Committee asks administration to explore audits and document net‑school‑spending reimbursements after CFO raises discrepancies
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Summary
The committee instructed the superintendent to solicit RFQs for audits of facilities and HR and asked for documentation on insurance stop‑loss and prescription rebates after the CFO said previous reporting may have omitted reimbursements affecting net school spending.
A contentious budget and accounting discussion closed the Fall River School Committee’s Jan. 12 meeting, with members asking the superintendent and CFO to gather detailed documentation and explore outside reviews.
Chief Financial Officer Kevin Almeida briefed the committee on stop‑loss reimbursements and prescription rebates that have been recorded unevenly in prior years. Almeida said those reimbursements totaled millions over recent years and that the district is working to reach agreement with city finance officials on how to recognize them in the district’s net‑school‑spending calculation.
Several members expressed concern that prior reporting may have used gross health‑insurance costs without applying reimbursements, which would undercount offsetting revenues and affect the net‑school‑spending figure the city must meet. One member said municipal and school officials had previously met and that correcting the accounting could change whether the city met or missed net‑school‑spending targets.
Member Colin Dias moved that the committee direct the superintendent to seek RFQs and return with options for auditing facilities, operations and HR — focusing on overtime use, equipment deployment, expenditures and policy compliance over the last six years. The amended motion asked administration to solicit cost proposals so the committee could consider scope and cost before approving any audit.
The committee approved the request for RFQs and asked the administration to provide the documents it already reviewed with city finance officials ahead of a fuller discussion at the next meeting. Some members also raised the prospect of engaging outside counsel if the accounting dispute with the city does not resolve.
Next steps: the superintendent will seek RFQs for audits and the CFO will supply the committee with the documentation reviewed with city officials; the topic will be on the next agenda for further action.