Independent assessment finds gaps in Petersburg schools’ financial controls; leadership outlines multi‑year fix plan

An independent financial controls assessment released at the Petersburg City Public Schools board meeting found gaps across the division’s budgeting, procurement, payroll and human-resources controls and recommended a sequence of formal policies, staffing changes and electronic systems to reduce risk.

The assessment, conducted by Alvarez & Marsal and summarized by consultant Michael Potter, was commissioned in July 2024 at the request of the district’s interim leadership and the Virginia Department of Education. Potter told the board the engagement focused on “document[ing] and understand[ing] the control environment and to test adherence to the internal controls,” not on auditing the district’s financial statements or investigating personnel.

The report — posted to the district’s BoardDocs and described by Potter as an executive summary plus a 55-page detailed assessment — identified recurring problems: limited formal policies or manuals for key processes; uneven adherence where policies existed; a lack of long-term…