Petersburg CFO flags FY24 audit issues, pushes needs-based FY26 budget and capital plan

Petersburg City Public Schools' chief financial officer Mathias Graywood told the school board on Feb. 5 that auditors have received outstanding documents and that the district is awaiting completion of its fiscal-year 2024 audit while the finalized FY2023 audit is complete.

Graywood told the board: “All documents have been submitted to the auditors, and we're awaiting completion of the FY 2024 audit.” He also presented month-to-date budget figures and projections: “As of 01/31, the FY 2025 budget is $67,000,000. We've spent $33,000,000, and the balance is $34,000,000,” and said overall for all funds the district budgeted about $94,000,000, had spent roughly $44,000,000 and carried a remaining balance of about $50,000,000.

Why it matters: board members raised that the division could face an audit finding tied to a roughly $776,000 negative balance carried into FY25 from FY24 and asked for clearer, more timely reports that the finance team can produce. Graywood and staff said the negative FY24 balance resulted from not returning to the city to request additional budget authority during FY24 and that the auditors (Robinson Farmer Cox) will likely note the matter.

The board discussed several near-term financial items: monitoring salary savings tied to vacancies (Graywood said a concrete estimate was not ready and that data validation was needed), an over-expenditure of about $17,000 in operations and maintenance in a fund that staff will audit and return with details, and food-service and grant fund balances (presented as roughly $27,000,000 budgeted; $11,000,000 spent; about $15,900,000 remaining as of Jan. 31).

Board members including Bernard Lundy Jr. and Halby Miles Sr. pressed for a needs-based FY26 budget, a funded capital improvement plan (CIP) and clearer multi-year projections so the division can request sufficient local support from the city. Board members and staff discussed the locality's limited revenue role (the city supplies a portion of the schools' funding) and the need for stronger local investment to address aging facilities.

Graywood and staff outlined a FY26 budget timeline: the governor's budget (introduced Dec. 18, 2024) sets state revenue expectations; the division plans to present a proposed superintendent's budget on March 19, hold a community public hearing on Feb. 26, and seek final action in late March so the school board can forward the budget to the city council. The board agreed to add a budget work session at the Feb. 19 meeting (4–6 p.m., followed by the regular meeting at 6 p.m.) to allow more time for review and discussion.

Board members also asked about reporting software and the chart of accounts. Staff said the current finance tool (referred to in the meeting as “Bridal,” described as an aging product) can produce required reports but that some custom report-writing and chart-of-account adjustments are needed; staff said collaboration with the city on future system upgrades is possible but not required.

What's next: staff will return with clarified figures on the $776,000 FY24 carryover, the $17,000 over-expenditure in operations and maintenance, and an updated salary-savings projection ahead of the Feb. 19 budget work session. The FY24 audit completion and auditor presentation were scheduled to follow the auditors' work; the board was told auditors will present FY23 audit results on a later date.

Ending: Board members emphasized that moving from a revenue-based to a needs-based budget and funding a CIP will require multi-year planning and city collaboration; they directed staff to provide more detailed, validated financial reports before the next meeting.