Summary
| Report Number: | 2010-042 |
|---|---|
| Report Title: | Report on Financial Trends and Significant Findings Identified in Charter School and Charter Technical Career Center Audit Reports |
| Report Period: | FYE 06/30/2008 |
| Release Date: | 10/30/2009 |
This report provides a summary of financial trends and significant findings identified in the audit reports submitted to us by October 1, 2009, for 339 charter schools and charter technical career centers (hereafter referred to as charter schools). Although a total of 347 charter schools were in operation during the 2007-08 fiscal year, we did not receive audit reports for 8 charter schools. Pursuant to Section 11.45(7)(a), Florida Statute, we notified the Legislative Auditing Committee of the 8 charter schools for which we received no audit reports, which included 5 that closed during, or subsequent to, the 2007-08 fiscal year.
Financial Trends
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Fifty-three (16 percent) of the 339 charter schools reported a deficit unreserved fund balance or unrestricted net assets for the general fund or other unrestricted fund at June 30, 2008. This is the same percentage of charter schools that reported a deficit unreserved fund balance or unrestricted net assets at June 30, 2007. However, 25 charter schools that had reported deficit balances in the previous fiscal year continued to report deficit balances, including 14 that had reported deficit balances for three or more consecutive fiscal years.
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Forty-five charter schools that collectively for all funds reported a total or unreserved fund balance deficit, or total or unrestricted net assets deficit, were reported as meeting one or more of the conditions specified in Section 218.503(1), Florida Statutes. Although not reported by the respective independent certified public accountants (CPAs) as meeting one or more of the specified conditions, 3 other charter schools reported a total or unreserved fund balance deficit, or total or unrestricted net assets deficit, 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.
Audit Findings
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The audit reports for 18 charter schools included a statement by the respective CPAs questioning the ability of the charter school to continue operations on an ongoing basis.
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The audit reports for 206 charter schools included audit findings addressing weaknesses in internal control, instances of noncompliance with applicable laws or rules, or other matters. These included 32 audit reports that included findings that were considered by the CPAs to be material weaknesses.
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For many audit reports, the findings did not include one or more of the elements required by Chapter 10.850, Rules of the Auditor General.
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Of the 549 findings included in 2007‑08 fiscal year audit reports, 195 (36 percent) were findings that had also been in audit reports for the prior fiscal year.