The KIPP Foundation improperly sought to charge to federal grants more than $10,000 for alcohol and entertainment, according to an audit by the Department of Education’s inspector general.
The San Francisco-based foundation, which has received grants of more than $7 million since 2004 from the department’s Fund for the Improvement of Education, provides leadership training to support a national network of independently run schools that follow the Knowledge Is Power Program instructional model.
Unallowable charges from three events listed in the Dec. 6 report include $1,919 for alcoholic beverages at a restaurant at a “math retreat” in New York City; $2,988 for alcohol and $2,318 for “three hours of DJ and karaoke services” at a school leaders’ retreat in Cancun, Mexico; and $3,387 for alcohol at another retreat in Cancun.
The report said most of the unallowable charges did not lead to improper use of the grants because the foundation used other monies to cover some $624,000 in costs that it originally charged to one grant and $21,700 in travel costs under another grant.
The federal auditors concluded that the foundation generally used the grants appropriately.
In a response attached to the report, KIPP Controller Tina Sachs acknowledged that the foundation charged for “unallowable costs” but said it has taken steps to prevent improper charges in the future.
