State audits 2 Warren charter schools

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Charter schools must
continue to show
improvement to receive funding.

WARREN — The Ohio State Auditor's Office has been able to audit two Warren charter schools so they can continue to receive state funding.

But Emily Frazee, spokeswoman for Auditor Mary Taylor, warned that the Academy of Arts Humanities on Tod Avenue and Arts and Science Academy on Elm Road must continue to improve or face loss of funds.

Taylor announced Tuesday that the two academies couldn't be audited in fiscal 2006 because of missing or incomplete financial records, or were "unauditable."

However, auditors were eventually able to get a complete and accurate picture of academy finances.

"Public entities must provide accurate documentation accounting for the use of public funds to ensure taxpayer dollars are spent legally and appropriately," Taylor said. "The failure to do so increases the potential of misuse or theft of taxpayer dollars and could affect future funding."

Both schools were in their first year of operation in fiscal 2006. Academy of Arts has 150 pupils, while Arts and Science Academy has 140 pupils. They receive funding on a per-pupil basis.

Audits at both schools had the same findings:

Schools did not apply for tax-exempt status from the IRS that is required by law.

Minutes of board meeting were not maintained at the schools.

Schools had only three individuals on their board of directors. State law requires five members.

Basic financial statements were incomplete and not prepared until nearly a year after the schools' fiscal years ends.

Forms for federal grants were inaccurately completed.

Frazee said many charter school throughout the state had similar problems. The auditor's office conducted regional workshops this summer to instruct the school staffs on ways to improve financial oversight and accountability, as well as provide legal and fraud awareness training.

Wednesday, November 28, 2007