Subcommittee advances revolving‑funds policy, proposes non‑general fund guidebook

The North Middlesex Regional School District policy subcommittee voted to send a new revolving‑funds policy to the full school committee for a first reading after discussing a proposed non‑general‑fund guidebook to govern balances and spending rules for revolving accounts.

Speaker 1, an unidentified subcommittee member, introduced the draft as “a brand new policy” adapted from other districts and said the guidebook would help “give guidance to Nancy and Kevin on what we expect to be kept in those funds and how they're how we would like to see them spent.” The policy calls for creating a guidebook that would be updated periodically and would set target balances, savings guidelines and spending parameters for accounts such as school choice and program‑specific revolving funds.

Nancy, identified in the transcript only by first name, said the guidebook work “might take longer” because staff will need to determine target balances and offsets; she said she is available for edits and consideration. Committee members discussed that some revolving accounts (for example, circuit breaker and school choice) have statutory or programmatic constraints and may not be fully covered by the proposed statutory reference (Chapter 71, Section 47).

Speaker 4 raised the option of closing excess balances to the general fund if there is no eligible use, describing a hypothetical $50,000 excess and asking whether the district could ‘‘close those balances to the general fund’’ for one‑time uses. Speaker 1 said using excess funds as a one‑time source ‘‘wouldn’t be my first option’’ but acknowledged it could be an allowable approach in some cases and that some accounts are governed by statute.

Speaker 3 moved that the subcommittee “move policy DIBA, revolving funds, for a first read by the full school committee,” and Speaker 2 seconded the motion. The recorded vote was three yes votes (Jackie, Mike and Speaker 1), sending the policy to the full committee for its first reading.

The draft references federal audit requirements (Single Audit Act of 1984) and cites legal guidance for program accounts; subcommittee members asked staff to verify the exact applicability of MGL Chapter 71, Section 47 to regional districts before the full committee considers adoption.

Next steps: The policy will appear on the full school committee agenda for a first reading; staff expect the guidebook work to be iterative, with finance staff and committee members refining target balances and spending rules over subsequent months.