Rochester school board approves May unaudited financial report amid questions on grants, payroll and transportation

The Rochester Board of Education approved the district's May 2026 unaudited financial report on May 28 after a presentation from Finance Director John McDow and follow-up questions from multiple commissioners. The motion to adopt the report was moved by Vice President Malloy and seconded by Commissioner McCulla; the board approved the item by voice vote.

The board heard that the district started the month with about $578 million in cash, and that grants had increased by roughly $3 million (from the previous projection of about $125 million to nearer $135 million). McDow said payroll posting to the general ledger is catching up, noting the accounting team had reconciled payroll entries that previously lagged into the ledger.

Why it matters: commissioners pressed district leaders for detail on several items they said were too vague for board review. Commissioner LeBron asked specifically for an explanation of a roughly $29,000 projected decrease shown only as “miscellaneous” in the revenue table; McDow said the decline was mostly tied to building aid and pledged to follow up and capture the question in the board log. Commissioner Griffin asked whether McKinney‑Vento shelter‑and‑homelessness funding was included; staff said the report did not include a full McKinney‑Vento breakdown but that the grants summary did incorporate those funds in the district's grant total and that a detailed breakout could be provided on request.

Transportation contract uncertainty: Commissioners also questioned the district's plans for pupil transportation. McDow and other staff said the current contract with Monroe/Monro Transportation remains in place through the end of June and that the district has issued a request for proposals, received responses and is vetting recommendations for a new contract to cover the 2026–27 school year. Commissioners emphasized the need to consider both student service continuity and local employment impacts when evaluating new vendors.

Budget transfer scrutiny and tabled items: During the meeting several late budget transfer requests and contracts were discussed, including multi‑million‑dollar transfers described by staff as necessary to stabilize payroll systems and cover utility and vendor costs (items involving Oracle/Nova Motus and utilities). Commissioners expressed concern about moving recurring obligations (for example, employer retirement lines) into year‑end transfers and asked for clearer line‑by‑line justifications before board approval. The administration agreed to provide the requested detail and the board tabled several transfers and related resolutions to a special meeting the following Tuesday to allow deeper review.

What's next: The board voted to approve the unaudited May 2026 financial report but deferred several associated transfers and vendor approvals to allow staff time to provide the line‑item justifications requested by commissioners. Staff said payroll reconciliation with the general ledger should be more current next month, which the administration expects will make the district's year‑end fiscal position clearer.

Sources: District financial presentation by John McDow and the board's May 28 meeting proceedings. "We are in a very good financial position," McDow said during the presentation, while acknowledging the need for more detailed follow-up on some line items.