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
Recruitment & Retention Webinar
Hiring, Retention, and Fill Rates: A Data-Driven Sub Strategy
Explore what keeps substitutes coming back and hear how one district rebuilt its substitute hiring process and improved its fill rate.
Content provided by Frontline Education
Early Childhood K-12 Essentials Forum Early Childhood Education: Building Essential Skills for Success
Join this free virtual event to examine the biggest challenges in supporting young children, from preschool through elementary school. 
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
Student Absenteeism Webinar
Attendance Isn't an Attendance Problem
Boost attendance by strengthening relationships, belonging, and support with practical strategies from Doug Fisher & Nancy Frey.
Content provided by Corwin

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 Averting a Shutdown, Congress Punts Federal Spending Decisions to December
Federal funding talks will continue into December as Congress agrees to avoid a shutdown.
2 min read
Speaker of the House Mike Johnson, R-La., arrives for a closed-door meeting with Republican lawmakers as he prepares for a vote on a stopgap spending bill to keep the federal government fully funded through early December, avoiding the possibility of a shutdown before the midterm elections, at the Capitol in Washington, Tuesday, Sept. 1, 2026.
Speaker of the House Mike Johnson, R-La., arrives for a closed-door meeting with Republican lawmakers at the U.S. Capitol on Sept. 1, 2026, as he prepares for a vote on a stopgap spending bill to keep the federal government fully funded through early December, avoiding the possibility of a shutdown before the midterm elections. The continuing resolution carries over the current year's funding levels for education programs into the first two months of the federal fiscal year that starts Oct. 1.
J. Scott Applewhite/AP
Education Funding Education Department Will Keep Sending Most K-12 Funds Through Its Own System
The agency will send formula funds through its own system again despite program shifts to other agencies.
5 min read
A sign from the General Services Administration is posted outside of the Department of Education headquarters in Washington, D.C. on Friday, July 17, 2026.
A sign installed by the General Services Administration is posted outside the Department of Education headquarters in Washington on July 17, 2026. Despite shifting its programs to other agencies, the Education Department will send billions of dollars in formula funds for schools through its own grants portal on Oct. 1, rather than a portal run by the Department of Labor.
Eric Lee for Education Week
Education Funding Video What's in Store for School Funding for 2026-27?
A new education tax credit, federal budget negotiations, and more are in store.
The U.S. Capitol building in Washington, D.C. on Friday, July 17, 2026.
The U.S. Capitol building in Washington, D.C. on Friday, July 17, 2026.
Eric Lee for Education Week
Education Funding Trump's Education Department Is Letting Tens of Millions of Dollars Expire
Education Week found the agency didn't spend its full budget last year and appears on track to do so again.
10 min read
A collage-style illustration of images of the U.S. Department of Education building, the U.S. Capitol building, and dollar bills on top of a wooden school desktop with a pencil on it and a school bus underneath. The dollar bills appear to have been punched out with a hole punch in a few areas, and those missing circles are sprinkled on the desk and school bus below.
Illustration by Emily Wright for Education Week + Getty