In light of JPCS’ $188 million budget deficit, consulting firm Plante Moran independently assessed the district. During their Feb. 25 meeting, the Audit and Risk Management Committee reviewed a draft version of the audit before it will be presented at the district’s next board meeting.
“Budget Decisions often lack formal governance, structure, and collective review,” Plante Moran said after reviewing fiscal years 2022-25.
The firm found that the district lacked accountability because of its decentralization and needs better financial oversight. JCPS was often overspending its revenue as well as using one-time funding, such as COVID-19 grants, to cover consistent expenses.
Plante Moran identified eight top-priority issues for the district, such as budget oversight and roles determining who was in charge not being properly designated. JCPS also lacked an official framework to manage budget decisions and strategy, and the school board did not have a full view of the district’s financial performance or the complete context of spending decisions. Data-based evaluation and multiyear forecasting were not consistently utilized when making budgetary decisions or developing it further, and new allocations sometimes lacked a sustainable source of funding.
“The key takeaway [is that] really by strengthening budgeting, purchasing and reporting practices and reinforcing them with clear documentation and governance structures, JCPS would be better positioned to manage financial risk and support more sustainable decision making over time,” said Caroline Main with Plante Moran.
The audit will be reviewed at the JCPS Board Meeting on March 10.
