Town Meeting Members Respond To Burlington School Finance Report

BURLINGTON, MA -- The following letter was submitted by Town Meeting Members Eileen Sickler (Precinct 4), Shari Ellis (Precinct 3) and Betsey Hughes (Precinct 7) in response to the recent release of a Ways & Means Committee report on the school department's financial situation.

Related Story: Report Raises New Questions About Burlington School Finances

On behalf of the proponents of Article 21 and over 400 registered voters who signed the related petition, we want to thank the Ways and Means School Subcommittee (“WMSS”) for their effort in this report.

As a result of the petition, WMSS was tasked to investigate the Schools FY ’18 budget overspend of $1.1m offset with an underspend of $400k totaling a net overspend of $700k.

As a result of the WMSS investigation, their document shows the details of the gross overspend amount of $1.1m which is primarily payroll related. Their document also shows the details of the "found" or offsetting amount of $400k which was primarily related to underspending in SPED operational contracted services, High School utilities and vision and hearing supplies.

The WMSS report is factual and, while it doesn’t compare the facts with previously issued statements from the School Administration, there are inconsistencies... specifically, relative to the substitute and tutor information. Given all the good work that’s been done, we don’t believe it’s in the Town’s best interest to rehash the details of these discrepancies. Instead, there is value in knowing the WMSS’s hard work uncovered these discrepancies as well as making actionable recommendations to address the issues, and better improve the budgeting processes and encourage transparency in the future.

Their investigation shows how the net overspend happened and how it went undetected. The WMSS report describes the major factors contributing to the overspending and the critical mistake of not realizing this error until after June 30, 2018. Their report shows a manual paper purchase order system, lack of financial personnel transition, an ad-hoc budgeting process and essentially no visibility regarding budget vs. actual activity or reliable reporting were the major factors responsible for creating this situation. This answers the question “How did this happen?” Regardless of the inconsistencies between the WMSS report and the School Administration’s presentation, the effected amounts and related timing are a result of these material internal control weaknesses.

We are encouraged that the School Administration and School Committee have said repeatedly that they are committed to monthly financials and implementing internal controls.

Again, many thanks to the WMSS for taking this responsibility so seriously. Also, thanks to the over 400 registered voters who signed the petition which made this investigation happen – your involvement made this possible.

Respectfully,
Eileen Sickler, TMM Precinct 4
Shari Ellis, TMM Precinct 3
Betsey Hughes, TMM Precinct 7

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