Excellence Academy audit has 3 findings
The most recent audit for Excellence Academy shows three findings and was ranked a C by the Louisiana Legislative Auditor's Office.
The audit, compiled by Monroe certified public accountant Rosie D. Harper, had two findings related to finances and one related to an occupancy permit for the auditorium.
Excellence Academy is a Type 1 Charter school that operates under the oversight of the Monroe City School Board. The charter school is sponsored by Tab-N-Action Inc. Excellence Academy and Tab-N-Action Inc. are private nonprofit organizations recognized as tax-exempt organizations.
Improper reporting of special revenue funds
The first finding was for improper reporting of special revenue funds. It states the school did not report sales and ad valorem taxes in compliance with legal restrictions for expending those funds. This finding carried over from the past year.
According to finding criteria: "The charter school is a Type 1 charter school under the oversight of the Monroe City School Board. As such, the charter school is legally entitled to receive a pro-rated share of certain revenues received by the Monroe City School Board."
It goes on to state that the school does not receive a proper accounting of the funds from the Monroe City School Board and that school management is only provided a summary amount based on the current state formula for the Minimum Foundation Program (MFP).
Harper recommended that "the Monroe City School Board should provide a detailed accounting of the local revenues, which will permit the charter school to be in compliance with the legal restrictions required by the use of local special revenue funds."
Monroe City School District Chief Financial Officer DaVona C. Howard said the state determines how much money charter schools, including Excellence Academy, should get each year in the MFP formula. (Charters without a district building get an additional amount of local revenue representation.)
"We've expressed to them that we don't determine the per-pupil allocation," Howard said.
Ken Pastorick, media information director for the Louisiana Department of Education, said, "Local funds are considered when the state determines the MFP for each district, and the state provides state MFP dollars to the districts. The state also determines the local share, which is distributed locally.
"The district is obligated to provide the charter school with the amount detailed, and that can be paid for using the state MFP dollars and the local money. It’s at the discretion of the local district."
Howard said the district's schools don't have to worry about reporting special revenue funds because the district keeps the tax-generated funds in separate accounts for the appropriate use.
Excellence Academy, however, doesn't get direct sales tax funding. Howard said the district pays Excellence the appropriate amount through the state's MFP funding.
"Their employees are not Monroe City School District employees," she said. "Their governing body makes decisions."
Payment of sales taxes on purchases
The second finding notes that the school is "paying thousands of dollars in sales taxes on the purchases of materials and supplies" and recommends that the Monroe City School District cover Excellence under its certificate of sales and use tax exemption.
Howard said the district's legal counsel advised that doing that could jeopardize the district's tax-exempt status. Additionally, public charter schools are allowed to file for their own certificate of sales and use tax exemption.
"They have their own goverrning body, so they govern everything over there with their own board," Howard said.
Auditorium lacks occupancy permit
The final finding noted that the school auditorium being used for performing arts events and assemblies had not been approved for occupancy by the state fire marshal's office.
Management's response said a stage was added to the structure, requiring a lengthy review process.
"Until the performing arts center complies with local ordinances and state law no school assemblies or performing arts events will be held in the facility," the response reads.
What does the "C" mean?
Audit grades are determined as follows:
- A: No findings or management letter
- B: No findings with management letter
- C: Includes findings. Does not determine severity of findings.
- D: Misappropriations found
— Information from the Louisiana Legislative Auditor's Office
