Harrisburg board approves one-year payroll agreement with EDM Financial after hours of debate

The Harrisburg City School District Board of School Directors voted Nov. 25 to approve a one-year agreement with EDM Financial to provide a payroll-accounting resource for the district and to create a staffing accountant position while eliminating a payroll coordinator role.

The administration and board said the contract is billed at an hourly rate and that the $89,000 figure discussed during the meeting is an estimate; Dr. Marsha Stokes, the district’s business officer, told the board the EDM estimate is “very high / conservative” and that the agreement includes an option to renew after the one-year term. "This agreement is only for one year, with an option to renew," Stokes said during the discussion.

The board’s chief recovery officer, Dr. Suske, urged caution. "I would just caution the board to make sure that the $89,000 is truly a cap because in reviewing the agreement, it is an estimate," Dr. Suske said, adding concern that costs could rise and escalate under the Philadelphia Consumer Price Index. Suske also warned that employees had not been fully briefed and said payroll can be a "very delicate matter for a school district."

Supporters said the contract would add redundancy and cross-training and could produce savings. Dr. Stokes said EDM will place a payroll accountant who will use the district’s eFinance system and follow district procedures, and that printing and on-site check processing will remain in the district’s business office. She said the district can exit the agreement with little notice if the vendor’s performance is unsatisfactory. "We still have the print check printing on-site that will still be done," Stokes said.

Board members asked how the arrangement would interact with a newly created staff-accountant role; Stokes said the staffing accountant will serve as the district’s direct contact with EDM and that some duties were combined from previously planned positions. The board also discussed salary range information for the new position (published as Range G, approximately $71,000–$96,000).

After extended discussion about oversight, redundancy, and cost certainty, the board approved the EDM agreement and the associated position changes in separate roll-call votes. The EDM agreement passed with a majority recorded during roll call (seven yes, one no). The position actions later passed (eight yes, one no). The administration said the EDM arrangement is expected to provide operational redundancy and projected annual savings that administration estimated at about $45,000, though board members debated that estimate.

The district said the EDM team has been cross-training with business-office staff and that CLA/the district’s other auditors or advisors will remain engaged as needed. The board did not announce any immediate change to employee pay schedules; the administration said they would maintain current on-site processes for printing checks and for employee inquiries.