Education Funding News in Brief

Audit Faults Federal Charter-Fund Tracking

By Andrew Ujifusa — October 30, 2012 | Corrected: November 13, 2012 1 min read
  • Save to favorites
  • Print

Corrected: An earlier version of this story misstated a contractor’s role in the inspector general’s audit. WestEd was not a contractor to the inspector general, though data from the San Francisco-based research group were cited in the document.

An audit of charter school spending at the U.S. Department of Education concludes that federal officials have not properly monitored how states have spent that money, with particular oversight problems noted at the state department level in Arizona, California, and Florida.

The report, conducted by the Education Department’s office of the inspector general, found that the federal agency’s office of innovation and improvement, which oversees grants to states for charter schools, as well as direct grants to charters, did not check if states followed federal regulations for using the money and did not keep track of how individual charters used the grants.

From fiscal 2007 to 2011, the department provided $940 million to charter schools through various grants.

In an executive summary, the report states that the U.S. department “did not have an adequate corrective-action plan process in place to ensure grantees corrected deficiencies noted in annual monitoring reports, did not have a risk-based approach for selecting [local] grantees for monitoring, and did not adequately review grantees’ fiscal activities.”

The inspector-general report found state-level problems in Arizona, California, and Florida concerning how they monitored their own activities related to the grants. Combined, the three states received $275 million in charter school funds from fiscal 2008 to 2011.

There were a variety of criticisms for how these states monitored the spending of money for charter schools. Arizona, for example, “could not provide written procedures outlining the process for a charter school closure,” while California did not adequately document how it tracked assets from closed charter schools. All three states were criticized for not adequately monitoring charter schools receiving grants from their state education departments.

Related Tags:

Read more News Briefs.
A version of this article appeared in the October 31, 2012 edition of Education Week as Audit Faults Federal Charter-Fund Tracking

Events

This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
College & Workforce Readiness Webinar
Smarter Tools, Stronger Outcomes: Empowering CTE Educators With Future-Ready Solutions
Open doors to meaningful, hands-on careers with research-backed insights, ideas, and examples of successful CTE programs.
Content provided by Pearson
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Professional Development Webinar
Recalibrating PLCs for Student Growth in the New Year
Get advice from K-12 leaders on resetting your PLCs for spring by utilizing winter assessment data and aligning PLC work with MTSS cycles.
Content provided by Otus
School Climate & Safety Webinar Strategies for Improving School Climate and Safety
Discover strategies that K-12 districts have utilized inside and outside the classroom to establish a positive school climate.

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

Education Funding In Trump's First Year, at Least $12 Billion in School Funding Disruptions
The administration's cuts to schools came through the Education Department and other agencies.
9 min read
Education Funding Schools Brace for Mid-Year Cuts as 'Big, Beautiful Bill' Changes Begin
State decisions on incorporating federal tax cuts into their own tax codes could strain school budgets.
7 min read
President Donald Trump signs his signature bill of tax breaks and spending cuts at the White House on July 4, 2025, in Washington.
President Donald Trump signs his signature bill of tax breaks and spending cuts, the One Big Beautiful Bill Act, at the White House on July 4, 2025, in Washington. States are considering whether to incorporate the tax changes into their own tax codes, which will results in lower state revenue collections that could strain school budgets.
Evan Vucci/AP
Education Funding Educator Layoffs Loom as Canceled Community Schools Grants Remain in Limbo
Three legal challenges and bipartisan backlash have followed the Trump administration's funding cuts.
5 min read
Stephon Thompson, an administrator at Stevenson Elementary School, directs students through the doors at the beginning of the school day in Southfield, Mich., on Feb. 28, 2024.
Stephon Thompson directs students through the doors at the beginning of the school day at Stevenson Elementary School in Southfield, Mich., on Feb. 28, 2024. The school has added on-site social services in recent years as a community school. The Trump administration has recently discontinued 19 federal grants that help schools become local service hubs for students and their families.
Samuel Trotter for Education Week
Education Funding ‘Terminated on a Whim’: The AFT Sues Trump’s Ed. Dept. Over Funding Cuts
The AFT and a Chicago-area nonprofit argue the cuts happened without following required procedures.
Randi Weingarten speaks at a press conference at Murrell Dobbins Career & Technical Education High School in Philadelphia, Pennsylvania on September 2, 2025.
Randi Weingarten, the president of the American Federation of Teachers, speaks at a press conference in Philadelphia on Sept. 2, 2025. Weingarten says that cuts to federal education funds by the Trump administration "are only hurting young people."
Rachel Wisniewski for Education Week