A state audit found the Columbia County School District incorrectly allocated $496,203 in federal health insurance premium costs to employees who did not participate in the health insurance program.
According to district CFO Lindsay Laxton, the district received a certain amount of money from the federal government for health insurance premiums, but the district spread the money evenly among all employees regardless of whether or not they used federal insurance.
Ted Waller, state audit manager for district school boards, said while this issue doesn’t happen often, it does happen. In the past five years, Waller said only four other instances of this misallocation have happened in three other districts. All of these amounted to significantly less money than Columbia County’s 2025 audit finding, although Waller also said the county’s total federal expenditures exceed the other three districts.
In 2021, state audits found Bradford County and Baker County misallocated federal health insurance funds, amounting to $133,023.82 and $93,424.50, respectively. Most recently, Bradford County again and Walton County both misallocated funds in 2022. Bradford’s amounted to $167,463.56, while Walton’s was $183,184.35.
Laxton said the district is aware of the audit’s finding and is already implementing a solution. This was the only finding in the district’s audit this year.
“I would love to have no findings, but that’s what audits are for,” Laxton said.
This issue was categorized as a “significant deficiency,” which Waller said is not the most severe categorization.
As to whether the school district will have to pay back the federal dollars, Waller said that’s up to the specific grantors, but the audit board recommends the district either provide documentation that these fund allocations are actually allowed or repay them.