On Sept. 25, State Controller Malia Cohen released the Multi-Agency Charter School Audits Task Force (Task Force) report listing recommendations that reflect best practices to be adhered to — and implemented by — charter schools and local education agencies (LEAs).
The report titled “ Audit Best Practices for Detecting and Curtailing Charter School Fraud” includes 20 recommendations applicable to school districts and county offices.
“I was surprised to learn, although charter schools brought us to this work and brought us to this table, a majority of the recommendations apply to all public schools. So, there is an added benefit to everyone.”
There are 1,300 charter schools operating in the state, according to Cohen.
The Task Force was assembled by a court order after 11 individuals affiliated with charter schools charged by the San Diego District Attorney were convicted of multiple counts of fraud. The case turned out to be the largest fraud scheme committed against California since the state adopted public charter school legislation in 1992, according to San Diego District Attorney Summer Stephan.
“Controller Cohen didn’t hesitate to take action to seal the cracks that were exposed by our successful prosecution of this widespread charter school scam,” Stephan said. “Thanks to the task force, we are ensuring that moving forward, criminals will not be able to perpetrate large-scale scams that previously took advantage of California taxpayers, parents, and students.”
The task force report is broken down into four categories. Cohen and task force members recommended a Certified Public Accountant (CPA) authorization, qualifications, training, and K-12 Audit Guide Compliance; rotation of CPAs and notifications of late audit reports; K-12 audit guide; and disclosures of audit reports.
As the chief fiscal officer of California, Cohen is responsible for accountability and disbursement of the state’s financial resources. The Controller has independent auditing authority over government agencies that spend state funds.
“This accomplishment and the next actions that will be taken ensure accountability, transparency, and the significant investment in education that the state of California makes to our children,” Cohen said of the task force’s duties.
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Bo Tefu contributed to this story
