State lawmakers asked for the audit after learning that money they appropriated for a pilot program in 2003 sat in the superintendent's fund instead of going to its intended purpose.

The Legislature set aside $1.2 million to try out new ways of advancing students from one grade level to the next. The state Office of Education determined the pilot program was unnecessary, so the money was not spent.

In 2004, the Legislature moved the unspent money from the state office to the Uniform School Fund - the state's main school account - by creating a new line item. At the same time, lawmakers took $350,000 of the money for the state office's budget to help the Jean Massieu Charter School stay afloat.

Then-Gov. Olene Walker vetoed the line item, which left the money in limbo. State school officials proposed transferring the money to the charter school anyway and then funneling the remaining $850,000 to the Superintendent's Discretionary Fund for general use.

Lawmakers bristled at the thought of money being used for anything other than its originally stated purpose, so they demanded an audit. The audit found that "no expenditures appeared out of place" and that all spending was "reasonable."

In fiscal 2004, the superintendent's fund included expenditures for travel associated with the national Teacher of the Year Awards, teacher training, computer equipment and payments to universities for reading and writing workshops.

"Also," the audit says, "it does not appear that the expenditures from this fund circumvented legislative intent."

- Ronnie Lynn