with greater oversight and financial responsibility,” Pedalino said in a statement. “It is a victory for our students, parents, and taxpayers.”
Governor McMaster acknowledged concerns about local legislation but said CCSD’s financial challenges made the bill necessary. “I applaud the Clarendon County Legislative Delegation’s commitment to guarding against the potential waste of taxpayer resources and improving transparency,” he said.
What’s next for CCSD?
The district must submit its financial recovery plan within 60 days, and all outstanding audits must be completed by June 30, 2025, to bring CCSD back into full compliance with SCDE standards.
Bonaparte assured the community that the district remains committed to fiscal responsibility. “I am not sure of any adjustments at this time, however whatever it takes to fund our district efficiently, that’s what [the board] will do,” he said. “We will be good stewards of the district’s finances.”
Carr echoed that sentiment, emphasizing that the Fiscal Caution designation reflects progress rather than additional financial trouble. “This status is solely a reflection of the previous district's fiscal challenges and it's not related to the forthcoming audit for the consolidated district. All audits conducted on Clarendon Two were clear of any issues, as I stated earlier, demonstrating our commitment to financial transparency and responsibility.”
The district plans to keep staff and the community informed throughout the process. Bonaparte also suggests residents refer to the IG report for facts on audits. “The Superintendent will communicate to teachers and staff, and I will speak to the public via newspaper with a State of the District,” Bonaparte said.
With Fiscal Caution in place and increased scrutiny from both state officials and local lawmakers, the district must continue navigating oversight and reporting requirements in the months ahead. For now, district officials maintain that they are on track to complete all outstanding audits and bring the district back into compliance.
