Finding: Frequently numbers in AFRs, Audits, and IRS filings are inconsistent even though they cover the same period. Some audits are inadequately detailed and done by out-of-state firms that may not be familiar with Arizona law. Charter schools submit AFRs to the Arizona Dept. of Education, audits to the ASBCS for the state of Arizona, and if a nonprofit, as most are, a Form 990 to the IRS. Currently while financial reports and audits are submitted annually, they are not scrutinized for consistency even though they cover the same reporting period. Audits don’t always follow a standardized format. Some auditors are in state and do good detailed work, and other audits are completed by out of state entities and may lack detail. The level of detail varies by auditor. Identifying what’s going on at particular charter sites can be challenging due to consolidated audits or, if the charter is operating in the context of a much larger nonprofit, the consolidated audit inhibits the ability to examine the charter performance more carefully. As these funds are from state taxpayer dollars, the public accounting should be consistent across all reporting forms—and when it’s not, clear steps advanced to remedy deficiencies. The excuse that no one checks the accuracy of AFRs to the state and compares that data to the audits submitted to the ASBCS is an indictment of oversight. As will be detailed in subsequent reports and listed in this report’s Appendix “A”, large numbers of charter operations are running deficits and many have negative net assets. The state needs to be ahead of potential financial problems, so they can appropriately intercede for the best interest of students and taxpayers. Recommendations: 1. Audits need to follow a standard format that requires detail and supporting information on assets and liabilities, revenues and expenditures, and related-party expenses. Audits need to be done by auditors with offices located in Arizona with a demonstrated expertise in Arizona law. The ASBCS needs to provide a list of acceptable auditors using data gleaned from the audits to
Table 4: Owner and Administrator Salary in Nonprofit Charters that Reported on IRS 990s Name and Title Salary 990 # ADM RP Cost per Pupil # Sites 2013-2014 Academy of Mathematics and Science, Inc. 966 3 Tatyana Chayka, Executive Director $121,359 $126 Academy of Tucson 666 3 Howard C Stewart. Superintendent and Board Member $124,359 $187 Sharon K Stewart, Asst. Superintendent $124,346 RP $187 Administration Sum $248,705 $373 Acorn Montessori Charter School, Inc. 374 1 Cynthia Johnson, Vice President $216,661 RP $579 Keith Johnson, Member $100,225 RP $268 Administrative Sum $316,886 $847 Benchmark School, Inc. 383 1 Carole Challoner, Secretary $116,614 RP $304 Whitney Challoner, Director $78,500 RP $205 Barbara J Darroch, President $96,807 RP $253 Bruce Darroch, Treasurer $72,614 RP $190 Administrative Sum $364,535 $952 Blueprint Education, Inc. 352 3 Doug Covey, Chief Operating Officer $116,862 $332 Mark French, President $102,694 $292 Administrative Sum $219,556 $624 Candeo Schools, Inc. 531 1 Stephanie Musser, Executive Director $109,062 $205 Carpe Diem Collegiate High School 645 2 Rick Ogston, President $155,811 $242 Challenge School, Inc. 526 1 Wendy Miller, Secretary/Principal $95,833 RP $182 Multiple Gregory Miller, Chair/CEO/Superintendent $84,802 RP $161 Related Pamela A Miller, Executive Director $59,802 RP $114 Parties Administrative Sum $240,437 $457 Challenger Basic School, Inc. 126 1
Name and Title Salary 990 # ADM RP Cost per Pupil # Sites 2013-2014 Dan Bigler, Finance Director $86,849 $46 Administrative Sum $281,054 $149 Patriot Academy, Inc. 85 1 Jay Brown, President $114,400 $1,346 Pima Prevention Partnership Larger Agency than School 530 3 Henry Kressler, Exec. Director $203,114 Not Calculated Thomas Miller Assoc. Superintendent $146,808 Not Calculated Claire Sceuren Deputy Director $163,614 Not Calculated Carol Carpenter Chief Program Designer $136,382 Not Calculated Pointe Educational Services 1514 3 Jody L Johnson, President and Superintendent $178,695 $118 3 Portable Practical Educational Preparation, Inc. (PPEP, Inc.) 10,806 10 John Arnold, CEO $259,623 4580 $24 Presidio School 393 1 Thomas Drexel, Vice $128,440 $327 Terry Garza, Secretary / Co- Director $122,822 $313 Administrative Sum $251,262 $639 Primavera Technical Learning Center Listed as Salaries: FIGURES DO NOT cover all of the owners. 5172 Online Debra Bender, Principal $131,876 $25 Online Brian Madison, Business Manager $106,524 $21 Maveromien Creamer, COO $110,037 RP $21 Damien Creamer, CEO $90,025 RP $17 Administrative Sum $438,462 $85 Reid Traditional Schools' Painted Rock Academy, Inc. Reid Traditional Schools' Valley Academy, Inc. 1259 2 Heidi Mitchell, CEO $131,773 $105 Salt River Pima-Maricopa Community Schools 232 2