The Dallas County Public School System (DCPSS) announced this week that it will close two schools as the system adjusts to the state takeover that took effect in March.
The school board voted unanimously to close JE Terry Elementary and B.K. Craig Elementary schools due to low student attendance combined with scant financial backing.
The Alabama State Department of Education voted to take over the DCPSS in March, citing a major discrepancy in the use of federal grant money, which was nearing $12 million.
The decision to intervene in the school system followed an audit by the Alabama Department of Examiners of Public Accounts, which revealed discrepancies in the use of federal funds. Namely, due to improper procurement procedures, the DCPSS was ordered to repay roughly $12 million in federal dollars.
The examiners also identified other issues, including failing to record meeting minutes, not reconciling bank accounts with financial statements, making improper and incomplete payments and improperly recording expenditures.
In one case, the Dallas County Board of Education (BOE) expended nearly $4.9 million from the Education Stabilization Fund for professional development services without obtaining sealed bids or proposals, exceeding the application threshold of $250,000.
Dallas County is the third school system in which the state is currently intervening, along with Sumter County and Bessemer City schools. State Education Superintendent Eric Mackey announced that Daniel Boyd, who is presently leading the Bessemer takeover and is a chief administrative officer, would also do the same in Dallas County.
Mackey was vague about the DCPSS's financial issues, specifically the $12 million. However, he strongly emphasized that there were no accusations that the funds were spent due to theft or fraud.
"Last summer, in the routine audit process, state examiners determined that there were several million dollars that had not gone through the proper procurement process," Mackey said. "Now, again, that doesn't mean somebody has stolen the money or anything like that; it just means they've not gone through the proper procurement processes. And so, they reported that, as they would always do, to our department. Dallas County asked us to come in and do a deeper audit of their federal programs."
He continued, "When our folks went in, they actually found out it was deeper and more money than had originally been identified, so that was very concerning to us. We have been working with them since last October on a repayment plan, but essentially, you know, Dallas County doesn't have that kind of money lying around; about $12 million."
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