During the meeting, the Finance Director, Diane Johnson, brought to light the underfunded areas that have resulted in overspending in the FY24 budget, with transportation and paraprofessional expenses being notably affected. A lack of visibility into these expenses prior to their reflection in the financial records was cited as a contributing factor to the budgetary issues, sparking discussion among committee members about the root causes and potential solutions to prevent similar issues in the future.

Concerns were also voiced about the increase in paraprofessional expenses and the necessity for better position control, which would involve a more detailed tracking system to monitor compensation and contracted services. The committee emphasized the importance of addressing these challenges to avoid negative impacts on the FY25 budget and beyond.

The committee’s dialogue revealed that there are underlying issues with the current accounting system, which has led to confusion in reconciling expenses under the old system. The lack of transparency and equity in funding allocations across different schools was a prominent concern, as was the difficulty in aligning the accounting system with the Department of Elementary and Secondary Education’s (DESE) requirements. In response, efforts are underway to modify the account code structure in collaboration with the town’s finance team.

In an attempt to address these issues, the committee discussed upcoming changes to the school financial system, including updates to Munis—the financial software used by the district—the staffing plan, and the account code structure. Acknowledgment was given to the finance team for their efforts in implementing these changes. Furthermore, the committee requested that staff submit time sheets on a weekly basis to ensure timely payment for services.

The review of the Special Revenue fund also featured prominently in the meeting, with a focus on the management of federal grants and the necessity of spending down old grants. The committee debated the status of private grants and the management of revolving accounts, particularly the Food Services account, which led to discussions about the practices of upselling additional items to students and the use of incentive programs.

Additionally, the meeting addressed the need to transfer money from the salary line to the non-salary line to cover expenses up until the end of the year, and the possibility of seeking a reserve fund transfer to mitigate any remaining deficit. The importance of closing out purchase orders and evaluating grants and revolving funds to ensure proper expense allocation was highlighted, as was the need for discussions with the advisory committee regarding the financial situation.

One of the more tangible outcomes of the meeting was the subcommittee’s vote to recommend the extension of the school bus contract to the full school committee, recognizing the operational and financial benefits of this extension. Moreover, the subcommittee recommended further discussion and clarification of not aligned hourly rates and stipends to the full school committee, noting the need for competitive and clear rate structures.

There was a call for more coherent presentations on the financial issues and their resolutions, with an emphasis on the necessity of transparency and timely reporting.