'It Shouldn't Be A Circus': Ridgefield School Board Approves Revised FY26 Report Showing $37K Surplus

RIDGEFIELD, CT — The Ridgefield Board of Education voted 7-1 Wednesday to approve a revised fiscal 2026 year-end financial report showing a $37,072 surplus after a broader review found nearly $188,600 in E-Rate revenue, $37,167 in eligible school nutrition expenses and an additional $45,962 legal expense that needed to be reflected in the final accounting.

The Sept. 23 special meeting was called specifically to address the FY26 financial closeout after the district's year-end position changed several times following the board's Sept. 14 meeting. The meeting was held remotely and livestreamed through the district's YouTube channel.

Superintendent Susie Da Silva's Sept. 23 financial memorandum provides a detailed accounting of those changes and outlines steps the administration plans to take to strengthen financial controls.

Board member Christine More moved to approve the revised report and Kathryn Graf seconded. Jon Paradiso cast the lone opposing vote. Board member Angela Rice had left the meeting before the vote. Chair Tina Malhotra announced the final tally as 7-1.

$19,725 Surplus Became A Deficit

The financial questions began at the board's Sept. 14 meeting, when the year-end report showed a $19,725 positive balance.

According to Da Silva's Sept. 23 memorandum, Finance Director Jill Browne disclosed at that meeting that two expenses totaling $162,440.28 and attributable to FY26 had instead been assigned to FY27. The accounting decision had already been made without being discussed with or elevated to Da Silva in advance.

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Da Silva told the board Wednesday that she learned of the decision at the Sept. 14 meeting, at the same time as board members. She said the two expenses involved legal and utility costs.

Questions raised by board members prompted an immediate review. The district consulted its independent auditor, and the two expenses were reassigned to FY26, changing the previously reported surplus into an operating-budget deficit. The board was informed of the change Sept. 15.

Da Silva said the accounting question should have been resolved before the year-end report reached the board.

"What that review also made clear is that the communication process should have occurred differently," Da Silva said.

Broader Review Finds Revenue, Expenses

Rather than stop with the two disputed expenses, Da Silva said she and the district's business office reviewed FY26 expenditures, revenues, reimbursements, restricted accounts and outstanding obligations.

The review identified three additional items that materially changed the final result: a $188,582.12 E-Rate reimbursement received Aug. 27; $37,166.73 in FY26 school nutrition expenses eligible to be charged to the restricted School Lunch Account; and an additional $45,961.59 legal expense attributable to FY26.

According to the meeting packet, the district reviewed the accounting treatment of those items with independent auditor Leslie Zoll before making the adjustments. After all three were incorporated, the FY26 report showed a $37,072 surplus.

The packet also clarifies that the review was not conducted solely to find money to eliminate the deficit. Administrators also searched for outstanding expenses and obligations that properly belonged in FY26.

E-Rate Payment Was Initially Booked In FY27

Board members spent considerable time questioning the $188,582 E-Rate reimbursement because of its effect on the district's final balance.

Graf said she examined the reimbursement particularly closely because without the adjustment, the district could again have faced a deficit. She said she was satisfied that the requirements for recognizing the revenue in FY26 had been met.

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Ridgefield Public Schools Assistant Business Director Nicholas Karas said the reimbursement initially had been recorded in FY27, consistent with the timing of E-Rate payments in previous years. In this case, however, the money arrived within the period in which it could be recognized as FY26 revenue.

Da Silva said the reimbursement, which was for FY26 expenses, was fully deposited Aug. 27. She said E-Rate reimbursements normally arrive in October or November, which is why they have historically been recognized in the following fiscal year.

The timing has implications for the current budget. Da Silva said Ridgefield should not expect the E-Rate money recognized in FY26 to produce the technology surplus it otherwise might have seen in FY27.

School Lunch Account Covers $37,167

The broader review also determined that $37,166.73 in school nutrition expenses charged to the operating budget were eligible to be paid through the district's restricted School Lunch Account.

Da Silva said the district normally maintains operating funds for repairs and replacement of kitchen and food-service equipment but determined that the purchases in question could appropriately be charged to the special account while complying with applicable requirements.

Board member More questioned whether the E-Rate and school lunch changes represented a departure from normal accounting practices undertaken to eliminate the deficit.

Da Silva said the expenses and reimbursement were appropriately assigned following the district's review and consultation. She said the unusual element with E-Rate was its early arrival, not the eligibility of the underlying FY26 expenses for reimbursement.

District Says Spring Forecast Had Tightened

The Sept. 23 packet also provides additional context about when administrators knew the budget was tightening.

According to Da Silva's memo, special education and electricity were the primary financial pressures during the spring. The district limited spending after April to essential purchases, services and repairs. After the May financial report, Browne told the town controller and Board of Finance chair that increased pressures had changed the year-end forecast and that little to no surplus was expected.

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The year-end reconciliation continued as departments identified outstanding obligations and the Finance Department updated encumbrances, accruals and expected expenses. The memorandum says special education costs remained volatile into June and utility and other expenses were still subject to reconciliation, leaving the final result less certain later into the fiscal year than usual.

Several board members nevertheless questioned how the original $19,725 surplus could have been presented without the accounting treatment of the two FY26 expenses being resolved first.

Paradiso pressed Da Silva on who made the original decision and whether existing procedures required her involvement. Da Silva said she was not consulted beforehand. She also said the district's independent auditor had not been consulted about the two expenses before the Sept. 14 board meeting.

Although content with the final destination, board member Rachel Marino expressed alarm at the journey.

"My whole thing is the process of this," Marino said. "We were over, we were under, we were over, we were under. It was a circus, and it shouldn't be a circus."

Karas Says Revised Report Reflects Review Of Ledgers

Graf asked whether the business office had conducted a sufficiently broad review to determine whether other bills had been assigned to the wrong fiscal year.

Karas said he reviewed the FY27 ledger, every open purchase order and invoice and FY26 records, including expenses that might need to be divided between fiscal years.

Graf said she regarded the accounting changes as corrections of errors and was satisfied with the answers she had received concerning the report itself, while saying broader questions remained about financial controls and procedures.

Paradiso continued to question the process and ultimately voted against accepting the report.

New Financial Controls Planned

The Sept. 23 packet outlines several changes Da Silva said the district plans to make in response to the episode.

The administration plans to consult proactively with the independent auditor and town financial officials when unusual circumstances arise, increase budget-to-actual and year-end forecasting during the final quarter and establish recurring financial reviews between the superintendent and Finance Department.

The district also plans to require material accounting decisions to be elevated to the superintendent before action is taken and to communicate significant changes in financial projections to the board, including explanations of what changed and why.

Other planned steps include requiring departments with significant expenses to regularly reconcile and forecast their budgets, with particular attention to outstanding invoices and unbilled obligations. Special education forecasts are to include known costs as well as reasonably anticipated financial exposure.

The administration also plans to create a formal year-end calendar and checklist covering outstanding invoices, purchase orders, encumbrances, accruals and expenses crossing fiscal years. Finance Department staffing, responsibilities, workflow and internal review practices will be compared with those of similar school districts.

Malhotra said the board still has work to do on communication, transparency and financial processes beyond Wednesday's vote.