Control Issues in Charter Schools

An Examination of New York State Comptroller's Audits

Marie Blouin, PhD, CPA, and Ronald J. Huefner, PhD, CPA, CMA

In BriefCharter schools are a controversial topic in education and politics because the public funding they receive makes them quasi-public organizations; thus, political groups, authorizing bodies, and local communities are all greatly interested in their financial results. Even CPAs who specialize in school district audits may need a refresher on charter schools, which have very different governance concerns and audit risks. This article provides an overview of New York State charter schools, including funding, governance structure, and audit requirements—and how these characteristics create unique financial audit issues for CPAs. The authors' examination of 54 internal control audits of New York charter schools conducted by the Office of the State Comptroller over the past six years can help CPAs become familiar with some common charter school control deficiencies.