GloucesterTimes.com, Gloucester, MA

Latest Cape Ann News

June 11, 2013

Report shows deficits in ME activity funds

MANCHESTER —Manchester Essex Regional School officials are taking a look and adjusting policies after a report by an accounting firm found the district’s student activity accounts thousands of dollars in the red — and some funds unaccounted for.

The report by Powers and Sullivan LLC, based in Wakefield, was sought to check the district’s compliance with a state law regarding how student activity accounts are handled, spent and accounted for, according to the accounting consultants..

Student activity accounts are funded by user fees from sports, fundraising and other means not included as revenues within the school budget.

The firm tested transactions to see if receipts were being processed in line with district procedures, recorded accurately and handled in accordance with state law.

Yet the Manchester Memorial School has three student activity accounts with a total deficit of $5,049, while the middle-high school has student activity accounts with a deficit of $1,472.

In its review of 28 transactions, the firm could not tell where two Manchester Essex Regional High School student activity expenditures totaling $2,951 came from. Scholarships are also considered a student activity, which help offset the costs associated with the participation of at-need students, according to the report.

In the 28 transaction sample, two merit based scholarships were paid from Essex Elementary School and the Manchester Essex Middle High School to student activity funds.

But the accounting firm indicated that scholarships would be considered as gifts for educational purposes under state law. Powers and Sullivan recommended the district record educational scholarships in a separate account, as state law requires for gifts and grants.

Powers and Sullivan also noted that the amounts spent and the actual money leaving the accounts from both elementary schools are not turned over to the director of finance and operations or the district’s treasurer in a timely or consistent manner.

Text Only | Photo Reprints
Latest Cape Ann News

Pictures of the Week
Your news, your way
Comments Tracker
AP Video Network
Tributes Mark Boston Bombing Anniversary Raw: Kan. Shooting Suspect Faces Judge US Supports Ukraine's Efforts to Calm Tensions Suspect in Kansas Shootings Faces Murder Charges Ukraine: Military Recaptures Eastern Airport Raw: Storm Topples RVs Near Miss. Gulf Coast NASA Showcases Lunar Eclipse Pistorius Cries During Final Cross-Examination The Boston Marathon Bombing: One Year Later Michael Phelps Set to Come Out of Retirement First Women Move to Army Platoon Artillery Jobs Sex Offenders Charged in Serial Killings Police: Woman Stored Dead Babies in Garage OC Serial Murder Suspects May Have More Victims Family: 2 Shot in Head at Kan. Jewish Center Raw: Horse Jumping Inspires 'Bunny Hop' After Attack, Officials Kill 5 Bears in Florida Popular Science Honors Year's Top Inventions ND Oil Boom Attracting Drug Traffickers