State Auditor Will Examine Worcester Charter School, OSV Ties

WORCESTER, MA — State Auditor Diana DiZoglio will conduct an audit of the relationship between a newly-approved charter school and its sponsor, Old Sturbridge Village (OSV).

The Worcester School Committee requested the audit at a special meeting Monday, hours before the state Board of Elementary and Secondary Education approved the Worcester Cultural Academy's charter during a meeting Tuesday.

A DiZoglio spokesperson said the auditor isn't required to act if requested by a municipal vote, but will in this case.

"In general my office is not statutorily required to conduct municipal audits; however, when an elected municipal body votes to request an audit, my office reviews the information presented. There are a few things considered before determining whether or not we would begin our audit process in accordance with government auditing standards. In this instance, I understand the concerns and matter at hand and plan to conduct an audit per the request," DiZoglio said Wednesday.

Although Worcester officials opposed the charter school for a host of issues, they focused on one involving the school's finances. OSV is sponsoring the Worcester Cultural Academy, and will receive management fees through the charter school's budget.

Old Sturbridge Village CEO Jim Donahue has identified the new Worcester charter school as a revenue stream for the museum, which allows visitors to experience an early 19th Century New England Village.

"The academies will provide reliable, contractual revenue to the museum, safeguarding us against fluctuations in uncontrollable factors that impact admission revenue such as weather and public health," Donahue said in the OSV's 2022 annual report.

Donahue was referring to the Worcester Cultural Academy, but also the museum's existing charter school in Sturbridge, the Old Sturbridge Academy.

According to documents submitted to the state, Old Sturbridge Village would get a fee equal to 7 percent of per-pupil tuition. The proposed budget has projected the school will spend close to $17,000 per-pupil with a first-year enrollment of about 360 students, which would mean a fee of about $421,000.

"Funding intended for public education should not be used to subsidize Old Sturbridge Village," Superintendent Rachel Monárrez said Wednesday.

An OSV spokesperson did not immediately respond to a request for comment Wednesday.

The Worcester School Committee has also asked the state Ethics Commission and the Office of Inspector General to examine the ties between the museum and the school.

Worcester School Committee member Tracy Novick said an audit of the relationship between the school and museum could result in changes to the management fee structure. The committee asked for the auditor to examine the issue to ensure public education money is being spent lawfully. The Worcester Cultural Academy could cost as much as $7 million in its first year, which would come out of funding for Worcester Public Schools.

"The quick action on the part of the auditor is heartening, "Novick said. "It shows Worcester isn't alone in having a concern."