Audits: IPS Has $8.4 Million Surplus, Not $30 Million Deficit
Two audits released Tuesday confirm that Indianapolis Public Schools are not facing a $30 million budget deficit.
In March, IPS Superintendent Dr. Lewis Ferebee announced the district actually had a budget surplus of $8.4 million. The audit reports from the State Board of Accounts and the Council of Great City Schools (CGCS) also said the district has $60 million in cash reserves.
The Board of Accounts said the money in the district's general fund was handled properly. However, both reports recommended that the district switch from reporting projected budgets to actual budgets, which show the district's actual revenues and expenses.
The CGCS is recommending that IPS reorganize its Business and Financial Department, establish an audit committee, strengthen internal auditing and switch to a fiscal year of July 1 to July 30. Dr. Ferebee says the district is already taking some of these steps including having quarterly budget updates at school board meetings and creating a budget development committee.
Ferebee says the district is also pursuing the switch to the recommended fiscal year which coincides with the district's business cycle and the State Board of Accounts fiscal year audits.