Summary

This report provides a summary of the significant findings and financial trends that were identified in the audit reports submitted to us by October 1, 2008, for 344 charter schools and charter technical career centers (hereafter referred to as charter schools).  Although a total of 358 charter schools were in operation during the 2006-07 fiscal year, we did not receive an audit report for 14 charter schools that were closed during the 2006-07 fiscal year or subsequent to fiscal year‑end.  The audit reports for the fiscal year ended June 30, 2007, were required to be submitted to us no later than June 30, 2008.

Summary of Significant Findings

• The audit reports for 16 charter schools included a statement by the CPA regarding the schools’ ability to continue operations on an ongoing basis.

• The audit reports for 196 charter schools included audit findings addressing weaknesses in internal control or instances of noncompliance with applicable laws or rules.  These included 22 audit reports that included findings that were considered by the independent certified public accountants (CPAs) to be material weaknesses in internal controls.

Summary of Significant Financial Trends

• Fifty-four charter schools reported a deficit unreserved fund balance or unrestricted net assets for the general fund or other unrestricted fund at June 30, 2007.  This represented a decrease in comparison with the fiscal year ended June 30, 2006, in which 79 charter schools reported such deficits.  However, 36 charter schools that had reported deficit balances in the previous fiscal year continued to report deficit balances, including 24 that had reported deficit balances for three or more consecutive fiscal years.

• Forty-four charter schools were reported as meeting one or more of the financial emergency conditions specified in Section 218.503(1), Florida Statutes.  Although not reported by the respective CPAs as meeting one or more of the specified conditions, 2 other charter schools reported a total or unreserved fund balance deficit or total or unrestricted net assets deficit and, for which we requested but were not provided explanations as to why the CPAs did not report them as having met the condition specified in Section 218.503(1)(e), Florida Statutes.