For Immediate Release

January 27, 2011 – This week, the Board of Education, through its Finance, Insurance,
and Personnel Subcommittee, was made aware of the findings of the auditors for the
recently completed review of the 2009-2010 school budget.

The deficit reported by the auditors was shocking and extremely disturbing. The
auditors found that the 2009-2010 school budget ended up having a deficit of over
$453,000.

Upon further review and discussion with the current Business Manager, and the
Finance, Insurance and Personnel Subcommittee it was discovered that a significant
error was made by the former business manager and the former Superintendent.

In a letter dated January 21, 2010 from the Selectmen’s Office to Dr. Palmer, the town
was amending the amount of funds that would be distributed to the Board of Education
due to a reduction in the ARRA funds received from the State.

To address this issue properly, the former business manager, Mr. Al Pullo under the
supervision of Dr. Judy Palmer, should have reduced the school’s budget by the
corresponding amount of the town’s reduction.

This however, was never made and leadership at central office proceeded with an
erroneously high budget.

Statutorily, if the error was discovered during the same school year, the Board of
Education would have had to appeal to the town for additional appropriation of funds
to cover deficit.

However, since it was not discovered within the same year and most recently, the town
must absorb the cost of the deficit through an automatic reduction of the General
Fund’s Undesignated Fund Balance.
The Board of Education is extremely disappointed to learn about this very significant
error and will continue to cooperate with the auditors, the town and staff at central
office staff.

We will also be supportive of any investigation regarding the mismanagement of the

taxpayer’s dollars during the previous administration. The Board has also taken steps
to ensure that a similar incident will not occur now or in the future.

The people of Oxford can be assured that the current budget, while extremely
conservative, has an accurate total budget.

We have confidence in our current administration, James Connelly as Interim

Superintendent and Rosemary Hanson as Business Manager.

We do believe with the experience level of Ms. Hanson, who worked in a dual role as
the Town of Clinton’s Finance Director and BoE Business Manager, that she will be able
to assist us in this matter.