Charter school operator UNO is reportedly facing an Internal Revenue Service audit over some $37 million bonds that were given out in 2011 and allocated for its Chicago Public Schools (CPS) campuses. UNO has 16 school campuses that bring in a collective $50 million a year from CPS.
According to an IRS letter sent to the state, UNO was "selected for examination because of information received from external sources or developed internally that caused a concern that the debt issuance may fail one or more provisions" of the U.S. government's Internal Revenue Code, reports the Chicago Sun-Times.
UNO acknowledged the audit to the newspaper on Wednesday.
"The UNO Charter School Network has been notified by the U.S. Internal Revenue Service that the agency is examining bonds issued in 2011 to finance construction and expansion of UCSN charter schools by the United Neighborhood Organization," an UNO spokeswoman told the Chicago Sun-Times.
Back in June, UNO settled a civil case with the U.S. Securities and Exchange Commission (SEC) over its failure to inform investors in the $37.5 million bond offering about conflicts of interest surrounding state contracts for school construction projects.
Read more about UNO's recent legal woes here and here.