The school had failed to meet two of the performance standards set out in the contract- high number of unjustified absences and a low number of students.
"I have not at this stage determined if these failings are capable or incapable of being remedied," Ms Parata said. She also had concerns around achievement rates.
However, Ms Parata said she did not want to predetermine the outcome of the audit.
"The issuing of a performance notice is a step in the process to both protect the rights of these students to get a better education while protecting the use of taxpayers' funding."
While in Whangarei Ms Parata was flanked by ACT's David Seymour. The two were visiting Te Kura Hourua O Whangarei Terenga Paraoa, a Whangarei charter school that received a positive report from the Education Review Office at the end of last year.
Charter schools are funded by the Government but set their own curriculum, school hours, holidays and pay rates.
They were strongly opposed by opposition political parties and teaching unions, but were implemented as part of the National party's confidence and supply agreement with ACT.