Audit stokes controversy
It seems Epic Charter Schools' size is matched only by the controversy it has generated in recent years. The latter has ramped up after the release of a partial investigative audit that has elected state officials concerned.
Gov. Kevin Stitt requested the audit last year after an Oklahoma State Bureau of Investigation agent made embezzlement allegations against Epic, a virtual charter school whose enrollment of roughly 61,000 makes it the largest public school district in Oklahoma.
Some legislators have expressed concern about Epic's spending and other issues. Spending questions were among those raised in the probe by the state Auditor and Inspector's Office.
The audit said Epic had received $458 million in state and federal funds in the past six years. Epic's for-profit management company received $125.2 million of that, for management fees and for its Student Learning Fund, which the school says pays for curriculum, technology and extracurricular activities.
State Auditor Cindy Byrd said Epic spent $203,000 from its Learning Fund to expand into California, and that Epic's founders used $210,000 in Oklahoma resources “to develop their project in California” and only paid it back after her office called them on it.
Byrd said a conflict of interest exists because the chief financial officer of Epic Charter Schools serves as CFO of the management company. She also said Epic has “year after year” exceeded 5% cap on administrative costs for school districts, and estimated Epic owes the state $8.9 million.
Epic officials robustly disputed the audit's findings. Shelly Hickman, Epic's assistant superintendent, disputed the auditor's assertion Epic had incorrectly categorized administrative costs, noting that the state Department of Education oversees and approves that process. That agency could have raised objections, “and in fact at times they did, and costs were categorized according to their feedback,” she said.
Hickman also rejected Byrd's claim that Epic had been uncooperative, saying staff had spent thousands of hours responding to a “seemingly endless fishing expedition.”
The school acknowledged that Epic One-on-One employees provided administrative services to Epic-California for almost three years without getting paid, and took corrective steps after being notified by auditors.
Hickman accused Byrd of playing politics. “The findings,” she said, “were presented with over-the-top sensationalism guaranteed to stir up defenders of the education status quo because we are growing and they are struggling.”
Byrd says that is not the case, that she is a fan of school choice and her goal is simply to safeguard taxpayer funds.
The audit is being sent to the OSBI, the FBI, the attorney general's office and other authorities, ensuring this story is not going anywhere. Nor should it. Just as would be the case with any other public school, Oklahomans should be assured that Epic is spending tax dollars properly, something its leaders insist is happening.