Charter School of Wilmington is up for their charter school renewal with Red Clay Consolidated School District. The Red Clay board discussed this charter renewal with Dr. Sam Paoli, the President of CSW, at their meeting tonight. It came out that CSW is breaking state law in a very major way.
In Delaware, the use of petty cash comes with some very strict requirements. One of those stipulations is you can’t have more than $5,000 in petty cash funds at any given time. CSW, it was revealed tonight, was keeping $70,000 in petty cash reserves. This is 14 times the limit! The Delaware Budget and Accounting Manual (BAM) is very clear about this.
This isn’t the first time CSW got busted for petty cash abuse. The first time was two years ago when State Auditor Tom Wagner, instead of doing an actual investigation, wrote non-transparent letters to several charter schools about what they were doing that is against the law. It wasn’t until State Representative Kim Williams sent his office a FOIA request that the truth came out. The second time was last summer when I conducted my own audit to see if schools took what Wagner sent them to heart. CSW obviously didn’t as they had 14 petty cash payments going out over the limit of $500 which totaled $12,268.52.
I hope the State Auditor’s office is reading this. They are in clear violation and were given official notice by Wagner two years ago. They obviously don’t care and think rules don’t matter. They just do what they want. I hope Red Clay puts them on formal review!
CSW also failed to have all their board members get the official training required by law to be a board member. More rules they don’t think they have to follow.
If they are breaking those kind of rules, which are fairly basic, perhaps they need a full audit investigation to determine what other rules they don’t think they have to follow.