Delaware charter school audits under scrutiny
In the wake of bombshell allegations that the co-leaders of a charter school made thousands of dollars in personal purchases on school credit cards, some lawmakers want the state auditor's office to run charter audits to make sure taxpayer money isn't being misused.
Charters are required to have audits done, but now the schools decide who audits them. Rep. Kim Williams, sponsor of House Bill 53, says having the state auditor, who already audits district and vo-tech schools, perform the work is the best way to monitor spending.
Williams said the legislation was spurred by revelations late last year that the co-leaders of Family Foundations Academy, a charter school in New Castle, had used school credit cards to make more than $94,000 in personal purchases for things like car payments, furniture, flowers and fine watches.
Though the school was aware of the accusations for almost a year, the Department of Education found out only shortly before the school's charter was up for renewal. Family Foundations fired the two leaders and replaced its board, bringing in the leadership of Eastside Charter School to convince state officials to renew the charter.
"There are lots of charter schools that are operating under the rules and doing a good job, but when these kinds of things happen, it gives them all a bad name," Williams said. "What this is about is making sure that everybody is playing by the same rules."
The state Auditor's Office would not directly audit the schools, but would select the firms that do the audits and set the rules for what the firms should be looking for.
Charter school advocates say they simply need more clarity on what is expected of them and worry that the bill would limit their flexibility and autonomy if it becomes law.
"We're all about transparency, and we are fine with having an audit. In fact, it's required under state law," said Kendall Massett, executive director of the Delaware Charter Schools Network. "I do not believe that using a pass-through that will raise the cost and take money out of the classroom is the right solution. I think the solution they're proposing is bigger than the problem that there is."
Massett argues charters will have to pay a management fee to the state and that the state-negotiated audit contracts will likely cost some schools more.
But Williams says charters will have to pay more only if they aren't keeping the right records or otherwise not handling their business correctly. For schools that are already doing everything they are supposed to, she says costs will not significantly rise.
Rep. Michael Ramone says a change is necessary, but handing duties over to the auditor might not be the right one.
"Everybody looks bad if any of our schools aren't being fiscally responsible," Ramone said. "However, as a business guy, the approach I think we should take is to give these schools a clear expectation of what is required of their schools as far as their fiscal responsibility and reporting criteria, and I don't think we've provided that yet."
Ramone said the state should establish a specific, detailed list of everything they expect charters to cover with an audit, so charters can be sure they are hiring Delaware charter school audits under scrutiny:
