(The Center Square) — A recent report from the Florida Auditor General shows that there have been some significant issues and worrisome financial trends with charter schools and charter technical career schools in the Sunshine State.
The audit, which covered fiscal year 2021-22, revealed that there were at least 76 issues surrounding charter schools across the state, including missing audit reports that are required by state law to be conducted by a certified public accountant and other missing information that the Auditor General’s Office requested.
Florida charter schools are public schools that operate under a sponsored charter contract with a school district or a state university and are part of the state’s public education program.
A nonprofit organization, public entity, or municipality must operate charter schools in Florida.
At the end of June 2022, 695 charter schools were operating in Florida, and 688 had filed annual financial audits. Of the 688 charter schools that were included in the review, a total of 76 issues were found in 47 charter schools.
According to the report, one or more of the information needed was missing and 44 issues uncovered by the review were also found in 53% of the 47 charter school audits. Many of the issues were related to financial monitoring and were found in the audits over multiple fiscal years.
Financial trends of Florida’s charter schools were analyzed, and the report states that 51 of 688 charter schools had reported a deficit in their fund balances. In fiscal year 2021, 52 out of 676 charter schools had reported deficits.
The report notes that this could indicate the declining or poor financial health of charter schools. Four charter school audits included statements from certified public accountants questioning the ability of the schools to continue to operate.
The Auditor General’s summary of charter schools with deficit fund balances noted that Palm Bay Preparatory Academy 6‐12 had a financial condition ratio of negative 124%.
There were 11 charter schools spread across the state that reported fiscal year deficits for three or more consecutive years. The report noted, however, that seven of these schools with deficit fund balances were in the first year of operation. Enrollment numbers in charter schools are also slowly increasing year to year.
