Return to Headlines

DPSCD Receives Clean Audit Report for the 2019 Fiscal Year

- DPS/DPSCD receives clean audit during annual financial review for FY19

- The District’s FY19 budget was balanced with a $6M surplus

- Third consecutive year of a balanced budget under local control


The annual financial audit of Detroit Public Schools (DPSCD) and Detroit Public Schools Community District (DPSCD) shows that both entities have demonstrated improvements in financial management and processes. While under a locally elected and empowered seven-member board with an appointed Superintendent the District continues to show improvement in financial controls.

“We have intentionally worked to not only build stronger systems and processes to ensure the District is financially solid but that we are also strategically using our funds to drive reform. Many organizations that have previously experienced a lack of financial controls will slow financial transactions to a minimum to reduce risk. We have done the opposite and functioned with a sense of urgency to maximize resources to support our employees and students through opening new schools, increasing salaries, reducing contracted services for full time employees, increased professional development, and school programming,” said Nikolai Vitti, DPSCD, Superintendent. “We are now positioned to exit active Financial Review Commission (FRC) oversight and regain financial autonomy from the state.”

In the last year of emergency management, 2016, the District had 15 audit findings, 10 of which were material weaknesses where the District’s financial reports were potentially misstated. This year there were 2 findings, none of which were material weaknesses. 

Board Chair Iris Taylor said, “This is the third consecutive year of a balanced budget, we are meeting the requirements of the Financial Review Commission and will continue to do so. One of our primary roles as a Board is financial oversight and transparency. We continue to demonstrate that local control through an elected and empowered board was the right direction to restore the strength of public education in Detroit.”

The FRC is responsible for oversight of Detroit Public Schools and Detroit Public Schools Community District, pursuant to the Michigan Financial Review Commission Act (Public Act 182 of 2016). It ensures the District is meeting statutory requirements, reviews and approves their budgets, and establishes programs and requirements for prudent fiscal management.

The District is well on its way to meeting the requirements to exit active FRC oversight by maintaining a balanced budget for three consecutive years, having a clean audit, and implementing required financial practices.