By Barbara Scott
Staff Writer
Following the Oct. 25 Caribou City Council meeting a workshop was held during which Steve Buck, city manger provided detailed information regarding the RSU 39 balance transfer. Councilor Mark Goughan had requested the special session during a prior meeting citing questions he had regarding the 2009 city audit and if the city was holding monies ($877,000) which had previously been designated for education.
In Buck’s overview the councilors were informed of the history of this questioned amount.
• June 22, 2009 — Caribou citizens approved the RSU 39 2009-10 budget of $19,584,984 plus $234,156 in adult education funding; Anticipated revenues were $14,2010,870 with the amount of $5,617,270 to be assessed against the RSU 39 member communities (Caribou, Stockholm and Limestone).
• In the first operational year each of the municipality’s share of costs was to be offset by remaining balances which were subject to final audit adjustment. The city of Caribou’s portion was $1,749,682.
• Caribou was assessed $2,856,245 for the RUS 39 2009-10 budget year and this was raised through taxation.
• From July 1, 2009 to June 30, 2010 the RSU 39 received a total $4,600,000 from the city.
Following this discussion Councilor Goughan continued to question the balance transfer account issue and Buck stated he would ask for clarification from the law firm of Drummond Woodsum.
During Monday’s regular council meeting on Nov. 9, this issue was once again presented and Buck reviewed a report prepared by Gregory Dickinson, CPA of Felch and Company, LLC.
The accounting firm was asked their opinion as to “whether the transfer of school funds was done in accordance with the agreed upon procedures as outlined by the city school department attorney and as to whether the funds should have been treated as being transferred to the a City of Caribou’s fund balance or held in reserve for the newly organized Regional School Unit 39.”
The disposition of the Caribou School Department’s ending fund balance as of June 30, 2009 was to be done as follows.
• The fund balance was first to be calculated using current funds held by the city including receivables that were collected for the fiscal year ending June 30, 2009.
• Obligations, such as accounts payable, contracts payable and federal and state funds held by the city for the school department were to be deducted from the fund balance so the city could pay them.
• The remaining balance was to be transferred to the city of Caribou to be paid to the RSU as a special assessment.
The balance of the funds transferred to the city fund balance was $1,749,682 (calculated amount of cash and receivables at June 30, 2009 — $3,065,533; amounts to pay obligations for salaries and benefits was $942,346; accounts payable were $66,214 and federal/state and designated funds by school were $307,291.)
According to Dickinson, the balance of $1,749,682 was to be added as a special assessment to the city by the RSU 39. The RSU assessed a total of $4,605,927. In 2008 the assessment was $3,119,847 ($1,486,080 less than the 2009 assessment). On June 30, of this year all funds owed to the RSU had been satisfied.
During the Nov. 9 meeting discussion continued regarding this issue and following more questions from Goughan remaining unclarified, the panel decided the topic would be addressed further during a Nov. 22 workshop which will be held following the regular council meeting slated on that day.
