Overview
During the audit period, DESE did not ensure that charter school trustees signed annual conflict of interest material acknowledgment forms and submitted the required financial disclosure forms. State ethics laws, specifically Section 89(u) of Chapter 71 and Section 27 of Chapter 268A of the General Laws, require trustees to complete these forms annually to promote transparency, prevent conflicts of interest, and uphold ethical standards in charter school governance. However, DESE did not have an effective process in place to monitor compliance with these requirements. Specifically, we found that 13 (22%) of the 60 charter school trustees reviewed did not comply with the annual requirements for submitting conflict of interest material acknowledgment forms and/or financial disclosure forms. Of these 13 instances of noncompliance, 7 (54%) were missing one or more conflict of interest material acknowledgment forms, 5 (38%) were missing both conflict of interest material acknowledgment forms (one or more) and financial disclosures (one or more), and 1 (8%) was missing one financial disclosure form.
Without these documents, there is an increased risk that potential or actual conflicts of interest may go undetected and unaddressed, potentially influencing decision-making in ways that are not in the best interest of students, caregivers, or the public. Additionally, DESE’s lapse in enforcing these requirements undermines accountability, reduces public trust in the oversight of charter schools, and may result in noncompliance with state ethics laws and policies.
DESE attributed the instances of noncompliance to confusion among trustees regarding the distinction between the ethics training notice, which is sent to state personnel members biennially, and the annual conflict of interest material acknowledgment forms, which is sent to state personnel members annually. DESE stated that trustees have also expressed concerns about opening unfamiliar emails and receiving duplicate notices.
While we acknowledge DESE’s explanation that unfamiliar emails may have been a cause for concern for trustees, it remains DESE’s responsibility to ensure that all charter school trustees complete and submit required annual conflict of interest material acknowledgment forms and financial disclosure forms. This should include conducting periodic reviews and following up with schools that have trustees who have not submitted these required forms to enforce adherence to these requirements. DESE should also take proactive steps so that trustees are clearly informed about all correspondence from DESE and feel confident in completing the required forms. This should include offering clearer guidance, additional support, and addressing concerns about emails that are unfamiliar (or perceived as duplicates, which we believe may refer to notices pertaining to biennial ethics training versus notices pertaining to annual conflict of interest material acknowledgments).
Auditee’s Response
DESE recognizes the importance of ensuring that members of charter schools’ boards of trustees sign annual conflict of interest material acknowledgement forms (“conflict of interest forms”) and complete required financial disclosure forms (“financial disclosure forms”). Compliance with these requirements help prevent conflicts of interest and maintain high standards of ethical behavior in charter school governance.
The Commissioner of Elementary and Secondary Education is responsible for appointing members of charter school boards of trustees pursuant to [Section 89 (u)(ii) of Chapter 71 of the Massachusetts General Laws]. DESE implements a variety of cyclical processes to provide oversight of charter school boards of trustees, of which the Board Member Management System (BMMS) is one. Other processes include, but are not limited to, site visits, renewal inspections, annual reports, annual audits, and end of year financial reports. The role of the BMMS for charter schools is limited to the management of the appointment process for charter school trustees, and the distribution, collection, and maintenance of records related to some of the legal requirements for individual trustees. . . .
DESE recognizes the inherent challenge when a financial disclosure for the prior calendar year is received by a former trustee several months after they have left a board of trustees. Fifty percent of the twelve records identified in the report were related to this category of trustees, five of the six former trustees did not complete the required financial disclosure, which was requested several months after they left a board of trustees. To facilitate the timely completion of financial disclosure forms, DESE will consult with the State Ethics Commission regarding whether disclosures for selected calendar years requested when service on a board of trustees ends rather than the following year. We will also work with the State Ethics Commission to provide virtual trainings for board members and will consult with the Commission regarding enforcement mechanisms available under the Commonwealth’s conflict of interest laws.
The BMMS generates and sends reminders to board members in advance of any due dates for the required forms. In addition, the BMMS sends notifications to board members if they miss a due date and sends reminders thereafter. DESE also performs cyclical reviews at least twice annually of forms collected by the system to ensure completion of legal obligations by individual members of charter school boards of trustees. To clarify expectations and to provide even further guidance, the Department works closely with the designated system users at each school to provide additional direct support to boards of trustees. In addition to the BMMS reports to designated system users that indicate missing information and forms for trustees, DESE provides cyclical reminders to system users regarding missing forms. To supplement DESE’s current oversight, DESE will provide an additional webinar training annually for all school users of the online system to facilitate oversight and the cooperation of individual trustees.
Auditor’s Reply
In its response, DESE noted the challenge of obtaining conflict of interest material acknowledgment forms and financial disclosure forms from former trustees when the request was made after their departure from a board. We acknowledge that our audit identified some of these situations. However, the statutory requirement applies to an individual’s service during the prior calendar year, and nothing in the law exempts former trustees from filing these forms once their term concludes. The failure to obtain these forms—regardless of a trustee’s current status—reflects a noncompliance with the law and highlights the need for a more effective process to ensure obligations are met when trustees leave their positions.
We acknowledge DESE’s stated commitment to work to address these issues and strongly encourage DESE to implement our recommendations regarding this matter. As part of our post-audit review process, we will follow up on this matter in approximately six months.
| Date published: | August 26, 2025 |
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