School & District Management

Audit Alleges Education Leaders Council Misused Federal Grant, Urges Repayment

By Jessica L. Tonn — February 03, 2006 1 min read
  • Save to favorites
  • Print

The U.S. Department of Education has released an audit of the Education Leaders Council, charging that the Washington-based organization misused federal grant money for its Following the Leaders project.

Between July 1, 2002, and Dec. 31, 2004, the ELC received more than $23 million in grants from the U.S. Department of Education’s Fund for the Improvement of Education. The federal aid was for the ELC’s Following the Leaders school improvement program. Congress appropriated an additional $9.7 million for the project in the 2005 fiscal year, prompting critics to question the group’s spending habits and effectiveness.

The ELC was started in 1995 as a conservative-leaning national voice for school improvement.

The audit, released Jan. 31, also found that the organization “drew down and expended federal funds it was not entitled to.” In fiscal year 2003, ELC overdrew its grant by $495,326, which the report blames on inadequate controls within the organization.

In addition, more than 28 percent of the grant costs reviewed in the audit were either questioned or unsupported, the report said. Among the $232,000 in questionable costs were expenditures for meals, entertainment, and travel that did not appear to be related to the Follow the Leaders project. Also noted by the report were expenses that federal grants cannot be used for, such as alcoholic beverages, advertising, and fundraising.

The U.S. Department of Education’s Inspector General’s Office, which conducted the audit, recommended that the department require ELC to reimburse the nearly $500,000 in grant money that it overdrew, and either refund or provide adequate documentation for the spending that was questioned in the report. The office also asked that ELC maintain evidence that all of its employees have reviewed the policies and procedures for using the federal grant money.

In Dec. 2005, ELC submitted a response to the first draft of the audit, claiming that the group had “long since corrected many of the accounting entries, a fact which is given minimal attention in this report.”

Though officials representing ELC could not be reached for comment on the final audit report, they have 30 days to reply to the department.

Related Tags:

Events

Jobs Regional K-12 Virtual Career Fair: DMV
Find teaching jobs and K-12 education jubs at the EdWeek Top School Jobs virtual career fair.
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
School Climate & Safety Webinar
Cardiac Emergency Response Plans: What Schools Need Now
Sudden cardiac arrest can happen at school. Learn why CERPs matter, what’srequired, and how districts can prepare to save lives.
Content provided by American Heart Association
Teaching Profession Webinar Effective Strategies to Lift and Sustain Teacher Morale: Lessons from Texas
Learn about the state of teacher morale in Texas and strategies that could lift educators' satisfaction there and around the country.

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

School & District Management What the Research Says How These Schools Doubled Teacher Planning Time
A California pilot program adjusted school schedules to give teachers more time.
6 min read
Teacher planning time. Planner book with a stopwatch that is adding minutes.
Collage by Vanessa Solis/Education Week + E+ with Canva
School & District Management Opinion If We Want Teachers to Stay, Principals Must Lead Differently
Here are three ways school leaders can make teaching feel more sustainable.
4 min read
Figures are swept up to a large magnet outside of a school. Teacher retention.
Vanessa Solis/Education Week + Canva
School & District Management How Top Principals Advocate for Their Students and Schools
Principal-advocates coach and encourage others in schools to speak up
5 min read
Rod Sheppard, former principal of Florence Learning Center in Florence, Ala., Angie Charboneau-Folch, principal of the Integrated Arts Academy in Chaska, Minn., and Chase Christensen, the principal of Arvada-Clearmont school in Wyoming, share strategies on how to advocate for public schools at the National Education Leadership Awards gathering in Washington, D.C. on April 17, 2026.
Rod Sheppard, former principal of Florence Learning Center in Florence, Ala., Angie Charboneau-Folch, principal of the Integrated Arts Academy in Chaska, Minn., and Chase Christensen, the principal of Arvada-Clearmont school in Wyoming, were interviewed by Chris Tao, a National Student Council member, on stratgies to advocate for public schools at the National Education Leadership Awards gathering in Washington on April 17, 2026.
Allyssa Hynes/National Association of Secondary School Principals
School & District Management Opinion How Teachers Can Get the Most Out of Their HR Office (Downloadable)
Here’s what your school district’s human resources staff can and can’t do for you.
Anthony Graham
1 min read
A group of people discuss the things human resources can and cannot do.
Vanessa Solis/Education Week + Getty + Canva