Get AI Briefings, Transcripts & Alerts on Local & National Government Meetings — Forever.
Committee accepts charter-school audits but asks Auditor General and attorney for guidance on $28M parent‑account transfers
Loading...
Summary
ABAC accepted audited financial statements for 56 charter schools while members pressed for clarity about approximately $28 million transferred from school accounts to parent entities for investment; the committee asked the district auditor to request an opinion from the Florida Auditor General and asked the school board attorney to provide statutory guidance.
The Audit and Budget Committee approved the transmittal of audited financial statements for 56 charter schools but directed follow‑up after committee members raised concerns about roughly $28 million of charter‑school funds that auditors said had been transferred to parent‑company accounts for future investment.
Mike Hernandez, CPA, presented the charter‑school reviews and said 55 of the 56 audited schools had no significant fiscal issues. "Forty‑four of these schools made transfers of approximately $28,000,000 in the aggregate to their respective parent companies," Hernandez said, and auditors noted third‑party examination procedures that indicated those funds remained unencumbered at two audit checkpoints.
Anna Martinez, chief financial officer for Academica, told the committee the transfers represented unrestricted cash surpluses moved to parent entities to secure investment returns while boards decide how to invest. "The money is not spent — it is sitting in a bank account," she said.
Several committee members pressed for greater transparency. Board member Norwood asked whether the committee or district had access to audited financial statements for the parent entities holding the funds and whether those parent accounts are subject to public‑records requests. School board counsel and auditors said charter schools must publish annual independent audit reports and that the committee’s oversight authority is guided by statute; they also acknowledged that the law places limits on what sponsoring boards may demand from private parent organizations.
After extended debate about legal authority and the public’s right to inspect parent‑company records, the committee approved the transmittal of the reports and passed a motion directing the district auditor to request an opinion from the Florida Auditor General on the extent of entitlement to parent‑company financial materials and directing the school board attorney to provide statutory guidance on the committee’s oversight powers.
The motion was moved by committee member Norwood and seconded by Doctor Gallon; the committee approved the motion by voice vote.
The committee’s action forwards the audited statements to the full school board while seeking external legal guidance to clarify whether and when the district can request parent‑entity bank statements or audited financials for funds transferred off charter‑school balance sheets.
