Taxpayers fund booze, karaoke for KIPP

While the bulldogs at the Bay Guardian were exposing Jill Wynns' excess wonkism for slogging to conferences in windowless hotel meeting rooms on school board best practices, and Arlene Ackerman for charging iced tea to SFUSD, the folks at San Francisco-based KIPP were in Cancun partying hearty on the taxpayers' tab. No wonder they get such good press — they know how to have a good time. From a U.S. Office of the Inspector General audit of KIPP grant spending:

Unallowable Alcoholic Beverage and Entertainment Costs Charged to Grant Accounts The Foundation included unallowable alcoholic beverage and entertainment costs in the amounts charged to FIE grant accounts. • The Foundation held a Math Retreat in New York City, New York in January 2005 for math teachers to discuss successful teaching strategies used at two high-achieving KIPP schools. The Foundation charged the U215K040068 grant account for $61,608 in travel-related costs for approximately 70 persons who attended the three-day event. The amount included $1,919 for alcoholic beverages purchased during a restaurant dinner.
Final Report
ED-OIG/A09G0010 Page 5 of 15
• The Foundation held a School Leaders Retreat in Cancun, Mexico in February 2005 for KIPP school leaders to meet and discuss issues relevant to their professional growth and KIPP schools. The Foundation charged the U215K040068 grant account for $90,749 in travel-related costs for the approximately 70 persons who attended the four-day event. The amount included $2,988 for alcoholic beverage purchases, $2,318 for three hours of DJ and Karaoke services, and $537 for basketball equipment setup. • The Foundation held another School Leaders Retreat in Cancun, Mexico in February 2006. The Foundation charged the U215K050531 grant account for $68,147 in travel-related costs for the approximately 70 persons who attended the four-day event. The amount included $3,387 for alcoholic beverage purchases.2 EDGAR 74.27 requires that private non-profit organizations determine the allowability of costs charged to grants in accordance with the cost principles contained in OMB Circular A-122. OMB Circular A-122 Attachment B, paragraph 3 (Alcoholic beverages) and paragraph 14 (Entertainment costs) prohibit the use of Federal grant funds for alcoholic beverage and entertainment costs. Foundation staff did not thoroughly review expenditure documentation to ensure that only allowable costs were charged to the FIE grant accounts. The unallowable alcoholic beverage and entertainment costs charged to the FIE grant accounts did not result in the improper use of FIE funds because the Foundation did not use FIE funds to cover $624,123 of U215K040068 grant expenditures and reduced its draw of FIE funds for U215K050531 by $21,732 to stay within the travel budget in the approved grant. However, the Foundation holds several training events each year. Because we did not review all event-related expenditures, there is a risk that other alcoholic beverage and entertainment costs may have been charged to the FIE grant accounts that were not detected by our review. Additionally, there is a risk that FIE funds may be used inappropriately in the future if the Foundation continues to charge alcoholic beverage and entertainment costs to the FIE accounts and does not adjust expenditure totals for the unallowable costs when determining amounts to be drawn from the grant awards.

(emphasis mine)
— Caroline