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Harwich Public Schools

Business Practices

2007 - 2008 Timeline

For nearly a year the Harwich Public Schools have been the target of criticism by the Harwich Taxpayers Association for fiscal management practices related to the FY 2005 and FY 2006 budgets. The information below details the events of the past year and the actions the school department has taken to ensure that its business practices meet or exceed the standards for public school finance and comply with the laws and regulations of the Commonwealth of Massachusetts.

Date	Events	Documents
January 25, 2007	The Harwich Taxpayers Association requested from town accountant, David Ryan, a summary of Fiscal Year 2006 fourth quarter spending.
Winter 2007	The town accountant’s office provided the Taxpayers Association a year-end open purchase order report and copies of purchase orders.
May 29, 2007	At the Harwich Board of Selectmen's meeting, Polly Hemstock, school committee vice-chairperson, invited the selectmen and all interested parties to attend the June 6th Harwich School Committee meeting for a presentation by the business manager regarding school finance and Harwich Public Schools' business practices.	Board of Selecttmen Minutes
May 30, 2007	The town accountant; town administrator, Jim Merriam; superintendent of schools, Carolyn Cragin; and business manager, Gary Costin, reviewed the Fiscal Year 2006 budget closeout and concluded that the process was completely appropriate, both legally and ethically.
June 4, 2007	The town accountant and town administrator present full report of 2006 budget closeout to Board of Selectmen	Board of Selectmen Minutes Review of FY 06 School Department Encumbrances
June 6, 2007	To explain the school finance process, the school business manager provided a budget management PowerPoint presentation at the meeting of the Harwich School Committee.	School Committee Agenda Power Point Presentation School Committee Minutes
	The Harwich Taxpayers Association requested the Board of Selectmen to order an extended audit of the school department’s FY 2006 purchase orders.
July 17, 2007	The private auditing firm of Thevenin, Lynch, Bienvenue, LLP began the extended audit.
July 17, 2007	Harwich Taxpayers Association presented a letter to the Harwich School Committee requesting to review individual Fiscal Year 2005 purchase orders and supporting	Letter from Harwich Taxpayers Association
July 17, 2007 to August 12, 2007	The school business office assigned staff to assemble and photocopy encumbered purchase orders and invoices for Fiscal Year 2005.
August 13, 2007	The business manager contacted the Harwich Taxpayers Association via email to advise them that the requested information was ready and invited them to meet with the business manager and superintendent after they had reviewed the information.	Email to President of Harwich Taxpayers Association, Geoff Wiegman
August 15, 2007	The superintendent, business manager, and school committee member Mark Russell met with the town administrator, town accountant, and Richard Bienvenue of Thevenin, Lynch, Bienvenue, LLP to discuss the audit.
August 29, 2007	The school committee discussed the independent auditor’s review of Fiscal Year 2006 encumbrances.	School Committee Agenda School Committee Minutes
September 4, 2007	Richard Bienvenue, partner in Thevenin, Lynch, Bienvenue; town accountant, David Ryan; Harwich School Committee Vice-chairperson, Polly Hemstock; superintendent of schools, Dr. Carolyn Cragin; and school business manager, Gary Costin, met with members of the Harwich Taxpayers Association, Geoff Wiegman, Hugh Drummond, and Richard Flink, prior to the selectmen’s meeting to answer the taxpayers association’s questions.	Thevenin, Lynch, Bienvenue audit on Harwich School Department purchase order and encumbrance process
September 4, 2007	Auditor Richard Bienvenue reported his findings to the Board of Selectmen.	Board of Selectmen Minutes
September, 12, 2007	The business manager informed the school committee of eight steps, based upon the auditor’s recommendations that had been implemented to improve the district’s financial practices.	School Committee Agenda School Committee Minutes Memo: PO Audit Summary – School Department Actions
September 12, 2007	In response to the auditor’s recommendation, the school committee adopted a cost center budget for FY 2008.	School Committee Agenda School Committee Minutes Approved FY 2008 Cost Center Budget
September 26, 2007	In response to the auditor’s recommendations, the school business manager proposed two new financial polices for school committee review.	School Committee Agenda School Committee Minutes Policy DGB – Budget Adoption Procedure Policy DBJ – Budget Transfer
October 10, 2007	After a second reading, the Harwich School Committee unanimously approved the two new polices.
November 1, 2007	The business manager attended a meeting with the taxpayers association at which they presented a new set of findings regarding FY 2005 school finance procedures.
November 9, 2007	The school business manager responded to Harwich Taxpayers Association member Hugh Drummond via email.	Email to Harwich Taxpayers Association member Hugh Drummond
November 15, 2007	The taxpayer’s association presented to town officials a copy of its new PowerPoint and a “personal and confidential” letter which included a deadline of November 30, 2007 for compliance with a list of “requirements.”
November 28, 2007	Harwich Public Schools Budget Hearing and School Committee Meeting. Tom Blute, Harwich School Committee Chairman, read a statement calling for a return to a focus on educational for the schools. His statement was echoed by each of the other school committee members.	School Committee Agenda School Committee Minutes
November 29, 2007	Superintendent Cragin discussed with School Committee Chairman the need to solicit assistance from a state agency that could review district fiscal practices and clear the air of negative perceptions
November 30, 2007	After telephone conversations with members of the school committee, the superintendent asked the business manager to contact the Massachusetts Department of Revenue to investigate appropriate review options and to request a review that could validate Harwich Public Schools’ financial practices. Mr. Costin called Barbara Dakin, local Massachusetts Department of Revenue Field Representative, and Rick Kingsley, Massachusetts Department of Revenue Chief of Municipal Data Management and Technical Assistance.
November 30, 2007	Three members of the Harwich Board of Selectmen issued a letter to the Harwich Taxpayers Association supporting the school committee and the school district.	Selectmen’s’ Letter
December 3, 2007	The superintendent and business manager spoke by telephone with Department of Revenue administrator Rick Kingsley and Joe Markarian, Massachusetts Department of Revenue Supervisor Division of Local Services Technical Assistance Section. They requested DOR assistance to validate the practices of the Harwich Public Schools and forwarded the auditor’s report and the HTA’s November report.
December 7, 2007	In a follow-up conversation with the superintendent and business manager, Rick Kingsley indicated that a review of school finance was a more appropriate task for a private auditor than for the DOR.
December 10, 2007	The superintendent and business manager met with Jay Sullivan, Massachusetts Department of Education Director of Business Services, who recommended the district request state-level confirmation of appropriate fiscal management in Harwich from the Massachusetts Commissioner of Education or the Massachusetts DOE Office of School Finance and District Support .