School officials 'getting a handle' on finances

WINSTED — Over the last several weeks the Winchester Board of Education has been the focus of increased scrutiny for its perceived lack of fiscal oversight of the district’s books.

That frustration came to a head last month with the Board of Selectmen requesting school board members remove Superintendent of Schools Blaise Salerno and Board of Education Chairman Kathleen O’Brien from their positions as the district’s two top school officials.

The selectmen were responding to the revelation that the district would miss its budgeted spending amount for the 2009-10 school year by at least $343,961, creating a significant town budget shortfall.

Previous reports by the school administration had said the number was only in the $120,000 range.

Both Salerno and O’Brien, however, have remained.

The two are hopeful that a new, heightened focus on improving financial management — as well as communication with town officials and the public about budgetary issues — will allow the district to move forward in a more positive direction for the new school year.

“We do need to get a handle on it,� O’Brien told The Journal on Monday. “And we’re working to get there.�

Although the selectmen are now grappling with how to bridge that budget gap, most critics of the school board and administration’s financial management have centered on a lack of transparency in regards to the district’s financial standing.

Members of the Board of Selectmen have repeatedly expressed their frustration at not knowing about the overspend until early last month, when the 2009-10 year had already ended, as well as an inability to receive requested documents in a timely fashion.

But O’Brien said the problem was not so much a lack of financial oversight on the part of the school board, but a case of inaccurate information that both the town and the school board were receiving from the district’s former business manager, Edward Evanouskas.

“He didn’t have a good handle on the numbers,� O’Brien said of Evanouskas, who resigned from his post July 2. “And he wasn’t giving us good information.�

Salerno agreed.

“Our previous business manager was uncomfortable with the Phoenix System,� Salerno said.

Phoenix System is financial management computer software that can be used to track accounts payable/receivable and for budget development, as well as managing payroll.

At a special joint meeting July 12 between the selectmen and school board, Town Manager Wayne Dove said much of the information entered into the district’s computer system was incorrect and would have to be brought back on track by town Finance Director Hentry Centrella.

Evanouskas was in charge of maintaining the system. The Journal was unable to reach him for comment.

Prior to his resignation, Salerno had put Evanouskas on an administrative furlough from June 14 to 30, the end of the school year. The move came after Salerno said the former business manager had failed to provide information that had been repeatedly requested by town officials.

The district is now in search of a new, part-time business manager. The position changed from full to part time for the 2010-11 school year, which began July 1. In his letter of resignation to Salerno, Evanouskas cited the reduction in hours as the main reason for leaving the district.

In addition to hiring a new business manager, the school board has also created a new finance subcommittee. The main task of the committee is to review the district’s monthly financial reports, before those reports are finalized and included in the school board’s informational packets for regularly scheduled meetings.

Both Salerno and O’Brien said future financial reports and budget documents will now also include “actuals� — or the figure that shows how much money has “actually� been spent so far by the district in each account and/or budget line item, as opposed to what was approved or budgeted.

The lack of real-time tracking of the district’s expenditures during the current year, as well in previous school years, has been a frequent criticism from both town officials and the public alike.

“And they are right, they should have actuals,� O’Brien said of budget documents.

She added that in the past that information was routinely included in the district’s financial reporting. But that it appears over time it stopped being standard practice. O’Brien, who has served on the school board three separate times, returned to the board after November’s municipal elections.

“That will be done,� O’Brien said of including actuals. “It only makes sense.�

Salerno said future financial data from his office will include information that shows what has been “encumbered� by the district, as well as “what’s left in each account.�

“I don’t know how you can get much more transparent than that,� Salerno said.

O’Brien said she will continue to work along with her fellow members toward improving how both the board and the district are run.

“We’re ramping up,� she said.

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