The board of the state’s largest on-line constitution faculty system authorized a brand new deal it hopes will settle a contract dispute with the Statewide Digital Constitution Faculty Board.
The proposal, authorized after a virtually seven-hour board assembly that concluded after midnight Tuesday, would make important modifications to the college’s monetary procedures and relationship with its for-profit administration firm.
It’s meant to handle points raised by the Statewide Digital Constitution Faculty Board, which on Oct. 13 voted to start terminating the contract with the nonprofit Neighborhood Methods Inc. to function Epic One on One, its statewide digital faculty. Neighborhood Methods additionally contracts with Rose State Faculty to function a second constitution faculty, Epic Blended Constitution Faculty, for college kids in Oklahoma and Tulsa counties.
In recommending a transfer to terminate Epic’s contract, an lawyer for the Statewide Digital Constitution Faculty Board mentioned an investigative audit of Epic revealed the college was failing to fulfill requirements of fiscal administration and violating state legislation, together with by mixing public funds between the 2 distinct faculty districts and failure by Epic’s board to evaluation and approve transactions.
A contract termination listening to is ready for Might 12-13 however the two boards may come to an settlement first. Rebecca Wilkinson, government director of the Statewide Digital Constitution Faculty Board, mentioned Wednesday her workplace is reviewing the proposal and the company’s subsequent steps haven’t been decided.
Epic’s proposed settlement was authorized unanimously by Epic’s 5 board members: Doug Scott, Betsy Brown, Katherine Stehno, J.P. Franklin and Wyjuana Montgomery. Stehno joined the board in December, Franklin in January and Montgomery in February.
Listed here are 5 takeaways from the proposal:
Epic’s Studying Fund Will Turn into Public
Maybe the largest change proposed is to make the college’s studying fund public. The training fund is a credit score of not less than $1,000 the college offers every scholar to spend on expertise, curriculum and extracurricular actions, like dance or horseback driving classes.
These funds are transferred from the general public faculty to the non-public checking account of Epic Youth Companies, the college’s administration firm, which then makes the purchases from distributors. State auditors haven’t been given entry to data of these funds — totaling greater than $79 million in state appropriations between 2015 and 2023. An extra $65 million has been transferred to Epic Youth Companies for the educational fund this faculty yr, data present.
Starting July 1, the educational fund might be held in a public faculty checking account and all data might be public, together with invoices and buy orders. The administration firm will now not have entry to that checking account, or oversight or administration of the educational fund.
That change wouldn’t apply to previous studying fund data.
Epic’s Non-public Administration Firm Would Relinquish Entry to Faculty Financial institution Accounts
Epic Youth Companies is owned by David Chaney and Ben Harris, the 2 co-founders of Epic Constitution Faculties. Chaney was additionally Epic’s superintendent till 2019, when a state legislation prohibiting that kind of battle of curiosity went into impact.
Auditors had been crucial of Chaney and Harris’ involvement in class choices given their revenue motive. “A constitution faculty ought to present they’ve negotiated contracts, particularly complete administration contracts, at arm’s-length and that they profit the college moderately than the providers supplier,” auditors wrote.
The proposed settlement units extra boundaries between the college and administration firm, defining the connection as that of a “buyer and vendor contractor.” A separate decision handed by the board restricts entry to highschool financial institution accounts to its workers and the treasurer and prohibits distributors from utilizing Neighborhood Methods’ nonprofit tax identification quantity.
And the college will add extra frequent evaluations and critiques of the administration firm.
The Faculty Will Add Monetary Checks and Balances
Epic’s settlement says all contracts might be signed by the superintendent or board president, relying on the greenback quantity. Epic will make use of an assistant superintendent of finance to supervise the college’s funds. The board agreed to make sure solely public workers have entry to public faculty funds.
The board additionally authorized contracting with a brand new agency for its annual audit starting with the present faculty yr.
That addresses one other of auditors’ considerations: that the identical agency carried out Epic’s routine annual audits yearly since 2012. They suggest rotating auditors periodically to “promote independence and elevated oversight.”
The colleges additionally agree to start processing payroll individually. Their present methodology is to course of via Epic One on One and report every trainer as working 60% of the time for one constitution, 40% for the opposite. The Statewide Digital Constitution Faculty Board mentioned this was a violation of its accountability to maintain every faculty’s funds separate.
The Board Will Add Two Members
Auditors mentioned Epic’s board hasn’t supplied sufficient oversight — members had been handpicked by Chaney and Harris — and met too sometimes.
Following the audit’s launch, Epic’s board began assembly month-to-month. It has additionally seen important turnover; three board members resigned since October. Every has been changed. Within the proposed settlement, Epic says by June 30, it would have a seven-member board, with two members who’re dad and mom, grandparents or guardians of a present or former scholar.
What Hasn’t Been Addressed
One of many contract violations within the Statewide Digital Constitution Faculty Board’s termination continuing is a provision that Epic “cooperate absolutely in all features” of an audit by the state auditor’s workplace. There’s nonetheless an unresolved lawsuit between the auditor’s workplace and Epic Youth Companies over studying fund data.
Attorneys for the corporate have mentioned they’ll present the data to the auditors in the event that they agree to not give them to every other individual or entity or disclose them below the Open Data Act. The auditor’s workplace, in its court docket filings, says that association violates their code of ethics, which requires them to report suspected criminal activity, if discovered, to legislation enforcement. A choose is predicted to take up the difficulty on Thursday, court docket data present.
Jennifer Palmer has been a reporter with Oklahoma Watch since 2016 and covers schooling. Contact her at (405) 761-0093 or [email protected]. Comply with her on Twitter @jpalmerOKC
The publish How Epic Seeks to Resolve Contract Dispute with Statewide Digital Constitution Faculty Board appeared first on Oklahoma Watch.
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