Seattle Public Schools | Budget & Finance

Financial Management and Fiscal Integrity

This page contains key information related to the fiscal and financial management of Seattle Public Schools, including updates on progress in implementing recommendations made by Moss Adams Advisory Services in the financial operations and information systems audit completed in April 2003, and by the Committee for Fiscal Integrity in its June 4, 2003 report.

Fiscal Integrity Committee Resolution - June 2004ity Committee Resolution - June 2004
The Committee for Fiscal Integrity, a group of citizen experts appointed by the School Board to help guide implementation of the Moss Adams audit recommendations, recently met to consider the June, 2004 Fiscal Integrity Progress Report. The Committee determined that it had fulfilled the charge given by the School Board, and passed a resolution to disband. In its' resolution, the committee concluded that, "although considerable work remains to be done, we believe the District is well on its way toward restoring its fiscal integrity." The committee cited the hiring of senior financial managers, imminent purchase of new technology systems to enhance budget processes, and clear indicators that District leadership is in the "process of establishing a conservative culture of financial management while maintaining its commitment to excellent schools for all children within the system."

Fiscal Integrity Progress Report - June 2004

In June 2004, a progress report on implementation of recommendations made in the Moss Adams report was presented to the Fiscal Integrity Committee. The report outlines that the majority of the high priority recommendations have been implemented and fiscal integrity remains a District priority. Key actions include hiring of key positions in the Finance department and improved reporting and budget monitoring. The 2004-2005 budget was developed utilizing conservative assumptions and lessons learned from close monitoring of expenditures and revenues. The June 2004 Fiscal Integrity Progress Report is available on this Web site.

Fiscal Integrity Progress Report - October 1, 2003

On October 1, Mike Bigelow, who is directing the implementation of recommendations contained in the Moss Adams' "Financial Operations and Information Systems Audit," delivered a progress report to the Committee for Fiscal Integrity, a community-based group of leading business and finance executives. Mr. Bigelow reported that work plans have been written for 136 recommendations, complete with timelines and assigned accountabilities. Fourteen of the recommendations are fully implemented. Substantial progress has been made on an additional twelve, and work on many others has begun. Among the actions taken to implement the recommendations, the District has appointed a permanent Finance Director, hired a Budget Manager, adopted a conservative operating budget for 2003-2004, and adopted a series of fiscal board policies. Substantial progress has been made to improve forecasting and monitoring of enrollment projections, monitoring of district reveneus, and financial reporting at all levels.

Report from The Committee for Fiscal Integrity June 4, 2003

The Committee for Fiscal Integrity presented its report and recommendations to the School Board on June 4. In its report, the Committee said that the District is positioned to fully recover from the financial crisis. The Committee stated that with strong leadership from the Board and Superintendent that the District will soon regain its financial health without faltering in its commitment to excellent schools for all of Seattle's children. The Committee recommended that the 2003-2004 budget be based on conservative assumptions; that the work plan for implementing the recommendations in the Moss Adams report be developed quickly; that the Board and senior management closely monitor the implementation plan; that a full-time internal auditor and a volunteer Audit and Finance Task force be appointed; and that improved financial business practices be accompanied by a reform of the District's organizational culture. The complete report is available by clicking here.

Management Response to Financial Operations
and Information Systems Audit
Presented May 1, 2003

On May 1, Seattle Public Schools' Executive Management Team presented the "Management Response to the Financial Operations and Information Systems Audit" to the Committee for Fiscal Integrity and delivered copies to School Board members. A presentation on the Management Response will also be made to the School Board at its regular legislative session on May 7. With very few exceptions, the District agrees with the observations made by Moss Adams in its audit, and currently is in the process of implementing many of its recommendations. There is broad agreement between the District and Moss Adams about the nature of the District's financial problems, the underlying causes, and the general approach we must take to correct them. To review the complete Management Response, please click here. A copy of the presentation made by the Executive Management Team to the Committee is also available - please click here.

Independent Audit of Seattle Public Schools
Presented April 16, 2003

An independent audit of Seattle Public Schools was presented to the School Board at its April 16 meeting. The audit, prepared by Moss Adams Advisory Services, was commissioned to evaluate the District's budget shortfall and its causes; to review the integration of business processes and information systems; and to analyze internal controls and reporting. The goal of the audit was to answer three questions: how the budget problem happened; why senior management and the School Board did not learn about it sooner than they did; and how the District could ensure that such problems never happen again. The detailed audit is available by clicking here. A copy of the presentation made by Moss Adams to the School Board is also available - please click here.

Washington State House of Representatives
Report of an Evaluation of the Seattle Public Schools
November 15, 1990
By CRESAP

The report is...a "blueprint for action" that outlines steps that can be taken by the District, the State Legislature, and the Seattle Community in helping the Seattle Public Schools achieve their potential. Click on the links for a copy of the report and its appendices.