Council Endorses Education Reserve Account

The Town Council on Tuesday voted unanimously to adopt an ordinance setting up an education reserve account. 

The account would be for non-recurring expenses, but not necessarily limited to capital expenditures, according to town officials. 

In presenting the final version to the council on Tuesday, Town Manager Steven Werbner said it had been reviewed by the finance director and Tolland's auditor and was deemed in compliance with "accounting rules" and does not impact the town’s minimum budget requirements for education. 

In reviewing the ordinance the Board of Education suggested that the term "non-recurring" be struck from the wording, and Chairman Andy Powell reiterated that on Tuesday and said leaving the term in could deter education officials from adding funds to the account. 

Resident Bob Rubino called the fund "an act of bravery" and one of the most significant steps the current council has taken. 

Council arguments in favor of the non-recurring classification were added transparency and to prevent the account from looking like "a slush fund."

Here is the ordinance: 

Purpose

There is hereby created a Board of Education Special Reserve Fund pursuant to Connecticut State Statute Section 10-248a to provide funding resources solely for future Board of Education non-recurring or unanticipated expenditure funding needs.

Contributions to the Fund

A. Unexpended funds of the school district from the prior fiscal years budgeted appropriation, not to exceed 1% of the Board of Education’s adopted budget for that given fiscal year, shall be transferred upon request of the Board of Education to the Town Council into a Board of Education Special Reserve Fund. The fund shall be accounted for on the Board of Education’s general ledger and will be solely used for non-recurring or unanticipated funding needs of the Board of Education including but not limited to capital items, unanticipated special education needs or other unanticipated costs, purchase of goods or services above the amount that was originally budgeted for items such as computers or books, etc.

B. The Town’s Finance Department and the Board of Education’s Finance Department must agree on a final year-end balance and that amount shall be confirmed by the Town’s Audit firmprior to any request to deposit funds from that year into the Board of Education Special Reserve Fund. 

C. Once funds are confirmed, the Tolland Town Council shall vote to commit funds pursuant to Section A above. 

Custody of Fund and Investments

The Board of Education Special Reserve Funds shall be part of the Board of Education’s pooled cash account or a separate cash account in the custody of the Board of EducationBusiness Manager and Town Treasurer. The Town Treasurer or Town Finance Director, in consultation with the Board of Education Business Manager may, from time to time, invest all or any part of the monies in said Fundin any securities in which public funds may lawfully be invested. All income derived from such investments shall be paid into the Town’s General Fund and become a part thereof. TheBoard of Education Business Manager shall exercise control and administration of the Board of Education Special Reserve Fund on the Board of Education’s general ledger in accordance with Board of Education Policies. 

Use of monies from the Committed FundBalance Account

A. Monies deposited into the Board of Education Special Reserve Fund shall be used solely by the Board of Education pursuant to the following:

1. The Board of Education shall approve requests for purchases made from this fund. 

2. Once the Board of Education approves the requested use of the funds the designated Board of Education employee(s) will place the orders for the items pursuant to their purchasing and payment policies.

3. At the end of each fiscal year, the Superintendent of Schools will provide the Town Council and Board of Education with financial reports to identify purchases made from the fund and any remaining balance. 

Continuity of Account

Any unexpended funds which may remain at the close of each fiscal year in theBoard of Education Special Reserve Fund shall be non-lapsing and remain within the fund for use by the Board of Education. 

Review of this Ordinance

The processes outlined within the sections of this ordinance shall be reviewed by the Town Council and Board of Education every 5 years from date of adoption.