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Audit finds 'little or no oversight' of charter school spending

By Mary Vorsino

POSTED:
LAST UPDATED: 07:27 p.m. HST, Dec 15, 2011

STAR-ADVERTISER
This file photo shows the Myron B. Thompson Academy in Kakaako.

A review panel hasn't held charter schools accountable for student performance, and in many cases the schools are "free to spend public funds with little or no oversight," a scathing audit of Hawaii's public charter school system charges.

The state performance audit, released today, also found Myron B. Thompson Academy, which was the focus of a nepotism probe earlier this year, failed to "adhere to ethical fiscal management principles ... (leading) to $133,000 in overpayments to staff."

The audit concludes:

>> The Charter School Review Panel focuses on its duties as a charter school authorizer, but has delegated "core monitoring and reporting responsibilities to local school boards, effectively removing itself — and outside oversight — from the charter school system."

>> In turn, some local school boards have "ignored their own management responsibilities, allowing schools to spend public funds without oversight."

>> Some spending at Thompson Academy was characterized as "possibly fraudulent," including salary overpayments that resulted in some employees being paid twice or three times what they should have been earning. The audit said that in the 2009-10 school year, the school's elementary and secondary vice principals, part-time school administrative services assistant and part-time registrar were paid lump-sum amounts through temporary employee contracts in addition to their regular salaries.

For example, the audit notes, the school's part-time registrar got an "administrative differential" that boosted his salary to $55,200 annually, a 212 percent increase.

The audit says Thompson's spending practices "have the potential to erode public confidence in the school and the public charter school system as a whole."

>> The report also found instances of "unrestrained spending," including a school that spent nearly $18,000 in public funds on school excursions to an amusement park, ice skating rink and pizza restaurant.

Ruth Tschumy, a member of the Charter School Review Panel, said the audit's conclusions "should be a loud call for all of us to be doing a better job."

She added that the audit may overstate the authority of the panel, a 12-member board of volunteers, pointing out that state law considers local school boards for each charter school "the autonomous, governing body of the school."

Tschumy also said, "We accept the recommendations that will lead to improved performance by the panel and by the schools."

About 5 percent of public school children — or some 9,100 students — attend charter schools, which are publicly funded but are not under the state Department of Education.

Instead, their charters are overseen by local school boards, whose authority can be revoked by the Charter School Review Panel.

The state's 31 charter schools are seen as real-life labs to test innovative approaches to education.






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awahana wrote:
Rampant corruption. Too much Scientology/Dianetics in the Thompson family?!
on December 15,2011 | 09:20AM
Tony91 wrote:
And how many times has a charter been revoked in the state of Hawaii? I would bet almost zero. This is not because all 31 charters are doing such a great job. It is because they are political hot potatoes. Some charters exist solely due political patronage.
on December 15,2011 | 09:55AM
KekoaBradshaw wrote:
Really? Which ones do you mean?
on December 15,2011 | 10:13AM
Tony91 wrote:
Off the top of my head, Halu Ku Mana is one. Lingle gave them a 30 year lease on state DLNR preserve land at the base of Tantalus to put their portable classes on after the neighbors in Manoa got fed up. This is land they will never, ever, be able to pour a concrete footing on without an EIS and ferocious opposition from the neighborhood and environmental groups. My understanding is the governor did this to prevent a lawsuit that would undermine her support from some Hawaiian groups upset at the lack of venue for the charter.
on December 15,2011 | 11:00AM
hybrid1 wrote:
Who did the audit??? Why not Audit the entire DOE as well? Abercrombie should start the "NEW" day by auditing all the schools....Will eliminate the $500,000 stolen from Waipahu High School. Marion Higa should start the audit NOW ! ! ! The DOE has been spending $2 Billion per year .....and no audit??? Occupy DOE!!!
on December 15,2011 | 04:03PM
soundofreason wrote:
This is FURHTER evidence of just HOW much things are out of control and ANOTHER flag that the ENTIRE DOE needs to be audited.
on December 15,2011 | 06:12PM
Eradication wrote:
While no system is perfect, every system could use a review process on a regular basis. Some charter schools are excellent learning environments, engaging students in "real-life learning". Unfortunately, it looks like there are some schools that abuse the autonomy given to charter school system. I do not feel it is indicative of the total charter schools system. There are schools here on Hawaii Island that are wonderful and the faculty genuinely cares for the students. I visited two this past year as a guest and was thoroughly impressed. The two schools were Keaukaha Elementary and the Hawaii Academy of Arts and Science (HAAS). The children I observed were well disciplined, excited to be there and happy. It was refreshing to see kids happy to be in school. My point is that although it looks like there are a few bad apples I do not think the negative report applies to all charter schools. No, I am not an administrator or affiliated in any way with the Education system here in Hawaii.
on December 15,2011 | 10:14AM
nodaddynotthebelt wrote:
I believe that this is just the surface of the situation. When people are given a lot of power they often will abuse it. This is a sad commentary on people today. Given the opportunity they will try to take advantage of the situation. Many like myself would think, "Is this right?" But many also would think, "What else can I get away with?" This is just a micro version of many state departments. Just look at the government waste that goes on and the inefficiencies that are rampant in such departments as the Department of Motor and Vehicle Registration. I went in just to register my son's bicycle and they messed up on such a simple thing. They called me back in and I had to redo what would have been prevented if the clerk did what I said was the correct thing to do. We ended up doing what I had originally suggested. Going back to charter schools, they should be audited because they are receiving tax dollars. I remember in one article one principle in one of these schools hired within the family. She hired her son to be the athletic director when he was not qualified to be one. He only had a high school diploma. What was astounding is that the state did not find that to be unethical. If the state does not find that kind of thing to be unethical, I wonder what else they allow.
on December 15,2011 | 10:32AM
nodaddynotthebelt wrote:
In the comment I posted earlier, the principal also hired her relative to do a job that the person was hardly there to do. That relative was a steward at an airline and could not possibly serve at the post. After being questioned about this the airline steward took time off from airline duty to serve at the post. If no one had asked about this situation, the whole thing would have gone on and on. And no one would have known the better. I wonder what ever happened to this charter school.
on December 15,2011 | 10:36AM
nodaddynotthebelt wrote:
They should fire the whole review panel as it strikes of incompetency.
on December 15,2011 | 10:38AM
nodaddynotthebelt wrote:
Isn't the University Lab School for the purpose of testing out innovative teaching methods? We should do away with charter schools altogether.
on December 15,2011 | 10:40AM
Tony91 wrote:
This statement says it all, "The state's 31 charter schools are seen as real-life labs to test innovative approaches to education." 1.Who decides the pass/fail for the "test" and what are the consequences for failing or passing? The majority of charters have standardized test scores below their DOE counterparts. 2.The intent of many of the charters is admirable. However, how is a Hawaiian immersion school, where 100% of the classes are taught in Hawaiian, prepare the students for college and life in a global society? Perpetuating the Hawaiian language is very important, but to do it this way sacrifices kids to a life of either being Hawaiian studies/language teachers themselves or not having any marketable skills in the general workforce.
on December 15,2011 | 11:07AM
inverse wrote:
The WHOLE DOE, and not just charter schools, is full of out of control waste, graft and corruption.
on December 15,2011 | 11:33AM
saywhatyouthink wrote:
That's right....2 billion a year and counting.
on December 15,2011 | 03:30PM
kukaikid wrote:
why am I not shocked?
on December 15,2011 | 11:53AM
connie wrote:
"... erode public confidence in the school and the public charter school system as a whole." A pretty strong indictment to close the school down. The administrators of the school not only betrayed the publuc trust, but chose greed over providing a quality education for the keiki. I'm hoping there's a criminal investigation going on somwhere. The school administrators need to go to jail.
on December 15,2011 | 01:15PM
Anonymous wrote:
The sad truth is that no administraters were released from their positions.
on December 15,2011 | 01:22PM
allie wrote:
Does this really surprise anyone? Now let us see an audit of the entire DOE! Most of these charters are nearly useless academically. Many exist to massage the egos of their founders who have some passion or another to advance an ideological agenda.
on December 15,2011 | 02:16PM
hybrid1 wrote:
The DOE rejects your suggestion to "Now let us see an audit of the entire DOE!"...Because there is rampant fraud and that's why no audit of the DOE has been done to date!
on December 15,2011 | 02:23PM
saywhatyouthink wrote:
They know that's where most of the state's money is going and they've been wasting it for years. An audit would be a very bad thing for the DOE.
on December 15,2011 | 03:32PM
allie wrote:
Many of these charters need to close down. Yes, there is wide-spread corruption and ineptitude. But worse, they teach little or nothing and are subject to few quality controls.
on December 15,2011 | 02:18PM
BarkingEagle wrote:
Charter Schools are a scam. They should be shut down if not run by Kamehameha Schools or another credible organization. Funds could be better spent improving the traditional school system, which does have financial controls and is audited repeatedly. Too many charters are based on untried and untested theories. They are essentially experiments conducted with public funds, using children as the guinea pigs.
on December 15,2011 | 02:33PM
hybrid1 wrote:
The DO E is a BIGGER SCAM...with zero audit and spending $2 Billion per year. Abercrombie, you MUST insist on auditing the DOE ! ! ! NOW ! ! !
on December 15,2011 | 04:05PM
saywhatyouthink wrote:
UNBELIEVABLE.....I hope someone is going to jail for what happened at Myron Thompson Academy. The principal and her family are all thieves, all overpayments should be returned or these people should be in jail. PT jobs that pay $55,000???? Vice Principals and clerks that get double or triple their salary?? WTH is going on over there?? The school board better get a handle on this thing and put a stop to it. PRONTO!!!!!
on December 15,2011 | 03:27PM
omd111 wrote:
You are exactly right. These people treat this as their own business and pay themselves and their relatives exorbitant salaries and in positions which they are not even qualified for. How long has the Myron Thompson Academy been investigated and still nothing has happened? What they are doing has to be criminal and as you said, they should repay all money and sent to prison for outright larceny. Nothing would give me more satisfaction than to see these people put on trial.
on December 15,2011 | 07:14PM
stanislous wrote:
Isn't wonderful to see that charter schools are so much like the DOE's public schools?
on December 15,2011 | 03:49PM
Kalli wrote:
they need to do the same type of audit on the public school system. they will find unbelieveable cronyism, over billing, work not performed properly. They pick on charter schools because they don't like the fact that they can teach the kids for 1/2 of what the other public schools can do it. audit the DOE.
on December 15,2011 | 04:11PM
Toneyuki wrote:
What's an "ice skating RISK"? :-)
on December 15,2011 | 04:32PM
Toneyuki wrote:
I'm curious that they are stating 18,000 spent on excursions is classified as "unrestrained spending". Are field trips now considered a bad thing? When I was a kid, field trips were one of the most looked forward to things of the year. The payroll is a problem, but this doesn't look like such out of control cost.
on December 15,2011 | 04:53PM
soundofreason wrote:
Did you simply overlook that it was spent on "to an amusement park, ice skating risk and pizza restaurant"??? Nothing like going to an observatory or the like. MORE like Chuck E. Cheese. tokens. And, YES, it IS a bad thing!
on December 15,2011 | 06:17PM
soundofreason wrote:
I can't remember the name of the charter school but I can tell you that it has more than 90 students & less than 125 students and for every student........there is an equal number of faculty members on the payroll. Now go find it.
on December 15,2011 | 06:11PM
Papakolea wrote:
I just read the whole audit. It was based on a sampling of 10 out of the 31 charter schools. For an audit purpose, that's a fairly good sampling. But in my opinion, it's not a good enough sampling to make such broad subjective statements like "Charter school operations fail to comply with state law and principles of public accountability" or "Absent oversight, charter schools spent public moneys in an unsound manner." Both of these are taken verbatim from the audit. Really?? How can the auditor make such damning general statements that reflect poorly on ALL charter schools when two-thirds of them were not even studied in the audit? If you read the whole audit, you'll see that everything in it is negative. There isn't a single positive statement about the ten charter schools that were audited. Really?? In a study of ten schools, the auditor couldn't find a single thing that any of the schools was doing that was exemplary and that could be a model from which other schools could learn? Whenever I read a management audit where everything is negative, it smells of a witch hunt. That being said, there are obviously growing pains in the charter school system and hopefully some things will improve. But let's not throw the baby out with the bath water. Despite underfunding, there have been some successes in the charter school system. An objective audit should be conducted that will identify "lessons learned" both good and bad so that the charter school system can improve in ways that the DOE schools cannot because of the red tape.
on December 15,2011 | 06:40PM
Smiley7 wrote:
Auditors do not lie. I should know I use to get audited annually and the reports are accurate. Why would they lie? They review all the records and files then lay bare all the facts. You can try to contest their findings but you'll come up empty everything single time. The state has been operating at this level for too long and Marion Higa and her staff should be commended for telling us the truth instead of going along to get along. Keep up the good work!
on December 15,2011 | 08:14PM
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