True North Rochester Preparatory Charter School - Financial Oversight (2019M-206)

Issued Date
March 06, 2020

[read complete report - pdf]

Audit Objective

Determine if the Board and School officials adequately monitor School financial operations.

Key Findings

The Board:

  • Failed to provide oversight of the charter management organization (Company).

School officials did not:

  • Ensure the Company provided all of the services required by its contract.
  • Receive documentation that supported the service fees and reimbursements paid to the Company.
  • Earn up to $28,000 if the Directors had used School-provided cash rewards credit cards.

Key Recommendations

  • Take a more active oversight role in School finances.
  • Negotiate written agreements that contain clear language and thoroughly detail each party’s rights and responsibilities.
  • Ensure all services and benefits stipulated in the contractual agreement are received and pay only for those stipulated services.

School officials disagreed with certain aspects of our findings and recommendations, but indicated they planned to implement some of our recommendations. Appendix D includes our comments on issues raised in the School’s response letter.