A compromise between Epic Constitution Colleges and one among its authorizers is more likely to be finalized subsequent week, avoiding closure of the state’s largest on-line faculty system.
Epic’s governing board on Wednesday authorised a settlement deal handed the day earlier than by the Statewide Digital Constitution College Board in a contract dispute over Epic One on One, its statewide on-line faculty. It nonetheless wants last approval by the statewide board, which is planning to fulfill Monday.
The deal avoids two gadgets proposed by the Statewide Digital Constitution College Board’s authorized counsel, Marie Schuble, who’s advising on the termination proceedings. Each gadgets contain the training fund, a separate checking account the place faculty {dollars} totalling $144 million have been managed outdoors the general public purview.
One merchandise stricken within the compromise would have required the remaining stability within the studying fund account to be returned to Group Methods, Inc., the nonprofit governing board over Epic Constitution Colleges, after which transferred to the suitable faculty account. It additionally would have given the Statewide Digital Constitution College Board’s compliance auditor oversight of that course of.
By contract, Epic is required to conform absolutely with any audit by the State Auditor and Inspector’s Workplace. An investigative audit requested by Gov. Kevin Stitt in 2019 has solely partially been accomplished as a result of Epic’s administration firm is not going to present sure information associated to the training fund.
The corporate claims as soon as the funds are transferred to the personal firm, they’re not public funds, although they’re allotted to buy studying supplies and actions for public faculty college students.
Schuble’s proposal included a clause that Group Methods “demand its administration firm, Epic Youth Companies, absolutely adjust to the State Auditor and Inspector’s subpoena and stop withholding data as to the Studying Fund.”
That phrase isn’t within the settlement authorised Thursday by Epic One on One’s board.
As an alternative, Epic has agreed to make the training fund public and operated by the varsity beginning July 1.
For its studying fund, Epic provides every scholar enrolling earlier than Oct. 1 a $1,000 credit score to spend on gadgets together with curriculum, laptops or iPad, instructional kits or books, and extracurricular actions, like ballet classes or horseback using. It’s one among Epic’s best recruitment instruments.
Questions have additionally been raised whether or not Epic Youth Companies could possibly be retaining unspent funds as revenue. Epic refutes this and factors to a separate audit by a nationwide agency the varsity employed, which decided Epic Youth Companies was underfunded by greater than $2.6 million.
Auditors discovered cases the place cash within the studying fund account was being spent for different functions. At one time, Epic transferred $203,000 from the training fund account to its Epic faculty in California.
An investigation by Oklahoma Watch discovered at Epic’s California faculty, greater than 70% of studying fund {dollars} over two years went to homeschool cooperatives, together with one providing non secular courses.
In a lawsuit filed in March 2023, the state Auditor and Inspector’s Workplace requested a choose to drive Epic Youth Companies to adjust to its subpoenas and supply the information. The case hasn’t been resolved.
Epic’s legal professional, Invoice Hickman, says in his presentation to the Statewide Digital Constitution College Board that the court docket is not going to rule on whether or not the funds are public or personal.
Jennifer Palmer has been a reporter with Oklahoma Watch since 2016 and covers training. Contact her at (405) 761-0093 or [email protected]. Observe her on Twitter @jpalmerOKC
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