The initial report of recommendations from the broad-based, statewide Anti-Fraud Task Force initiated by CCAP is nearing completion. CCAP is aiming for a release early in 2024.
CCAP initiated the task force last summer to safeguard public school finances by more effectively deterring, preventing, detecting, and prosecuting fiscal misconduct within the state’s public schools, with a particular emphasis on charter schools.
Part of the impetus for the task force was the keynote presentation at CCAP’s 2022 California Charter School Authorizers Conference by Kevin Fannon, one of the San Diego deputy district attorneys who prosecuted the A3 charter school fraud cases that involved hundreds of millions of dollars. “As Kevin illustrated vividly, the A3 cases and cases highlighted key points of vulnerability in the system that bad actors can exploit,” said CCAP President and co-founder Dave Patterson. “We wanted to bring together all the right stakeholders who share an interest in preventing this kind of theft and have expertise in how to do so.”
The task force-comprised of representatives of authorizers, charter schools, district attorneys, auditors, back office providers, and attorneys from both authorizers and charter schools-adopted a multifaceted approach to tackling fraud at various levels. The primary objectives are deterring potential wrongdoers, detecting fraudulent activities early, and facilitating better and swifter intervention for assistance or investigation by financial experts and law enforcement.
To do this, the task force organized its work, and will issue recommendations, around three areas of focus:
1. Recommendations to help ensure existing best practices and resources are employed consistently to deter and detect fraud.
The Fiscal Crisis & Management Assistance Team (FCMAT), which has contributed to the task force’s work, identifies a number of proactive steps that districts and authorizers can take to prevent fraud or uncover it. More articles and reports are available on CCAP’s website.
2. Recommendations to ensure that everyone in the system knows where to turn to get help if something seems suspicious.
Sometimes charter school employees, authorizers, and other stakeholders sense that something is not right, they are not sure where to go to share their concerns with someone who can help. The task force is exploring ways to make sure people know where to get help.
3. Recommendations for system improvements.
The vulnerabilities revealed by the most egregious instances of fraud go well beyond the charter school or authorizer level. Some systemic changes may be necessary on the issues that are well beyond their control and require action by policymakers.
CCAP also is representing the state Charter School Support Initiative (CASI) on a new multi-agency task force formed in October by the California State Controller and the San Diego County District Attorney in the wake of A3 charter schools. The California Legislature also tasked FCMAT and the Legislative Analyst’s Office with preparing a report on the funding of nonclassroom-based schools. This is a broader inquiry than fraud prevention but one that may have some overlap, and CCAP has been interviewed as part of the inquiry.
CCAP Executive Director Tom Hutton is optimistic about these combined efforts and the commitment everyone shares to make sure they succeed. “There’s so much great work happening in California now to strengthen charter authorizing. Reinforcing that work, while simultaneously addressing the issues beyond authorizing, will help all of us make sure our public resources are devoted to public school children.”
