School Board To Continue Review

Of Its Budget Transfer Policy

By Eliza Hallabeck

With the school district’s budget transfer policy displayed on a projector screen, Board of Education Secretary Andrew Buzzi explained proposed changes made by the BOE Policy Subcommittee at the full board’s meeting on Tuesday, October 18.

By the end of the meeting the school board postponed passing a new version of the policy, and voted 4-2 to reject a proposal by Board of Education Vice Chair Debbie Leidlein that would have put a threshold on accounts the school district superintendent and finance director can pass without board approval. Both Ms Leidlein and BOE member Keith Alexander supported the motion.

The transfer policy was also discussed earlier Tuesday night during a meeting of the school board’s Policy Subcommittee, chaired by Mr Buzzi.

Proposed changes to the policy included 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, Mr Buzzi said the 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, would include 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.

“That will keep us positive all year round,” said Mr Buzzi.

Mr Buzzi then presented another change that would allow the superintendent or finance director to move money within a major object code, like transferring salary money for different teachers.

“This basically indicates we are granting authority to make transfers between detail accounts within an object summary category,” said Mr Buzzi. He added that under emergency conditions, the board would allow the superintendent or finance director to transfer funds in the event the Board of Education could not hold a meeting and approve the transfer.

“If it is possible for the board to meet, then they will meet,” said Mr Buzzi, “but if it is not possible and something needs to be done, the superintendent can do it.”

 The final alteration to the policy presented by Mr Buzzi would prevent the school board from exceeding the amount of money spent from other sources for school purposes.

“That is consistent with the statute,” said Mr Buzzi.

Before Ms Leidlein made her motion to add a threshold to the amount of money the superintendent or business director can approve within major object codes without the school board’s approval, she spoke on the topic, saying adding a threshold would be within best practices for reporting management according to an auditor who oversaw the school board’s year-end financial report from the 2009-10 fiscal year.

“That is something I would like to see this board adopt,” said Ms Leidlein.

Mr Buzzi said adding the provision of a threshold to the policy would make the school board responsible for looking over detailed transfers at meetings. Ms Leidlein responded saying she would like the board to have an idea where the money is coming from and going to.

Instead of having a detailed argument over one or two points, Mr Buzzi said, the policy change as he presented it to the board would allow the people hired by the board to run the district.

“We see what is going on at a very fine level,” said Board of Education Chair William Hart.

Ms Leidlein said the board has the responsibility to be stewards for the taxpayers when overseeing the budget.

School board member David Nanavaty said he does think the school board acts as stewards for the taxpayers, and said the school board has the option to act on the budget every month when Director of Finance Ronald Bienkowski presents his financial report to the board.

After Ms Leidlein’s motion failed 4-2, the school board postponed a decision on the transfer policy until its next meeting, scheduled for November 1.