Financial Recovery Plan
Consistent with the School District Financial Recovery Act 141 of 2012, the Duquesne City School District Financial Recovery Plan was issued on February 11, 2013 and implemented on April 2, 2013. On November 12, 2020, a Fourth Amendment was approved by the Pennsylvania Department of Education and final approval was granted by the Allegheny County Court of Common Pleas on November 16, 2020. The Fourth Amendment provides visionary, strategic, and operational goals and objectives for continuous school improvement and sustainability – academically and financially – now and in the future.
Status of Continuing Operations
The Duquesne City School District (DCSD) operates the Duquesne K-8 School. The primary goal of the School District is to be recognized as a K-8 “turnaround school” and a model for rebuilding educational programs, services, and activities in a financially distressed school district.
During the past five years, visionary and strategic actions have contributed to extraordinary progress: a new Chief School Administrator and Business Manager; the reconfiguration and return of 7th and 8th grades approved by Pennsylvania Department of Education; selected to join the League of Innovative Schools; newly aligned administrative leadership team; adoption of new curricula aligned with state standards; improved accountability and fiscal management; acceptable and effective use of all federal funds; continuous recruitment efforts of cyber/charter and brick and mortar charter school students; a health and safety plan to manage the pandemic/post-pandemic era for the safety and general welfare of all students and staff; an education foundation; and expanded school community collaboration.
There is a concerted effort for continuous school improvement of curriculum, instruction, and assessment. Each component is an integral part of the Duquesne City delivery system for educational programs and services based on collaborative and professional working relationships. Financial sustainability, transparency, and accountability, including updates of projections as part of the Annual Budget planning and approval process, are also an integral part of continuous efforts for school improvement.
Every fiscal quarter since 2013-2014, the Duquesne City School District has been in good financial standing. There have been no unpaid or contested invoices; and, all payroll, benefit expenditures, debt service obligations and tuition payments have been made in a timely manner.
As of the June 30, 2022 Annual Financial Report and Local Audit, there is no threatened or pending litigation against Duquesne City School District.
Petition for Extension of Receivership and Court-Appointed Receiver
On March 23, 2022, upon consideration of the Petition for Extension of Receivership and Reappointment of Receiver filed by the Secretary of Education of the Commonwealth of Pennsylvania pursuant to Section 675-A of the Public School Code of 1949, 24 P.S. § 6-675-A, The Honorable Judge Alan Hertzberg of the Court of Common Pleas of Allegheny County, granted the Petition period of three years beginning on March 31, 2022, and ending on April 1, 2025, subject to further extension under section 675-A(b) of the Public School Code, 24 P.S. § 6-675-A(b).
Further, the Court ordered that Dr. William H. Kerr be re-appointed to serve as Receiver for the Duquesne City School District pursuant to Section 671-A of the School Code, 24 P.S. § 6-671-A, until April 1, 2025, or until further petition to this Court.
Under Act 141 of 2012, the Court-appointed Receiver is assigned the responsibility and authority of the elected Board of School Directors in almost all matters, including academic, financial, and school operations oversight. Through a collaborative, professional working relationship with the elected Board and all key stakeholders, the primary goal is to do what is best for Duquesne City students educationally and what is fiscally responsible for its citizens.
School District Benefits of Receivership
Receivership of the School District was a result of fiscal instability and poor academic performance, taking into account all aspects of financially distressed operations. The benefits of Receivership have preserved, protected, and enhanced the value of assets through a variety of assistance including, but not limited to, an advance of state subsidies, a transitional loan, targeted grants, and professional development programs funded by the Pennsylvania Department of Education.
Under Receivership, the School District has been able to be more efficient and expeditious to secure, manage, and stabilize assets from further deterioration. Equally important, liabilities and contested financial matters have been eliminated. District policies and procedures have been implemented and restrictions enacted for proper accounting by effectively managing cash flow, debt service, and timely payment of all financial obligations. Receivership has provided an intense level of intervention for student achievement and growth, professional development, and financial accountability – a triangular relationship and considered a work in progress for continuous school improvement.
Pursuant to Act 141 of 2012 and the implementation of the Financial Recovery Plan in 2013, the various Court appointed Receivers and the Department of Education assigned Chief Recovery Officers for the Duquesne City School District have been an integral part of the Financial Recovery Plan, as amended. Each has collaborated through interactive dialogue with key stakeholders of the School District, Pennsylvania Department of Education, Allegheny Intermediate Unit, and Public Financial Management.
January 1, 2023 / Revised
Select the following link to review the provisions of: Act 141 of 2012
Select the following link to review FAQ regarding Act 141: Act 141 Frequently Asked Questions
Select the following link to review the Receiver Statement, updated March 2022: Receiver Statement - March 2022
