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Coventry finance director flags DCYF tuition and electricity-credit issues in monthly budget update
Summary
Finance Director Chris Divera told the school committee that year-to-date revenues exceed expenses but staff are tracking potential cost pressures: an additional $50,000 transfer to the school nutrition fund, a fluid and potentially large DCYF tuition exposure, and uncertain electricity costs tied to virtual net-metering credits from Rhode Island Energy.
Finance Director Chris Divera presented Coventry’s monthly financial update through April and told the school committee staff were watching three areas that could affect the year-end picture: school nutrition fund transfers, out-of-district/DCYF tuition bills, and electricity costs related to virtual net-metering credits.
"We've put about a $50,000 additional amount into the transfer to other funds," Divera said, referring to the typical transfer the district makes to the school nutrition program to cover negative balances. He said the district also recorded an initial projected overage in purchased services of about $450,000 tied to DCYF placements and other tuition costs, but characterized that number as fluid because placements and invoicing timing change.
Committee members and staff explained DCYF billing is volatile: placements can begin or end after a notification is sent, invoices may arrive late, and the state’s formula for charging districts varies by district characteristics. One committee member summarized the per-student cost as “north of $100,000” for DCYF placements; staff said they budgeted conservatively for FY27 and plan to add buffers where appropriate.
Separately, staff described recent challenges reconciling electricity charges and virtual net-metering credits. Divera and other staff said Rhode Island Energy’s implementation of credits has been inconsistent over recent years, producing periods when credits were applied late or required retroactive adjustments. Committee members asked staff to work with the district’s net-metering partner (KER) and to have newer accounting staff perform a month-by-month reconciliation so the district can identify its true ongoing electrical expense.
Divera said district leaders expect some of the flagged amounts may be offset by underspending elsewhere but recommended conservative planning for FY27. Staff signaled they will continue reconciling invoices, refine DCYF tuition estimates, and present any recommended budget adjustments to the committee in a future meeting.
Next steps: staff will reconcile electricity billing with KER, continue to monitor DCYF invoices and adjust FY27 budget proposals if necessary.
