Auditor Warns Of Possible Deficit For Education Department

The Woonsocket Education Department may have balanced their budget for FY 2011, but as auditors check in to make sure the department is on track towards meeting their budget goals for the year, the numbers might not look promising. 

"This happened last year. The school department, superintendent, and Stacy projected a $800,000 surplus. Civitti projected a $2.8  million deficit and it came in at a $2.2 million deficit, " said Finance Director Thomas Bruce.

Bruce was tasked with updating the City Council Monday night with the financial status of the WED as assessed by Robert Civetti, Principal for the Braver Group. While the city has completed their report to auditors with a projected $600,000 surplus, the education department has not yet submitted the required documents. From the information Civitti has received so far from Stacy Busby,WED's finance director, he is predicting the department will again end the year with a deficit. 

In an email to Bruce, Civitti explains, "Based on what she sent me, it looks like she is also predicting a deficit, although I have not spoken to her and she is still working on her internal projection."

"If they have a deficit, they need a five year deficit plan. They're going to have to take the money out of their budget to pay for it, and that will start this current year," Bruce said.   

Bruce emphasized an additional need to stay within budget with expected changes to the school department.  Superintendent Robert Gerardi is expected to confirm his plans to this week and School Committee members Majewski, Nadeau and Dubois reportedly may not seek reelection.  

Auditors have been waiting for the department's documentation since mid-March but errors and inaccuracies in the general ledger have held up Busby. Civitti questioned the current staff's ability to maintain an accurate ledger in an email to Bruce.

 "It does not appear that the current staff at the department is able to get the work completed that is required to maintain an accurate general ledger," CIvitti states.

"We're still in a very volatile condition," said Bruce. "If either the city, or the school or both, continue accruing deficits, it could interrupt operations in total for the city. We risk default. We risk having the state take over our operations, including public safety."