More than a year before the Department of Public Instruction sent a letter to Milwaukee Public Schools Superintendent Dr. Keith Posley, calling out the district for being more than 8 months late on delivering financial reports to the state, an MPS Board committee accepted an independent audit which identified several “material weaknesses” in the district’s financial management.District records and committee meeting video archives show the Milwaukee Board of School Directors’ Committee on Accountability, Finance, and Personnel voted unanimously to accept the Baker Tilly Reporting and Insights 2022 audit on May 18, 2023.”On the report related to internal control over financial reporting, there were three material weaknesses noted,” Baker Tilly Partner Wendy Unger told the group.Among the weaknesses was an item listed as the financial statement close process.”Management has not prepared financial statements that are in conformity with generally accepted accounting principles or the schedule of expenditures of federal and state awards that is in conformance with the applicable federal or state requirements. In addition, material misstatements in the general ledger were identified during the financial audit and subsequently corrected upon being questioned as part of the audit process,” the 31-page audit noted.READ THE 2022 AUDIT ON MPS FINANCIAL REPORTINGFollowing a 45-minute presentation and approximately 20 minutes of questions from directors Marva Herndon, Darryl Jackson, Henry Leonard and Missy Zombor, the committee of four voted unanimously to accept the audit and its results.The move that night would nearly one year to the date prior to Department of Public Instruction Deputy State Superintendent John Johnson drafting a letter to Posely blasting the district for late reporting of financial information to the state.”Not only are many required reports incredibly late, MPS has demonstrated a pattern of submitting incomplete data, as well as requesting data changes without having the required documentation for the request,” Johnson wrote in the May 24, 2024 letter. READ THE DPI LETTER TO DR. POSLEYThe delayed reports put much-needed funding for the district in jeopardy.At the same time the MPS board had in its possession the 2022 audit and the district was months late on financial reporting to DPI, district leaders publicly requested Milwaukee residents to vote for a $252 million referendum to support the district.Voters narrowly approved the referendum, which also raised property taxes for Milwaukee homeowners, in the April election.At a special MPS Board meeting on Monday, June 3, scores of parents, educators, and community stakeholders scolded Posley and the board for the revelation. Many said they would not have voted for the referendum had they known of the district’s internal financial woes.State Representative LaKeshia Myers called for a federal investigation.”While the latest news of fiscal mismanagement and loss of federal Head Start funding were appalling, so has been the mistreatment of Milwaukee taxpayers, who were hoodwinked into passing a $252 Million dollar referendum using inaccurate information,” Rep. Myers said in a statement.After more than 3 hours of public comment and 5 hours of a closed-door executive session, the board, let by Herndon, its president, unanimously accepted Posley’s resignation. Rep. Myers said blame goes beyond the superintendent’s position.”While many look to the superintendent to hold him accountable for MPS’ state of affairs, he is not alone,” Myers continued, “There is blame to be shared by MPS Chief Financial Officer, Martha Kreitzman, the Milwaukee Public Schools Board of Directors, and the Wisconsin Department of Public Instruction.”Kreitzman, Herndon and Posley were all in attendance during the 2023 meeting to hear the audit results.This is a developing story and will be updated.
More than a year before the Department of Public Instruction sent a letter to Milwaukee Public Schools Superintendent Dr. Keith Posley, calling out the district for being more than 8 months late on delivering financial reports to the state, an MPS Board committee accepted an independent audit which identified several “material weaknesses” in the district’s financial management.
District records and committee meeting video archives show the Milwaukee Board of School Directors’ Committee on Accountability, Finance, and Personnel voted unanimously to accept the Baker Tilly Reporting and Insights 2022 audit on May 18, 2023.
“On the report related to internal control over financial reporting, there were three material weaknesses noted,” Baker Tilly Partner Wendy Unger told the group.
Among the weaknesses was an item listed as the financial statement close process.
“Management has not prepared financial statements that are in conformity with generally accepted accounting principles or the schedule of expenditures of federal and state awards that is in conformance with the applicable federal or state requirements. In addition, material misstatements in the general ledger were identified during the financial audit and subsequently corrected upon being questioned as part of the audit process,” the 31-page audit noted.
READ THE 2022 AUDIT ON MPS FINANCIAL REPORTING
Following a 45-minute presentation and approximately 20 minutes of questions from directors Marva Herndon, Darryl Jackson, Henry Leonard and Missy Zombor, the committee of four voted unanimously to accept the audit and its results.
The move that night would nearly one year to the date prior to Department of Public Instruction Deputy State Superintendent John Johnson drafting a letter to Posely blasting the district for late reporting of financial information to the state.
“Not only are many required reports incredibly late, MPS has demonstrated a pattern of submitting incomplete data, as well as requesting data changes without having the required documentation for the request,” Johnson wrote in the May 24, 2024 letter.
READ THE DPI LETTER TO DR. POSLEY
The delayed reports put much-needed funding for the district in jeopardy.
At the same time the MPS board had in its possession the 2022 audit and the district was months late on financial reporting to DPI, district leaders publicly requested Milwaukee residents to vote for a $252 million referendum to support the district.
Voters narrowly approved the referendum, which also raised property taxes for Milwaukee homeowners, in the April election.
At a special MPS Board meeting on Monday, June 3, scores of parents, educators, and community stakeholders scolded Posley and the board for the revelation. Many said they would not have voted for the referendum had they known of the district’s internal financial woes.
State Representative LaKeshia Myers called for a federal investigation.
“While the latest news of fiscal mismanagement and loss of federal Head Start funding were appalling, so has been the mistreatment of Milwaukee taxpayers, who were hoodwinked into passing a $252 Million dollar referendum using inaccurate information,” Rep. Myers said in a statement.
After more than 3 hours of public comment and 5 hours of a closed-door executive session, the board, let by Herndon, its president, unanimously accepted Posley’s resignation.
Rep. Myers said blame goes beyond the superintendent’s position.
“While many look to the superintendent to hold him accountable for MPS’ state of affairs, he is not alone,” Myers continued, “There is blame to be shared by MPS Chief Financial Officer, Martha Kreitzman, the Milwaukee Public Schools Board of Directors, and the Wisconsin Department of Public Instruction.”
Kreitzman, Herndon and Posley were all in attendance during the 2023 meeting to hear the audit results.
This is a developing story and will be updated.
