{"id":33386,"date":"2020-10-12T17:37:43","date_gmt":"2020-10-12T22:37:43","guid":{"rendered":"http:\/\/stateimpact.npr.org\/oklahoma\/?p=33386"},"modified":"2020-10-13T08:28:19","modified_gmt":"2020-10-13T13:28:19","slug":"state-board-of-education-demands-epic-virtual-charter-schools-return-11-2-million","status":"publish","type":"post","link":"https:\/\/stateimpact.npr.org\/oklahoma\/2020\/10\/12\/state-board-of-education-demands-epic-virtual-charter-schools-return-11-2-million\/","title":{"rendered":"State Board of Education demands Epic Virtual Charter Schools return $11.2 million\u00a0"},"content":{"rendered":"<p>Monday was not a good day for Epic Virtual Charter Schools.<\/p><p><span style=\"font-weight: 400;\">The virtual charter behemoth is facing fresh scrutiny from Oklahoma leaders in the wake of an investigative audit report that says they owe millions of dollars to the state.<\/span><\/p><p><span style=\"font-weight: 400;\">Oklahoma\u2019s State Board of Education met and after hours of deliberations, unanimously put in motion an $11.2 million clawback.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">The demands include asking for $8.9 million in payroll costs over the past six years after Epic underreported how much it paid administrators. A 2016 incident when Epic reclassified some costs to avoid a $2.6 million penalty for exceeding the administrative cost limit now needs to be repaid. So does $203,000 in taxpayer dollars paid to Epic\u2019s California charter school.<\/span><\/p><p><span style=\"font-weight: 400;\">\u201cThis is not normal,\u201d said Carlisha Williams Bradley, a former charter school superintendent and current member of the state school board. \u201cThis is not OK.\u201d<\/span><\/p><p><span style=\"font-weight: 400;\">After the meeting, state schools superintendent Joy Hofmeister said Epic would have 60 days to pay the money back, and if it doesn&#8217;t,\u00a0 the State Department of Education would withhold future funds.<\/span><\/p><p><a href=\"https:\/\/twitter.com\/EpicCharter\/status\/1315749882527969280\"><span style=\"font-weight: 400;\">In a statement on Twitter<\/span><\/a><span style=\"font-weight: 400;\">, Epic said it <\/span><a href=\"https:\/\/twitter.com\/EpicCharter\/status\/1315749882527969280\"><span style=\"font-weight: 400;\">disputes the audit findings<\/span><\/a><span style=\"font-weight: 400;\"> and will work to prove it does not owe the penalties.<\/span><\/p><p><span style=\"font-weight: 400;\">As for day-to-day operations of the school, there shouldn\u2019t be any negative consequences for students in the immediate future, Hofmeister said.<\/span><\/p><p><span style=\"font-weight: 400;\">\u201cOur action today should in no way cause disruption to students and their families in learning right now,\u201d Hofmeister said.<\/span><\/p><p><span style=\"font-weight: 400;\">Additionally, Oklahoma Attorney General Mike Hunter appointed special counsel Melissa McLawhorn Houston to review the auditor\u2019s report and make determinations about criminal charges.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">\u201cWith assistance and resources provided from my office, she will conduct an extensive review of the auditor\u2019s findings and make recommendations based on the rule of law,\u201d Hunter said in a press release.<\/span><\/p><p><span style=\"font-weight: 400;\">The State Virtual Charter School Board posted its <\/span><a href=\"https:\/\/svcsb.ok.gov\/sites\/g\/files\/gmc806\/f\/documents\/2020\/october_13_2020_agenda_1.pdf\"><span style=\"font-weight: 400;\">agenda<\/span><\/a><span style=\"font-weight: 400;\"> Monday, including an item that says it would consider terminating its contract with Epic Virtual Charter Schools.<\/span><\/p><p><span style=\"font-weight: 400;\">The last time a virtual charter school\u2019s contract was terminated was in 2016 when ABLE Virtual Charter School\u2019s <\/span><a href=\"https:\/\/www.kgou.org\/post\/first-time-oklahomas-virtual-charter-school-board-votes-close-school\"><span style=\"font-weight: 400;\">contract was ended<\/span><\/a><span style=\"font-weight: 400;\">. However, that charter school was much smaller with only 61 students versus 61,000 at Epic, so the process would likely be far different.<\/span><\/p><p><span style=\"font-weight: 400;\">State Auditor Cindy Byrd said the virtual charter behemoth owes Oklahoma taxpayers the $11.2 million for a string of concerning actions in the 120-page investigative report.<\/span><\/p><p><span style=\"font-weight: 400;\">Her report said Epic, the state\u2019s largest virtual charter school, was given half a billion dollars over the last five years. And of that, at least $125 million has been siphoned through a learning fund that goes to families and a for-profit management company operated by Epic&#8217;s founders Ben Harris and David Chaney.<\/span><\/p><p><span style=\"font-weight: 400;\">Because there\u2019s no oversight of that money, it\u2019s unclear how much if any actually went to educating kids, Byrd said. And that\u2019s a big problem, Hofmeister said after the state board meeting.<\/span><\/p><p><span style=\"font-weight: 400;\">\u201cIt&#8217;s very important to have transparency and accountability with taxpayer money,\u201d Hofmeister said after the meeting.<\/span><\/p><p><span style=\"font-weight: 400;\">Those records remain tied up in litigation as Epic says they should remain private. But Byrd continues to fight for a full accounting of those dollars in court.<\/span><\/p><p><span style=\"font-weight: 400;\">The audit report concludes that Oklahoma should consider that for-profit organizations running charter schools might not be a good idea. Though the report also makes clear that it is not a general condemnation of charter schools.<\/span><\/p><p><span style=\"font-weight: 400;\">Epic Charter Schools has characterized Byrd&#8217;s audit as &#8216;political theatrics&#8217; and called it a &#8216;seemingly endless fishing expedition.&#8217; <\/span><\/p><p><span style=\"font-weight: 400;\">The school also offered <\/span><a href=\"https:\/\/epiccharterschools.org\/wp-content\/uploads\/Response-to-Audit-.pdf\"><span style=\"font-weight: 400;\">a more than 100-page rebuttal<\/span><\/a><span style=\"font-weight: 400;\"> to each point.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Monday was not a good day for Epic Virtual Charter Schools.The virtual charter behemoth is facing fresh scrutiny from Oklahoma leaders in the wake of an investigative audit report that says they owe millions of dollars to the state.Oklahoma\u2019s State Board of Education met and after hours of deliberations, unanimously put in motion an $11.2 [&hellip;]<\/p>\n","protected":false},"author":209,"featured_media":31745,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[17],"tags":[],"acf":[],"_links":{"self":[{"href":"https:\/\/stateimpact.npr.org\/oklahoma\/wp-json\/wp\/v2\/posts\/33386"}],"collection":[{"href":"https:\/\/stateimpact.npr.org\/oklahoma\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stateimpact.npr.org\/oklahoma\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stateimpact.npr.org\/oklahoma\/wp-json\/wp\/v2\/users\/209"}],"replies":[{"embeddable":true,"href":"https:\/\/stateimpact.npr.org\/oklahoma\/wp-json\/wp\/v2\/comments?post=33386"}],"version-history":[{"count":2,"href":"https:\/\/stateimpact.npr.org\/oklahoma\/wp-json\/wp\/v2\/posts\/33386\/revisions"}],"predecessor-version":[{"id":33390,"href":"https:\/\/stateimpact.npr.org\/oklahoma\/wp-json\/wp\/v2\/posts\/33386\/revisions\/33390"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stateimpact.npr.org\/oklahoma\/wp-json\/wp\/v2\/media\/31745"}],"wp:attachment":[{"href":"https:\/\/stateimpact.npr.org\/oklahoma\/wp-json\/wp\/v2\/media?parent=33386"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stateimpact.npr.org\/oklahoma\/wp-json\/wp\/v2\/categories?post=33386"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stateimpact.npr.org\/oklahoma\/wp-json\/wp\/v2\/tags?post=33386"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}