Tag: card

  • A smaller Nation’s Report Card

    A smaller Nation’s Report Card

    As Education Secretary Linda McMahon was busy dismantling her cabinet department, she vowed to preserve one thing: the National Assessment of Educational Progress (NAEP), also known as the Nation’s Report Card. In early April, she told a gathering of ed tech companies and investors that the national exam was “something we absolutely need to keep,” because it’s a “way that we keep everybody honest” about the truth of how much students across the country actually know.  

    That was clearly a promise with an asterisk. 

    Less than two weeks later, on Monday of this week, substantial parts of NAEP came crumbling down when the board that oversees the exam reluctantly voted to kill more than a dozen of the assessments that comprise the Nation’s Report Card over the next seven years. 

    The main reading and math tests, which are required by Congress, were preserved. But to cut costs in an attempt to appease Elon Musk’s Department of Government Efficiency or DOGE, the National Assessment Governing Board (NAGB) scrapped a 2029 administration of the Long-Term Trend NAEP, an exam that has tracked student achievement since the 1970s.* Also cut were fourth grade science in 2028, 12th grade science in 2032 and 12th grade history in 2030. Writing assessments, which had been slated for 2032, were canceled entirely. State and local results were also dropped for an assortment of exams. For example, no state-level results will be reported for 12th grade reading and math in 2028, nor will there be district-level results for eighth grade science that year. 

    Related: Our free weekly newsletter alerts you to what research says about schools and classrooms.

    “These are recommendations that we are making with much pain,” said board chair Beverly Perdue, a former North Carolina governor who was appointed to this leadership role in 2018 during President Donald Trump’s first term. “None of us want to do this.”

    The board didn’t provide an official explanation for its moves. But the vice chair, Martin West, a Harvard professor of education, said in an interview that the cuts were an effort to save the 2026 assessments. “A moment of reckoning came more quickly because of the pressures on the program to reduce expenses in real time,” he said. 

    In other words, the board was effectively cutting off the patient’s appendages to try to save the brain and the heart. Despite the sacrifice, it’s still not clear that the gambit will work.

    Related: Chaos and confusion as the statistics arm of the Education Department is reduced to a skeletal staff of 3

    DOGE has been demanding 50 percent cuts to the $190 million a year testing program. Nearly all the work is handled by outside contractors, such as Westat and ETS, and five-year contracts were awarded at the end of 2024. But instead of paying the vendors annually, DOGE has diced the payments into shorter increments, putting pressure on the contractors to accept sharp cuts, according to several former Education Department employees. At the moment, several of the contracts are scheduled to run out of money in May and June, and DOGE’s approval is needed to restart the flow of money. Indeed, DOGE allowed one NAEP contract to run out of funds entirely on March 31, forcing ETS employees to stop work on writing new questions for future exams. 

    Reading and math tests are scheduled to start being administered in schools in January 2026, and so additional disruptions could derail the main NAEP assessment altogether. NAEP is taken by a sample of 450,000 students who are selected to represent all the fourth and eighth graders in the nation, and each student only takes part of a test. This sampling approach avoids the burden of testing every child in the country, but it requires Education Department contractors to make complicated statistical calculations for the number of test takers and the number of test sections needed to produce valid and reliable results. Contractors must then package the test sections into virtual test booklets for students to take online. The Education Department also must get approval from the federal Office of Management and Budget to begin testing in schools — yet another set of paperwork that is handled by contractors. 

    A DOGE dilemma 

    People familiar with the board’s deliberations were concerned that contractors might be pressured to agree to cuts that could harm the quality and the validity of the exam itself. Significant changes to the exam or its administration could make it impossible to compare student achievement with the 2024 results, potentially undermining the whole purpose of the assessment. 

    Board members were ultimately faced with a dilemma. They could cut corners on the full range of assessments or hope to maintain NAEP’s high quality with a much smaller basket of tests. They chose the latter.

    The cuts were designed to comply with congressional mandates. While the Long-Term Trend assessment is required by Congress, the law does not state how frequently it must be administered, and so the governing board has deferred it until 2033. Many testing experts have questioned whether this exam has become redundant now that the main NAEP has a 35-year history of student performance. The board has discussed scrapping this exam since 2017. “The passage of time raises questions about its continued value,” said West.

    Related: NAEP, the Nation’s Report Card, was supposed to be safe. It’s not

    The writing assessments, originally scheduled for 2032 for grades four, eight and 12, needed an overhaul and that would have been an expensive, difficult process especially with current debates over what it means to teach writing in the age of AI.

    The loss of state- and district-level results for some exams, such as high school reading and math, were some of the more painful cuts. The ability to compare student achievement across state lines has been one of the most valuable aspects of the NAEP tests because the comparison can provide role models for other states and districts. 

    Cost cutting

    “Everyone agrees that NAEP can be more efficient,” said West, who added that the board has been trying to cut costs for many years.  But he said that it is tricky to test changes for future exams without jeopardizing the validity and the quality of the current exam. That dual path can sometimes add costs in the short term. 

    It was unclear how many millions of dollars the governing board saved with its assessment cancellations Monday, but the savings are certainly less than the 50 percent cut that DOGE is demanding. The biggest driver of the costs is the main NAEP test, which is being preserved. The contracts are awarded by task and not by assessment, and so the contractors have to come back with estimates of how much the cancellation of some exams will affect its expenses. For example, now that fourth grade science isn’t being administered in 2028, no questions need to be written for it. But field staff will still need to go to schools that year to administer tests, including reading and math, which haven’t been cut.

    Compare old and new assessment schedules

    Outside observers decried the cuts on social media, with one education commentator saying the cancellations were “starting to cut into the muscle.” Science and history, though not mandated by Congress, are important to many. ”We should care about how our schools are teaching students science,” said Allison Socol, who leads preschool to high school policy at EdTrust, a nonprofit that advocates for equity in education. “Any data point you look at shows that future careers will rely heavily on STEM skills.”

    Socol worries that DOGE will not be satisfied with the board’s cuts and demand more. “It’s just so much easier to destroy things than to build them,” she said. “And it’s very easy, once you’ve taken one thing away, to take another one and another one and another one.”

    On April 17, the Education Department announced that the 2026 NAEP would proceed as planned. But after mass layoffs in March, it remained unclear if the department has the capacity to oversee the process, since only two employees with NAEP experience are left out of almost 30 who used to work on the test. McMahon might need to rehire some employees to pull it off, but new hiring would contradict the spirit of Trump’s executive order to close the department.

    Socol fears that the Trump administration doesn’t really want to measure student achievement. “There is a very clear push from the administration, not just in the education sector, to have a lot less information about how our public institutions are serving the people in this country,” Socol said. “It is a lot easier to ignore inequality if you can’t see it, and that is the point.”

    The Education Department did not respond to my questions about their intentions for NAEP. McMahon has been quite forceful in articulating the value of the assessments, but she might not have the final say since DOGE has to approve the NAEP contracts. “What’s very clear is that the office of the secretary does not completely control the DOGE people,” said a person with knowledge of the dynamics inside the Education Department. “McMahon’s views affect DOGE priorities, but McMahon doesn’t have direct control at all.”

    The ball is now in DOGE’s court.  

    Canceled assessments

    • Long-Term Trend (LTT) assessments in math and reading for 9, 13 and 17 year olds in 2029. (The Education Department previously canceled the 2025 LTT for 17 year olds in February 2025.)
    • Science: Fourth-grade in 2028, 12th grade in 2032
    • History: 12th grade in 2030
    • Writing:  Fourth, eighth and 12th grades in 2032
    • State-level results: 12th grade math and reading in 2028 and 2032, eighth grade history in 2030
    • District-level results: Eighth-grade science in 2028 and 2032

    For more details, refer to the new schedule, adopted in April 2025, and compare with the old, now-defunct schedule from 2023. 

    *Correction: An earlier version of this sentence incorrectly said that two administrations of the Long-Term Trend NAEP had been scrapped by the governing board on April 21. Only the 2029 administration was canceled by the board. The 2025 Long-Term Trend NAEP for 17 year olds was canceled by the Education Department in February. Nine- and 13-year-old students had already taken it by April.

    Contact staff writer Jill Barshay at 212-678-3595, jillbarshay.35 on Signal, or barshay@hechingerreport.org.

    This story about NAEP cuts was written by Jill Barshay and produced by The Hechinger Report, a nonprofit, independent news organization focused on inequality and innovation in education. Sign up for Proof Points and other Hechinger newsletters.

    The Hechinger Report provides in-depth, fact-based, unbiased reporting on education that is free to all readers. But that doesn’t mean it’s free to produce. Our work keeps educators and the public informed about pressing issues at schools and on campuses throughout the country. We tell the whole story, even when the details are inconvenient. Help us keep doing that.

    Join us today.

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  • What will NCES layoffs mean for the Nation’s Report Card?

    What will NCES layoffs mean for the Nation’s Report Card?

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    The Trump administration has all but axed the U.S. Department of Education’s statistical research arm — the National Center for Education Statistics — sparing only a handful of employees who are left without department staff needed to analyze education data. 

    “They didn’t just RIF a few people, they deleted the agency for all intents and purposes,” said an NCES employee of more than a decade who was part of the massive March 11 layoffs

    The loss of over a hundred Institute of Education Sciences employees — including almost all of the NCES staff comes as part of sweeping cuts to the Education Department that left the federal agency with only half of its workforce. NCES, which traces its existence to an 1867 law establishing a federal statistical agency to collect, analyze and report education data,  has been tasked with research and analysis on everything from graduation rates and student outcomes to teacher and principal development. 

    Overall, NCES research tracked the condition of education in the nation, including gaps in achievement and resources for underserved students. During the pandemic, the unit closely analyzed trends in school resources and educator and student mental health. 

    Perhaps most notably, NCES oversaw and ensured the quality of the Nation’s Report Card, along with other key student outcome studies. School and college leaders rely on such NCES research to improve student performance, and its findings often help inform federal and state policymakers on funding decisions.

    Now, those caught in the latest wave of the administration’s cuts are warning that their haphazard nature will lead to a decline in the quality of assessments and data overseen by NCES. Longtime NCES employees report being fired at a moment’s notice and abruptly losing access to years — sometimes decades — of work, with no communication from the administration about how to offboard so as to preserve and pass on critical information. 

    “A lot of institutional knowledge is going to be lost,” said another former NCES employee who worked closely on the Nation’s Report Card. This employee and the others who spoke to K-12 Dive asked to remain anonymous for fear that identification could affect their severance terms.

    NAEP and international assessment employees impacted

    Although NCES employees are nearly all gone, many of NCES’ functions they previously carried out are congressionally mandated, meaning they will still need to be done. That includes portions of the National Assessment of Educational Progress, commonly known as the Nation’s Report Card. 

    The required parts include: reading and math assessments in 4th and 8th grade, long-term trend assessments for 9, 13 and 17-years-olds, and 12th grade reading and math assessments. The long-term assessment for 17-year-olds was last administered in 2012, having been canceled during the pandemic, and again for this spring due to what the Education Department cited as funding issues.

    Other portions of the federal test such as science, U.S. history and civics are optional. 

    The federally mandated assessment has often served as a yardstick for student performance in various subjects, most notably reading and math. Following the pandemic, it helped educators understand which subject areas students struggled in the most during and following school closures. 


    “Despite spending hundreds of millions in taxpayer funds annually, IES has failed to effectively fulfill its mandate to identify best practices and new approaches that improve educational outcomes and close achievement gaps for students.”

    Madi Biedermann

    U.S. Department of Education’s Deputy Assistant Secretary for Communications


    Congress also mandates that student performance be compared on an international level, a requirement usually fulfilled by the Program for International Student Assessment, or PISA. 

    The latest round of PISA testing was expected to begin by the end of March. Plus, the main NAEP for grades 4, 8 and 12 was supposed to begin early next year — preparation for which was set to begin this summer, according to former NCES employees. 

    The Education Department, in a March 13 statement emailed to sister publication Higher Ed Dive, said, “IES employees impacted by the reduction in force conducted none of the research related to NAEP, the College Scorecard, and IPEDS.”

    “That work is all done through contracts that are still maintained by the Department,” said Madi Biedermann, deputy assistant secretary for communications at the department, in the statement.

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  • What will NCES layoffs mean for the Nation’s Report Card?

    What will NCES layoffs mean for the Nation’s Report Card?

    This audio is auto-generated. Please let us know if you have feedback.

    The Trump administration has all but axed the U.S. Department of Education’s statistical research arm — the National Center for Education Statistics — sparing only a handful of employees who are left without department staff needed to analyze education data. 

    “They didn’t just RIF a few people, they deleted the agency for all intents and purposes,” said an NCES employee of more than a decade who was part of the massive March 11 layoffs

    The loss of over a hundred Institute of Education Sciences employees — including almost all of the NCES staff comes as part of sweeping cuts to the Education Department that left the federal agency with only half of its workforce. NCES, which traces its existence to an 1867 law establishing a federal statistical agency to collect, analyze and report education data,  has been tasked with research and analysis on everything from graduation rates and student outcomes to teacher and principal development. 

    Overall, NCES research tracked the condition of education in the nation, including gaps in achievement and resources for underserved students. During the pandemic, the unit closely analyzed trends in school resources and educator and student mental health. 

    Perhaps most notably, NCES oversaw and ensured the quality of the Nation’s Report Card, along with other key student outcome studies. School and college leaders rely on such NCES research to improve student performance, and its findings often help inform federal and state policymakers on funding decisions.

    Now, those caught in the latest wave of the administration’s cuts are warning that their haphazard nature will lead to a decline in the quality of assessments and data overseen by NCES. Longtime NCES employees report being fired at a moment’s notice and abruptly losing access to years — sometimes decades — of work, with no communication from the administration about how to offboard so as to preserve and pass on critical information. 

    “A lot of institutional knowledge is going to be lost,” said another former NCES employee who worked closely on the Nation’s Report Card. This employee and the others who spoke to K-12 Dive asked to remain anonymous for fear that identification could affect their severance terms.

    NAEP and international assessment employees impacted

    Although NCES employees are nearly all gone, many of NCES’ functions they previously carried out are congressionally mandated, meaning they will still need to be done. That includes portions of the National Assessment of Educational Progress, commonly known as the Nation’s Report Card. 

    The required parts include: reading and math assessments in 4th and 8th grade, long-term trend assessments for 9, 13 and 17-years-olds, and 12th grade reading and math assessments. The long-term assessment for 17-year-olds was last administered in 2012, having been canceled during the pandemic, and again for this spring due to what the Education Department cited as funding issues.

    Other portions of the federal test such as science, U.S. history and civics are optional. 

    The federally mandated assessment has often served as a yardstick for student performance in various subjects, most notably reading and math. Following the pandemic, it helped educators understand which subject areas students struggled in the most during and following school closures. 


    “Despite spending hundreds of millions in taxpayer funds annually, IES has failed to effectively fulfill its mandate to identify best practices and new approaches that improve educational outcomes and close achievement gaps for students.”

    Madi Biedermann

    U.S. Department of Education’s Deputy Assistant Secretary for Communications


    Congress also mandates that student performance be compared on an international level, a requirement usually fulfilled by the Program for International Student Assessment, or PISA. 

    The latest round of PISA testing was expected to begin by the end of March. Plus, the main NAEP for grades 4, 8 and 12 was supposed to begin early next year — preparation for which was set to begin this summer, according to former NCES employees. 

    The Education Department, in a March 13 statement emailed to sister publication Higher Ed Dive, said, “IES employees impacted by the reduction in force conducted none of the research related to NAEP, the College Scorecard, and IPEDS.”

    “That work is all done through contracts that are still maintained by the Department,” said Madi Biedermann, deputy assistant secretary for communications at the department, in the statement.

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  • Report card: Accord recommendations 12 months on

    Report card: Accord recommendations 12 months on

    Education Minister Jason Clare handed down the final report in February 2024. Picture: Martin Ollman

    The 408-page Universities Accord document has shaped the past year of university reform discussions. The document includes 47 recommendations that are expected to take up to 25 years to implement.

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  • A dismal report card in math and reading

    A dismal report card in math and reading

    The kids are not bouncing back. 

    The results of a major national test released Wednesday showed that in 2024, reading and math skills of fourth and eighth grade students were still significantly below those of students in 2019, the last administration of the test before the pandemic. In reading, students slid below the devastatingly low achievement levels of 2022, which many educators had hoped would be a nadir. 

    The test, the National Assessment of Educational Progress (NAEP), is often called the nation’s report card. Administered by the federal government, it tracks student performance in fourth and eighth grades and serves as a national yardstick of achievement. Scores for the nation’s lowest-performing students were worse in both reading and math than those of students two years ago. The only bright spot was progress by higher-achieving children in math. 

    The NAEP report offers no explanation for why students are faltering, and the results were especially disappointing after the federal government gave schools $190 billion to aid in pandemic recovery. 

    “These 2024 results clearly show that students are not where they need to be or where we want them to be,” said Peggy Carr, the commissioner of the National Center for Education Statistics, in a briefing with journalists. 

    Related: Our free weekly newsletter alerts you to what research says about schools and classrooms.

    More than 450,000 fourth and eighth graders, selected to be representative of the U.S. population, took the biennial reading and math tests between January and March of 2024. 

    Depressed student achievement was pervasive across the country, regardless of state policies or instructional mandates. Student performance in every state remained below what it was in 2019 on at least one of the four reading or math tests. In addition to state and national results, the NAEP report also lists the academic performance for 26 large cities that volunteer for extra testing.

    An ever-widening gap

    The results also highlighted the sharp divergence between higher- and lower- achieving students. The modest progress in fourth grade math was entirely driven by high-achieving students. And the deterioration in both fourth and eighth grade reading was driven by declines among low-achieving students. 

    “Certainly the most striking thing in the results is the increase in inequality,” said Martin West, a professor of education at Harvard University and vice chair of the National Assessment Governing Board, which oversees the NAEP test. “That’s a big deal. It’s something that we hadn’t paid a lot of attention to traditionally.”

    The starkest example of growing inequality is in eighth grade math, where the achievement gap grew to the largest in the history of the test.

    Source: NAEP 2024

    The chart above shows that the math scores of all eighth graders fell between 2019 and 2022. Afterward, high-achieving students in the top 10 percent and 25 percent of the nation (labeled as the 90th and 75th percentiles above) began to improve, recovering about a quarter of the setbacks for high achievers during the pandemic. That’s still far behind high-performing eighth graders in 2019, but at least it’s a positive trend. 

    The more disturbing result is the continuing deterioration of scores by low-performing students in the bottom 10 percent and 25 percent. The huge pandemic learning losses for students in the bottom 10 percent grew 70 percent larger between 2022 and 2024. Learning losses for students in the bottom 25 percent grew 25 percent larger.

    “The rich get richer and the poor are getting shafted,” said Scott Marion, who serves on the NAEP’s governing board and is the executive director of the National Center for the Improvement of Educational Assessment, a nonprofit consultancy. “It’s almost criminal.”

    More than two-thirds of students in the bottom 25 percent are economically disadvantaged. A quarter of these low performers are white and another quarter are Black. More than 40 percent are Hispanic. A third of these students have a disability and a quarter are classified as English learners. 

    By contrast, fewer than a quarter of the students in the top 25 percent are economically disadvantaged. They are disproportionately white (61 percent) and Asian American (14 percent). Only 5 percent are Black and 15 percent are Hispanic. Three percent or fewer of students at the top have a disability or are classified as English learners.  

    Related: Six puzzling questions from the disastrous [2022] NAEP results

    Although average math scores among all eighth grade students were unchanged between 2022 and 2024, that average masks the improvements at the top and the deterioration at the bottom. They offset each other. 

    The NAEP test does not track individual students. The eighth graders who took the exam in 2024 were a different group of students than the eighth graders who took the exam in 2022 and who are now older. Individual students have certainly learned new skills since 2019. When NAEP scores drop, it’s not that students have regressed and cannot do things they used to be able to do. It means that they’re learning less each year. Kids today aren’t able to read or solve math problems as well as kids their same age in the past.

    Students who were in eighth grade in early 2024, when this exam was administered, were in fourth grade when the pandemic first shuttered schools in March 2020. Their fifth grade year, when students should have learned how to add fractions and round decimals, was profoundly disrupted. School days began returning to normal during their sixth and seventh grade years. 

    Harvard’s West explained that it was incorrect to assume that children could bounce back academically. That would require students to learn more in a year than they historically have, even during the best of times.

    “There’s nothing in the science of learning and development that would lead us to expect students to learn at a faster rate after they’ve experienced disruption and setbacks,” West said. “Absent a massive effort society-wide to address the challenge, and I just haven’t seen an effort on the scale that I think would be needed, we shouldn’t expect more positive results.”

    Learning loss is like a retirement savings shortfall

    Learning isn’t like physical exercise, West said. When our conditioning deteriorates after an injury, the first workouts might be a grind but we can get back to our pre-injury fitness level relatively quickly. 

    “The better metaphor is saving for retirement,” said West. “If you miss a deposit into your account because of a short-term emergency, you have to find a way to make up that shortfall, and you have to make it up with interest.”

    What we may be seeing now are the enduring consequences of gaps in basic skills. As the gaps accumulate, it becomes harder and harder for students to keep up with grade-level content. 

    Another factor weighing down student achievement is rampant absenteeism. In survey questions that accompany the test, students reported attending school slightly more often than they had in 2022, but still far below their 2019 attendance rates. Eleven percent of eighth graders said that they had missed five or more school days in the past month, down from 16 percent in 2022, but still far more than the 7 percent of students who missed that much school in 2019. 

    “We also see that lower-performing readers aren’t coming to school,” said NCES Commissioner Carr. “There’s a strong relationship between absenteeism and performance in these data that we’re looking at today.”

    Eighth graders by the number of days they said they were absent from school in the previous month 

    Source: NAEP 2024

    Fourth grade math results were more hopeful. Top-performing children fully recovered back to 2019 achievement levels and can do math about as well as their previous peers. However, lower-performing children in the bottom 10 percent and 25 percent did not rebound at all. Their scores were unchanged between 2022 and 2024. These students were in kindergarten when the pandemic first hit in 2020 and missed basic instruction in counting and arithmetic.

    Reading scores showed a similar divergence between high- and low- achievers.

    Source: NAEP 2024

    This chart above shows that the highest-performing eighth graders failed to catch up to what high-achieving eighth graders used to be able to do on reading comprehension tests. But it’s not a giant difference. What’s startling is the steep decline in reading scores for low-achieving students. The pandemic drops have now doubled in size. Reading comprehension is much, much worse for many middle schoolers. 

    It’s difficult to say how much of this deterioration is pandemic related. Reading comprehension scores for middle schoolers had been declining for a decade since 2013. Separate surveys show that students are reading less for pleasure, and many educators speculate that cellphone use has replaced reading time.

    Related: Why reading comprehension is deteriorating

    The biggest surprise was fourth grade reading. Over the past decade, a majority of states have passed new “science of reading” laws or implemented policies that emphasize phonics in classrooms. There have been reports of improved reading performance in Mississippi, Florida, Tennessee and elsewhere. But scores for most fourth graders, from the highest to the lowest achievers, have deteriorated since 2022. 

    One possibility, said Harvard’s West, is that it’s “premature” to see the benefits of improved instruction, which could take years.  Another possibility, according to assessment expert Marion, is that being able to read words is important, but it’s not enough to do well on the NAEP, which is a test of comprehension. More elementary school students may be better at decoding words, but they have to make sense of those words to do well on the NAEP. 

    Carr cited the example of Louisiana as proof that it is possible to turn things around. The state exceeded its 2019 achievement levels in fourth grade reading. “They did focus heavily on the science of reading but they didn’t start yesterday,” said Carr. “I wouldn’t say that hope is lost.”

    More students fall below the lowest “basic” level 

    The results show that many more children lack even the most basic skills. In math, 24 percent of fourth graders and 39 percent of eighth graders cannot reach the lowest of three achievement levels, called “basic.” (The others are “proficient” and “advanced.”) These are fourth graders who cannot locate whole numbers on a number line or eighth graders who cannot understand scientific notation. 

    The share of students reading below basic was the highest it’s ever been for eighth graders, and the highest in 20 years for fourth graders. Forty percent of fourth graders cannot put events from a story into sequential order, and one third of eighth graders cannot determine the meaning of a word in the context of a reading passage. 

    “To me, this is the most pressing challenge facing American education,” said West.

    Contact staff writer Jill Barshay at 212-678-3595 or barshay@hechingerreport.org.

    This story about the 2024 NAEP test was written by Jill Barshay and produced by The Hechinger Report, a nonprofit, independent news organization focused on inequality and innovation in education. Sign up for  Hechinger newsletters.

    The Hechinger Report provides in-depth, fact-based, unbiased reporting on education that is free to all readers. But that doesn’t mean it’s free to produce. Our work keeps educators and the public informed about pressing issues at schools and on campuses throughout the country. We tell the whole story, even when the details are inconvenient. Help us keep doing that.

    Join us today.

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  • Audit sheds light on state-issued credit card misuse in the Connecticut college system

    Audit sheds light on state-issued credit card misuse in the Connecticut college system

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    Dive Brief:

    • A state audit of employee spending practices at the Connecticut State Colleges and Universities system found several financial transactions that broke university policies or lacked adequate documentation. 
    • Comptroller Sean Scanlon detailed over $19,000 in spending on food by system Chancellor Terrence Cheng in fiscal years 2022 through 2024, by far the majority of spending on his institutional credit card. Violations included missing receipts, missing guest lists and purchases of restricted items like alcohol.
    • Scanlon’s probe came at Connecticut Gov. Ned Lamont’s request after CT Insider reported Cheng spent lavishly on meals with a state-funded credit card over the past few years.

    Dive Insight:

    The report from CT Insider alleged that Cheng had spent as much as $1,114 at restaurants in a week, and paid for private chauffeurs despite having access to a state-provided car at the time. Once, he spent nearly $500 for the service, the outlet reported.

    Scanlon’s office concluded that “while not technically violating state or university policy, we found that, in the absence of sound, comprehensive policies, the Chancellor utilized poor [judgment] when making P-Card purchases that were especially troubling given the financial stress on the CSCU system.”

    The audit zeroed in on spending on food and transportation by the chancellor. Meals designated as business meetings accounted for 70% of the spending on the official’s card, and some transactions exceeded the $50 meal limit for system employees, the audit found. It also found 18 food purchases with tips deemed excessive — above 22% — which the report noted “is not a policy violation but a questionable use of university funds.” 

    Of the chancellor’s food-related transactions reviewed by the comptroller’s office, 43% had either no itemized receipts or were missing receipts entirely. 

    Among other violations were 30 instances where Cheng paid sales tax. That’s a violation of policy because institutional credit cards — also known as P-cards — are exempt from sales tax but must go through a process with vendors to credit those taxes.

    However, the comptroller found that Cheng did not technically violate policy because as chancellor he can “override the policy at his own discretion.”

    As for chauffeur use, the report noted three times when Cheng — who lives in New York state — paid for a private car service with his P-card, including two trips even more expensive than the one reported by CT Insider. Scanlon determined that these services did not represent violations but said that they “are of note as the Chancellor was provided with a state vehicle for their use.”

    In an emailed statement Thursday, Cheng said that he appreciated the audit’s thoroughness and that the system is “committed to implementing stronger controls, policies, and comprehensive training.”

    The system review also found issues with P-card use by other leaders, including the interim president of Southern Connecticut State University, Dwayne Smith. The audit found that Smith’s P-card “shows a wide variety of infractions spanning almost every category of restricted purchasing and failure to follow many of the policy requirements for documentation and reporting of transactions.”

    Specifically, the comptroller’s office faulted Smith for failing to keep receipts, as well as purchasing tickets to an outside football game without stating its business purpose, among other issues. 

    In an emailed statement, Smith thanked the comptroller for his analysis and recommendations, adding that many of his office’s P-card transactions relate to his community engagement activities. 

    “These meetings have yielded significant support for our scholarship programs, internships, mentoring, and ultimately, enhanced job opportunities for our graduates,” Smith said.

    Scanlon’s audit found many other issues across the Connecticut college system’s staff. His office’s report lists 10 recommended changes the system should make, including reinstating internal audits, establishing a central policy for P-card use, creating accountability measures for card misuse and establishing a policy for vehicle use. 

    Unfortunately, this audit revealed troubling gaps in oversight and questionable spending practices,” Scanlon said in a Wednesday statement. “Our recommendations provide a clear path forward with more comprehensive policies, consistent enforcement, and greater overall accountability.”

    In his statement, Cheng said the recommendations would “support the goal of accountability and transparency across the system.”

    He added, “The system has begun to take steps in this direction and over the next 100 days, I’ve instructed my team to implement recommendations to improve compliance and reporting.”

    The system’s governing board this fall moved to increase oversight of spending in its central office. As part of that process, the system recently hired a new chief compliance officer and legal counsel.

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