Agenda Item #7
Notification of Intention to Terminate Palm Bay Academy Charter Contract
Pursuant to §1002.33(8)(a), Florida Statues, the sponsor may terminate a charter for failure to meet generally accepted standards of fiscal management. Palm Bay Academy has failed to correct identified deficiencies as reported in an Internal Audit Report dated February 2008 and External Audits for June 30 2008 and 2009 fiscal years.
RSM McGladrey conducted a follow-up at Palm Bay Academy Charter School to two previously issued reports: the Internal Audit Report dated February 2008 and the External Audit Report as of June 30, 2009 issued and dated September 28, 2009. RSM McGladrey performed the follow-up procedures in April and May 2010 and requested a detailed response regarding their findings from the charter school principal. No response was received from the charter school.
The outcome of the RSM McGladrey's follow-up report includes:
RSM McGladrey Internal Audit - February 2008
External Audit - June 30, 2009
RSM McGladrey rated eleven (11) of the thirteen (13) "open not verified" items in RED, which means that they should be considered to be of immediate concern and could cause significant operational issues if not addressed. Two (2) "open not verified" items were rated YELLOW, which may cause operational issues but do not require immediate attention.
Berman Hopkins Wright and LaHam CPAs & Associates served as the external auditor for the June 30, 2008 and 2009 fiscal years.
Recommend that the Board provide Palm Bay Academy the attached notice of intention to terminate the charter contract.
Information - 6/15/2010
Authority for Action
1002.33(8)(a), Florida Statues
Involves Expenditure of Funds Directly in the Classroom
Source of Funding
Agenda Item will not Require the Expenditure of Funds
Vicki Mace, Director School Choice, Ext. 395
Attachment: Palm Bay Charter 6.24.2010.pdf