The Georgia Virtual School : recommendations have been addressed

Follow-Up Review Report No. 13-12

May 2013

Georgia Department of Audits and Accounts
Performance Audit Division
Greg S. Griffin, State Auditor Leslie McGuire, Director

Why we did this review
This follow-up review was conducted to determine the extent to which the Georgia Department of Education has addressed the recommendations presented in our December 2010 performance audit.
The purpose of the December 2010 audit was to determine the extent to which the Georgia Virtual School (GAVS) increases student accessibility to additional course offerings and to assess the quality and cost-effectiveness of the Program.
About GAVS
Established in 2005, the Georgia Virtual School (GAVS), within the Georgia Department of Education (GaDOE), offers online courses that students can take to supplement coursework taken at their local schools. The purpose of GAVS is to expand the accessibility and breadth of course offerings so that Georgia students can recover credits, access supplementary resources, enhance their studies, or earn additional credits in a manner not involving on-site interaction with a teacher. GAVS has over 100 course offerings in the core content areas, world languages, electives, and advanced placement. Public schools pay tuition for their students to take GAVS courses during fall and spring semesters, provided the course is taken as part of the student's regular school day.

Follow-Up Review The Georgia
Virtual School
Recommendations have been addressed
What we found The Georgia Department of Education (GaDOE) has taken steps to improve the Georgia Virtual School (GAVS). The original audit found that GAVS lacked a strategic plan and measurable goals and objectives. Following the audit, GaDOE created a strategic plan that includes goals, strategies, and action steps in four primary areas student performance, enrollment growth, teacher quality, and college and career readiness. In addition, the Program has continued to monitor performance indicators, such as pass rates on End-of-Courses Tests (EOCT) and Advanced Placement (AP) exams. According to GaDOE data, GAVS students continue to outperform other students in Georgia. For example, GAVS students enrolled in EOCT courses had a pass rate 19% higher than the state average.
GaDOE has also revised the GAVS funding process as a result of legislative changes. At the time of the original audit, there were inconsistencies in the funding process. Most school systems relinquished Quality Basic Education (QBE) funds for GAVS courses, but some school systems chose to pay tuition directly rather than lose QBE funds.1 Now, school systems are no longer given an option on how to pay for GAVS courses provided during the regular school day. Senate Bill 289, which became effective July 2012, states that school systems are to retain QBE funds for GAVS courses. School systems must pay tuition for GAVS courses directly to GaDOE. GAVS analyzed the cost of providing online courses and set the tuition amount at $250 per student per semester course, which is the maximum allowed by state law.
1QBE funds are the state's allotment to local school systems. QBE funds are based on a count of full-time equivalent students (FTE), with one FTE representing six periods or segments of state-funded instruction in a typical day.

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Legislative changes have also promoted greater access to GAVS courses. Senate Bill 289 mandated that local school systems cannot prohibit any student from taking a course through GAVS, regardless of whether the school in which the student enrolled offers the same course. Senate Bill 289 also requires local school systems to provide opportunities for virtual instruction to all public school students in grades three through 12, beginning with the 2013-2014 school year. In response, GAVS is expanding its primarily high school curriculum to include new courses for grades 3-8. Although GAVS does not have a formal plan for identifying new courses to offer, program management indicated that it surveys students, parents, and local facilitators to determine needs.
In regards to staffing issues, GaDOE has taken action to ensure the most efficient use of personnel resources. In the 2010 audit, we found that the number of students per instructor varied significantly. We also questioned the need to outsource staffing services, which added approximately $135,000 in administrative costs. Since then, management has established standard student-teacher ratios based on the number of segments, with one segment being equivalent to one student in a traditional semester course. Management also indicated that it reviewed staffing procedures and determined that outsourcing is more cost-effective due to the high cost of fringe benefits.
In its response to our follow-up review, GaDOE indicated that it is in agreement with this assessment and that it is proud of the progress the virtual school has made since the performance audit.

The following table summarizes the findings and recommendations in our 2010 report and actions taken to address them. A copy of the 2010 performance audit report #10-17 may be accessed at http://www.audits.ga.gov/rsaAudits.

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Georgia Virtual Schools Follow-Up Review, May 2013

Original Findings/Recommendations

Current Status

GAVS Program management should develop a strategic plan and establish measurable goals, objectives, and performance measures to guide its program operations and its resources.

Fully Implemented GaDOE created a strategic plan that includes goals, strategies, and action steps in four primary areas student performance, enrollment growth, teacher quality, and college and career readiness. For example, one goal is that student performance exceeds the state average. Three strategies for accomplishing this goal are: 1) Prioritizing EOCT courses with high-performing teachers and content reviews; 2) Assigning highperforming teachers and providing additional training and content reviews for AP courses with pass rates below the state average; and 3) Aligning support to ensure course completion and pass rates remain above 80%. Specific action steps under each strategy are also identified.

GAVS students have relatively high course completion and pass rates, and stakeholders report satisfaction with their GAVS experience. The Program should, however, begin collecting data on all GAVS students taking AP tests and comparing test results to other students in the State for a more complete assessment of how well GAVS students are performing. The Program should continue to monitor the other relevant performance indicators including completion and pass rates, EOCT scores and student and parent surveys. As discussed in the previous finding, the Program should measure its outcomes against established goals and objectives.

Fully Implemented The Program has continued to monitor performance indicators, including course completion and pass rates and EOCT scores. In addition, GAVS has established a provider code with the College Board so that it can better track AP test scores for GAVS students.
These performance indicators suggest that GAVS is continuing to provide quality online instruction to its students. In 2011-2012, the Program reported course completion and pass rates of 91% and 81%, respectively. The Program also reported that GAVS students are outperforming traditional students on standardized tests. GAVS students enrolled in EOCT courses had a pass rate 19% higher than the state average. In addition, GAVS students in AP courses scored a three or higher on the AP exam at a rate 11% higher than other Georgia students.

The Program is providing virtual courses to students throughout the state, serving students in 172 of 186 (92%) school districts. However, the Program could better ensure that all students are given similar opportunities by working with school districts to develop consistent enrollment policies.

Fully Implemented Senate Bill 289 mandates that a local school system shall not prohibit any student from taking a course through GAVS, regardless of whether the school in which the student is enrolled offers the same course. Since school systems no longer have the discretion to deny access to GAVS courses, all students are granted the same opportunities for virtual learning.

The Program should establish priorities for the types of courses it offers to ensure that courses meet students' needs and interests.

Partially Implemented The Program has not developed a formal plan for identifying enrollment trends and curriculum needs. However, program management has indicated that it surveys students, parents, and facilitators to gauge interest in course offerings.

Compared to other states' funding models, the GAVS' model limits the potential for double-funding students while ensuring a sustainable funding source. However, the Program has not analyzed whether the persegment allocation of state funds or the tuition approximates the actual cost to deliver an online course.

Fully Implemented The GAVS funding model was revised as a result of Senate Bill 289. Local school systems do not relinquish FTE funds for GAVS segments. Instead, the school system retains the FTE funds and pays tuition for any GAVS course taken during the regular school day. GAVS analyzed cost of delivering online courses and set the tuition at $250 per student per semester course, which is the maximum amount allowed by state law.

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Georgia Virtual Schools Follow-Up Review, May 2013

Original Findings/Recommendations

Current Status

The Program should consider requiring schools to relinquish FTE funds for students enrolled in a GAVS course during the regular school day.

Fully Implemented Although school systems do not relinquish FTE funds for GAVS courses, the primary problem of inconsistent funding policies has been resolved. At the time of the original audit, GAVS allowed school systems the option of relinquishing FTE funds or paying tuition directly. As a result, there was inconsistency in how much the local school systems were contributing for GAVS courses. Since the funding process has been changed, all school systems pay the same amount for GAVS courses - $250 per student per semester course.

Program management should establish a standard student-teacher ratio and better monitor the instructors' workload. In addition, management should re-evaluate if increasing the number of full-time instructors will in fact reduce costs.

Fully Implemented Program management established guidelines for student-teacher ratios. The student-teacher ratio is defined as the total number of segments per instructor, with one segment being equivalent to one student in a traditional semester course. According to the guidelines, GAVS instructors are responsible for 450 segments (full-time), 333 segments (threequarter time), or 221 segments (half-time) per year. These guidelines should help ensure that utilizing full-time instructors is cost-effective.

The Program should consider fulfilling staffing responsibilities in-house in order to save $135,000 in administrative costs associated with contracting for these services.

Fully Implemented - The Program evaluated the staffing contract and determined it to be more cost-effective than performing these services in-house because of the high cost of fringe benefits. The Program indicated that it pays fringe benefits of 38% of the instructor's salary under the current contract. GaDOE estimates that the fringe benefits would increase to 54% of salary if these instructors were paid in-house.

8 Recommendations

7 Fully Implemented 1 Partially Implemented 0 Not Implemented

The Performance Audit Division was established in 1971 to conduct in-depth reviews of state-funded programs. Our reviews determine if programs are meeting goals and objectives; measure program results and effectiveness; identify alternate methods to meet goals; evaluate efficiency of resource allocation; assess compliance with laws and regulations; and provide credible management information to decision-makers. For more information, contact
us at (404)657-5220 or visit our website at www.audits.ga.gov.