Audit 377242

Criteria: The District is required to submit each year's data collection form and reporting package to the Federal Audit Clearinghous (FAC) as of the earlier of (1) nine months after the end of the audit period or (2) 30 calendar days after the District receives the auditor's report. Additionally, the District is required to submit its annual reporting package to the South Carolina Department of Education (SCDE) by December 1 each year. Condition: The District's data collection form and reporting package were submitted to FAC and the reporting package was submitted to SCDE on June 26, 2025 for the year ended June 30, 2023, and on September 11, 2025 for the year ended June 30, 2024. Effect: The District cannon be considered a low risk auditee in determining major programs due to the late submission and is also subject to fiscal watch, fiscal caution, or fiscal emergency by the SCDE, which place additional conditions and requirements on the District. Cause: The county-wide district is the result of the consolidation of Clarendon School Districts One and Three as of July 1, 2022, to form Clarendon School District Four, and another consolidation of Clarendon School District Four and Clarendon School District Two as of July 1, 2022. At the time of consolidation, Clarendon School District One was behind in issuing its June 30, 2021 audited financial statements. This in turn affected the ability of the consolidated Clarendon County School District Four to timely complete its June 30, 2021 and June 30, 2022 audits. Due to turnovers in personnel and misplaced records, completion of all audits since then have been delayed. Recommendation: The District should ensure that audits are completed in a timely manner, going forward.

Criteria: Equipment and Real Property Management in the FAR clause at 48 CFR 52.245-1 requires that the District maintain a system of internal controls to manage (control, use, preserve, protect, repair, and maintain) federal government property. This includes maintaining property records that include the name, part number and description, and other elements necessary and required in accordance with the terms and conditions of the contract. Condition: The District does not maintain a complete equipment and real property inventory that includes the previous Clarendon County School District Four and assets purchased since consolidation, to include noting the federal funding source for equipment and real property acquisitions. Effect: The District is not in compliance with federal Equipment and Real Property Management compliance requirements. Cause: The District has been attempting to resolve many issues that were carried forward into the County consolidated district from Clarendon County School District Four, including working to complete past due audits. As a result, the District has not been able to devote the necessary time to consolidating the capital asset databases and ensuring the captial assets purchased with federal funds are appropriately tagged in its inventory. During this time of transition, the District has had its auditing firm retain its complete capital asset listing and depreciation schedules as a nonattest service. Recommendation: Now that the District's past due audits are complete, we recommend that the District work to update its capital assets inventory to include all required information to properly account for all equipment and real property, to include specifically identifying capital assets purchased with federal funds.