Audit Objective

Determine whether Exploration Elementary Charter School for Science and Technology (School) officials ensured non-payroll disbursements (disbursements) were supported and for appropriate School purposes, properly reviewed and approved.

Key Findings

School officials did not ensure that disbursements were adequately supported, for appropriate School purposes, properly reviewed and approved before payment. The audit also determined:

• 112 disbursements or credit card charges totaling $504,506 did not have both an itemized invoice and a documented School purpose. School officials approved disbursements without knowing what was purchased or whether the disbursements were for appropriate School purposes.
• Officials said they purchased 300 $100 gift cards totaling $30,975 for students for achieving certain grades on State exams but the cards were given to 19 teachers and support staff based on student grades.
• The Operations Manager’s responsibilities were not adequately segregated as she was able to make purchases, prepare checks, sign checks with a Board of Trustees (Board) member’s stamp, and modify or delete data in the financial software, which increased the risk that an inappropriate disbursement would go undetected.
• School officials did not ensure compliance with the written disbursement policies. Also, the established policy requirements were not adequate.

The School’s former Operations Manager was arrested in December 2024 for the alleged theft of $1,100 in gift cards. On July 2, 2025, the former Operations Manager pleaded guilty to disorderly conduct and repaid the School.

Recommendations

The report contains 14 recommendations that, if implemented, will improve the School’s non-payroll disbursements process. School officials disagreed with certain aspects of our findings but indicated they initiated corrective action. Appendix B includes our comments on the School’s response.