HOLDEN, Mass. — The Wachusett Regional School District continues to look for a way to get beyond the budget problems created by a recent $1.2 million overexpenditure, which might trigger help from a state control committee.
The district is awaiting its end-of-the-year report, which Superintendent Thomas Pandiscio said would be filed in two weeks.
Pandisicio said auditors Powers & Sullivan and the Department of Elementary and Secondary Education had "given their blessing to a mitigation plan" that involved reclassifying $997,816 in expenses and appropriating an additional transportation assessment to close the remaining $177,645 gap.
But the school committee had not taken the actions because the Department of Revenue would not recognize transactions after July 15, he said.
A conference call last week with auditors offered two options: "undo all of the reclassifications to our books and then make the same transactions in FY13" or "leave the books in their current state and submit our audited End-of-Year Report to DESE," Pandiscio said.
The second option was chosen, because the first would have resulted in a full $1.2 million deficit that would have to be rectified, he said.
"Our books are going to be fouled up for years if we do that," Pandiscio said.
Instead, "when we close out our books in FY13, $997,816 of the shortfall would come off our books, but we now have no funds to appropriate to cover the $177,645 gap because of our E&D problem," he said.
The Department of Revenue would still find the district in deficit for the entire $1.2 million on Dec. 1, Pandiscio said. School committee member Julie Kelley said she believed that would hit the trigger number for action by the Department of Elementary and Secondary Education.
According Kelley, previous discussions with Christine Lynch of the Department of Elementary and Secondary Education indicated that if the Department of Revenue certifies the district's account in a large deficiency that affects children, "then DESE and DOR will form a control committee, take over our finances, allow us to borrow the funds and maintain control of our finances."