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CSRC accepts annual financial scorecard; auditors report mostly positive results across charter schools
Summary
The Charter School Review Committee accepted the annual financial scorecard and audit reviews from ML Tharpe and Associates, which found most city charter schools in generally sound financial condition but flagged isolated reporting and internal-control issues.
The Charter School Review Committee accepted the annual financial scorecard and audit reviews prepared by ML Tharpe and Associates that cover financial audits and compliance for the City of Milwaukee’s charter schools.
ML Tharpe’s presenter walked the committee through audit highlights school-by-school. Key findings included generally improved charter revenues across many schools, timely completion of most audits, and overall solid cash positions, with specific items to monitor such as the expiration of ESSER funding and isolated internal-control or reporting weaknesses at some schools.
Selected findings summarized in the presentation:
- Downtown Montessori Academy: Reported a $16,000 gain for 2024 after a larger prior-year deficit. Yearly revenue was about $3.34 million; year-end cash approximately $827,000. Auditors noted timely completion and no significant findings, though a few monthly reports had been late and extensions were granted.
- Central City Cyber School: Revenues rose by about $1.4 million (including a $608,000 charter-revenue increase and a $710,000 DPI-related grant). Year-end cash was nearly $2,000,000; current ratio improved to 7.8. Auditors made an adjustment to prior-year accounts payable; no current-year internal control or compliance findings.
- DLH Academy: Revenues decreased modestly; year-end cash approximately $1.8 million; current ratio strong at 22:1. No significant audit findings.
- Milwaukee Academy of Science (MAS): Reported a surplus near $6.5 million with significant grant or stabilization funding contributing to revenue; year-end operating cash roughly $6.8 million. The audit was submitted late and the auditor noted a material weakness in internal control related to account reconciliations and year-end closing adjustments; management provided a corrective-action plan and the CSRC staff will monitor monthly reconciliations.
- Howard Fuller Collegiate Academy: Revenue fell from prior year largely because a one-time donated building inflated prior-year figures. The school reported restricted cash and ongoing construction-related current liabilities; audit was late due to management turnover but contained no significant findings.
- Milwaukee Math and Science Academy (MMSA): Returned to a modest surplus after prior deficits; audit on time and no significant findings. A prior-year compliance finding was corrected in the current year.
- Escuela Verde (part of the TransCenter for Youth): Reported a $379,000 surplus on $2.3 million of revenue and a strong consolidated position for its umbrella organization; audits completed on time with no significant findings.
ML Tharpe’s presenter and committee members discussed fiscal risks tied to the expiration of ESSER funding, noting many schools had relied on ESSER over several years and that adjustments to budgets and close monitoring will be important. Committee members suggested future scorecards include clearer tables of average cost per FTE, pupil membership counts (September and January), and a categorized breakdown of revenue sources (for example, distinguishing ongoing charter revenue from expiring grants). The committee voted to accept the ML Tharpe annual financial scorecard.
