Enterprise Charter School

A $2 BILLION DECISION: THE CASE FOR REFORMING NEW YORK’S CHARTER SCHOOL LAW, April 2010, New York State United Teachers

…Before the Charter School Association went to court to block the State Comptroller from conducting audits and from having oversight authority for how charters spent public funds, the Office of the State Comptroller did complete a handful of charter audits that found:

…The Enterprise Charter School in Buffalo spent nearly $85,000 without approvals or paperwork, including payments for liquor and theater tickets. Enterprise had a two-year, $60,000 consulting contract with its former CEO, and paid $7,700 in costs for the former CEO while he was employed by another charter school. The audit also found the school had been making unauthorized, insufficiently documented and inaccurate salary, separation and contractual payments totaling $34,000 to its former CEO in what the comptroller said appeared to be an attempt to manipulate the former CEO’s reported salary and hide salary payments by making them through the school’s accounts payable system…

…Management at the Enterprise Charter School in Buffalo used some of the school’s funding to support the financially ailing Niagara Charter School. Enterprise Charter School’s board paid at least $7,700 in health insurance premiums for its former CEO while he was CEO of the Niagara Charter School. Enterprise’s board also overpaid the CEO by at least $34,000 and later gave him a $60,000 consulting contract – with 25 percent, or $15,000, paid up front. School officials could not document what consulting services he provided to the school. Enterprise board members also spent $85,000 without paperwork or approvals, including thousands of dollars in charges for parties, alcohol, tickets to the theater in Toronto, travel and personal expenses…

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