An audit revealed that a charter school in the Sacramento region improperly obtained over $180 million in financial support, mismanaged funds, and placed instructors in classrooms without proper qualifications.
The audit conducted by the California State Auditor revealed that Highland Community Charter and Technical Schools failed to adhere to the stipulated conditions for their funding. Additionally, they were non-compliant with state regulations regarding the calculation of daily attendance.
Subscribe to our NewslettersThe auditor further asserts that Twin Rivers Unified School District did not offer adequate supervision over the charter school.
Based on the audit, Highlands obtains K-12 funding even though it caters to adult learners through the Workforce Innovation and Opportunity Act. As stated on their website, the institution offers services free of charge to individuals aged 22 and older, including programs for obtaining a high school diploma, English language courses, and vocational training.
The audit indicates that because HCCS failed to provide the necessary level of instruction at the school site, did not ensure student attendance met the legally mandated duration, and fell short on fulfilling criteria for non-classroom based education, they were ineligible for the $177 million in K-12 funds awarded during fiscal years 2022–23 and 2023–24. Additionally, Highlands improperly received over $5 million beyond the disapproved $177 million due to their failure to adhere to state regulations concerning average daily attendance calculations.
The audit claims that Highlands was involved in "dubious dealings." This includes allegedly breaking rules about giving away public money as gifts, failing to get board approval for certain agreements and acquisitions, lacking transparent guidelines for hiring and pay scales, appointing people who were not qualified for their positions, and entering into an agreement for mentoring services with the partner of a Highland’s board member.
The audit report also suggests subpar student performance under Highlands.
The audit stated, “In the fiscal year 2023–24, HCCS reported a graduation rate of only 2.8 percent.” It further explained, “Because the graduation rates at Highlands' schools were extremely low, this reduced the total statewide graduation rate for the same period by over half a percentage point—from 87 percent down to 86.4 percent—according to CDE’s findings.”
A potential cause of low academic achievement highlighted by the audit could be the high student-to-teacher ratio, standing at approximately 51 students per teacher.
Regarding oversight, the audit indicates that Twin Rivers granted authorization to both schools and holds principal accountability for their supervision. However, the reviewer discovered that Twin Rivers depended significantly on yearly audits containing mistakes.
"The audit indicates that if Twin Rivers had implemented more rigorous monitoring, it might have detected some of the violations we uncovered during our review and addressed them sooner," it reads.
Following a review of the audit’s preliminary version, attorneys for Highlands stated that no previous issues had been brought up regarding the charter school until this year.
The counsel stated, in part, that 'if there were any failures related to licensing issues, they were not due to Highlands, and therefore, Highlands should not face penalties for any errors or guidance issued by regulatory bodies.'
After the publication of the audit on Tuesday, the California Charter Schools Association stated that Highlands had already begun implementing several required modifications.
Although today's audit results highlight the extent of required adjustments, we are heartened by the comprehensive reforms and leadership alterations unveiled today by Highlands' Board," CCSA stated. "Highlands serves distinctive communities with specific requirements, and these groups merit having a high-integrity, high-performing entity advocating for them alongside an overseeing body ensuring full implementation of these reforms.
The state auditor provided multiple suggestions for Highlands to adhere to in order to maintain compliance. These included establishing updated attendance rules, refining procedures for monitoring classroom instruction, introducing fresh guidelines concerning the utilization of public funds, and harmonizing recruitment processes. Additionally, various bodies such as the California Legislature, Twin Rivers, the California Department of Education, the Commission on Teacher Credentialing, and the Sacramento County Office of Education were advised to adopt certain measures aimed at avoiding similar issues in the future.
Check out the complete audit here. .
After the publication of the audit, Highlands stated that they have implemented several modifications and brought in fresh leadership, aiming to guide the organization "towards a new phase marked by openness, responsibility, and better services."
The charter school has named Jonathan Raymond, ex-superintendent of Sacramento City Unified, to head up Highlands as part of a comprehensive turnaround initiative.
"Their mission is straightforward: address previous shortcomings, rebuild public trust, and safeguard an essential organization that assists thousands of immigrants, adult learners, and returning citizens annually," the institution stated in a release.
Apart from the leadership transition, the school mentioned several major changes such as implementing a credentialing compliance program, reshaping its workforce, consolidating sites, modifying instructional times, overhauling governance and finances, and enhancing monitoring and transparency measures.
Following the audit, Twin Rivers asserts they were adhering to state law but simultaneously calls for further adjustments to state policies.
"In spite of differing from certain claims presented in the audit, TRUSD asserts that they have adhered to current laws and remain dedicated to ongoing enhancement. The district has implemented updates to monitoring processes, engaged external specialists, and undertaken preemptive measures to guarantee heightened levels of openness and responsibility concerning charter schools in future endeavors," as stated by TRUSD in their communication.
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READ THE FULL STORY: Sacramento charter school got $180 million it wasn't eligible for, audit finds
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