‘Ripe for fraud’: Multicounty Grand Jury releases interim report on Epic Charter Schools investigation

OKLAHOMA CITY (KFOR) – The multicounty grand jury investigating Epic Constitution Faculties has launched a scathing interim report of its findings following the state’s audit report towards the college.

In line with the report, “Because of the lack of transparency in accounting for the funds, intentional avoidance of disclosure of data by a non-public entity, and lack of cooperation; the investigation is unable to be accomplished presently.”

The issues from the Audit Report and the following investigation by the Multicounty Grand Jury might be summarized as:

• Lack of oversight
• Lack of transparency in operations
• Lack of accountability by for-profit firm Epic Youth Providers

By failing to supply acceptable oversight, the entities accountable have allowed vital public funds to be diverted into non-public accounts with out transparency. The general public has not been served by the incestuous relationship between the for-profit vendor, Epic Youth Providers, and the governing board Neighborhood Methods. The system has failed to supply accountability and allowed an organization to take benefit and generate a considerable private revenue on the backs of Oklahoma college students. That is particularly offensive at a time when Oklahoma college students and oldsters are fighting the burden of the pandemic and its results on our college students’ training and wellbeing.

This interim report focuses on the for-profit vender, Epic Youth Providers LLC (EYS).

“The incestuous relationship between the board and a non-public vendor has resulted in an absence of impartial oversight,” the report states. “As designed, this method is ripe for fraud.”

From 2015 to 2023, Epic Constitution Faculties obtained greater than $458 million in state and federal funds as a public college.

In line with the State Auditor and jury findings, EYS, the for-profit department of Epic Constitution Faculties that beforehand oversaw the college’s day-to-day operations, receives a ten% ‘administration price’ to assist run the colleges.

That price has generated nearly $46 million since 2015, going straight to the house owners of Epic Youth Providers.

“The overriding coverage is that each one public funds for the advantage of the scholar must be open to inspection, simply clear into how they’re spent, and accountable of their use. Funds allotted to Epic Constitution Faculties must be handled in the identical method as different funds allotted to another public college system within the state.”

“These are funds paid by Oklahoma taxpayers for the training of its residents, they’ve a proper to understand how these funds are being spent,” the report states. “Funds allotted to Epic Constitution Faculties must be handled in the identical method as different funds allotted to another public college system within the state.”

The Multicounty Jury recommends the next:

1. The Legislative Workplace of Fiscal Transparency (LOFT) ought to conduct an analysis of Epic
   Constitution Faculties, because the state’s largest public college district; and report their findings to the
   Oklahoma Legislature.
2. Instant disclosure and acknowledgment that any funds offered for the training of scholars, together with the Scholar Studying Fund, are public funds and simply reviewed and reconciled.
3. Epic Constitution Faculties governing board, Neighborhood Methods, ought to instantly change its methodology of working to supply for larger accountability and transparency.
4. Higher oversight by Constitution Sponsors by making them accountable for returning to the state the (3-5%) administrative price if the general public funds are discovered to be spent inappropriately.
5. Elevated accountability of Academic Administration Organizations who function public constitution colleges.
6. The Oklahoma Legislature ought to publish all working contracts for Constitution Administration Organizations working colleges and publish a comparability of administration charges paid.
7. Require that in-depth and impartial monetary audits be performed in the course of the midpoint of the constitution college contract previous to renewal and any audits performed for public constitution colleges be performed by the State Auditor or chosen from an inventory of permitted auditors maintained by the state auditor.
8. The Oklahoma State Division of Schooling by contract or the Oklahoma Legislature by statute, ought to present claw again provisions for the return of funds not accounted for or inappropriately spent.
9. The Oklahoma State Division of Schooling ought to present higher oversight of entities receiving funds.
10. The Oklahoma Legislature ought to take into account extra accountability and transparency provisions if a for-profit entity is to handle a public constitution college.

We’re hopeful that this Interim Report will sound the alarm earlier than extra pubic funds are diverted behind the cloak of secrecy by a non-public for-profit firm… The residents of Oklahoma demand extra. The scholars in Oklahoma deserve higher.  

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Learn the interim report beneath:

Epic Constitution Faculties responded to immediately’s interim report with the next:

“Epic’s Board of Schooling has since October 2023 made vital corrective actions, together with Epic Youth Providers not operationally or financially managing or controlling the college. The college itself has totally cooperated in offering public data. We are going to proceed to completely cooperate in sharing any data we’ve got with the grand jury.”

Shelly Hickman, Assistant Superintendent, Epic Constitution Faculties

The grand jury will recess till its subsequent session on June 1-3, 2023, to allow the summoning of extra witnesses and the gathering of extra bodily proof by the investigators helping the grand jury, at which era the grand jury will resume its investigations.