Daily News - October 1, 2014, by Regina Medina -THE STATE'S charter schools are out $30 million due to chicanery and waste since the 1997 charter-school law was enacted, according to a report released yesterday by three grass-roots education groups.

The state's oversight of charter schools is "not effectively detecting or preventing fraud," the report says.

The charter-school law mandates general auditing techniques, which the report claims may find inaccuracies but won't detect abuse. The report urges that charter schools follow practices used by federal agencies and conduct targeted audits that look into high-risk areas.

The report adds that whistle-blowers within the charter organizations and the media have exposed the majority of fraud cases and suggested that oversight agencies increase staffing to adequate levels.

In Philadelphia, the district Charter School Office oversees the city's 86 charters. The office has five staffers and no director.

The report cites specific cases of fraud around the state including the following from Philadelphia:

* Two officials with the Philadelphia Academy Charter School, Kevin O'Shea and Rosemary DiLacqua, were convicted in 2009 of defrauding the school of more than $900,000. They submitted fraudulent invoices for personal expenses.

* Ina Walker, former CEO, and Hugh Clark, founder, of the New Media Technology Charter School, were sentenced to prison for stealing $522,000 in taxpayer funds, which were used to fund a restaurant and a private school.

* Dorothy June Brown, who founded a number of charter schools including Laboratory Charter and Planet Abacus, is to be retried this year for allegedly defrauding $6.5 million from the schools and then attempting to cover it up.

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