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The Honolulu Advertiser
Posted on: Tuesday, March 20, 2007

Audit should guide charter school agency

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An audit typically strikes fear in the heart of its target, an unfortunate reality. Ideally, the reports are used to direct needed changes that can nudge an agency toward greater effectiveness.

This appears to have been the aim of the internal review of the Charter School Administrative Office, which identified some operational procedures that need fixing.

So it's gratifying to see that the Board of Education, which oversees the office, accepted the report and adopted essentially a wait-and-see stance on the next step. Last week, the board voted against calling for the state Ethics Commission and federal and state labor authorities to take a closer look at the agency's practices.

The internal audit revealed a number of recommendations, including the general observation that a lack of a strategic plan and some formal policies may be hindering the office's progress in the mission of promoting charter school success.

More pointed, however, was criticism of specific operational procedures:

  • The office has already moved to correct another problem: a staffer hired as an independent contractor supervised by management as a regular employee. The school board worried that this staffer might have a claim on benefits that weren't being paid.

  • The office's handling of cash disbursements for travel expenses on a stipend basis rather than accounting for actual costs raised some eyebrows. Any handling of public funds needs to provide full accountability.

    The auditor's suggestion that a travel agency handle arrangements should help clarify this situation.

  • Other expenditures, including the purchase of a lunch for a former school board member, sounded an alarm because it could appear to be currying favor with someone in a supervisory role.

    However, the warning from the audit ought to be enough to ensure that the office adopts a stricter policy on that score.

    The BOE needs to follow up and see that the office's bookkeeping and financial practices are up to standards as quickly as possible. But whipping up these justifiable concerns into a campaign for punitive action will not further the shared mission: supporting the success of charter schools.