STATE OF SOUTH CAROLINA. DEPARTMENT OF EDUCATION Mouty M.Spranatas Stare SupeeivrenbeNr oF EDUCATION April 12019 Superintendent Rev, Dr. Eric Mack, Board Chair Mr. Donald Kennedy, Chief Financial and Administrative Officer Charleston County School District 75 Calhoun Steet Charleston, SC 29401-3538 RE: Fiscal Watch under $.C, Code Ann. § 59-20-90 (Supp. 2018) Dear Dr. Postlewait, Rev. Dr. Mack, Mr. Kennedy: (On February 26, 2019, a letter of intent was sent to Charleston County Schoo! Distict as notice that a fiscal watch declaration is pending due to significant deficiencies, material weaknesses, rect and material legal noncompliance or management leer comments which, inthe opinion of the Department, the aggregate effect ofthe reported issues has a significant effect onthe financial condition of the district, Section 59-20-904C)(1)(a)v). The SCDE's review of your 2018 annual audit indicate Charleston County School Districts findings 2018-001 and 2018-002 identity deficiencies and material weaknesses that could have a significant effect onthe financial condition ofthe district, ‘The SCDE is in receipt of your response letter dated March 15, 2019. While we recognize the steps the district has taken to address the 2018 anal audit findings, this letter represents the official declaration of fiscal watch for Charleston County School District pursuant to S.C. Code § 59-20.90(C)(1)aN). Per § $9-20-90(C)(3)a), Charleston County Schoo! District board must submit a financial recovery plan tothe SCDE within sixty days. The State Superintendent then has thirty days from. receipt to evaluate the plan, and either accept itor reject it with recommended modifications, ‘While a district is under fiscal watch, the Department shall provide technical assistance, A RUTLEDGE BUILDING- 1429 SENATE STREET - COLUMBIA, SC 29201 Post: 803-734-8500 - Fax 803-734-3389: ED, sc.00¥‘Charleston County School District ~ Fiscal Watch, Page 2 April 1, 2019 district under a declaration of fiscal watch must not be released from fiscal watch in the same fiscal yearn which the declaration was made, but may be released the following fiscal yesr if the Department determines that the corrective actions have been or are being successfully implemented. §.C, Code Ana, § $9.20 90(C\ 1), ‘The district board of trustees may appeal a declaration of a fiscal watch tothe State Bourd of Education (SBE) within ten days after the declaration and the SBE must hold a hearing on the appeal within thy days after the filing of the appeal or atthe next regularly scheduled SBE ‘meeting, whichever is later. However, the district shall continue to work with the Department \when a fiscal watch is declared pending determination of the appeal. S.C. Code Ana. § 59-20- 30105), ‘The Department willbe in contact with the district in setting up equited technical assistance. If you have any questions concerning ths notice, you may contact Ms, Naney Williams, the Departments Chief Financial Officer nwilliams@ed sc-gov; or Mr. Michael Thom, Director of Finance, mthom@ed.sc,gov. Your legal counsel may contact Ms, Cathy Hazelsvood, General Counsel, chazelwood @ed se.gov. Since. Aste, MA pooman) lyase State Supertentet of Edeation MMs cee; Mrs Del-Gratia Jones, Board Chair, SBE ‘Charleston County Legislative Delegation ‘phone: 803-734-8500 @ fax: 803-754-338 @ ed.se.g0v