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Audit reveals money mismanagement at Family Foundation Charter

Delaware Public Media

Family Foundations Charter School almost lost its charter last January when it was discovered that two school leaders had used $94,000 on school credit cards for personal use.

State Auditor  Thomas Wagner, Jr., released another report on the school Wednesday.

 

His office performed its own painstaking audit of books and records to determine if there were any improprieties.   

Wagner says despite the absence of many key records and bookkeeping that was never properly maintained, his team was able to confirm about $141,000 of funds were misused on personal purchases.

"We had for example, over $18,000 in home improvements. $21,000 in retail purchases. A little over $2,000 in entertainment, concert tickets and stuff," he said.

Wagner says his office’s audit could not determine conclusively what portion of the school’s remaining 1.2 million dollars in spending was legitimate based on the available records.

"It’s sort of amazing to me how someone can continue on in an operation like this, I mean this was done over a three year period, and think somehow that they’re not going to be caught," he said.

Family Foundations has since fired the school co-leaders and replaced its entire school board.

Wagner says has confidence that the new charter leadership will follow legal and ethical bookkeeping practices. He hopes that by performing audits like this one reviews of sends a message that entities that fail to maintain proper records will be held accountable.