HOUSTON -- A charter school for at-risk teens inflated attendance by more than 200 students last year and must repay $358,000 in state funding.

The students in question were mainly seniors who earned the credit hours to graduate but who still needed to pass the Texas Assessment of Knowledge and Skills to get a diploma. Schools can collect full state funding for those students only if they're enrolled for at least four hours a day.

The Houston Independent School District inspector general's office says ALTA Academy "falsified records either by intention, improperly trained staff or by failure to perform its due diligence.

School representatives acknowledged some record-keeping mistakes, but they said they plan to appeal the repayment figure to the school board.

Houston-based School House Management --- a for-profit company --- runs the school.

At its May meeting, the HISD school board is expected to consider placing ALTA on probation for three years.