$1M discrepancy at Spartanburg Dist. 1 due to payments not properly recorded

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Spartanburg_Co__School_District_1_0_20190110223654

SPARTANBURG Co., S.C. (WSPA) — Spartanburg School District 1 leaders said they know what caused a $1 million financial discrepancy and are satisfied with answers from a financial group about the transactions.

Last month, authorities confirmed an investigation was underway into a financial discrepancy. 

Spartanburg School District 1 Superintendent Ron Garner said at a news conference that three payments totalling more than $1 million were made to Tetra Financial Group between 2013 and 2015, but not properly documented in the school’s financial records. 

SLED was contacted when the discrepancies were brought to light in mid November. 

In a statement released Wednesday, the school district said payments were not accurately recorded and created an apparent discrepancy.

Below is the full statement from Spartanburg School District 1:

As previously announced in a press conference on January 10, 2019, Spartanburg School District No. 1 has been conducting a review of its accounting procedures. This review was prompted, in part, by the passing of the District’s chief financial officer and the discovery that three payments of approximately $335,000 each were not accurately recorded in the accounting records of the District, creating an apparent discrepancy in the District’s books. The District has now confirmed that these payments were paid to Tetra Financial Group in accordance with the terms of a financing transaction in which Tetra Financial Group provided financing used to update several of the District’s schools. Due to the initial accounting discrepancy, the District missed certain deadlines necessary to track the District’s options under the financing transaction, which resulted in the term of the transaction being extended. Tetra Financial Group was not aware of the discrepancy and is not involved in, and did not have access to, the District’s internal accounting systems, books or processes. Upon informing the company of the discrepancy, however, Tetra Financial Group was very cooperative in assisting the District in its review of the financing transaction between the District and Tetra Financial Group and, under these circumstances, also agreed to waive certain requirements of the original agreement. Further, the company and the District have completed a reconciliation of the District’s payments under the financing transaction, and the District has updated its accounting records accordingly.
The District is fully satisfied that Tetra Financial Group has answered all  questions the District had regarding the financing transaction between the parties and that any and all concerns have been satisfactorily resolved.”

Copyright 2019 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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