Hamtramck board authorizes state aid note as district audit remains incomplete

Hamtramck School District trustees voted unanimously to authorize a state school aid note to shore up operating cash while the district completes a delayed annual audit.

District administrators told the board the audit, which is required by the state to be completed by Nov. 1, has not been finished, and the state is currently holding the district's November, December and January aid payments. An administrator said the district proposed a note sized at $15,000,000 "because that's what the state is currently holding." The board approved the authorization by voice vote, recorded in the meeting as 7 ayes, 0 nays.

Why it matters: school districts rely on monthly state aid to cover payroll and other operating expenses. Without the audit filed the state places payments on hold; the note is intended to provide short-term liquidity while staff complete the audit and address internal controls.

Administrator's explanation and timeline

At the meeting an administrator outlined the process: the audit must be completed before the district can submit financial data that produces the state's funding reports. The administrator said staff turnover and gaps in internal controls delayed the audit work: "We've had a lot of staff changeover," they said, and the district has been relying on consultants while recruiting long-term accounting staff. The administrator estimated roughly 90% of the audit work was complete and said the district hoped to turn the audit in "this week" so auditors could return the finished audit within a few weeks.

Board concerns and corrective steps

Board members pressed for clarity on root causes and corrective actions. Questions focused on staffing stability in payroll and finance (payroll was described as representing 85% of district expenditures) and whether the district had a plan to prevent repeat delays. The administrator recommended training and hiring to restore capacity and said the district had recently engaged a CPA consultant with school accounting experience while it searches for a permanent hire.

Community reaction

In public comment, teacher Therese Comer told the board she and the teachers union were "deeply concerned" about repeated late audits (citing previous late audits in 2023 and 2024), the district's loss of funding after a failed 2023 millage and what she described as growing central-office costs and ongoing litigation. "This is deeply concerning," Comer said, urging the board to ask more questions and exercise stronger oversight.

What the board approved and next steps

The resolution authorized district leadership to issue a state school aid note for operations if needed to bridge cash-flow gaps while the audit is completed and state payments resume. The administrator acknowledged the note will carry interest and said the district's preference is not to draw the funds if the audit can be completed and state aid restored in time. The board recorded the motion as carried, 7–0. Administrators said they will continue to work with auditors and report back to the board on the audit completion and whether the district ultimately needs to draw on the note.