|
Getting your Trinity Audio player ready...
|
SPENCER/EAST BROOKFIELD – The Spencer-East Brookfield Regional School District’s fiscal oversight has officially been terminated.
At the December 10 School Committee meeting, Superintendent Paul Haughey read a letter from Russell D. Johnson, acting commissioner of the Department of Elementary and Secondary Education (DESE), outlining the decision.
The letter noted the school district had fully paid off its FY13 deficit loan and had done so, three years early in FY20.
The acting commissioner said DESE was pleased by the progress the district had made keeping its budget under control each year. The letter mentioned that DESE was assured by fiscal overseer Mark Abrahams that the district’s finances are in order and its reserve account is adequately funded.
In addition, Abrahams will continue to work with the Spencer-East Brookfield Regional in a “consultancy model moving forward.”
Even with fiscal oversight terminated, the school district is required to replenish its supplemental reserve fund in an amount equal to 1.5% of the gross annual amount of the budget from the prior fiscal year.
If funds are spent, they must be replenished in the next fiscal year, thereby always having the fiscal year begin with that 1.5% amount.
Superintendent Paul Haughey noted they had been waiting for the letter announcing the termination since August. “So it is kind of nice to have it before the holiday,” he said.
Haughey said that if Associate Commissioner Jay Sullivan had not provided “guidance, technical assistance especially on technical aspects of law and the legislative process, we might not be here.”
The superintendent congratulated all involved in the effort, saying it is an “honor and privilege” to work with Business Administrator Gary Suter and everyone in the central office.
“Our treasurer said it well…we have one of the best finance teams around. They really are,” Haughey added.
In another financial matter, Thomas Scanlon, CPA, said a risk-based audit of the district went well with no adjustments needed.
He praised the “very sound controls,” in place and excellent financial statements, reporting a reserve fund balance of $405,000 as of June 2023.
Scanlon added, “Cash is reconciled and balanced to November 30.”
In his report to the School Committee, Suter spoke about accounts running in deficit that would be fixed later in the year, including school choice tuition, which is short $122,000 from a January estimate.
He said that line item and one for workman’s compensation would be adjusted in the future.
Suter also said a grant was received for special education and private tuitions and a transfer made in that regard. He said he is tracking costs also for data team meetings teachers are attending.
The School Committee also authorized borrowing for the DPHS building project. It awarded a bid to Jeffreys and Company for a one-year bond note of $40 million. Net interest on that is 2.908, which is less than the year before.
It is the same firm that handled a $10 million bond back in May.
The town achieved a MG1 rating, which is the highest you can get on temporary notes.
Suter noted that next fall, the plan is to issue long-term borrowing for about 95% cost of the project.
He said the interest is on $2.5 million this year, but taxpayers will see more of an impact in 2026.
Haughey reported the David Prouty High building project is “flying in real time…There is a lot of work happening inside during the winter months now the roof is on it.”
“I’m really proud of the work that is taking place on the site,” he added.
The next building committee meeting about the project is December 19.
