THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Sunday, September 17, 1995 TAG: 9509150200
SECTION: VIRGINIA BEACH BEACON PAGE: 06 EDITION: FINAL
LENGTH: Medium: 62 lines
On Sept. 12, City Council passed a resolution ``regarding the FY95 deficit accumulated by the school division.'' Here are excerpts from that resolution.
THAT THE CITY COUNCIL OF THE CITY OF VIRGINIA BEACH, VIRGINIA, FINDS THAT:
1. The school division's unbudgeted and unauthorized spending jeopardizes the financial health of public education in the city, and poses a threat to the good financial standing of the city and its agencies;
2. The information received from the school division as to the 1994-1995 budget year has proved to be conflicting and unreliable, and thus the City Council has grave concerns regarding the condition and sustainability of the 1995-1996 school operating budget;
3. The management and budgetary planning and control within the school division are inadequate, and substantial system improvements as well as further oversight by the appropriating body are essential to the protection of the public interest; and
4. Neither the children in the public education system nor the city's taxpayers should bear the burden for the lack of fiscal management by the school division.
BE IT FURTHER RESOLVED THAT:
The school division is strongly urged to direct the superintendent to cooperate and collaborate with the city manager to implement the following steps, consistent with the recommendations of the city manager, for prevention of recurrence of the overexpenditure of funds:
1. Prepare a proposed reconciliation plan for the $7.4 million deficit subsequent to the receipt of the independent auditor's report, which focuses upon a means to fund the deficit without harming the quality of education available to the children of this city and without increasing the burden on the taxpayers of this city;
2. Provide, by october 15, 1995, a verifiable projection fo revenues and expenditures for the 1995-1996 budget year, and provide detailed assurances that actions will be taken to ensure that all school funds will be in balance for the 1995-1996 budget year;
3. Develop a memorandum of understanding that will consolidate the school division's accounting, payroll and purchasing functions into the City Finance Department, all of which should result in substantial savings;
4. Agree to modify the school division's financial management reporting and control system and to modify the procedures of the School Board so as to ensure that all fiscal actions of the division are fully disclosed, that impacts are identified, and that the board has available complete information on the status of all school funds and takes such actions as are appropriate to ensure the financial integrity of the school division; and
5. Develop budget instructions, including formats and timetables, to ensure that the preparation and development of the 1995-1996 budget will provide the information needed by the city manager and the City Council for decision-making.
BE IT FURTHER RESOLVED THAT:
City Council hereby requests the School Board to reply to these specific requests no later than September 19, 1995. by CNB