Strengthening Fiscal Accountability and Financial Integrity in Dayton’s Schools
How Board-Approved Reforms Restored Stability and Transparency
In the mid-2010s, Dayton Public Schools faced serious financial distress. Years of mismanagement, declining reserves, and repeated state audit findings left the district vulnerable. The Board of Education acted decisively, introducing sweeping financial and operational reforms to rebuild fiscal integrity, restore public confidence, and prevent state intervention.
Table of Contents
- Restoring Fiscal Discipline
- Improving Audits and Compliance
- Building Healthy Cash Reserves
- Modernizing Financial Systems
- Public Accountability and Open Budgeting
- Frequently Asked Questions
<a id=”discipline”></a>Restoring Fiscal Discipline
The Board recognized that Dayton’s financial problems stemmed not from lack of funding but from lack of oversight. By 2014, the district’s audit reports cited six major deficiencies each year. New fiscal controls were adopted that required every department to follow transparent procurement, competitive bidding, and detailed tracking of expenditures.
Within two years, the number of state audit findings dropped from six to one, with that single issue corrected before the audit was finalized. This success proved that strong governance and consistent Board review could reverse decades of poor accounting practices.
<a id=”audits”></a>Improving Audits and Compliance
The Board made compliance a central focus of reform. Working closely with the Ohio Auditor of State, Dayton implemented new internal review procedures and created an independent auditing structure. This system ensured every financial activity was cross-checked for accuracy and compliance with state standards.
These efforts produced measurable results. The district received an Unmodified Opinion, the highest possible rating from the Ohio Auditor of State, and earned the Auditor of State Award with Distinction for the first time in its history.
<a id=”reserves”></a>Building Healthy Cash Reserves
For years, Dayton’s cash reserves had fallen below the 10-percent threshold recommended by rating agencies. The Board prioritized rebuilding reserves to protect against funding volatility.
Through strict cost controls, energy savings, and responsible bond management, Dayton restored its reserves above 10 percent by 2016. This improvement helped stabilize the district’s credit rating and demonstrated that the Board’s focus on long-term sustainability was working.
Next: Financial System Modernization ↓
<a id=”systems”></a>Modernizing Financial Systems
The Board’s financial modernization plan replaced outdated manual processes with modern digital systems. The district implemented an upgraded accounting platform, launched an online purchasing and bidding portal for vendors, and standardized reporting formats.
This digital transformation not only improved efficiency but also eliminated duplication and reduced human error. As a result, annual reporting and forecasting became more accurate, and the district saved tens of thousands of dollars by reducing reliance on outside consultants.
See Related: Technology Upgrades and 1:1 Student Devices in Article 5 →
<a id=”accountability”></a>Public Accountability and Open Budgeting
Accountability to the public was at the heart of every financial reform. The Board required that all budgets, five-year forecasts, and spending assumptions be made available online for the community to review.
Dayton was among the first urban districts in Ohio to publish detailed financial data through open-access portals. These actions increased transparency, improved public engagement, and built confidence among taxpayers that their dollars were being used responsibly.
Together, these Board-approved reforms formed the foundation for Dayton’s recovery, protecting the district from fiscal crisis while supporting investments in technology, safety, and student learning.
Continue to Governance and Policy Reforms in Article 3 →
<a id=”faq”></a>Frequently Asked Questions
What were the goals of the fiscal reforms?
To restore trust, eliminate audit deficiencies, and ensure every dollar was spent responsibly under Board oversight.
How were financial improvements measured?
By reducing audit findings, maintaining strong cash reserves, earning top ratings from auditors, and increasing transparency.
What tools improved financial management?
A modern accounting system, an online vendor portal, and open access to financial data all played major roles.
Did these changes save money?
Yes. The Board’s cost-control measures, refinancing, and energy-efficiency programs saved millions over several years.
How did transparency help the community?
By allowing taxpayers to see exactly how funds were spent, the Board rebuilt confidence and encouraged public participation.