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Board of Finance presses for fuller Board of Education financial reporting after audit flags misstatements
Summary
Board members raised discrepancies between the city and Board of Education performance reports and noted auditors flagged an uncorrected misstatement of roughly a quarter-million dollars; members asked staff to present consolidated grant/expenditure reporting during budget season and to assess potential bond-rating effects.
Torrington — Members of the Board of Finance on Jan. 21 questioned why Board of Education performance numbers in city reports did not match the board of education’s internal figures and urged clearer consolidated reporting, citing a recently issued audit that lists an uncorrected misstatement.
Board member discussion began after the board accepted performance reports. Mr. Bayes and other members noted that the city’s department-level general-fund report for the Board of Education (department 46) did not reconcile with the Board of Education’s program expenditures. The board’s finance staff explained routine quarterly reconciliations and timing differences in posting transactions can produce temporary mismatches between the city general ledger and the board of education’s internal accounting.
Board members pressed for the board to receive a fuller picture of educational spending during the FY26 budget process — including grant-funded activity and Alliance District/ECS carve-outs that do not appear in the department 46 general-fund total shown in the city’s performance report. Members said that while the board respects the statutory autonomy of the Board of Education to move funds between line items, the board of finance needs access to grant and off‑book reports to evaluate the city’s total taxpayer exposure and make informed budget recommendations.
Separately, Mr. Anderson drew attention to the most recent audit, saying the auditors identified a statement of uncorrected misstatements of “a little over a quarter million” dollars in expenses that appear to have been posted to the incorrect fiscal year. He asked staff to consider whether that condition should be disclosed and explained to the bond-rating agents; board members requested finance staff and administration consult with bond advisers ahead of the Feb. 3 rating interview.
Finance staff said the audit is available to bond raters and recommended the board include an explanation and reconciliation in upcoming calls with rating agencies. Board members asked that staff bring consolidated grant- and revenue-expenditure reports for the education accounts in advance of deeper budget deliberations.
The board called for follow-up reporting to show year-end grant expenditures and the board of education’s total spending picture in a format the board can use during budget season.
