11-16-2010 Organization of the Board with Oath and Regular Meeting
Agenda Item #31


Title
Palm Bay Academy Charter School Follow-Up Financial Audit Report Conducted by RSM McGladrey

Discussion

On June 24, 2010, the Board voted unanimously to notify Palm Bay Academy of its intention to terminate the Palm Bay Academy Charter School Contract for failure to meet generally accepted standards of fiscal management.  Palm Bay Academy 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 financial audit and issued the attached report dated September 24, 2010 regarding its findings.  Although a few items remain open, the School has demonstrated due diligence in correcting identified financial concerns.

Staff will continue to monitor the charter school.  A recommendation will be made to the Board to proceed with the 90 day notice to terminate the charter contract if Palm Bay Academy fails to correct open "risks" identified by RSM McGladrey in a timely manner and/or fails to maintain generally accepted standards of fiscal management.



Recommendation
Recommend that the Board does not take action to terminate the Palm Bay Academy Charter School contract for failure to meet generally accepted standards of fiscal management.

Meeting Date(s)
Information - 10/26/2010
Action11/16/2010

Authority for Action
Florida Statutes 1002.33

Involves Expenditure of Funds Directly in the Classroom
No

Source of Funding
Agenda Item will not Require the Expenditure of Funds

FY
Amount
Budgeted
Fund
Cost Center
Project
Function
Object
Program

Contact

Vicki L. Mace, Director of School Choice, x395




Attachment:  Appendix A.pdf
Attachment:  Sept 2010 Follow-up Palm Bay Academy School Final Report.pdf
Attachment:  Appendix A.pdf