PERU — Selectmen and Friends of Peru Elementary School representatives Norman DeRoche, Anne Stickney and Nick Waugh met last week to work on a management contract.

Last month, residents voted to return control of the building to selectmen, to provide $10,000 for its operation as a community center and to enter into a contract for management of the facility.

For the past three years, the group has leased the building and operated it at no cost to the town. Selectmen expressed their appreciation for the group’s good work.

Friends of Peru Elementary School will continue to raise money by renting the former school and holding fundraisers.

Under the new agreement, Friends of Peru Elementary School must submit bills to the Town Office and have payment approved by selectmen before accessing any part of the $10,000. Any major modifications to the facility will require prior approval by selectmen.

Waugh said the group spent $15,000 heating the building last year. Insurance, electricity and heating will probably be charged to the town until the $10,000 is spent.

However, at the urging of Selectman Jim Pulsifer, it was agreed that there will be no restriction on how the group spends the money, as long as the expenditure is approved by selectmen.

The group will provide monthly financial reports and a detailed annual report to the town.

Also last week, selectmen approved $50 gift certificates for town employees.