SBCSS News and Press Releases

California Charter Academy Audit Released

2005-04-14

SAN BERNARDINO — County Superintendent of Schools Herbert Fischer commented today on the release of an audit of California Charter Academy (CCA) that was called for by State Superintendent of Public Instruction Jack O’Connell in collaboration with Fischer’s office and the Orange County Office of Education.

The audit of the now defunct CCA reports the misuse of millions of dollars of state public school funds as a result of improper expenditures and transfers of funds, inadequate oversight, conflicts of interest, claiming of funds for ineligible average daily attendance and independent study and an overall lack of fiscal controls.

In all, the report concludes that CCA received more than $23 million in state charter school funds for which it was not entitled.

“I am gravely concerned that public education dollars could be misused as this audit indicates,” said Fischer. “While charter schools can provide alternative and innovative options for students and families, we must take action to ensure they are accountable for the use of public funds and the education of students.”

The audit team identified numerous instances of potential illegal activity in its report. In accordance with state law, if the county superintendent determines there is evidence that fraud or misappropriation of funds has occurred, the county superintendent must notify, the local district attorney.

“We have a legal and ethical obligation to see to it that educational dollars intended for children are accounted for and that those responsible for using those funds for activities other than public education are held responsible. Safeguards must be put in place to prevent this from happening again,” Fischer said.

Before it closed in late July and early August 2004, CCA operated more than 50 satellite sites across California and enrolled over 4,500 K-12 students and more than 7,500 adult students. CCA had three of its four schools chartered out of San Bernardino County school districts, Oro Grande Elementary and Snowline Joint Unified.

“We are hopeful the results of this audit will prompt legislation that supports higher standards for charter school oversight,” noted Fischer. “The future success of charter schools is tied to accountability—for the instructional program provided to students, as well as financial and management practices.”

O’Connell ordered an audit and investigation of CCA’s operations following a recommendation by the State Advisory Commission on Charter Schools in March 2004. In June 2004, the County Offices of Education in San Bernardino and Orange joined with the CDE to launch the investigation that was conducted by the Fiscal Crisis Management and Assistance Team (FCMAT).

The audit report is available at http://www.fcmat.org.