Dr. Peggy Carr is Commissioner of the National Center on Education Statistics, a prestigious, major federal agency. NCES preceded the U.S. Department of Education by more than a century, having been created by Congress in 1867 to report on the progress and condition of American education. NCES releases regular reports on education. It also oversees the National Assessment of Educational Progress (NAEP), the federal testing agency.

T. Keung Hui of the Charlotte Observer reported that Dr. Carr is ensnared in a state investigation of a charter school called Children’s Village Academy and its financial affairs. The school’s charter is up for renewal in 2024.

A North Carolina charter school is being accused of misspending thousands of taxpayer dollars, including funds spent on behalf of a high-ranking federal education official who is a leader at the school.

Staff from the state Department of Public Instruction this week presented reports alleging conflict of interest violations involving the spending of state and federal dollars at Children’s Village Academy in Kinston. Many of the questions revolved around money exchanged between the school and its board vice chair Peggy Carr, who is also commissioner of the National Center for Education Statistics.

Specific concerns include Carr getting $155,000 in interest payments on a $188,000 loan she gave the school 15 years ago. Other allegations include the school improperly using taxpayer dollars to reimburse Carr for furniture and utility bills for a home she owns and rents to the school in the summer….

In 2008, Carr gave the school a $188,000 loan that is still being repaid. DPI says there was inadequate documentation of the loan , resulting in misstatement of the school’s finances because it wasn’t listed as being a liability..

McFadden said that Carr has been paid back, with interest, $314,000. But by the time the loan is fully repaid, McFadden said the school will have paid an estimated $155,505 in interest — $109,268 more than it was originally projected to repay.

“DPI is concerned with the legality and validity of the loan payments to date since there is no documentation or evidence that substantiates the CVA Board agreed to or understood the total amount to be paid including interest based on the annual decisions being made,” according to a DPI report.

In addition, DPI has questions about the $894 a month it says Children’s Village is paying to reimburse Carr for small business loans for buildings the school uses…

DPI identified $5,003 in “unallowable costs,” from the summer program, including $4,438 for furnishings that Carr purchased and requested reimbursement for at a house she partially owns in Kinston.

The school leases the home for two months a year for the summer program, DPI says. Items purchased included dining room tables, dining room chairs and decorative items such as a wall mirror, “colorful cows” and pillows. Some of the items were purchased in Maryland, where Carr lives, and shipped to Kinston.

“Per contracts for the property where the furnishings are used, the property is only used for 2 months out of the year,” according to a DPI report. “The furnishings in question are also not a reasonable purchase as they are typically found in a household, they are not furnishings typically found in an academic setting.”

In addition, DPI says the school paid the entire utility bill for the house for two summer months even though part of the property was used by an independent contractor who is related to Carr. That person is the school’s operations manager. A U-Haul business is also in that building.

Even after the summer program ended, DPI says the school paid the utility bills for the home. Altogether, DPI found $3,238 in unallowable utility costs that must be repaid….

DPI outlined a list of other questioned costs, including:

▪ A custodian was paid $17,000 in federal summer program grant month for July through September.

▪ A different custodian/bus driver who is married to the K-5 principal was paid $15,000 in federal grant dollars in July and August. The K-5 principal is also Carr’s sister.

▪ DPI found $8,877 in unallowable costs related to personal expenditures such as a tire replacement for the finance officer’s car, holiday gifts to employees, $500 gift cards to four employees and costs related to a daycare center operating on the campus. McFadden said the daycare owner is related to Carr.

Read more at: https://www.newsobserver.com/news/local/education/article282963048.html#storylink=cpy