NEW ORLEANS (WVUE) – Louisiana’s Department of Education has informed the Orleans Parish public school district that it will install a monitor to oversee its financial management, citing a pattern of “significant deficiencies” over the past two years.
State superintendent Dr. Cade Brumley delivered the news in a letter sent Friday (March 27) to NOLA-PS superintendent Dr. Fateama Fulmore.
“Due to repeated accounting miscalculations within the Orleans Parish School System (NOLA-PS), schools have faced multiple years of financial uncertainty,” Brumley wrote. “This letter serves as formal notice that, as a result of these errors, the Louisiana Department of Education will appoint a fiscal risk monitor for your school system.
“The purpose of this appointment is to provide enhanced oversight of tax revenue accounting and reporting by NOLA-PS. This will include special engagement conducted by an independent certified public accountant over the next year.”
NOLA-PS did not immediately respond to a request for comment from Fox 8.
Brumley cited a list of alleged “deficiencies” by the New Orleans school district, including:
- Failure to adhere to fundamental accounting principles
- Classification in the LDOE Fiscal Risk Assessment “Monitor” category, reflecting a high level of concern, including designation under a Critical Situation during the fiscal year
- Negative impacts on budgeting decisions for school systems across the state
- Provision of inaccurate financial information to NOLA-PS schools
- Potential violation of state law due to failure to provide accurate financial data to LDOE
The appointed monitor will be tasked with reviewing the financial practices of the district, ensuring it takes corrective measures, and reporting back to the LDOE about changes made and ongoing risks. It is believed to be the first state intervention into the Orleans Parish school system since it was restructured in the wake of Hurricane Katrina.
Nyesha Veal has served as the chief financial officer for NOLA-PS since 2024. Brumley’s letter did not mention her by name, but alleged a pattern of accounting errors and financial mismanagement over the past two years, including the recent underreporting of approximately $13 million in sales tax revenue in the last annual financial report.
Brumley wrote that the LDOE was notified of this problem by “school leaders,” and that the NOLA-PS CFO was questions about the disparity.
“During that discussion, the CFO acknowledged that the STR data submitted to LDOE was incorrect and had been underreported by approximately $13 million. The CFO further indicated that the omission of June 2025 sales tax revenue from the AFR, as well as the delayed submission of tax data, had no impact.
“This assertion is incorrect. The omission and delay have had material consequences, including impacts on statewide funding calculations and local budget planning. This reflects a concerning lack of understanding regarding the importance of accurate and timely financial reporting by NOLA-PS. … This is not an isolated incident of concern within the financial management of the system that can be overlooked as a simple mistake. Instead, this is a repeated pattern and must be addressed immediately.”
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