Our special investigation of Kinston Charter Academy (School) revealed that the School received $666,818 of state appropriations in July 2013 despite multiple citations for fiscal mismanagement over six years. Investigators discovered the School overstated its attendance estimate which inflated state funds received by more than $300,000. The investigation found that inexperience and limited participation led to inadequate board and administrative oversight of the School. The School employed the Chief Executive Officer's (CEO) unqualified relatives at a cost of $92,000 in the School's final year. Despite ultimately owing more than $370,000 in payroll obligations, the School made questionable payments of more than $11,000 to the CEO and his wife less than one month before the School closed. Investigators also determined that declining student attendance, unrealized private donations, and high operating costs on items such as excessive fees on short-term financing, transportation, building maintenance, and high mortgage rates contributed to the School's insolvency.

Document Entity Terms
First Published
NC County