MPS Tackles Financial Reporting Woes, Aims for Thanksgiving Deadline

Milwaukee Public Schools (MPS) is making significant progress in resolving its financial reporting issues, according to state Department of Public Instruction (DPI) and MPS officials. The district is working diligently to submit its 2023 reports by Thanksgiving, a timeline that DPI state superintendent Jill Underly describes as "cautiously optimistic." This update comes after months of upheaval, including the departure of key MPS leaders, as the district works to restore trust and rebuild its finance office.

Restoring Trust and Accountability in MPS Finances

Addressing the Reporting Backlog

MPS has set ambitious goals to address its financial reporting backlog. The district aims to submit its fiscal year 2024 reports this winter, a timeline that would be months ahead of when it had submitted its fiscal year 2022 reports in late March and early April of 2023. DPI's Underly expressed confidence in the district's new leadership, including interim superintendent Eduardo Galvan and new chief financial officer, Aycha Sawa, who have pledged to meet the Thanksgiving and winter deadlines.

Rebuilding the Finance Office

The MPS Office of Finance is undergoing a significant overhaul, with Sawa leading the charge since her arrival in September. She has described a "steep learning curve," particularly with the comptroller position still vacant. Sawa's top priorities include rebuilding a sound internal control system, establishing timelines, creating a calendar of deadlines, streamlining the district's software system, and evaluating department staffing.

Addressing Longstanding Issues

The financial reporting issues at MPS have been years in the making, stemming from staffing and turnover challenges that led to the deterioration of certain processes over time. Sawa has acknowledged that further adjustments in positions, job descriptions, and department rightsizing may be necessary to address the root causes of the problems.

Collaboration with State Authorities

The DPI has been actively involved in supporting MPS throughout this process, with assistant state superintendent Tricia Collins praising the district's progress in filling finance office vacancies since July. The state has also worked with MPS to update its policies, allowing the district to make "substantial progress" in addressing the financial reporting challenges.

Corrective Action Plan and Accountability

After the financial reporting failures came to light in May, Governor Tony Evers demanded an audit of the district's operations and academic practices, and MPS was required to submit a corrective action plan to resolve the issues. While there have been concerns about MPS meeting the deadlines set in the corrective action plan, DPI's Underly has emphasized that the plan was not about instituting new deadlines, but rather about ensuring the required work is completed.

Rebuilding Trust and Confidence

Galvan, the interim superintendent, has acknowledged that the district's work is not done, and that it will be a long process to restore trust in the Office of Finance and the district as a whole. The district's efforts to address the financial reporting issues and rebuild its finance office are crucial steps in regaining the confidence of the community, state authorities, and the public.