In a memo to Town Meeting June 15, interim Superintendent Kathleen Bodie apologizes for how the version of a report about an audit was presented to Town Meeting and has called it a mistake. The memo says in full:

"As you are aware, in our budget report to Town Meeting, we included an excerpt from a recent audit review by Powers & Sullivan (the Town’s independent auditors) of several fee and revolving accounts of the School Department.

"While we did not intend to portray this as the full report, we recognize now that this was a mistake and that we should have just included the full report. For this we apologize. We have since posted the full report to the Town’s website (www.arlingtonma.gov) and have discussed our actions with Powers & Sullivan. They indicated that they are satisfied with our corrective action.

"Powers & Sullivan reviewed the activity of the Title I Grant, Athletic Fee High School Revolving Account, Athletic Fee Miscellaneous Revolving Account, All Day Kindergarten Revolving Account, Hardy Extended Day Revolving Account, and Instrumental Music Fee Revolving Account for the year ending June 30, 2008. The report did not identify the misuse of any funds.

"The report, however, does mention a deficiency in internal control relating to journal entries. A journal entry is the manual recording of transactions into the general ledger. The journal entry can consist of several items that are debits or credits, which either increases or decreases account balances.

"Historically, the School Department has always posted journal entries directly to the general ledger. This is considered a deficiency because the Comptroller should be responsible for posting all journal entries to the general ledger.

"This same deficiency was also a comment in the Town’s FY08 management letter (Powers & Sullivan 2008 Town Audit) and plans were put in place by the Comptroller to change this practice prior to July 1, 2009. Going forward, the Comptroller will disable the ability of the School Budget Analyst to post journal entries.

"The recommendations made in the Powers & Sullivan review are being addressed, and streamlined policies and procedures will be in effect by the end of FY09. The Comptroller, along with the School Chief Financial Officer, will be responsible for implementing these changes.

"Again we apologize for not including the full Powers & Sullivan report in our budget report."

The memo was on the seats on Town Meeting members June 15.

In response to a request to explain the deficiency involved, Ruth Lewis, the town's comptroller, wrote June 18:

"In accordance with MGL Chapter 41 Section 57 'The Accountant shall keep a complete set of books wherein shall be entered the amount of each specific appropriation, the amounts and purposes of expenditures made
therefrom, the receipts....and in conformity with any systems, classifications, forms and designations prescribed pursuant to regulation of the board of education for use by school committees.'

"With the school creating and posting journal entries, the Comptroller does not review and approve the journal entries to the Town's books.

"Effective June 22, the school will enter the journal entries but then forward the journal entry input form and all supporting documentation to the Comptroller for review, approval and posting."

This story was originally published June 15 and updated June 18.