Most of Alabama’s school districts have exhausted their share of $3.1 billion in federal COVID-19 relief funds, but questions remain about how some of that money was spent. While most districts adhered to spending rules, audits have flagged several for compliance issues – most notably Dallas County Schools, which is under review for $12 million in expenditures.
State Superintendent Eric Mackey told Alabama Daily News the review is a “very serious matter.” It began in October after a June audit by the Department of Examiners of Public Accounts identified $4.9 million in improperly bid professional development services during the 2023 fiscal year, which ran from Oct. 1, 2022, to Sept. 30, 2023.
Mackey said he met with Dallas County Superintendent Anthony Sampson and other district officials to address additional concerns about procurement practices.
“We didn’t set a hard deadline, but for them to as quickly as possible get us some responses back.” Mackey said. While no repayment has been requested, he added, “It is under review, but it could have to be paid back. I don’t want to miscalculate that – it is a very serious matter.“
In a statement to Alabama Daily News, Sampson emphasized the district’s commitment to transparency and accountability.
‘While ALSDE has conducted a preliminary review, the findings remain under evaluation, and no conclusions have been reached regarding potential repayment of any part of the $12 million in ESSER expenditures,” Sampson wrote.
He also clarified that recent personnel changes, including the non-renewal of the Chief School Financial Officer and his own decision to step down as superintendent at the end of the school year were unrelated to the ongoing review.
“We respect the thorough and deliberate nature of this process,” Sampson wrote. “Our expectation is that it will conclude with clear guidance for corrective measures, ensuring the integrity of our financial practices and restoring community trust.”
A broader issue
Dallas County’s situation is not unique. Alabama Daily News reviewed all publicly available county school audits for the 2023 fiscal year. Most had no findings related to COVID relief funds, but a dozen districts faced compliance issues, including:
- Improper bidding or procurement processes,
- Failure to document time and effort or personnel paid with federal relief funds, and
- Lack of prevailing wage documentation in contracts, as required by federal law.
Six districts, including Dallas County, had more than $1 million in questioned federal expenditures. The audits do not indicate whether funds must be repaid. Instead, district officials typically pledged to address compliance issues going forward.
The Alabama Department of Education oversees how the state’s $3.1 billion in federal relief funds was spent, but at the local level, superintendents hold ultimate responsibility.
The Department of Examiners of Public Accounts audits all county school districts and three city districts and posts those audits publicly. Other city school districts and charter schools hire their own auditors, and while some districts post their audits on their websites, they are not required to do so.
Chief Examiner Rachel Riddle said audit findings have stemmed from lack of compliance with federal processes. “We are auditing this and looking,” Riddle said in an email to Alabama Daily News. “If [people] have any concerns about any public entities that receive these funds, please contact our office.”
How much federal aid did K-12 schools receive?
Between 2020 and 2022, Congress allocated $189 billion in federal relief funds for K-12 schools nationwide. Alabama received $3.1 billion across three relief packages. Most of the funds went directly to school districts, with the state Department of Education controlling a smaller portion for statewide uses.
Each round had its own set of rules about allowable expenditures, ranging from health and safety improvements to academic recovery programs.
The final deadline to spend the third round was Sept. 30. As of now, all but nine of Alabama’s 151 school districts have spent their full allocation. As federal oversight continues, the state and local districts must address remaining questions and ensure taxpayer dollars were used effectively.
The chart below shows the amount of funding each school district received in each of the three rounds of federal funding. Click here if you are unable to see the table.