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Tuesday, April 27, 2010

Charter School Investigation Butkovitz' Charter School Investigation Faults School District for Lack of Oversight

Charter School Investigation

Butkovitz' Charter School Investigation
Faults School District for Lack of Oversight
Controller's findings include mismanagement, questionable leasing
agreements, undocumented expenses and nepotism

PHILADELPHIA - City Controller Alan Butkovitz today released the findings of his in-depth investigation into 13 Philadelphia charter schools that found a lack of oversight by the School District, resulting in numerous cases of financial mismanagement, questionable spending practices and fraud and abuse, all at the expense of taxpayers.

The Controller's investigation concentrated on the School District's Charter School Office to determine if it was adequately monitoring all 63 charter schools and to ensure that millions of tax dollars were being spent appropriately and were not susceptible to fraud, waste or abuse.

"Each year, taxpayers provide an estimated $300 million to fund charter schools in Philadelphia," said Butkovitz, today at a press conference. "It is our responsibility, and the responsibility of the School District of Philadelphia to ensure that this taxpayer money is being spent appropriately."

While reviewing the Charter School Office, the Controller's investigators uncovered numerous missing documents for the 13 schools that were investigated, including missing charter agreements, articles of incorporation and proof of insurance, -- all of which is a violation of School Reform Commission (SRC) requirements. The Charter School Office also failed to compile and submit annual reports and compliance summaries to the SRC, as mandated.

"In spite of the numerous problems uncovered at individual schools, the biggest problem lay clearly with the School District's Charter School Office," said Butkovitz. "The Office demanded little in the way of accountability from any charter school we investigated.

"There was a complete and total failure on the part of the Charter School Office to monitor charter schools and hold these schools accountable for how they spend taxpayers' dollars."

By reviewing the Charter School Office, the Controller's investigation looked at 13 charter