No surprises here:
School cash flows to owners’ pockets
Some of the country’s flagship charter schools are paying their owners hundreds of thousands in governance fees to help manage average rolls of just 70 children.
An analysis of audited financial returns has shown administration and management at the publicly funded, privately run schools form a large part of their costs – up to 40 per cent of total salaries.
Accounts for the first five schools show that four made “related party” payments to their sponsor trusts or companies last year. One school, Vanguard Military School, paid $309,391 for management, over and above what it paid its principal. The money went to the Advanced Training Group. Both entities are owned by the Hyde family.
Don’t fret citizens, enriching their owners is the way charter schools are designed to work. Some other gems from the article…
On claims of charter school success:
[Vanguard chief executive Nick Hyde] said splitting governance and management had led to success so far, including a 100 per cent NCEA Level 2 pass rate. Those figures, however, were based on participation rates. The Ministry of Education’s website showed only 60 per cent of those leaving the secondary school completed Level 2.
All of the $14 million of charter school funding came from the Government, with none of the first five schools partnering with business or other private backers in the way envisaged under an election deal between National and the Act Party.
Charter schools = total fail.