Epic's standing in doubt as new concerns arise
New complaints from state officials could knock Epic Charter Schools' accreditation status.
State schools Superintendent Joy Hofmeister and Oklahoma State Department of Education general counsel Brad Clark on Thursday alleged Epic has shown deficiencies in civil rights obligations and timely financial reporting.
Some issues are publicly surfacing for the first time against Epic, a virtual charter school system that has grown into the largest school district in Oklahoma.
“We' re talking about children of a great number and taxpayer dollars that are an enormous part of the budget for Oklahoma public education,” Hofmeister said to Epic officials on Thursday. “It means that before another dollar is spent here we want to have full confidence that we have your attention and that you are going to be held accountable.”
Hofmeister and Clark recommended t he Oklahoma State Board of Education put Epic on probation to signal the school system is not in good standing with the state.
After hours of discussions, the board decided not to take action in its meeting Thursday. Instead, Epic will have a month to respond and
take corrective measures.
The complaints f rom the state Department of Education are separate from other compromising reports against the virtual charter school system. It has been subject to a scathing state audit and law enforcement allegations of embezzlement.
Epic denies any wrongdoing and aims to debunk the state auditors' calculations.
Clark expressed concerns about Epic's service of federally protected student groups, such as those who are impoverished, homeless, in special education or learning English as a second language. He said the Epic might not be comprehensive enough in identifying and serving these students as the federal Civil Rights Act requires.
For example, Epic Blended Centers, which only operate in Tulsa and Oklahoma County, identified limited numbers of English-learning and homeless students for the past three years, sometimes fewer than 100.
Yet, Oklahoma City and Tulsa Public Schools count thousands of these students in those same counties, Clark said.
Epic' s attorney, Bill Hickman, said enrollment of these students has grown recently.
Just because the school didn't apply for extra funding to support certain high-need students, it doesn't mean Epic didn't serve them appropriately, he said. The school has staff and a step-by-step process to assist federally protected students.
Criticism of the Education Department's oversight of Epic rang from the state Capitol this week. Gov. Kevin Stitt and 22 Republican lawmakers called for an investigative audit of the agency, citing failed oversight of Epic.
The Oklahoma State Auditor and Inspector's Office said the department took Epic's financial reports at face value and failed to independently confirm their accuracy, according to a 120-page audit report of the virtual charter school.
Members of the state board of education questioned why civil rights concerns and late reports from Epic were only now coming to light.
Hofmeister said the department has tried to resolve issues with Epic, but the school system was repeatedly uncooperative despite her staff's best efforts.
Clark recounted a four-year pattern of Epic submitting financial reports right before critical deadlines, squeezing the state of time to point out errors. Epic reportedly ignored questions from department staff and rebuffed requests for documentation.
In response to these complaints, Epic appointed an assistant superintendent of compliance to help meet deadlines and maintain clear communication with the state. Hickman said Epic is willing to work with the department to improve these issues.
Clark said one particular incident illustrated the lack of cooperation from the school and its charter management company, Epic Youth Services.
The department' s executive director of financial accounting, Kathy Black, had an on-site meeting with Epic administrators this year. She asked for an explanation of an undetailed $6,000 invoice for “certified salaries,” but Epic officials were unable to explain what or whom the payment was for.
They messaged a representative from Epic Youth Services to come and explain the invoice, dated March 20.
When Black asked the representative about the payment, he angrily replied, “That's none of your business.”
“That person was mad the moment he walked through the door,” Black said.
As the regulatory agency over school finances, the state Department of Education is duty-bound to oversee how public-school funds are spent.
The school's co-founders, David Chaney and Ben Harris, own and operate Epic Youth Services. The company' s only other employee is Chief Financial Officer Josh Brock, who is also the CFO for Epic.
Other payments found on invoices came with few details, as well, and Epic was slow to respond when the state asked for backup documents, Clark said.
Hofmeister said this is highly unusual.
“What other school district would be simply receiving a vendor's invoice for services and signing those funds away to that vendor without any details of what was provided and a way to have accountability with those funds?” Hofmeister said. “In some ways, it feels as if it's backwards and that the tail is wagging the dog.”
The chairman of Epic' s school board, Doug Scott, said the Department of Education didn't provide him a list of its concerns far enough in advance of Thursday's meeting. He asked for more time to convene with his board to correct any problems.
Members of the state board of education agreed he should have more time. They agreed not to vote on Epic's accreditation until at least December.
However, multiple board members were frustrated the staff and school board of Oklahoma's largest district couldn't explain how their own funds were being spent.
“I would say to any public school out there, if you are paying for goods and services a nd you don't know what you're paying for, that is unacceptable,” board member Kurt Bollenbach said.