School Board Passes New Budget Transfer Policy

By Eliza Hallabeck

Following many meetings and discussions, the Board of Education voted to accept a new version of the school district’s budget transfer policy, as presented by school board Secretary Andrew Buzzi based on work by the board’s Policy Subcommittee.

Changes to the policy include updating the names of major object codes that label areas of expenditure to reflect how they are used when reporting the budget and stating that all major object codes will reflect a positive balance within the year-end financial report.

While explaining the changes before the school board during the previous board meeting, Mr Buzzi said the policy subcommittee also “took out” the debate the school board had faced previously regarding a provision of having the board approve all transfers more than either $10,000 or five percent of the current account allocation, whichever is greater.

“We took it out,” Mr Buzzi said, adding, “we decided as a committee that any transfer between major object codes should be approved by the board.”

Another change to the policy, according to Mr Buzzi, includes having the school board follow any transfers that would result in a negative balance in an account with a movement of money into that account to avoid a negative balance.

And another change also allows the superintendent or finance director to move money within a major object code, like transferring salary money for different teachers.

“I would like to reiterate my concern that there is no ceiling placed in the within-object code transfers that many of the other districts in our [District Reference Group] have,” said Vice Chair Debbie Leidlein. “So I am not in favor of this transfer policy as it stands.”

Mr Buzzi spoke to Ms Leidlein’s concern saying he believes a threshold could create a burdensome policy that would put a strain on the district’s performance by adding work for administrators.

“I think it is a good balance,” Mr Buzzi said, speaking about the policy.

Board member David Nanavaty said he did not foresee anyone’s minds changing on the subject of the transfer policy.

“I think we have been going over this policy now for three or four months,” Mr Nanavaty said. “The bottom line is, what I see before us is an improved policy. I think it meets all the objectives that this board needs.”

How the school board reports transfers was brought for discussion during a meeting in February, when it approved its revised FY 2009-10 Year-End Financial Report, following an audit report by Kostin, Ruffkess & Company, LC. At the February 18 meeting Joseph Centofanti, a partner with the auditing firm, explained recommendations that the school board modify its policy on budget transfers to bring it into compliance with state statutes. Following that meeting the school board’s Policy Subcommittee began work on reviewing the policy.

The new budget transfer policy passed in a 5 to 2 vote with Ms Leidlein and board member Keith Alexander voting against the motion.

A copy of the policy is available online at www.newtownbee.com with this story.