ORLANDO-AREA SUMMIT CHARTER SCHOOL MUST FIX PROBLEMS OR CLOSE; April 08, 2008; Orlando Sentinel (FL)
A Maitland charter school paid four administrators more than $520,000 last year and, even though the school was deeply in debt, allowed lavish and uncontrolled spending by two of those administrators, according to an audit by the Orange County school district.
The six-page audit, completed last month, found that Summit Charter School had defaulted on credit-card payments and almost ran out of money to pay its teachers and other bills…
According to both the audit and Claire Olds, a co-founder and the chairwoman of Summit's board of directors, none of the spending -- including the salaries, the travel and other irregularities -- had been approved by the school's eight-member board…
On March 4, the board suspended with pay three of the school's top officials, including Summit's president and co-founder Alan Smolowe. Also suspended were Steven Palmer, the principal; and Holly Wilkey, an office manager. Wilkey is Palmer's sister.
The audit showed that Palmer's salary was $217,654. Smolowe, who is also president of consulting firm Rothschild Development Corp., was paid $175,000. By comparison, according to school district attorney Frank Kruppenbacher, the average Orange County principal earns $83,000 a year...
Palmer's salary more than doubled since 2004, according to the audit, although it is not clear why. Palmer, identified by the school's Web site as an award-winning educator and former Holiday Inn food-and-beverage director, earned an average of $206,000 during the past three years.
The school also paid Wilkey $45,500 a year, while a bookkeeper, Yashmin Moledina, earned $122,000…
*Smolowe and Palmer bought two cars through the school -- without board approval -- and later traded them in for a $47,000 truck.
*The two men racked up "questionable expenditures" of more than $15,000 for meals, hotels, airlines and other travel expenses. Because there were no receipts, the auditors said, "we could not determine if any of the trips were for the benefit of the school."
All of this information, school district officials said, was difficult to ferret out because bookkeeping records were altered and Summit's tangled finances included eight accounts in four banks…
Summit's troubles are not unique among the state's 300 charter schools. A 2007 Orlando Sentinel investigation showed that many operate with little oversight and accountability. The stories showed, among other things, that about half of the state's charter schools had operating deficits or questionable business relationships with founders or board members. Florida authorized charter schools in 1996 as an alternative to public schools. Charter schools operate under a contract with local school districts and are funded with state money…
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http://articles.orlandosentinel.com/2011-08-16/features/os-summit-charter-may-close-20110816_1_summit-charter-school-summit-board-school-board
"Summit Charter School targeted for closing in Orange." Orlando Sentinel, 08/16/2011
EXCERPT:
For the second time in four months, Orange County school officials are recommending that a charter school be closed down because of financial mismanagement and other issues.
Summit Charter School in Maitland has had a history of problems, including repeated late payments to staffers, lack of supplies and books, and a bankruptcy filing two years ago...
...The school principal and board members, district records show, have not responded to letters or calls from Orange County school officials since June.
Neither phone number for the school office has been working, and Summit board members have not responded to phone calls and emails from the Orlando Sentinel...
The first sign of trouble came in 2003 when the district stopped two administrators from selling products to the school that they had developed.
Then, in 2008, an audit revealed that those administrators and two others, each earning six-figure salaries, had used taxpayer money to buy a truck, airline tickets, meals and hotel stays. After those findings, the school board imposed a two-year probation.
The privately run public school filed for bankruptcy protection in 2009 but continued serving students with learning disabilities and receiving money from the district.
Even with leadership changes, the school remained unable to pay bills and salaries. A former bookkeeper said paychecks still were running a month late in July 2010...
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