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MPS intends to file its 2023 financial report by Thanksgiving

MPS intends to file its 2023 financial report by Thanksgiving

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Milwaukee Public Schools is making “significant progress” in resolving its financial reporting issues and hopes to have its 2023 reports ready by Thanksgiving, according to officials at the state Department of Public Instruction and MPS.

“This is not a hard deadline, but we are cautiously optimistic that it is possible,” DPI state director Jill Underly said at a news conference Monday. “And our team worked not only with MPS, but also with their external accountants and external auditing firms, and that cost the DPI a tremendous amount of capacity, time and energy.”

The update came after months of turmoil for MPS, which lost its superintendent Keith Posley, its chief financial officer Martha Kreitzman and its comptroller Alfredo Balmaseda after DPI sent a letter to MPS saying it was months late in submitting the required financial reports to the state.

DPI also aims for MPS to submit its fiscal year 2024 reports this winter. If achieved, it would take months before MPS submits its fiscal year 2022 reports in late March and early April 2023.

“We want to hopefully beat these dates by many weeks in 2025,” Underly said.

She also expressed confidence in MPS leadership, interim superintendent Eduardo Galvan and new chief financial officer Aycha Sawa. The district is still looking for a new auditor.

Galvan vouched for the planned schedules for Thanksgiving and the winter. He said MPS expects all overdue financial reports to be submitted to the auditor “very soon”.

“While our progress signals a resolution to the MPS reporting issues, our work is not yet done,” he said. “While the key issues have been addressed, it will be a long process to restore our fiscal office and trust in this office and the district.”

MPS finance office overhauled, several positions filled

The district’s finance office is almost fully staffed, and Sawa has been at the helm since she took office in September.

Sawa described “a steep learning curve,” especially given the controller position is still vacant. She has found that certain processes have deteriorated over time due to staffing and turnover issues, leading to financial reporting issues.

Rebuilding a solid internal control system is among her top priorities, she said. Others include setting schedules, creating a deadline calendar, optimizing the district’s software system to match the state’s and evaluating department staffing.

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Sawa on the progress MPS has recently made towards financial stability

Aycha Sawa, chief financial officer for Milwaukee Public Schools, discusses the progress MPS has made recently toward financial stability

Provided by the Wisconsin Department of Public Instruction

“From what I understand, there may be further adjustments in positions, what positions are truly needed and how those job descriptions can be rewritten to better meet the needs of the district and financial reporting requirements,” she said. “Even after these analyzes are completed, a realignment of the department will be necessary.”

DPI Assistant State Commissioner Tricia Collins said many of the vacancies in the finance office have been filled since July and praised Sawa for helping the district advance its finance work. She also said MPS has updated its policies to allow for faster filling of finance positions, allowing the district to make “significant progress.”

How did MPS get into this situation in the first place?

After financial reporting deficiencies came to light in May, Gov. Tony Evers called for an audit of the district’s operations and academic practices. Additionally, the district was required to submit a corrective action plan to resolve its financial reporting issues.

After Galvan told business leaders in August that MPS was on the right track to get things right, state Sen. Van Wanggaard, R-Racine, raised questions in September about how exactly MPS actually lived up to the promises it made in its had made a corrective action plan.

The district submitted its 2023-24 Certificate of Relief to DPI on September 26. It was due on August 30th.

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The focus is on the progress MPS is making towards financial stability

Jill Underly, state public education director, on the progress MPS has made recently toward financial stability

Provided by the Wisconsin Department of Public Instruction

In response to concerns about MPS exceeding deadlines set in the district’s corrective action plan, Underly said Monday that DPI “doesn’t see it that way.” She said MPS submitted its certificate of assistance before several other districts.

“The corrective action plan was never about introducing new deadlines,” Underly said. “It was about doing the work that needed to be done, and while we insisted that the district provide a path, what we learned along the way about the depth of the problem was that it took longer than we had hoped.”

Contact Alec Johnson at (262) 875-9469 or [email protected]. Follow him on Twitter at @AlecJohnson12.

More: State urges patience as MPS misses initial submission deadlines in corrective action plan

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