Phipps
There has been quite a bit of conversation in the community regarding the recent budget request by the Board of Education and the results of the annual audit.
First, yes the budget submitted to the City requests a significant increase in funding. The majority of the requested amount is to reinstate the positions that have been cut in recent years. This includes teachers (17 teaching jobs were eliminated this fiscal year alone), administrative positions, and support staff. The BOE has also requested funding for four Security Officers, one for each school, as student safety is imperative.
We have requested funding for four Clinical Social Workers to provide some of our students with the mental health interventions that they desperately need. Additionally, while providing the professional support many of our children need is an absolute necessity, it will also help reduce the skyrocketing Special Education costs by providing the proper interventions early.
This could eliminate the need for placement in high cost Special Education programs, especially those due to behavioral issues.
Also included in the request is $994,000. With possible regionalization with Derby in the near future, this amount represents the estimated amount of funding to raise Ansonia’s employees salaries in order to be consistent with our counterparts in Derby.
This budget was submitted with the expectation that it will be drastically reduced.
Regarding the annual audit, there were four areas of concern, “deficiencies,” identified by the auditor. These were accounting procedural errors, or deficiencies.
There were absolutely no suggestions of improprieties or “mismanagement” as rumors or even public officials have suggested.
In the audit, under each of the four “deficiencies” noted, there is a comment of “Costs questioned: none.” Let me reiterate there were no questions mismanagement. The City of Ansonia itself also has the same type of “deficiency” noted in the audit, for underreporting over $1.1 million in grant revenue. These procedural issues are easily correctable and the corrective action process has already begun.
Regarding the BOE being over budget in 2017 – 2018, this was due to insurance claims (costs) that were incurred but not yet reported. For example a school employee becomes ill or has surgery on June 30; the medical costs associated with the event are not reported until up to 90 days after the event. Technically any medical events that occurred within 90 days of the end of the fiscal year (April-June) may not be reported until the new fiscal year.
The timing of these claims resulted in an over expenditure of the appropriation. This occurrence is not uncommon during the first year of a self-insured insurance plan. As a self-insured entity, best practice is having a reserve fund (separate account) in place for such occurrences.
However the BOE does not have the resources to put any funding “in reserve”. It should be noted that converting to a self-insured plan was done as a means to save substantial dollars, which is anticipated over time. One again, this was strictly a procedural issue, not willful in any shape or form.
I hope this clarifies some questions. I also invite the public to attend any BOE meeting to voice your concerns, ask questions, or offer suggestions. Your input is encouraged and appreciated.
Respectfully,
Christopher Phipps
Ansonia Board of Education
