Judge limits state chamber involvement in Epic case
An Oklahoma County district judge limited the involvement the State Chamber of Oklahoma is allowed to have in court action against a company that manages Epic Charter Schools.
Judge Natalie Mai decided on Wednesday the state chamber can file a friend-ofthe-court brief in the case only to help interpret law, not to discuss the facts of a dispute between Epic Youth Services and the Oklahoma State Auditor & Inspector.
The co-founders of Epic Charter Schools operate Epic Youth Services. The private company manages the virtual charter school system and receives 10% of its funding as a management fee.
The state chamber had requested to file a brief expressing concerns about efforts from the state auditor to obtain financial records from Epic Youth Services. Both Epic Youth Services and the chamber argue private companies should be shielded from a public audit.
Attorneys representing the st ate chamber said during Wednesday's hearing that the company shouldn't have to turn over its financial records unless the state auditor has obtained a warrant.
State Auditor & Inspector Cindy Byrd is conducting an investigative audit of Epic Charter Schools at the behest of the governor. The Oklahoma Attorney General's Office, representing the state auditor, said Epic Youth Services should be subject to a public audit because it is acting as the custodian of taxpayer funds.
Attorney Ni ki Bat ts aid the money used for Epic's Learning Fund should be open for review. Epic Charter Schools offers $1,000 to each student from the Learning Fund to pay for extracurricular activities, technology and supplemental curriculum.
However, Epic Youth Services has been responsible for managing the Learning Fund account. Batt estimated the Learning Fund has amounted to $69 million since 2015.
“We are seeking the records that explain how the money was used to fund the actual educational aspect of the school,” Batt said during the hearing.
Epic Youth Services has resisted subpoenas for Learning Fund documents, according to court documents state officials filed in the case.
Gov. Kevin Stitt requested an audit of Epic Charter Schools in July after state investigators alleged the virtual charter school embezzled millions in taxpayer funds. Epic has denied any wrongdoing.
Bat t argued the state chamber could not act as an impartial voice in the case. Epic co-founder David Chaney, who helps run Epic Youth Services, sits on the state chamber's board of directors.
Mai said state law is silent on whether Epic Youth Services is a custodian of public funds. She said she would accept a brief from the state chamber discussing the legal issues at the heart of the case.
Mai set the next hearing for Aug. 5.