Auditors eyeing charter schools

Utah charter schools are being examined by yet another lens this summer as legislative auditors try to determine whether charter development companies and charter schools are in compliance with the state procurement code.

The report will be out by the end of the summer and could address a number of unanswered questions about the roles of charter management and development companies — some of which are run by legislators — and if the public money that goes into them is appropriate.

"With the explosion of interest in these schools I think it behooves us to make sure that the money we are putting in there is being spent appropriately," said Rep. Jim Dunnigan, R-Taylorsville, who requested the audit. "They will go in and analyze and come back with findings that say yes, this program is working well, or we will find there are some areas that need improvement."

Charter schools are free public schools that are often started by a group of parents looking for alternative ways to educate their children. But the challenge is getting the new school established.

Because of the lack of expertise many founding parents have in business, education and development some charters will look to charter development and management companies that have experience in building, developing and getting charter schools up and running, Dunnigan said.

Around a third of Utah's 52 charter schools contract with those companies. One of those, U.S. Charter Management, is run by state Reps. Jim Ferrin, R-Orem, and Michael Morley, R-Spanish Fork. Sen. Sheldon Killpack, R-Syracuse, helps run Academica West, another management company.

"I think one of the questions is if the development companies are charging appropriate costs and fees to construct and develop a charter school," Dunnigan said. "Many times the company has to provide or front the financing and so there is some risk and I don't think it is unfair to compensate them for that, we just want to make sure things are done fairly and appropriately."

State charter director John Broberg said he feels the costs are a little steep.

"I know they (charter companies) think they are charging appropriately — I am not an expert on what is fair — but it just appears to be high to me," Broberg said.

Broberg said schools that do use the charter companies tend to have smoother beginnings — they turn out accurate reports on time and make fewer mistakes than those schools whose leaders have to be trained in charter procedures.