State Auditor Lydia York notified state legislators and county officials on Wednesday, that her office will conduct a special inquiry into the Appoquinimink School District. The decision follows a series of concerns raised by lawmakers and members of the public over a significant and unexpected budget shortfall within the district. York said the inquiry will be narrowly focused to ensure a timely and cost-effective review. Findings will be released to the public upon completion, with additional steps to follow if warranted.
Seven legislators, including members from both chambers of the General Assembly, issued a formal request for a forensic-style audit of the district’s finances. They cited troubling developments, including a surprise 10 percent increase in property taxes approved without a referendum, which came despite prior assurances that such an increase would not be necessary. The request called for a comprehensive investigation into the source of the shortfall, a review of financial compliance and internal controls, and an assessment of potential mismanagement or systemic vulnerabilities.
New Castle County officials also expressed concern, pointing to the district’s failure to disclose a budget discrepancy in the millions of dollars until after major financial decisions had been made. Officials criticized what they described as a lack of transparency and called for external oversight to ensure accountability.
District officials have attributed the shortfall to a series of accounting oversights, As a result, the district’s year-end cash reserves dropped below the legally required minimum, potentially triggering state intervention. The district’s finance director resigned in June, and an internal review with outside consultants is underway.
The Auditor’s Office stated that this special inquiry will proceed independently of routine audits already conducted annually in every Delaware school district.
