On the heels of announcing bold expansion plans that may take it to Chattanooga, the Tennessee Achievement School District received some bad news from state auditors.

Andy Sher at the Chattanooga Times-Free Press reports:

The audit said that the Comptroller’s office has previously “reported deficiencies in ASD’s internal controls and noncompliance with federal program requirements, resulting in approximately $721,000 of federal questioned cost.”

Sher notes:

On March 30, 2016, the U.S. Department of Education, Office of Inspector General, released an audit of Tennessee’s Race to the Top grant, which included funds spent by the ASD.

“This federal audit identified similar internal control deficiencies and areas of federal noncompliance with the Race to the Top grant at ASD,” the latest Comptroller notes. “During our current audit, we continued to find similar issues relating to fiscal deficiencies and noncompliance, but we have also identified new areas of deficiencies related to human resources and purchasing cards.”

At a legislative hearing today, Tennessee Department of Education Deputy Commissioner and Chief Operating Officer Kathleen Airhart told lawmakers that as of July 1, the Department now oversees the ASD’s finances. Airhart said the problems in the audit have been addressed.

Who could have guessed that a school district that spends its funds on cocktail receptions and then hides the social media invite when called out would have problems with fiscal management?

Not to worry, though, now the Department of Education is overseeing ASD operations. Yes, the same group that brought Tennessee the not-so-impressive TNReady rollout is now managing the ASD’s fiscal policy.

Sher called the ASD’s financial management “chaotic” in his article.

The reality is, the entire ASD has been chaotic and rather disruptive.

Auditors are in the business of finding mistakes, of course. It would be one thing if the ASD had a stellar track record of proven results and could blame the audit findings on an unrelenting focus on student success. Unfortunately, the evidence so far suggests otherwise.

So, you have a state-run school district that is failing to produce promised results at the same time it’s spending money with little oversight. So far, that hasn’t resulted in a halt to the ASD’s expansion plans.

Will 2017 be the year the legislature finally regains control of the district it created?

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