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Charter schools display financial warning signs

Posted at 1:18 PM, May 09, 2018
and last updated 2018-05-09 16:18:53-04

A newspaper's analysis of Arizona charter school data indicates that dozens of schools displayed financial warning signs last year.

The Arizona Republic reports that charter operators representing 138 schools failed three of four measures reported in financial performance dashboards, which rate financial health of charters based on metrics including net income and cash flow.
The newspaper's analysis of the financial reports shows charter holders of 62 schools failed all four measures in the 2016-17 school year.
The charter holders of 41 schools were flagged by their auditors over concerns that closure was possible within a year.
The state cannot intervene in a charter school's operation based on financial reasons alone. Charter holders are required to submit financial audits to the state each year.