MPS auditors issue unmodified opinion on FY2023 financials, identify material weaknesses; board accepts audit and orders quarterly progress reports

Baker Tilly presented Milwaukee Public Schools' (MPS) fiscal year 2023 audit to the district's Committee on Accountability, Finance, and Personnel, reporting unmodified opinions on the financial statements and the district's two pension plans while documenting federal, state and internal-control findings.

The auditors told the committee they issued “unmodified opinions” — the highest level of assurance — for the annual comprehensive financial report and for the pension plans, but also cited two federal findings related to grant compliance, one state finding, and multiple material weaknesses in financial processes.

Why it matters: An unmodified opinion means the FY2023 financial statements were free of material misstatement in the auditors’ judgment. At the same time, Baker Tilly flagged weaknesses that the board, administration and the public must monitor to restore timely, auditable reporting and controls.

Baker Tilly summary and key findings

Wendy Unger, the engagement principal for Baker Tilly, and Michelle Walters, senior manager, said the single-audit process was required because MPS expended over the federal threshold for grant funding. The auditors listed five major federal programs and seven state programs reviewed for compliance. The audit report showed: - Two federal findings: one on equipment and real property management for ESSER-funded purchases (incomplete capital-asset records in sampled items) and one related to Medicaid reporting where supporting documentation did not match a reported ratio (the ratio was corrected going forward). - One state finding in the AGR program caused by four…