State Audit Confirms No Financial Mismanagement, Waste, Fraud, or Abuse in Commonwealth Charter Academy’s Operations

February 20, 2025

State Audit Confirms No Financial Mismanagement, Waste, Fraud, or Abuse in Commonwealth Charter Academy’s Operations

More families opt for flexible, customizable educational programs from experienced online schools

HARRISBURG – Commonwealth Charter Academy (CCA), Pennsylvania’s leading K-12 public cyber charter school serving more than 33,000 students, today announced that a recent audit by the state Auditor General found no financial mismanagement, waste, fraud, or abuse of taxpayer dollars.

“This audit confirms that the CCA Board of Trustees and school administration manage taxpayer dollars effectively and efficiently, investing in programs, services, and supports that benefit every enrolled student,” said CCA Board Chairman Jeffrey Piccola. “CCA’s comprehensive internal controls, combined with its student- and family-focused mission, ensure that students and families receive the academic enrichment, social support, and attention they deserve.”

The audit reviewed CCA’s revenues, expenditures, and general fund balances from July 1, 2020, to June 30, 2023, a period during which CCA’s enrollment more than doubled due to the COVID-19 pandemic.

Since the 2018-19 school year, CCA’s enrollment has increased by nearly 21,000 students, or 235%.

“For various reasons, more families are exploring alternatives to their local school districts and opting for schools with a proven track record of providing high-quality online education,” said CCA President and CEO Thomas D. Longenecker. “It is evident that tens of thousands of Pennsylvania families want more involvement in their children’s education and their voices to be heard.”

CCA’s revenues and expenditures increased significantly during the audit period due to the rise in the number of families choosing CCA as their children’s educational provider.

Although the auditor general’s report points to fund balances as a need to change the way cyber charter schools are funded, it fails to mention that school districts collectively have amassed more than $6.7 billion in fund balances.

In fact, fund balances of all public schools increased over the past several years due to the influx of federal COVID-19 relief funds.

This report also highlights the unique operation of public cyber charter schools compared to traditional public school districts.

When the Charter School Law was enacted, the Pennsylvania General Assembly intended for cyber charter schools to “provide opportunities for teachers, parents, pupils[,] and community members to establish and maintain schools that operate independently from the existing school district structure.”

The Charter School Law aims to “[i]mprove pupil learning, [i]ncrease learning opportunities for all pupils, [e]ncourage the use of different and innovative teaching methods, [c]reate new professional opportunities for teachers, including the opportunity to be responsible for the learning program at the school site, and [p]rovide parents and pupils with expanded choices in the types of educational opportunities available within the public school system.”

Since opening in 2002, CCA has complied with the Charter School Law. The school’s commitment to family service, accountability, improving student learning and opportunities, engaging teachers and administrators in developing innovation in public education, and creating a school community that operates independently from the traditional school district structure is demonstrated daily.

While CCA is pleased with the audit’s findings regarding its management and stewardship of taxpayer dollars, it takes exception to the audit’s conclusions on funding for cyber charter schools, certain expenditures, Family Service Centers, and the administration of its Capital Projects Fund.

The funding formula in the Charter School Law represents the General Assembly’s thoughtful approach to ensuring public cyber charter school students receive fair and adequate funding compared to their peers in traditional public schools.

In July 2024, the General Assembly reduced funding for special education students in cyber charter schools. The auditor general’s report fails to identify any credible reason to reduce funding to cyber school students. In fact, over the last decade, the current and previous governor and lawmakers have significantly boosted state funding for public education to a record $13.9 billion – a $4.1 billion increase.

“There is absolutely no reason for cyber school students to be singled out for funding cuts,” said Longenecker. “Cyber school students also have a constitutional right to a thorough and efficient system of public education. Further reductions to their funding jeopardizes their ability to receive the high-quality education they deserve.”

CCA’s thoughtful expenditures on staff compensation, student activities, fleet vehicles, and facilities are directed toward expanding and improving educational programs and opportunities for students and families – something the auditors could have explored if they conducted onsite visits to CCA’s buildings.

CCA’s Family Service Centers are crucial for developing and maintaining a statewide school community and fostering innovation while remaining in compliance with the law and guidance from the Pennsylvania Department of Education.

CCA strategically uses its Capital Projects Fund to purchase, renovate, and construct Family Service Centers across the state without borrowing, saving millions in interest and debt service costs.

“It’s unfortunate that state auditors did not invest the time to understand the impact CCA is making in the lives of thousands of students and families,” said Longenecker. “A basic understanding reveals that CCA’s model should serve as an example for other schools across the state. We are partnering with families and delivering real-world results through our many educational programs and career-readiness initiatives, including CCAWorks, which prepare students for family-sustaining jobs in Pennsylvania.”

It is crucial for the public education sector to adapt to accommodating students and families. Families want their tax dollars to follow their children to the school of their choice and be used in ways that prepare their children to become socially responsible, productive citizens.

“Policymakers and education leaders must ask families why they are leaving their local school district and enrolling in cyber charter schools,” said Longenecker. “We must recognize that education is not a one-size-fits-all system. It must adapt to the unique learning styles and needs of students. The Charter School Law calls for innovation and thinking outside the box, and that is exactly what CCA has done and will continue to do.”