Summary

This report provides a summary of the significant findings and financial trends that were identified in the audit reports submitted to us as of July 31, 2007, for 321 charter schools and charter technical career centers (hereinafter referred to as charter schools).  A total of 340 charter schools were in operation during the 2005-06 fiscal year.  Fourteen of the 340 charter schools closed during the 2005‑06 fiscal year or subsequent to fiscal year‑end.  Audit reports for 19 charter schools, which included the 14 charter schools that closed, were not submitted to us.  The audit reports for the fiscal year ended June 30, 2006, were required to be filed with us no later than June 30, 2007.

Audit Reports and Findings

• The audit reports for 20 charter schools included findings that were considered by the independent certified public accountants (CPAs) to be material weaknesses in internal controls.  In none of the audit reports did the CPA consider the material weaknesses to have a material impact on the charter schools’ financial statements.

• The audit reports for 15 charter schools included a statement by the CPA regarding the schools’ ability to continue operations on an ongoing basis.  

• Many of the audit reports included audit findings that were not material to the financial statements, but needed to be addressed by the management of the schools involved.  Such findings included weaknesses in internal control and instances of noncompliance with applicable laws or rules.

Financial Trends

• Seventy-three charter schools were reported as meeting one or more of the financial emergency conditions defined in Section 218.503, Florida Statutes.