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Milwaukee Public Schools documents sent to DPI indicate inexperienced, understaffed finance office
Embattled Milwaukee Public Schools submitted an updated draft Corrective Action Plan to the Wisconsin Department of Public Instruction on Tuesday, detailing how the district will address expired financial data and compliance issues.
District leaders hope the plan will free up nearly $16 million in state funds held up after MPS failed to produce audited financial results.
“We are committed to resolving the issues related to the delay in submitting financial data,” board chair Marva Herndon said in a written statement. “In addition to submitting the Corrective Action Plan to DPI, we are actively analyzing the root causes of this situation and are committed to keeping our families, employees and the public informed as we progress.”
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The 26-page draft plan, obtained by WPR, paints a picture of an inexperienced and understaffed finance office that used an outdated accounting system to manage the state’s largest school district.
The report states that 12 vacancies in the finance department need to be filled by September 26th. The MPS software system, BusinessPlus, needs to be updated so that it can convert financial data to DPI’s WISEdata system.
Throughout the report, the MPS cites the inability to access WISEdata as a reason for not meeting deadlines.
A chart of current staffing in the MPS finance office shows that CFO Martha Kreitzman is still employed, but there are three vacant positions – data support analysis, project management specialist and controller – directly under her.
The plan indicates Kreitzman will likely be replaced.
Two of the three positions that would report to the controller are also vacant.
Report outlines several issues and challenges
According to the report, MPS missed four deadlines to submit financial information to the state.
The first was an external audit of Baker Tilly scheduled for September 15, 2023.
According to the report, the district finance team tasked with completing this “has limited experience and it is unclear whether all steps to perform the necessary tasks are documented in detailed standard operating procedures.”
The report also states that the MPS software, BusinessPlus, is not integrated with DPI’s WISEdata system.
“The finance team is using numerous Excel spreadsheets that are outside the BusinessPlus system to produce financial information, increasing the risk of data errors occurring,” says the report.
The MPS missed yet another deadline to submit its 2023 annual report to the state, which was due on September 22.
Once again, the explanation was an inexperienced finance team and the BusinessPlus system not being integrated with DPI’s WISEdata system.
The audited financials were due to be delivered to the DPI on December 15. According to the MPS, this has not been completed due to “the lack of experience of the existing finance team, the risk of errors is high and this will mean that greater reliance will be placed on the external audit firm to ensure the accuracy of the data to be submitted to DPI.”
A fourth deadline was also missed on December 15, when certified budget data was supposed to be sent to the state. MPS said the data relied on an individual with historical knowledge to perform the task, but who had not worked with WISEdata reports.
The draft Corrective Action Plan presented to DPI sets the direction for MPS to make improvements over the next year.
All expired financial data must be submitted to DPI by September 26, according to the report. MPS finance staff have 20 days to receive additional training.
Matt Chason, who directs the district’s office of accountability and efficiency, will serve as MPS project manager. Baker Tilly, internal auditor, newly hired consultant Todd Gray and DPI will also oversee the process.
Governor Tony Evers also requested two external audits of district operations, processes and procedures, as well as an audit of instructional policies and methodologies. This could include a review of classroom learning environments, professional development policies and practices to support educators, among other areas.
On Thursday, the MPS Board of Directors is expected to approve the $1.47 billion budget for 2024-25.
Board Vice President Jilly Gokalgandhi said the board will take public comment before the vote.
“First and foremost, our top priorities are our students, families and staff,” Gokalgandhi said in a statement. “As part of our ongoing commitment to transparency and accountability, we look forward to hearing from our valued stakeholders.”
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