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Southampton County School Board Chair Dr. Deborah Goodwyn and Southampton County Public Schools Superintendent Dr. Gwendolyn P. Shannon updated the board Jan. 13 on the school division’s response to the county Board of Supervisors’ pursuit of a forensic audit of the school system.

Goodwyn highlighted how School Board Counsel Pamela O’Berry, of Sands Anderson PC, had noted in a Sept. 19 letter to the county that “a forensic audit is an examination of financial records to derive evidence to prosecute a party for fraud, embezzlement or other financial crimes.”

In that same letter, O’Berry indicated that there exists no legal authority for the Board of Supervisors’ desired forensic audit of the school division.

On Aug. 27, the Board of Supervisors had voted unanimously to pursue a forensic audit of the school division and requested the Southampton County School Board’s cooperation in this effort. The Board of Supervisors’ vote followed a Citizens Comment Period earlier that evening during which 17 people spoke, all expressing concerns about the state of the school system.

The board’s vote also followed a period of about four years in which some members of the board had sought answers to specific questions regarding the school division’s finances.

During this same period, some School Board members had complained that the Board of Supervisors was trying to overstep its authority and should focus its attention on developing the county’s economy rather than trying to run the school system.

On Nov. 6, the Board of Supervisors (BOS) voted unanimously to engage the law firm of Troutman Pepper Hamilton Sanders LLP to represent the BOS as it seeks to learn more about the management and finances of SCPS.

BOS Chairman Dr. Alan W. Edwards said in an Oct. 21 interview that the Board of Supervisors was still going to obtain the equivalent of a forensic audit of SCPS. In a Nov. 18 interview, he indicated that the board’s engagement with a law firm was a result of the school division’s lack of cooperation with pursuing the audit.

“If the school system had cooperated, there wouldn’t have been this reaction from the board,” he said.

On Jan. 13, Goodwyn updated the School Board on correspondence between the School Board’s counsel and the county.

She noted that O’Berry wrote about how the School Board’s and the school division’s financial accounts and records had been audited as recently as June 2024. 

Some supervisors have indicated that they did not believe this audit was thorough enough.

“‘The findings of the 2024 audit were released by the state auditor of public accounts on Dec. 12, 2024, and sent to the attention of the Southampton County Board of Supervisors, the Southampton County administrator and the Southampton County chief financial officer,’” Goodwyn said, reading aloud from a letter written by O’Berry to the county. “‘The report can be found on the county website. In the report the state auditor of public accounts made no negative or adverse findings related to the finances of the School Board or the division. We highly recommend your review of that report and demand that you cease any further requests to audit or actions related thereunto in light of the report’s findings.’

“‘Additonally, as advised in the Southampton County School Board’s Sept. 13, 2024, letter to (County Administrator) Mr. (Brian) Thrower, as stewards of the public funds, the Southampton board welcomes the opportunity to discuss specific requests for information that the Board of Supervisors may have.’”

Goodwyn also shared part of a letter in which the School Board’s counsel noted receipt of a Nov. 12 communication from Troutman Pepper Hamilton Sanders LLP indicating that the firm fully intended to conduct a comprehensive investigation of SCPS regardless of the school division’s level of cooperation. The investigation would include issuing a series of Freedom of Information Act (FOIA) requests and planning to schedule interviews with Southampton County School Board staff.

Reading from School Board counsel’s written response to this, Goodwyn stated, “‘I must reiterate the Southampton County School Board and division will not submit to any audit or request for information that is not authorized by law, and we demand that you cease any further requests for audit or actions related thereto in light of the report’s finding. 

“‘Regarding said interviews,’” Goodwyn stated, continuing to read the counsel’s communication, “‘please be advised that the Southampton County School Board and the division are represented by counsel. Any requests for interviews must be made to and through its counsel and shall not proceed without the express permission of our client. Please contact me should you have any questions in this regard.’”

After concluding her reading of counsel correspondence, Goodwyn addressed the School Board.

“As a board, we know that a forensic audit is not intended to restore faith in the system,” she said. “It is not intended to clarify matters. A forensic audit examines financial records to uncover evidence of illegal fraud or activity. Its goal is to get the evidence that can be used in court.

“Therefore, we will not participate in this audit,” she continued, “and as I’ve said before, the Board of Supervisors has no legal authority to demand such an audit.

“So board members, your thinking?” she said. “I think that brings us up to date in terms of what’s been going on from September until now.”

Shannon noted that while she is not a board member, she would speak.

Earlier in the Jan. 13 meeting, she shared details of 16 FOIA requests that had been sent by Troutman Pepper Hamilton Sanders LLP in December.

“So I want to say that the FOIA requests are what they’re using to circumvent some of the processes,” Shannon said, “and that’s one of the reasons why I was bringing it up and shared with the board, last board meeting, that we would have a large number of FOIA requests. And I’m sure that that is not the end of the FOIA requests. 

“However, they’re trying to use those FOIA requests to come up with some type of evidence, and then I guess they’ll try to backdoor it into some type of a forensic-type audit or what have you,” she added.

Goodwyn said, “But the long list of requests that we have, we did forward that to our attorney, correct?”

Shannon said this was correct, but she added that according to the law, a maximum of 12 workdays is allowed to provide the material.

Earlier in the meeting, she noted that the division is probably going to have to try to hire someone to fulfill the law firm’s requests.

“It’ll probably take us about six months to provide everything that they’re asking for,” she said.

Later in the meeting she said, “It’s unrealistic for us to have that volume of material available in 12 days, so our attorneys are working to try to see what type of relief we can have regarding the amount of items that they’re requesting and the number of days that we would have to normally fulfill those requests.”

She noted to the School Board that the letters from the School Board’s counsel to the county had consistently stated that if the supervisors had any requests, the school division will work with them. 

“But despite us saying that in the letters to our Board of Supervisors, they are continuing to try to pursue other avenues,” she said.

She noted that on Jan. 13, she sent a letter to Thrower on behalf of the School Board.

She said, “And it reads, ‘On behalf of the Southampton County School Board, I am reaching out to formally communicate the board’s action to reestablish the liaison committee between our two entities.

“‘The School Board remains committed to fostering a positive, productive relationship with the Board of Supervisors, and we believe the reinstatement of this committee is an essential step.

“‘At its January meeting, we hope the Board of Supervisors will formally consider and appoint two members to serve on the liaison committee. This is an essential opportunity for renewed collaboration to align better our efforts to support the students and families we jointly serve.

“‘The reactivated liaison committee will provide a constructive platform to discuss our budget, capital improvement needs and other matters of mutual concern.

“‘We look forward to the Board of Supervisors’ consideration of our request and remain hopeful for a positive outcome. Thank you for your attention to this matter.’”

To the School Board, Shannon followed up her recitation of the letter by saying, “I mentioned that because, again, that does fall in alignment with the request for a forensic audit because we are still saying that we would like to avail ourselves to be able to communicate with them if they wish to do the same.”

Goodwyn again opened the floor to the School Board for comments, and Board Member Christopher Smith Sr. said, “The regular audit that the county has done has already been completed, and there were no findings?”

“No findings, no,” Shannon confirmed. “And it’s public, and it should be on their website now.”

Board Vice Chair Denise Bunn said, “I guess what is sticking in my mind, and I just feel like I need to say it out loud, is that as I sit here and I listen to this, we’re getting ready to move into budget season. Budget is hard enough already, and we struggle to find the dollars that we need to give our teachers raises, to put people in the classrooms that we need, to have the instructional programs that we need for our students.”

She said she was disheartened by the fact that the conflict between the boards is going to create the need for the school division to pay more legal fees. And to expend money to create a position to respond to the many FOIA requests coming from Troutman Pepper Hamilton Sanders LLP.

“As parents, it would anger me to know that that is coming directly out of money that could be used to give raises to the teachers that are standing in the rooms with your children,” she said. “So at the end of the day, who is losing in this whole picture? Who’s losing? It’s our students. It’s the students that are going to not have the instruction that they need within the classroom because the budget is already tight, and now we’ll work this into the budget because we’re going to have to because we’re in a position that we have to do that.

“But it just disheartens me to know that that’s where the money’s going to go as opposed to the classroom,” she said.