About That Internal Audit of PPS Charter Schools

The failure of R.E.A.L Prep Charter School should come as no surprise to PPS leadership. They were warned about their lack of charter school oversight back in 2009. Do you remember the audit conducted by PPS own internal auditor Dick Tracy?

Among his findings:

Lack of timely financial reports inhibits assessment of charter school financial stability. Three of seven charter schools failed to submit annual audited financial reports as required by charter contracts. Consequently, it is not possible to fully assess the budget performance and financial position of all charter schools for the year ending June 30, 2008. Of the four schools submitting audited financial statements, three had positive ending fund balances and reasonably healthy balance sheets.

Dick Tracy recommended:

1. Develop more specific and measurable goals for charter school performance. In coordination and collaboration with each charter school, the district should help each school identify a core set of operational and academic goals that will be incorporated into charter school contracts. The goals should be specific, measurable, and time-bound with the primary focus on improving student achievement. The district and charter schools should consider developing a common set of student achievement goals that all charters share and a school specific set of goals that relate to the unique programs and objectives of each charter school program. The district should also consider obtaining technical advice from PPS Research and Evaluation to aid development of measurable student achievement goals. As charter school operational and academic goals change over time, modifications to charter contracts should be made.

2.  Develop and implement a more rigorous accountability system for monitoring and assessing charter school performance. The district should develop specific methods and procedures for ensuring more complete compliance with charter school contracts that will result in better performance monitoring and more timely improvement of performance problems. Elements of a progressive accountability system could include informal discussions and reminders, technical advice and assistance to address financial or performance concerns, periodic visits to the charter school, written notice of non-compliance with contract provisions, public hearings or meetings to discuss performance or compliance issues, and monetary incentives. Improved accountability provisions should be incorporated when negotiating charter contracts during initial approval or renewal, or, with approval and collaboration from the charter school, during current charter school terms.

District leadership responded:

Dick Tracy, Performance Auditor

Portland Board of Education

501 N. Dixon St.

Portland, Oregon 97227

Dear Mr. Tracy,

Thank you for your work reviewing the performance and impact of the seven schools operating under charter agreements with Portland Public Schools. As you have found, it is very difficult to pin down both the charter schools’ direct impact on achievement of students attending these schools and their impact on other PPS schools’ enrollment and resources.

We find the data you compiled intriguing, and offer our own thoughts about the audit results below. We also very much appreciate the recommendations contained in the audit, and at the end of this response include our commitment to follow through, particularly in building strong partnerships with charter schools and improving our tracking and accountability for those schools – and those students.

The letter was signed by Carole Smith

Another promise unfulfilled!