The San Antonio Independent School District said it has found at least five after-school tutoring programs suspected of defrauding the district under the Supplemental Education Services program, mandated under the No Child Left Behind Act.
The district said it has launched an investigation and will be submitting formal complaints to the Texas Education Agency on the companies.
The school district says it has also reported the incident to the U.S. Department of Education's Office of Inspector General.
SAISD said during an internal investigation, they found documents submitted by tutors as verification that tutoring of students was completed, in which the student(s) and parents alleged no tutoring occurred.
The documents were used by the providers to create invoices to SAISD for payment of services that were allegedly not provided.
SAISD said it has notified those providers to cease and desist any services until the investigation has been completed. Those five companies have sought reimbursement so far this year of just over $240,500. Additional companies are also under review, according to SAISD.
The district said it currently has eight campuses that are required to offer Supplemental Education Services to approximately 5,200 students, with a per student allocation of up to $1,501. Currently, 3,600 students participate, and $5.9 million has been encumbered for this school year.