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Administrator to rewrite corrective action plan after auditor flags school-town reconciliation problems
Summary
The town administrator said auditors found breakdowns in information flow between the town and Board of Education; he will rewrite the corrective-action response and coordinate with the superintendent and auditor to finalize wording and procedures.
The Board of Selectmen heard an update on the town's corrective action plan tied to the auditor's June 30, 2024 findings. Town Administrator Jim Balano said the central issue is insufficient, or inconsistent, reconciliation of school expenditures against amounts remitted by the town and recommended a clarified monthly reporting procedure.
Balano described the problem as a mismatch between the town'side cash/posting numbers and the school board's monthly budget-to-actual documentation. "What our treasurer was attempting to do was take the check registers and input that information into our records... with the information that the treasurer had that reconciliation was a little bit of a mess," Balano said. He told the board he will rewrite the corrective action response to align the treasurer's posting procedures with the documentation the school board posts at its monthly meetings so town books reflect the school's reported bottom-line numbers.
Balano said he has met with the auditor and with Board of Education leadership (Superintendent Valerie was named in discussion) and will incorporate language acceptable to the auditor while addressing the superintendent's concerns about wording. The administrator stressed that the corrective action plan should be a collaborative document that clarifies how monthly transfers, expenditures and reimbursements are recorded on the town side.
Board members requested that the board of finance review the proposed procedures and that the treasurer implement the revised posting steps so grant and capital reporting are not delayed. Balano said some grants could be held up until the corrective-action box is checked, so he will prioritize completing the updated plan and circulating it to stakeholders.
Outcome: Administrator will rewrite the corrective action response and work with the auditor and the superintendent to finalize a collaboratively agreed procedure; board of finance and treasurer will be involved in implementing changes.
