D.C. Charter Schools: Strengthening Monitoring and Process When Schools Close Could Improve Accountability and Ease Student Transitions

The Board of Education (BOE) Office of Charter Schools (OCS) prepared a solicitation and scope of work for a financial analyst to identify charter schools' risk factors and a process for reviewing financial audits and reports. The OCS expects the deliverable to be a process for OCS to systematically review a set of risk factors for each school, such as cash flow, ratio of liabilities to assets, debt structure, etc. This will give the BOE an objective way to identify an "at-risk" school. Additionally, the BOE has hired a contractor to monitor the opening of charter schools. When the BOE transitioned to the DC Public Charter School Board (PCSB) in 2007, the PCSB indicated that it would continue to apply the risk-based monitoring process to the former BOE schools. In August 2009, PCSB confirmed that it has, in fact, applied its risk-based monitoring process to these schools.

The Public Charter School Board (PCSB) has taken steps to create a routine process for the closure of the charter schools it has authorized. In particular, that process will ensure the secure maintenance and transfer of student records. Furthermore, pending legislation before the DC Council would establish a routine process for the disposition of charter school assets for all charter schools in the District of Columbia. In August 2009, PCSB confirmed that certain standard elements of the school closure process have been applied to all charter school closures to date, and that the secure transfer of student records is a priority. In addition, in June 2010, we confirmed that the PCSB had documented charter revocation and surrender protocols in place and had implemented these protocols in closing charter schools. These protocols include responsibilities for PCSB, charter schools, and DCPS. Specifically, the protocols include responsibilities for PCSB and DCPS in the transfer of student records.

The Office of Charter Schools has created a checklist for closing a charter school, including action items such as the disposition of student records, final financial reports, the status of accounts, the final personnel register, steps to alert parents, and other items. This list is based on a pre-existing list. Additionally, in January 2006, the Board of Education (BOE) asked the DC Council for legislation providing for the disposition of closed charter schools' assets. This legislation, which would ensure a uniform, systematic, and routine process for the disposition of assets for all charter schools District-wide, is pending. When the DC Public Charter School Board (PCSB) subsumed the BOE in June 2007, confirmed in August 2007 that it will apply its standard school closure process to the former BOE schools. In August 2009, PCSB confirmed that certain standard elements of the school closure process have been applied to all school closures, and that the secure transfer of student records is a priority. In addition, in June 2010, we confirmed that the PCSB had documented charter revocation and surrender protocols in place and had implemented these protocols in closing charter schools. These protocols include responsibilities for PCSB, charter schools, and DCPS. Specifically, the protocols include responsibilities for PCSB and DCPS in the transfer of student records.

In Spring 2010, the Office of the State Superintendent of Education (OSSE) established a working group on the closing of charter schools that included representatives from both OSSE and PCSB. OSSE is issuing a policy on the closing of charter schools that is aligned very closely with PCSB's existing policy and which they believe reflects good business practice. The policy will be issued in September. Responsibility for addressing this recommendation transferred from DCPS to OSSE, which is the state education agency now responsible for setting statewide policies, providing resources and support, and exercising accountability for all public education in DC.

The Board of Education established a charter school committee in October 2005. The committee meets monthly and reports to the full Board at its regular monthly meetings. In this way, it has created a mechanism to ensure the timely review of monitoring information, including audits, compiled by the Office of Charter Schools.