Detroit Public Schools Community District (DPSCD) announced today that their annual independent financial audit for the 2019-2020 school year found zero findings and zero questioned costs. This is an additional indicator that the District’s reform work is yielding positive results. Earlier this week the District made a historical announcement that they were released from active state oversight by the Financial Review Commission (FRC).
The dramatic transformation of DPSCD finances reflect the development and implementation of strong internal policies, systems and processes over the last three years under the leadership of an empowered, elected School Board and appointed Superintendent, Dr. Nikolai Vitti. Under their leadership, DPSCD has steadily improved its audit and questioned costs track record (see table 1) leading up to today’s zero-zero announcement. As a comparison, while under state emergency management 10 years ago, an audit of the District’s finances revealed 27 findings and $2.8 million in questioned costs.
“I want to thank our School Board for their dedication to increase employee salaries and expand student programming while also staying committed to fiscal responsibility,” said Nikolai Vitti, superintendent, DPSCD. “I also need to thank our CFO, Jeremy Vidito, and his team for accepting higher standards and constantly improving their work each year. And lastly, appreciation needs to be given to our district leaders and principals who have direct access to resources for staying fiscally disciplined, focused and responsible with our resources. We made a commitment to move more nimbly with our funding to meet student and employee needs but to also follow federal and state guidelines. It is a hard balance to strike but our leaders have done it.”
Another indication of DPSCD’s strong financial controls is its establishment of a 10% reserve and the creation of a Capital Projects fund to address urgent facility needs. The District has also maintained a balanced budget for three years in a row while being able to provide the highest starting teacher salary in Michigan. This summer, Detroiters overwhelmingly passed their operating millage as a way to provide local funding for schools as a sign of confidence in the District’s improvement.
“While we recognize the fruits of our labor with the zero-zero audits results, we know the next step in our work is advocating for a more equitable model for Michigan’s school funding,” said Iris Taylor, DPSCD Board of Education Chair. “The current model does not meet the needs of most urban and impoverished school districts statewide and we will be pressing for change in the new year.”
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