Executive Summary
For Immediate Release:
February 14, 2012
Contact: Harvey Rice
215-686-6696
Butkovitz Audit Questions Financial Viability
of Philadelphia School District
Conditions found in the audit “raise substantial doubt
about its ability to continue as a going concern”
Click here to view Independent Audit
Click here to view Transmittal Letter
(PHILADELPHIA) – City Controller Alan Butkovitz today provided the School District of Philadelphia with his Office’s Independent Auditor’s Report of the School District’s basic financial statements for the fiscal year that ended June 30, 2011.
While the audit concludes, “that the School District’s 2011 basic financial statements are presented fairly, in all material respects, in conformity with accounting principles generally accepted in the United States of America,” it also includes “an explanatory paragraph regarding the School District’s ability to continue as a going concern.”
The explanatory paragraph states, ” the School District has experienced continued operating funds losses, is projecting significant budget shortfalls for fiscal years 2012 and 2013, and is uncertain about its ability to achieve cost savings and obtain additional funding to overcome these budget shortfalls. These conditions raise substantial doubt about its ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.”
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