Earlier today, I posted the question: Whatever happened to the audit of the California Virtual Academies, which was supposed to be released in March 2017?
The California Department of Education contacted me to say that the audit was released two days ago, and CDE ordered the Virtual Academies to repay nearly $2 Million in misspent funds.
Let me be clear: I don’t think that for-profit Virtual Charters should be allowed to exist. If districts want to offer online instruction, not for profit, that is their prerogative.
But the for-profits, especially K12 Inc. (founded by Michael Milken and known for paying its executives multimillion dollar salaries) recruit students constantly, have high attrition, and get poor results.
In light of Jesse Calefati’s stunning expose of K12 Inc. in the San Jose Mercury-News, I am surprised that these scam online academies got by with a tap on the hand. According to Calefati, the Virtual Academies have collected hundreds of millions from California taxpayers to run low-performing, ineffectual “schools.” ECOT in Ohio was audited and required to pay more than $60 Million. Excuse me, but a fine of less than $2 Million is trivial for these corporations. Chicken feed.
I hope that the fine of “less than $2 Million” is the beginning and not the end of the Audits. The for-profits are notorious for inflating enrollments and collecting money for phantom students.
Here is the audit.
Here are the articles that CDE sent.
CDE: Online Charter Schools Must Repay Misused State Dollars
By Richard Bammer
State Superintendent of Public Instruction Tom Torlakson on Monday said a pair of online charter schools must pay back nearly $2 million of improperly used Common Core education funds.
In a press release, he cited California Virtual Academies and three Insight Schools (together forming CAVA) must remit the dollars to the California Department of Education.
This latest among several other actions stems directly from an audit by the State Controller’s Office and commissioned by the CDE.
The Vacaville Reporter
http://www.thereporter.com/article/NG/20171010/NEWS/171019986
Former Lodi Virtual Academy Fined $2M
By Jennifer Bonnett
A virtual academy that once had a key role in the Lodi Unified School District has been fined close to $2 million by the state for falsifying enrollment figures.
State Superintendent of Public Instruction Tom Torlakson has announced that the California Virtual Academies and three Insight Schools (together CAVA) must remit nearly $2 million to the California Department of Education in improperly used Common Core education funds.
Lodi News-Sentinel
http://www.lodinews.com/news/article_a8ab29bc-ae42-11e7-8ded-03b98ff003ed.html
Virtual Charter Academies In California Must Refund Nearly $2 Million To State
By Louis Freedberg
As a result of a just released state audit, the California Department of Education says a network of virtual charter schools must refund nearly $2 million in improperly used state funds that were intended for implementation of the Common Core standards in English and math.
In addition, the department will require the schools to conduct a new audit of its average daily attendance records and a number of other actions.
“The California Department of Education is committed to ensuring public schools follow the laws and regulations that safeguard taxpayer funds,” said State Superintendent of Public Instruction Tom Torlakson. “It’s critical that our students receive the resources they need to succeed.”
EdSource
Virtual charter academies in California must refund nearly $2 million to state
California Fines Charter School Chain $2 Million
By Sharon Noguchi
In long-awaited results of a 1½-year investigation, California’s finance and education chiefs on Monday issued a critical audit of the online charter-school chain California Virtual Academies, finding several contractual violations and irregularities and imposing a nearly $2 million fine.
The report ordered the charter firm to provide documentation around student progress, student-teacher ratios and excess oversight fees, among other things. It also demanded California Virtual Academies produce an audited opinion on the accuracy of its average daily attendance — on which California bases its payments to public schools, including charters — and to pay the California Department of Education $1,995,148 for improperly handled funds.
Mercury News
California fines charter school chain $2 million