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Northumberland schools ask for transfers and county approves $40,000 consultant appropriation amid projected deficits
Summary
School officials told the board the division faces near-term deficits and requested a $142,683 transfer from building and site to technology; the board approved that transfer and a $40,000 supplemental appropriation to hire consultant UHY to audit and pursue reimbursements.
Northumberland County school officials told the Northumberland County Board of Supervisors the school division faces near-term deficits and requested a transfer and an appropriation to stabilize finances.
Dr. Leslie, speaking for the school division, asked the board to approve a transfer of $142,683 from the building-and-site account to the technology line so the technology category would ‘‘make it through the end of the year’’ for anticipated expenditures and payroll. The board approved the transfer.
Dr. Leslie told supervisors several school accounts will be in the red by June 30 unless action is taken. She said one instructional account could show a deficit of about $500,000 by June 30 and estimated an overall June-year deficit of roughly $270,000 without further action. To address the shortfall the division asked the board to consider a supplemental appropriation in the range of $350,000 to $400,000; Dr. Leslie said the request would also allow the district to hire outside experts.
The school asked the board to appropriate $40,000 to pay consultant UHY LLP to assess finances, track reimbursements and improve projections; Dr. Leslie described the school’s situation this way: ‘‘The finances are in dire shape at the moment.’’ The board voted to appropriate $40,000 and to place that amount in the school’s administrative and health category (the school’s chart of accounts was confirmed on the record by Miss Piquiti).
Dr. Leslie told the board there are federal and state reimbursements that have not yet been filed or fully tracked; she estimated about $700,000 in reimbursements could be outstanding on a 15-month federal schedule, and said she was confident at least $470,000 of spending should be reimbursable. She cautioned, however, that federal reimbursements may stretch into the months after June 30 and may not arrive in time to close this fiscal year’s gaps.
Board members said they were ‘‘in a rock and a hard place’’ but agreed to fund the $40,000 engagement so the consultant could begin work quickly. The appropriation passed and the transfer from building and site to technology also passed by voice vote.
