SUMMARY

This financial information was submitted on time for 325 school districts (77.2 percent), 23 independent charter schools (82.1 percent), and 308 Parental Choice program schools and SNSP schools (89.5 percent). However, the FY 2022-23 financial information for 68 school districts, 5 independent charter schools, and 10 Parental Choice program schools and SNSP schools was submitted 29 calendar days or more late.

The FY 2022-23 audited financial statements and related audit findings for Milwaukee Public Schools (MPS), which were due on December 15, 2023, were submitted on December 20, 2024, and were the latest among all 421 school districts. The FY 2023-24 audited financial statements and related audit findings for MPS had not yet been submitted to DPI as of July 31, 2025, which was 228 calendar days after the December 15, 2024 deadline.

We found that DPI’s policies did not require DPI to contact school districts, Parental Choice program schools, or SNSP schools whose audited financial statements and related audit findings were not submitted on time. We also found DPI did not establish policies to contact independent charter schools if their audited financial statements and related audit findings were submitted late. We recommend that DPI improve its policies.

For FY 2022-23 financial information submitted to DPI for school districts, we found it took DPI:

• an average of 87.4 calendar days to complete its review for 325 school districts with on-time financial information, including 74.7 calendar days during which DPI had the financial information but did not review it; and
• an average of 57.4 calendar days to complete its review for 94 of the 96 school districts with late financial information, including 30.1 calendar days during which DPI had the financial information but did not review it. On average, the late financial information was submitted 62.1 calendar days late.

For FY 2022-23 financial information submitted to DPI for independent charter schools, we found it took DPI:

• an average of 82.0 calendar days to complete its review of the information for 21 of the 23 independent charter schools with on-time financial information, including 56.0 calendar days during which DPI had the financial information but did not review it; and
• an average of 68.8 calendar days to complete its review of the information for 5 independent charter schools with late financial information, including 29.8 calendar days during which DPI had the financial information but did not review it. On average, the late financial information was submitted 56.4 calendar days late.

Because DPI did not maintain such information for Parental Choice program schools and SNSP schools, we could not assess the timeliness of DPI’s review for FY 2022-23 financial information.

We recommend that DPI modify or establish policies to specify when it will begin and complete its review of submitted financial information.

A CPA firm may provide an unmodified or modified opinion on the educational entity’s financial statements.

The FY 2022-23 financial statements for 419 school districts (99.5 percent), 27 independent charter schools (96.4 percent), and 147 Parental Choice program schools and SNSP schools (42.9 percent) received unmodified opinions.

The 196 modified opinions for Parental Choice program schools and SNSP schools pertained to the schools not having maintained documentation of assets, such as buildings and equipment, that had been purchased before a school began to participate in the program. However, administrative rules indicate modified opinions pertaining to this issue are acceptable.

CPA firms may identify three types of issues in audits of financial statements:

The FY 2022-23 financial information resulted in the identification of material weaknesses for 182 school districts, 9 independent charter schools, and 136 Parental Choice program schools and SNSP schools.

Material weaknesses, significant deficiencies, and statutory noncompliance issues may be associated with certain types of findings. The most common types of financial reporting findings issued in FY 2022-23 related to preparation of required financial reports, segregation of duties, and audit adjustments. Some findings reported in FY 2022-23 financial information were repeated from prior years, including findings for 262 school districts that had been reported for 4 consecutive years and for 3 independent charter schools that had been reported for 3 consecutive years.

With the exception of cash reconciliation findings for school districts, we found that DPI’s policies did not specify when DPI should contact school districts about certain other types of findings, including repeat findings. We found that DPI’s policies did not specify when DPI should contact school districts or the types of information that DPI should convey or request, and did not require DPI to take particular action as a result of its reviews. We found DPI did not establish such policies related to independent charter schools. DPI’s policies for Parental Choice program schools and SNSP schools did not consistently specify when to contact a school if certain types of findings are indicated in a school’s audited financial statements or related information. We recommend that DPI improve its policies.

Please see the complete list of recommendations on our website.