District to spend $3 million on upgrades; OCSD receives ‘clean’ audit

The Orangeburg County School District will spend $3 million of its savings on school improvements, district officials say.

The district is also preparing to borrow millions for school construction and repair following voters’ approval of a $190 million bond referendum.

Trustees on Tuesday unanimously approved a one-time, $3 million transfer from its fund balance for a number of upgrades.

These include:

• $1.6 million to replace the district’s intercom system.

• $650,000 to upgrade playground equipment.

• $600,000 to procure a vendor to digitize district records.

• $50,000 to provide security and safety upgrades at Edisto Primary School.

• $45,000 to contract services to relocate staff, equipment and supplies from Rivelon Elementary to Edisto Primary as part of the plan to consolidate the schools into Edisto Primary.

• $30,000 to transition team activities from Rivelon to Edisto Primary.

• $25,000 for supplies and materials to enhance the district’s magnet program.

The decision follows the announcement that the district has received an unmodified opinion, or clean audit, for the 2021-2022 fiscal year. That’s the highest level of financial assurance.

The district had findings in the 2020-2021 audit that were successfully addressed, Brian Nicholson of Mauldin and Jenkins LLC said.

The latest audit found no material weaknesses or significant deficiencies in the district’s financial operations.

“Y’all should be proud for that,” Nicholson said.

OCSD Superintendent Dr. Shawn Foster commended the district’s entire finance team, led by Assistant Superintendent Gail Sanders, on the positive audit, according to a press release.

“As a result of making strategic financial decisions, OCSD was able to not only provide funding for all necessary initiatives but also realize more than $13 million to add to this year’s fund balance,” or rainy day fund, he said.

OCSD had a year-end fund balance of $7.1 million in 2019-2020 after the district had to spend about $10 million to make up for a revenue shortfall. The shortfall was due to a miscalculation in tax rates during the consolidation process.

As a result, the district was placed on the S.C. Department of Education’s fiscal watch list for not having an adequate balance.

The district has overcome being placed on the watch list and now has more than $25 million in its fund balance, Foster said.

“In OCSD, we are extremely serious about our fiduciary responsibilities,” he said.

“This significant accomplishment is a testament to our dedication, commitment, and seriousness about the public funds we manage,” Foster said.

In other matters:

• Trustees voted 8-1 to adopt a resolution officially declaring the results of the $190 million bond referendum approved by voters in November. The action is required by state law and will make the results of the referendum a matter of the official public record.

Trustees also voted 8-1 to authorize the issuance of the $190 million in bonds.

“There is no necessary reason to borrow all the money at once because you won’t be spending it all at once,” bond counsel Frannie Heizer said. “A bond anticipation note allows us to make sure you all have the proceeds you need when you need them but that we don’t over borrow.”

Heizer said the superintendent will be given the authority to determine how much to borrow and when to borrow with the board kept abreast of the situation.

“”he goal is to make sure you have the funds you need, that we will not over borrow, that we will stay in the millage constraints that were discussed during the education process for the referendum,” Heizer said.

Dr. William O’Quinn was opposed to both measures. O’Quinn has consistently opposed the district’s borrowing and spending plan.

• Trustees unanimously gave first reading to a policy stating that revenues the district does not immediately use will be placed into an interest-bearing account for investments to earn the maximum return possible in accordance with state law.

The policy was recommended by the district’s legal counsel.