Audit: 2 Indiana online schools misspent nearly $86 million

Desks in a classroom. (Getty Images/smolaw11)

INDIANAPOLIS (AP) — A new state audit report says two Indiana online charter schools accused of inflating their enrollments inappropriately paid nearly $86 million to companies linked to the schools’ founder or his associates.

The State Board of Accounts review found that the Indiana Virtual School and Indiana Virtual Pathways Academy wrongly received $68.7 million in state payments by improperly claiming about 14,000 students as enrolled between 2011 and 2019.

The report says those students had no online course activity. The report also says its findings had been given to federal and state authorities for possible criminal violations.

The U.S. attorney’s office in Indianapolis declined to comment.