EIN: 566001114
UEI: HHFBDU1EL968
Audited by: ANDERSON SMITH & WIKE PLLC
Oversight agency: 84 [Department of Education]
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Data as of September 2, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on December 15, 2025. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by June 15, 2026 (80 days ago).
What is a management decision? →FAC accepted this audit on November 12, 2024 — management decision was due May 12, 2025.
FAC accepted this audit on February 12, 2024 — management decision was due August 12, 2024.
$959,865 of program funding was held by the Board for over two years. Effect: The Board is not in compliance with federal program requirements. Cause: The Board did not have proper internal controls in place to monitor federal cash balances to ensure federal funds were disbursed or returned to the oversight agency in a timely manner. Questioned costs: None as the funds were held and not expended. Identification of a repeat finding: This is a repeat finding from the previous audit. Recommendation: We recommend that management implement controls so that federal funds are expended or returned to the oversight agency in a timely manner. Management Response: The Board agrees with this finding and recommendation.
Show full finding ▾Hide full finding ▴Cash Management – Noncompliance and Material Weakness U.S. Department of Education Passed Through the N.C. Department of Public Instruction Program Name: COVID-19 – Education Stabilization Fund Assistance Listing Number: 84.425 Criteria: Under program requirements, federal grant funds must be disbursed within two business days from the date the funds are deposited into the Board’s account. Condition: $959,865 of program funding was held by the Board for over two years. Effect: The Board is not in compliance with federal program requirements. Cause: The Board did not have proper internal controls in place to monitor federal cash balances to ensure federal funds were disbursed or returned to the oversight agency in a timely manner. Questioned costs: None as the funds were held and not expended. Identification of a repeat finding: This is a repeat finding from the previous audit. Recommendation: We recommend that management implement controls so that federal funds are expended or returned to the oversight agency in a timely manner. Management Response: The Board agrees with this finding and recommendation.
Name of Contact Person: Terry Dudney, Chief Finance Officer Corrective Action Plan: Management will return the excess funds received and implement controls and procedures to ensure that federal funds are expended in a timely manner. Proposed Completion Date: As soon as possible.
2022-002
FAC accepted this audit on January 22, 2023 — management decision was due July 22, 2023.
$959,865 of program funding was held by the Board for several months. Effect: The Board is not in compliance with federal program requirements. Cause: The Board did not have proper internal controls in place to monitor federal cash balances to ensure federal funds were disbursed or returned to the oversight agency in a timely manner. Questioned costs: None as the funds were held and not expended. Identification of a repeat finding: This is a repeat finding from the previous audit. Recommendation: We recommend that management implement controls so that federal funds are expended or returned to the oversight agency in a timely manner. Management Response: The Board agrees with this finding and recommendation.
Show full finding ▾Hide full finding ▴Finding: 2022-002 Cash Management ? Noncompliance and Material Weakness U.S. Department of Education Passed Through the N.C. Department of Public Instruction Program Name: COVID-19 ? Education Stabilization Fund Assistance Listing Number: 84.425 Criteria: Under program requirements, federal grant funds must be disbursed within two business days from the date the funds are deposited into the Board?s account. Condition: $959,865 of program funding was held by the Board for several months. Effect: The Board is not in compliance with federal program requirements. Cause: The Board did not have proper internal controls in place to monitor federal cash balances to ensure federal funds were disbursed or returned to the oversight agency in a timely manner. Questioned costs: None as the funds were held and not expended. Identification of a repeat finding: This is a repeat finding from the previous audit. Recommendation: We recommend that management implement controls so that federal funds are expended or returned to the oversight agency in a timely manner. Management Response: The Board agrees with this finding and recommendation.
Finding 2022-002 Name of Contact Person: Terry Dudney, Chief Finance Officer Corrective Action Plan: Management will implement controls and procedures to ensure that federal funds are expended in a timely manner. Proposed Completion Date: As soon as possible.
2021-002
The District does not have internal controls in place that appropriately monitor expenditures as compared to allotted amounts. Effect: The District had expenditures exceeding amounts allotted from the N.C. Department of Public Instruction by $181,397. Cause: There was a lack of oversight by management. Questioned costs: $181,397 Identification of a repeat finding: This is not a repeat finding from the previous audit. Recommendation: We recommend that management closely monitor expenditures as compared to allotments to ensure that the District does not spend more than allotted. Management Response: The Board agrees with this finding and recommendation.
Show full finding ▾Hide full finding ▴Finding: 2022-003 Activities Allowed or Unallowed ? Noncompliance and Material Weakness U.S. Department of Education Passed Through the N.C. Department of Public Instruction Program Name: Special Education IDEA ? Grants to States Assistance Listing Number: 84.027 Criteria: Under program requirements, expenditures may not exceed amounts allotted from the N.C. Department of Public Instruction (DPI). Condition: The District does not have internal controls in place that appropriately monitor expenditures as compared to allotted amounts. Effect: The District had expenditures exceeding amounts allotted from the N.C. Department of Public Instruction by $181,397. Cause: There was a lack of oversight by management. Questioned costs: $181,397 Identification of a repeat finding: This is not a repeat finding from the previous audit. Recommendation: We recommend that management closely monitor expenditures as compared to allotments to ensure that the District does not spend more than allotted. Management Response: The Board agrees with this finding and recommendation.
Finding 2022-003 Name of Contact Person: Terry Dudney, Chief Finance Officer Corrective Action Plan: Management will implement controls and procedures to ensure that expenditures do not exceed DPI allotments. Proposed Completion Date: As soon as possible.
FAC accepted this audit on November 30, 2021 — management decision was due May 30, 2022.
$959,865 of program funding was held by the Board for over two months. Effect: The Board is not in compliance with federal program requirements. Cause: A warrant in the amount of $959,865 was held for over two months until identified by external audit procedures. The Board did not have proper internal controls in place to ensure that federal funds were disbursed in a timely manner. Questioned costs: None as the funds were held and not expended. Identification of a repeat finding: This is not a repeat finding from the previous audit. Recommendation: We recommend that management implement controls so that federal funds are expended or returned to the oversight agency in a timely manner. Additionally, management should review outstanding warrant listings to ensure that warrants clear in a timely manner. Management Response: The Board agrees with this finding and recommendation.
Show full finding ▾Hide full finding ▴Finding: 2021-002 Cash Management ? Noncompliance and Material Weakness U.S. Department of Education Passed Through the N.C. Department of Public Instruction Program Name: COVID-19 ? Education Stabilization Fund CFDA #: 84.425 Criteria: Under program requirements, federal grant funds must be disbursed within two business days from the date the funds are deposited into the Board?s account. Condition: $959,865 of program funding was held by the Board for over two months. Effect: The Board is not in compliance with federal program requirements. Cause: A warrant in the amount of $959,865 was held for over two months until identified by external audit procedures. The Board did not have proper internal controls in place to ensure that federal funds were disbursed in a timely manner. Questioned costs: None as the funds were held and not expended. Identification of a repeat finding: This is not a repeat finding from the previous audit. Recommendation: We recommend that management implement controls so that federal funds are expended or returned to the oversight agency in a timely manner. Additionally, management should review outstanding warrant listings to ensure that warrants clear in a timely manner. Management Response: The Board agrees with this finding and recommendation.
Finding 2021-002 Name of Contact Person: Terry Dudney, Chief Finance Officer Corrective Action Plan: Management will implement controls and procedures to ensure that federal funds are expended in a timely manner. Proposed Completion Date: As soon as possible.
FAC accepted this audit on January 5, 2021 — management decision was due July 5, 2021.
FAC accepted this audit on October 30, 2019 — management decision was due April 30, 2020.
FAC accepted this audit on December 22, 2018 — management decision was due June 22, 2019.
FAC accepted this audit on January 8, 2018 — management decision was due July 8, 2018.
GSA_MIGRATION
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Show full finding ▾Hide full finding ▴FAC accepted this audit on February 16, 2017 — management decision was due August 16, 2017.
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