“In 2010, you actually lost $275,000,” Gregory Winters, auditor from Scanlon and Associates, told the School Committee on Tuesday. “Overall, the school district has $100,000 less in reserves.”

 

The district had $11,098,069 in revenue compared to $11,373,691 in expenditures and the difference was overcome with reserve and school-choice funds. The school transferred $200,000 from school-choice funds and $101,517 from reserves.

 

However, the deficit was expected. The district nearly level-funded the $9.9 million budget despite a reduction of state aid by $250,000. At the time, school officials said the difference would be made up in excess capital and school choice funds. 

 

“There is about $375,000 in reserves for the next budget and that’s a comfortable reserve,” Winters said. 

 

Winters only had a few financial management suggestions this year: Segregate payroll duties because there is currently only one person handling all of the payroll, close a revolving account and update post-employment benefits statements. 

 

The district has already enhanced the role of the treasurer, transferred funds from the revolving account and requested the health insurance provider to update those statements, Winters said. 

 

The audit report also shows deficits in capital projects from repairs to the boiler room and the locker rooms — both projects expected to be completed in the next few weeks — but the school is expected to be reimbursed by the School Building Authority.

 

Winters had trouble explaining a difference in an athletic revolving account. The revenues were confirmed but the account is still unbalanced. Previously, expenditures were not going through the district’s ledger and warrant system and the school changed its procedure. With that in place, the account still shows a deficit.

 

“The business office is just going to have to watch that account,” Winters said. 

 

The school is ahead of most districts in school lunch revenue, he noted. The cafeteria budget finished the year up $58,175.

 

“Because of the recession, other school districts are running a deficit here,” he said.