Mississippi crackdown reduces districts missing audits, officials say

Mississippi’s Department of Education says the number of school districts missing annual financial audits has decreased. Since addressing the issue, the number has fallen from 47 to 32, according to Paula Vanderford, the agency’s chief accountability officer.

Vanderford told the state Board of Education Thursday that 19 districts are behind on their most recent audits, while 13 are missing audits for both fiscal years 2023 and 2024. Most districts have plans to become compliant, she added.

In recent months, the department took over two districts, Wilkinson County and Okolona, citing financial issues. The Okolona district reached out to the agency in October after struggling to meet payroll.

State officials approved a rule in November that allows the department to place districts with two or more missing audits on probation or downgrade their accreditation. The previous policy permitted districts to go four years without audits before risking accreditation loss, but the new rule tightens oversight.

“We don’t want any more Okolonas,” said board Chair Matt Miller. Challenges contributing to missing audits include administrative turnover, staffing shortages among auditors, and federal funding complexities, Vanderford explained.

Some board members acknowledged difficulties in finding qualified CPA firms to conduct audits, but Vanderford emphasized that federal mandates require sanctions for missing audits. The department has seen faster audit submissions this year, with 63 of 138 districts already filing for fiscal year 2025.

Officials have warned that if many districts remain noncompliant, the department may need to focus on the most serious violators, as reviewing all delinquent districts simultaneously would be unmanageable. The department also approved 12 corrective action plans for districts with fiscal and recordkeeping violations, mostly in the Mississippi Delta.

However, plans for Hazlehurst and North Bolivar districts were denied due to severe deficiencies. Both districts, under probation for years, failed to address issues like poor recordkeeping, governance problems, and financial mismanagement. The department warned they must correct these issues by Dec. 31 or face potential audits or loss of accreditation, which could lead to state takeovers.

With limited resources, the department is cautious about additional takeovers, as it currently manages six districts with only $4.8 million available for assistance. Since taking over Okolona schools, the department has already spent $1.5 million and has requested additional funding for the next fiscal year.

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