East Providence Officials Hire Consulting Firm to Audit City Finances

In an effort to continue city debt reduction and ultimately stave off bankruptcy, East Providence administrators have hired B&E Consulting to conduct a performance audit on city and school department finances. According to City Manager Peter Graczykowski, the results of the audit will be available in about two weeks.

"They have the expertise and time to audit the books," he said, noting results will be relayed to Department of Revenue members who are monitoring the city's finances with a critical eye.

At last week's school committee meeting, members to $3 million after making plans to lay off 24 school personnel and reduce the IT budget. Most of the slashed school employee positions were related to special education; historically a large portion of school department debt derives from special eduction costs. , the primary educator of East Providence special eduction students, is owed millions.

The city manager applauded members for making cuts at the last meeting; however, he would have liked to additional changes including the elimination of middle school sports and reducing out-of-city student athlete transportation. 

Graczykowski and Finance Director Ellen Eggeman say communication between the city and school department has been improving in recent weeks as the deadline to create a five-year deficit plan has arrived; a final draft of the city's financial plan was due Nov. 10. Furthering fincancial transparency, the school department is required to submit a monthly financial report to the city council. 

"Sometimes it takes a crisis for people to realize they have to work better together," he said.

He will continue to make recommendations to members regarding potential school department cuts.

The manager is also reviewing contracts with United Water, the agency that provides waste water services to East Providence. If it's a "good deal" for the city, he may extend the contact by another ten years. Currently, the city has fulfilled two years of a 10-year contract.

"We'll do what we have to do to close the budget gap."

The audit will cost up to $15,000, according to the city manager.