An independent audit will be performed on the Board of Education’s books to determine what happened to a $724,000 surplus in the school board‘s 2007-08 budget, which was never returned to the town’s general fund.
The Board of Finance on Monday approved spending $25,000 to hire an independent auditing firm to review the school board’s 2007 financial records.
In January, Tom Kelly, a member of the finance board, called for an independent audit of the school district after the annual town audit last fall revealed that the school board transferred $500,000 out of a $724,000 surplus in its 2007-08 budget to its 2008 – 2009 budget.
The money was apparently spent on an insurance bill, but the school board never provided the finance board with answers and information it has requested, Kelly said.
“Moving surplus money from one year to the next is against state statue. This is taxpayer money that we could have used to fix some roads or buildings, not money to play with so they could do their own thing,” Kelly said.
School officials did not return several calls for comment.
After Kelly called for the independent audit in January, the proposal stalled for months while the finance board and the Board of Selectman disagreed over which board had the authority to request an audit, which board’s contingency should pay for it, and what wording to include in the request for proposal attract auditing firms.
At one meeting, a board of finance member proposed appointing an town audit committee of three Democrats and three Republicans. The motion failed.
First Selectman Mary Ann Drayton-Rogers said she has always agreed to an independent audit, but only if the finance board followed the town charter and requested an audit through the Board of Selectmen.
She said the school board has never hesitated to have its books audited. She looks forward the audit’s findings.
“The sole purpose of the audit is to settle all outstanding questions and put any speculation to rest,” Drayton-Rogers said.
Drayton-Rogers said the town is in the process of preparing a request for proposal to solicit bids for the audit. She expects the audit to be completed later this year.
The request for proposals calls for a complete audit of the school board’s 2007-08 budget, its accounts payable, transfers, purchase orders, bidding, grants, accounts receivable, and student activity fund.
Kelly agrees with Drayton-Rogers that the audit will clear any speculation.
“There is a lot of negative stuff hanging over the board education. We just need to know that they are following policy and procedure,” Kelly said.
