Audit Questions Hefty Surplus

Emotions ran high during a two-hour Springs School Board meeting on Monday night, during which time a recent state comptroller’s audit was discussed at length. Auditors concluded that Springs had accumulated an unrestricted fund balance nearly four times the allowable amount.

By 2012-13, the unrestricted fund balance, or rainy day fund, had ballooned to $3.8 million, or nearly 15 percent of the $25 million budget. State law requires that such funds be limited to 4 percent.

The state audit also recommended improved oversight of employees’ sick leave accruals. All told, the audit found that “sick leave balances were overstated by a total of 139.25 days, with a value of $44,430.” It also found that the district had overestimated expenditures by $4.6 million between fiscal years 2011-12 and 2012-13.

A corrective action plan is now under way, with state law requiring a formal response within 90 days of receiving the report. 

Carl Fraser, who was hired by the district as a consultant in September, and who formerly worked as East Islip’s assistant superintendent for business, is tasked with correcting the district’s financial standing. His pay is a per diem rate of $700. As a retiree, he is capped at working 42 days, or earning $30,000 each calendar year.

“We’ve already started to correct financial conditions,” urged Mr. Fraser. “We’re moving in the right direction,” who predicted that the 4-percent unrestricted fund balance could be achieved during the next budget cycle. He is also at work on overhauling its attendance process. “We have a lot of work ahead of us,” he concluded, noting that a corrective action plan would be implemented by year’s end.

In other news, John Finello, the district’s part-time superintendent, has finally secured a necessary waiver from the New York State Education Department. Jonathan Burman, a spokesman, confirmed that the waiver had been approved on Monday for Sept. 1 until Dec. 31. Come 2015, the position will be full time and will no longer require such a waiver, since Mr. Finello, a retiree, will turn 65.

“We’re faced with a situation where we’re trying to watch enrollments that are increasing, with expenditures increasing, but the state limiting levying,” said Mr. Finello, of the district’s financial predicament. “It becomes an increasingly difficult situation for all districts — but especially for districts with small budgets. One step in the wrong direction can create a problem that’s difficult to undo.”

Earlier in the meeting, Kate Rabinowitz, the mother of Anna Lytton, a 14-year-old Springs student who was killed in June of last year, updated community members on the creation of the Anna Lytton M. Foundation for Arts and Wellness. “So much of who she was is because of Springs School,” said Ms. Rabinowitz, adding that the foundation will offer a sample of yoga, nutrition, wellness, and mindfulness classes on Nov. 4 to teachers and staff. The foundation will assist interested teachers in bringing such materials into their classrooms. “I’m excited to see these programs come back. It’s good for me to be here, too.”

Elizabeth Mendelman, the board president, also announced that the school had recently received a $554,000 grant from the New York Department of Transportation, as part of the Safe Routes to School Program, to improve the Gardiner’s Avenue, School Street, and Springs Fireplace Road intersection.

And following a similar change of policy in East Hampton, the board said that going forward, both notice of committee meetings and minutes would be posted on the school’s website. Currently, the district only supplies minutes from its monthly school board meetings.

After last week’s report of enterovirus at Southampton Elementary School, and subsequent school closure, Debra Gherardhi, the school nurse, confirmed that students could be admitted to Springs School, so long as they show proof of immunizations or immunizations in progress. She also emphasized that enterovirus is “just like the flu,” urging families to follow basic hygiene, including the frequent washing of hands.

The board will next meet on Nov. 10 at 7 p.m.