Gov. Kevin Stitt on Thursday formally requested that the State Auditor and Inspector’s Office conduct a first-of-its-kind investigative audit of the Oklahoma State Department of Education.
The audit will have two primary objectives:
Identify all revenue sources flowing into OSDE — including federal funds, state appropriations, taxes and fees — and determine whether the revenues were properly allocated and expenditures from selected funds were made in accordance with applicable laws.
Determine whether OSDE and Oklahoma school districts are complying with Oklahoma Cost Accounting System reporting requirements and whether OSDE is “effectively requiring consistent application and timely accountability.”
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“This type of audit has never been conducted in the history of Oklahoma and, perhaps, the nation,” said State Auditor Cindy Byrd. “As always, these audits are about transparency and accountability to taxpayers. I commend Gov. Stitt for requesting this audit. People want to know how their tax dollars are spent on education.”
Stitt said the request is the result of “evidence of misuse of funds found in the audit of Epic Charter Schools and is crucial given that more than $3 billion will be invested in education in fiscal year 2022, the largest amount ever in Oklahoma history.
“I promised Oklahomans that as governor I would clean up state government to make it more transparent and accountable and I am keeping that promise,” Stitt said in a statement. “As we make record investments in our public education system, students and parents deserve to know that their schools are spending our tax dollars appropriately and in accordance with the law.”
State Superintendent Joy Hofmeister branded Stitt’s move “an attack audit on public education.”
“The Governor’s call for an audit is yet another attack on Oklahoma’s public education system,” she said in a Thursday afternoon press statement.
“As the Governor should already know, the State Department of Education has undergone more than 20 financial, compliance and programmatic review audits by the state auditor’s office in the last 6½ years.
“Additionally, the Governor’s hand-picked Secretary of Education approves every agency expenditure over $25,000 on a weekly basis. Every single spending request has been personally approved by Secretary Ryan Walters.”
She was referring to her department’s compliance with an executive order put in place by Gov. Mary Fallin and renewed by Stitt.
Hofmeister added: “At a time during which there are serious audits we have requested which potentially involve criminal activity, and while 541 school districts are struggling to find normalcy during a pandemic, the Governor’s attack on public education couldn’t be worse timing for students, families, teachers and taxpayers.”
This new investigative audit request is the result of Byrd’s reported findings on Oct. 1, 2020, that Epic Charter Schools had misreported its school administrative costs to the tune of millions of dollars during the previous five years.
“I deeply appreciate Governor Stitt for his confidence in the findings of the Epic Schools audit report released last year,” Byrd said. “It is clear Epic’s founders were able to take millions of dollars by manipulating the schools’ administrative costs reported to OSDE.”
Since Byrd’s Epic audit, nearly all of Epic’s governing board members have changed and the remade board has severed all ties with the schools’ co-founders, David Chaney and Ben Harris, their for-profit firm and a California Epic Charter School.
But Byrd’s report on Epic also called into question the oversight of Epic’s financial accounting by the state agency run by Hofmeister.
At the State Department of Education, Byrd reported finding “ample oversight but limited accountability,” even when red flags were raised internally about Epic’s cost accounting.
A month later, in November 2020, 22 Republican lawmakers formally requested that Stitt seek an investigative audit into the OSDE’s handling of the Oklahoma Cost Accounting System.
Byrd’s office said Thursday that remaining within administrative spending limits established in state law “can create unique challenges for school boards and administrators especially when considering whether to accept certain federal grants that increase administrative costs for compliance with federal regulations.”
But, “in the end, the intended purpose of this audit is to ensure per-pupil spending and education funding is making it to the classroom,” Byrd said.
It is unclear why Stitt did not request the audit sooner, as he vowed publicly in November to work with the lawmakers on the audit request and applauded their concern “for being good stewards of taxpayer dollars.”
In the interim, Stitt’s education secretary, Walters, announced that he is running for the office of state superintendent, as Hofmeister is term-limited.
Stitt’s press release on Thursday included remarks by Walters.
“Oklahoma’s students deserve the best education and this audit will ensure that we are investing in the right priorities to better serve our kids,” his written statement says. “I appreciate Governor Stitt and the legislators who requested this audit for their commitment to protecting taxpayer resources and delivering transparency to parents for the first time.”
The request for the audit sent to Stitt in November was signed by Rep. Jeff Boatman, Tulsa; Rep. Chad Caldwell, Enid; Rep. Denise Crosswhite Hader, Piedmont; Rep. Sheila Dills, Tulsa; Rep. Tom Gann, Inola; Rep. Tommy Hardin, Madill; Rep. Mark Lepak, Claremore; Rep. Garry Mize, Guthrie; Rep. Carl Newton, Cherokee; Rep. Kevin West, Moore; Rep. Rande Worthen, Lawton; Sen. Mark Allen, Spiro; Sen. David Bullard, Durant; Sen. Nathan Dahm, Broken Arrow; Sen. Julie Daniels, Bartlesville; Sen. Brent Howard, Altus; Sen. Casey Murdock, Felt; Sen. Joe Newhouse, Broken Arrow; Sen. Marty Quinn, Claremore; Sen. Dave Rader, Tulsa; Sen. Rob Standridge, Norman; and Sen. Brenda Stanley, Midwest City.
Featured video: Epic Charter Schools co-founder’s audit recommendations make it into legislation
Epic co-founder Ben Harris audio from Jan. 14, 2021
Epic Charter School: Tulsa World reporting and investigating since 2019
Day 5: Longtime Epic Charter Schools CFO agrees to 15 years' probation in exchange for testimony
March 29, 2024: Epic Charter Schools’ longtime former chief financial officer took the stand to testify against the school’s co-founders in the state’s massive racketeering and embezzlement case against all three men.
Day 4: Epic Charter Schools paid co-founder's personal credit card charges, forensic auditor testifies
March 28, 2024: A forensic auditor for the state testified that Epic Charter Schools’ student Learning Fund was used to pay more than $375,000 in personal credit card charges by one of the school’s co-founders who received at least $23 million from the school.
Day 3: Epic Charter Schools co-founders never reported millions on tax returns, auditor testifies
March 27, 2024: An auditor from the state testified that Epic Charter Schools’ co-founders never claimed as personal or business income on tax returns $144 million in Epic student Learning Funds they now contend were their private funds.
Day 2: Epic Charter Schools finance official testifies about payment concerns
March 26, 2024: Epic Charter Schools’ top finance official testified that when she was hired in early 2021, she immediately raised red flags that the school might have been overpaying the private company of Epic’s co-founders for student learning needs by $8 million and improperly bearing the administrative costs of an Epic-affiliated charter school in California with Oklahoma taxpayer-funded school employees.
Day 1: Use of 'legal eagles' shows no criminal intent, defense argues in Epic Charter Schools preliminary hearing
March 25, 2024: The first day of the preliminary hearing in the massive racketeering and embezzlement case against Epic Charter Schools’ co-founders and longtime CFO saw testimony from the lead investigator and a Tulsa litigation attorney who served on the school’s governing board for a decade.
Evidence, testimony by CFO expected at weeklong preliminary hearing for Epic founders
March 24, 2024: Some evidence and witness testimony in the massive racketeering and embezzlement case against Epic Charter Schools’ co-founders and longtime CFO will be presented in a preliminary hearing that could run a full week.
Former Epic CFO waives preliminary hearing; attorney says plea deal in works
March 11, 2024: A plea deal with prosecutors is in the works for Epic Charter Schools’ former chief financial officer in a case described as the “largest abuse of taxpayer funds in the history of this state.”
Epic co-founders agree to preserve bank account assets prosecutors want forfeited
Feb. 15, 2024: Epic Charter Schools founders charged in a massive racketeering and embezzlement case have agreed to preserve a bank account prosecutors want forfeited back to the state if they are convicted.
For first time in many years, state board suspends teacher certificates for breaking contracts
Jan. 29, 2024: Glenpool is the first to use a legal provision to hold teachers to employment contracts after two left for Epic Charter Schools at semester break.
Oklahoma teacher bonus program maxed out at 578 recruits, including 117 from other states
Jan. 2, 2024: While it does appear to have helped recruit teachers to such schools as Bowring and Gypsy, the program was most utilized by Epic Charter Schools, which had 35 applications approved, and Edmond Public Schools, with 24.
Oklahoma AG worries Epic Charter Schools founders still have taxpayer money
Nov. 20, 2023: The Oklahoma Attorney General’s Office is going after Epic Charter Schools’ student funds, which apparently are still in the possession of the school founders who are facing criminal charges in a massive racketeering and embezzlement case.
Co-founders, CFO facing additional charges
Oct. 12, 2023: Epic Charter School’s co-founders are facing additional criminal charges and have just received a judge’s OK to delay their preliminary hearing, which had been set for later in October.
Prosecutors added four new counts, bringing the total to 15. There are additional counts of embezzlement, as well as two new crimes alleged — money laundering and conspiracy to defraud the state.
Epic founders get preliminary hearing date in criminal case
May 16, 2023: A special judge scheduled a preliminary hearing for Oct. 23-25 and Oct. 27.
Under Oklahoma’s state constitution, those charged with a felony are entitled to a preliminary hearing, at which the court determines whether or not the prosecution has sufficient evidence against the defendants to justify a trial.
Board chairman who oversaw overhaul of Epic leaving
July 20, 2022: The chairman who led the Epic Charter School board during 19 months of sweeping changes to the school’s governance structure and through the recent conclusions of multiple state compliance inquiries and a yearslong law enforcement investigation is stepping down.
Paul Campbell notified his fellow board members and school leaders July 20 that he is resigning effective Friday, citing an upcoming goal-setting board retreat for the 2022-23 academic year as a good opportunity for a change in school board leadership.
Epic governing board issues apology, payment of Anti-SLAPP judgment
July 13, 2022: The governing board for Epic Charter School voted unanimously on to pay out more than a half-million dollars in court-ordered sanctions to a former state senator who was targeted in a lawsuit for publicly questioning the administrative practices of the school’s ousted and recently indicted co-founders.
In March 2022, the overhauled school board voted to end a 2-year-old legal crusade against Ron Sharp, a former Republican state senator from Shawnee. A judge finalized the judgment in the case July 12.
Former state auditor and GOP chairman says Epic scandal facilitated by Republicans 'gutting' Ethics Commission
June 25, 2022: Oklahoma’s former state auditor and GOP chairman said new revelations about Epic Charter Schools’ co-founders extensive efforts to influence political campaigns and state policymaking call for an overhaul of ethics rules.
Gary Jones, who was term-limited in 2018 and succeeded by current State Auditor and Inspector Cindy Byrd, announced at a press conference that he had just filed a formal ethics complaint against Epic co-founders Ben Harris and David Chaney, Fount Holland, Matt Parker and David Tackett.
Related: Lawmakers say widespread political donations made addressing Epic issues difficult
Epic Charter Schools co-founders, former CFO charged in elaborate scheme to defraud and embezzle from taxpayers
June 24, 2022: The founders of Epic Charter Schools have been arrested and charged with bilking Oklahoma’s largest school system out of tens of millions of taxpayer dollars by enrolling ghost students, falsifying invoices and fraudulently using credit cards paid for with school funds to cover personal and out-of-state charter school expenses and even political contributions.
Oklahoma County District Attorney David Prater filed a racketeering case against David Chaney, 43, and Ben Harris, 46. Charged as a co-conspirator is Josh Brock, 40, longtime former chief financial officer for both Epic, a public charter school, and Epic Youth Services LLC, the for-profit vendor company Harris and Chaney created to manage the school.
State finds major issues with Epic’s recent student attendance, administrative bonuses
June 21, 2022: The Oklahoma State Department of Education announced it will turn over new findings of misappropriation of public funds at Epic Charter Schools to law enforcement and recommend downgrading its accreditation to probationary status for the upcoming school year.
After a seven-month investigation, the state’s education agency claims top Epic administrators gave themselves $8.6 million in “improper” bonus payments in June 2021 and officials discovered dramatic increases in student absences and possible underreporting of truancy during the 2020-21 academic year.
Independent annual audit critical of Epic co-founders' final year of school management
May 11, 2022: The Epic Charter Schools governing board just received an independent audit report highly critical of the Epic co-founders’ final year of school management.
Rather than continue with annual audits by the same Cushing-based firm hand-picked by ousted Epic co-founders David Chaney and Ben Harris, Epic’s overhauled governing board sought bids for a new firm to complete the task required for all public schools.
An Oklahoma City-area firm, Arledge & Associates, was selected and on May 11 evening delivered an audit report finding a host of deficiencies and faulty internal controls for the fiscal year ending June 30, 2021.
Epic could consider name change as consolidation advances
April 20, 2022: Epic Charter Schools could consider a name change in the near future as its plan to consolidate its two schools into a single one continues to advance.
The revelation came about during a school board discussion of the consolidation plan at an April 20 meeting.
Board rejects application for new online school
April 12, 2022: Oklahoma’s Statewide Virtual Charter School Board rejected an application for a new online school because its proposed management structure too closely resembled the arrangement that landed Epic Charter Schools in regulatory hot water.
Presented by John Paul Jordan, a Yukon attorney and former state representative, Scissortail Preparatory Academy was proposed to open with as many as 1,200 students.
Yet another lawsuit filed in Epic Charter Schools' messy divorce from co-founders
March 23, 2022: A former subsidiary now known as Community Strategies-CA Inc. filed a breach of contract suit this month in Oklahoma County District Court, seeking at least $430,573 from the school board of Epic One-on-One and Epic Blended Learning Centers, which are both Oklahoma-based charter schools.
In May 2021, Epic’s governing board severed all ties with its co-founders’ for-profit firm and Epic California school.
Oklahoma House passes virtual charter school reforms
March 14, 2022: House Bill 3643, by Rep. Sheila Dills, R-Tulsa, would make numerous changes to virtual charter schools’ governance and financial reporting in the wake of revelations concerning the use of state funds by Oklahoma’s largest such enterprise, Epic. It particularly targets third-party administrators, called education management organizations. HB 3644, also by Dills, would apply more stringent standards and responsibilities on all charter school boards and their sponsoring organizations. A third related bill passed last week. That bill, HB 3645, would define attendance standards for virtual charter schools.
<&underline>Click here to read more</&underline>Epic board moves to consolidate administration to save millions
March 9, 2022: The Epic Charter Schools Board of Education just took another major step away from the vision of the large charter school system’s ousted founders.
School board members voted unanimously Wednesday evening on a resolution calling for the merger of the Epic charter school system’s two separate schools — Epic One-on-One and Epic Blended Learning Centers — into a single school by June 30.
Epic Charter Schools to end appeal of $500k legal judgment for former state senator
March 9, 2022: The overhauled school board for Epic Charter Schools has voted to end a 2-year-old legal crusade against a former state senator who publicly questioned the administrative practices of the charter school system’s ousted co-founders.
Inside the newsroom: Jason Collington talks about the latest in Epic Charter Schools investigative audit with Andrea Eger
Audit makes some lawmakers question voucher push
Feb. 10, 2022: Could the state’s investigative audit that found questionable handling of taxpayer dollars by Epic Charter Schools’ former for-profit managers have implications on proposed new state-funded voucher accounts?
Some members of the Oklahoma House of Representatives are asking that very question heading into the new legislative session this week.
Epic Charter Schools leaders reveal intention to consolidate its two schools
From Feb. 9, 2022: Epic Charter Schools leaders revealed on Tuesday that they are working on a proposal to consolidate Epic’s two schools with two different sponsors into a single school by June 30.
Epic Superintendent Bart Banfield said the move to become one school, sponsored by the Statewide Virtual Charter School Board, would streamline almost every single administrative function, result in cost savings and reduce confusion for parents and the public.
Epic Charter Schools investigative audit makes some lawmakers question voucher push
From Feb. 7, 2022: Could the state’s investigative audit that found questionable handling of taxpayer dollars by Epic Charter Schools’ former for-profit managers have implications on proposed new state-funded voucher accounts?
Some members of the Oklahoma House of Representatives are asking that very question heading into the new legislative session this week.
Attorney general sends Epic Charter Schools case back to Oklahoma County DA
From Feb. 4, 2022: Attorney General John O’Connor has kicked the Epic Charter Schools investigation back to the Oklahoma County District Attorney’s Office to determine whether any charges are warranted.
State auditor to lawmakers: Epic Charter Schools mismanagement is largest abuse of taxpayer funds 'in the history of this state'
From Feb. 2, 2022: Oklahoma’s state auditor and inspector on Tuesday said mismanagement by co-founders of Epic Charter Schools is “the largest amount of reported abuse of taxpayer funds in the history of this state” — and she has no idea why the attorney general has not brought criminal charges in the case.
The Oklahoma State Bureau of Investigation confirmed to the Tulsa World on Tuesday afternoon that it has just completed its years-long investigation and turned it over to the Oklahoma Attorney General’s Office for review.
“I am shocked this hasn’t been prosecuted yet,” State Auditor Cindy Byrd told lawmakers at a joint meeting of the Oklahoma House of Representatives’ common education committee and Appropriations and Budget education subcommittee. “I do expect charges to be filed — or an explanation for why charges will not be filed.”
Epic among 3 virtual charters losing $58.9 million after 'significant decline' in students
From Jan. 12, 2022: Three statewide virtual charter schools are being cut $58.9 million in state aid after posting “significant declines” in student enrollment, while Tulsa County’s traditional school districts are picking up a total of $15.5 million more.
In midyear adjustments announced to schools late Monday, the Oklahoma State Department of Education distributed the final remaining $49 million in state aid for fiscal year 2022, which ends June 30.
Epic Charter Schools: 'Very serious crimes' being investigated by multiple agencies, with new school leaders assisting
Dec. 18, 2021: Epic Charter Schools’ new leaders said Friday that they are assisting multiple agencies “investigating some very serious crimes” during the years the state’s largest charter school system was controlled by its two now-ousted co-founders and for-profit managers.
In late May, Epic’s overhauled governing board voted to divorce Epic One-on-One and Epic Blended Learning Centers from Epic Youth Services, the school management firm that reportedly made David Chaney and Ben Harris of Oklahoma City millionaires.
During a Friday board meeting, Chair Paul Campbell said the school system’s new leaders are working with the Oklahoma State Bureau of Investigation and other unspecified “government agencies” probing the fiscal practices of EYS.
“I’ve talked to them twice today, as an example. They called me. … They’re talking to me about Epic Youth Services,” said Campbell.
State to Epic Charter Schools: $9.1 million is correct amount owed back for excessive admin costs
From Dec. 16, 2021: After a yearlong review, the Oklahoma State Department of Education has revised the amount it believes Epic Charter Schools owes back to the state for excessive administrative spending between 2015 and 2019 from $11.2 million to $9.1 million.
The State Board of Education will be asked to vote at a meeting Thursday to withhold the money from future payments of taxpayer dollars to the state’s largest charter school system.
The previous clawback demand of $11.2 million, issued after a unanimous vote of the state Board of Education in October 2020, has been in limbo as state education officials conducted a detailed review of the basis for findings in an investigative audit report by the Oklahoma State Auditor and Inspector’s Office.
Epic responds to new allegations of wrongdoing
From Dec. 9, 2021: Now-former Epic Charter Schools board Vice Chair Kathren Stehno and Chair Paul Campbell are shown in this screenshot from a livestream of Epic’s Nov. 17 board meeting.
Investigations by state education officials and authorizers of Oklahoma’s largest charter school system were prompted by a host of allegations forwarded to them directly by Epic school board member Kathren Stehno.
Contacted by the Tulsa World, Stehno said she came to believe she had been given false, partial or misleading information by Paul Campbell, Epic’s board chairman, and Superintendent Bart Banfield in recent months to influence her decision-making as a board member.
Then, she said, she was approached recently by multiple “whistleblowers” from within Epic’s ranks of employees with allegations that Epic leaders had doled out high-dollar bonuses to a handful of top administrators without school board authorization and violated state law and school policy in the way it withdrew “a high percentage” of its students for truancy.
Resigned Epic board member answers questions about new 'whistleblower' allegations against school
From Dec. 9, 2021: Current leaders at Epic Charter Schools are denying any wrongdoing amid allegations from a governing board member who just stepped down in protest over administrative bonuses and a reduction in force she said were unauthorized.
“Epic is investigating these claims. To date, we have not found evidence supporting the allegations,” states an unsigned letter from the school to Epic parents on Wednesday.
Investigations by state education officials and authorizers of Oklahoma’s largest charter school system were prompted by a host of allegations forwarded to them directly by Epic school board member Kathren Stehno.
Epic’s Charter Schools board vice chair resigns, asks for investigation into misconduct
From Dec. 5, 2021: Epic Charter Schools’ newly appointed governing board was put in place to help the troubled online school come into compliance with state law.
But the board’s vice chair, so alarmed by what she’s seen and heard behind the scenes, resigned suddenly Wednesday, Oklahoma Watch has learned. She implored authorities to investigate the school for a number of issues.
A three-page letter of resignation written by Kathren Stehno details her concerns, which include harassment and intimidation of female employees creating “an often-hostile work environment.” She also cited what she called alarming data about students withdrawn for truancy and violations of the state’s Open Meetings Act.
State Department of Ed, school sponsors investigating new Epic allegations
From Dec. 7, 2021: Allegations made in the resignation letter of an Epic Charter Schools governing board member are now under investigation by state education officials as well as the authorizer of Epic’s largest charter school.
Epic school board member Kathren Stehno resigned last week after one year of service, saying she believed she had been given false, partial or misleading information in recent months to influence her decision-making as a board member by Paul Campbell, Epic’s board chairman, and Superintendent Bart Banfield.
Epic to cut staff after losing 60% of new students driven there during pandemic, Oklahoma's largest online school says
From Nov. 17, 2021: Epic Charter Schools is implementing a reduction in force because “three out of five kids who came to EPIC due to the pandemic have chosen to return to their home districts,” it announced Tuesday.
At the school system’s October governing board meeting, school leaders said Epic currently enrolls a total of 38,556 students between its two schools, which would represent an overall decline of around 35% since Epic’s pandemic all-time high. That number includes students who were already enrolled at Epic as well as the new students who chose that route because of the pandemic.
The statewide virtual charter school called Epic One-on-One now counts 22,946 students, and Epic Blended Learning Centers, which offers a blend of online and in-person learning, now has 15,610 students in Tulsa and Oklahoma counties.
During the noon hour Tuesday, Epic Superintendent Bart Banfield posted on Epic’s website and shared to its social media channels an announcement to students and parents titled: “We’re right-sizing as our enrollment normalizes.”
State auditor says Epic criminal investigation 'far from over,' predicts charges
From Nov. 10, 2021: Oklahoma’s state auditor and inspector told a Tulsa audience on Tuesday that the criminal investigation into financial practices of Epic Charter Schools’ founders and ousted for-profit managers has not been completed despite public claims to the contrary.
“This is far from over. The criminality of this cannot be ignored. There will be charges,” said Cindy Byrd, a Republican elected to the statewide office in November 2018.
Byrd received a standing ovation after her presentation to the Republican Women’s Club of Tulsa County. The monthly luncheon was attended by more than 200 people at the Tulsa Country Club on Tuesday.
Epic founders 'gaslit a lot of people, and it's time to stop,' new chairman says of charter school financials
Oct. 5, 2021: Epic Charter Schools’ new governing board chairman, Paul Campbell, told lawmakers in October that they had been “gaslighted” for years by Epic’s recently ousted founders, suggesting that they now would be open to legislation intended to prevent millions in taxpayer dollars from being paid to “grifters.”
Epic Charter Schools audit prompts investigative audit at OK Department of Education
Sept. 16, 2021: Gov. Kevin Stitt on Thursday formally requested that the State Auditor and Inspector’s Office conduct a first-of-its-kind investigative audit of the Oklahoma State Department of Education.
The audit will have two primary objectives:
Identify all revenue sources flowing into OSDE — including federal funds, state appropriations, taxes and fees — and determine whether the revenues were properly allocated and expenditures from selected funds were made in accordance with applicable laws.
Determine whether OSDE and Oklahoma school districts are complying with Oklahoma Cost Accounting System reporting requirements and whether OSDE is “effectively requiring consistent application and timely accountability.”
“This type of audit has never been conducted in the history of Oklahoma and, perhaps, the nation,” said State Auditor Cindy Byrd. “As always, these audits are about transparency and accountability to taxpayers. I commend Gov. Stitt for requesting this audit. People want to know how their tax dollars are spent on education.”
Oklahoma virtual school board members resign unexpectedly
From Sept. 13, 2021: Two state officials who had been scrutinized over connections to Epic Charter Schools have resigned unexpectedly from the state agency overseeing virtual education programs.
Epic gets three more months to tackle issue of sharing of employees between two separate schools with only one governing board
From July 14, 2021: Epic Charter Schools was just given four additional months to grapple with how it might fully comply with a settlement agreement that preserved its sponsorship by the Statewide Virtual Charter School Board.
At issue is the fact that Epic has maintained one single governing board with the same members for both of its two legally separate schools while the two schools share administrators and many teachers.
Because state funds for the two schools were found to have been commingled in previous years, the terms of its 2-month-old consent agreement with the virtual board require Epic to have shared service agreements — approved by independent school governing boards — if it continues to share employees.
After Tuesday’s meeting of the virtual school board, Epic Superintendent Bart Banfield expressed some frustration but said the school’s leadership will use the extra time just allotted to contemplate whether Epic’s two schools should even have two separate local governing boards — or whether it should pursue even more radical change as one single school.
“We’ve already undergone so much change before this consent agreement was ever contemplated,” Banfield said. “But this gives us more time for conversation, both for us and with them (the statewide virtual board).”
The Statewide Virtual Charter School Board sponsors Epic One-on-One, Oklahoma’s largest online public school, and five other smaller statewide virtual charter schools, which are all open to any child living in Oklahoma.
Epic settlement monitor says Learning Fund billing didn't match enrollment
From June 24, 2021: Epic One-on-One’s 2020-21 Learning Fund bills were based on the total number of students enrolled at any point during a two-month window rather than on its confirmed enrollment, document reviews by a settlement compliance monitor show.
Addressing the Statewide Virtual Charter School Board on June 24, Skylar Lusnia told the board that his review of the online charter school’s financial records show that its former management company, Epic Youth Services, invoiced Epic One-on-One $39.5 million for its 2020-21 Learning Fund.
Epic's overhauled governing board inks licensing agreement
From June 21, 2021: Epic Charter Schools’ recently overhauled governing board just inked a new agreement that will send $2.5 million in taxpayer dollars to a technology firm owned by the brother of the board’s immediate past chairman.
According to school officials, Futuristic Education has worked on Epic’s school management and student information system for the last seven years under contract with Epic Youth Services, the for-profit school management company that made Epic school founders David Chaney and Ben Harris millionaires.
Epic Charter Schools approves $335.5 million budget
From June 16, 2021: Epic Charter Schools' governing board voted unanimously in favor of the $335.5 million budget.
Epic now wants in on spending records State Auditor won in court
From June 5, 2021: Epic Charter Schools went to court seeking the same access to student Learning Fund spending records controlled by its now former management company that was just granted to Oklahoma’s State Auditor.
Epic Youth Services, the for-profit school management company owned by school co-founders David Chaney and Ben Harris, was ordered last week to turn over all records of purchases and bank statements related to the school’s Learning Fund for student needs.
State auditor wins access to Epic's spending records
From May 30, 2021: Epic Charter Schools’ founders not only lost their hold on the school system that made them millionaires, but they also apparently lost their fight in court to block the Oklahoma state auditor and inspector from reviewing their bank and credit card statements. According to public records filed in Oklahoma County District Court on May 28, a judge has directed Epic Youth Services, the for-profit school management company owned by Epic co-founders David Chaney and Ben Harris, to turn over all records of purchases and bank statements related to Epic’s Learning Fund for student needs.
<&underline>Click here to read more</&underline>Epic governing board severs all ties with co-founders' for-profit firm and California school
From May 26, 2021: The governing board of Epic Charter Schools underwent a major overhaul and then declared its independence from the for-profit school management company owned by Epic’s co-founders.
Epic’s seven-member board of education unanimously approved a mutual termination agreement, effective July 1, to end its contract with Epic Youth Services, which reportedly has made millionaires of founders David Chaney and Ben Harris.
Charter school reforms related to Epic investigation sail through Oklahoma House
From May 24, 2021: The Oklahoma House voted 81-17 on Monday on new safeguards and greater transparency requirements for charter schools managed by outside vendors.
The fate of last-minute legislation House Bill 2966 now rests in the hands of the Oklahoma Senate, and it is unclear whether the bill will be heard in that chamber before the Legislature adjourns later this week.
Oklahoma virtual charter school board could reinstate member
From May 24, 2021: A state official who lost his vote over Epic Charter Schools because of a perceived conflict of interest is on the brink of having his recusal overturned.
Mathew Hamrick sued the Oklahoma Statewide Virtual Charter School Board and the board’s executive director on April 13 to regain voting power on Epic-related matters.
House leadership moving forward with multicounty grand jury recommendations
From May 21, 2021: Leadership in the Oklahoma House of Representatives is moving forward with legislation based on the extraordinary and urgent call to action by the multicounty grand jury probing the Epic Charter Schools saga.
House Bill 2966 is scheduled to be introduced on the floor and voted on by the House of Representatives.
House leadership taking up multicounty grand jury recommendations
From May 10, 2021: Members of the Oklahoma House of Representatives are dusting off legislation that lay dormant and considering other new recommendations because of last week’s call to action by the state’s multicounty grand jury, which has been investigating Epic Charter Schools.
Asked if anything would be done by the Legislature during the session that ends May 28, House Speaker Charles McCall, R-Atoka told the Tulsa World: “In light of the grand jury recommendations, the House will explore options to advance pending legislation filed earlier this session pertaining to those recommendations if possible within the three weeks remaining in the constitutional session. Additional recommendations that may come upon the conclusion of the many ongoing inquiries into Epic will be reviewed in the legislative interim for future consideration.”
Multicounty grand jury blasts use of private accounts for taxpayer money
From May 6, 2021: Oklahoma’s multicounty grand jury issued a wake-up call to the public, state policymakers and Epic Charter Schools parents themselves about the financial practices of the founders and operators of the state’s largest school system.
In a rare, inside look at an ongoing criminal inquiry, the grand jury filed in Oklahoma County District Court an interim report outlining the need for new safeguards and greater transparency requirements before even more taxpayer dollars are allocated to Epic.
School Board ends Epic termination proceedings as part of deal
From April 27, 2021: A deal has been reached to end sponsorship termination proceedings against Oklahoma’s largest online charter school.
In a teleconference meeting lasting less than 15 minutes, the Statewide Virtual Charter School Board voted without debate or discussion to approve a consent agreement with Epic Charter Schools.
Epic Charter Schools board accepts final list of demands
From April 22, 2021: A deal apparently has been struck to end contract termination proceedings that have been underway for six months against Epic Charter Schools by the sponsor of its statewide virtual charter school.
Epic’s governing board met for three hours behind closed doors before returning to open session and voting to agree to proposed final consent agreement terms put forth by the Statewide Virtual Charter School Board one day earlier.
Board gives Epic's governing board final list of demands
From April 21, 2021: In the back-and-forth over alleged contract violations, the Statewide Virtual Charter School Board voted to give Epic Charter Schools one last opportunity to come to an agreement that would halt termination proceedings.
The board heard a presentation on a proposed consent agreement by Epic’s attorney Bill Hickman and then Oklahoma Assistant Attorney General Marie Schuble’s recommendation that the board not approve it.
State virtual school board member sues
From April 17, 2021: A member of the state agency overseeing virtual education is suing that same agency to overturn his disqualification from discussions and votes on Epic Charter Schools.
Mathew Hamrick filed a lawsuit against the Oklahoma Statewide Virtual Charter School Board in Oklahoma County District Court.
Epic Charter Schools slapped with new $10.5 million penalty
From April 16, 2021: For the second year in a row, Oklahoma State Department of Education officials say Epic Charter Schools' own spending reports to the state reflect administrative costs well above statutory limits for all public schools and the school remains out of compliance with mandatory school cost accounting.
The state’s largest school system was notified in a letter that it is being assessed penalties totaling at least $10.5 million over the remainder of the fiscal year ending June 30 for both its schools, Epic One-on-One and Epic Blended Learning Centers.
Epic Charter Schools board makes 11th-hour attempt to settle termination proceedings
From April 15, 2021: Epic Charter Schools’ governing board has decided to offer up an eleventh-hour settlement to the Statewide Virtual Charter School Board in an effort to halt termination proceedings that call into question the future of one of Epic’s two schools.
In a 12:20 a.m. May 14, 2021 vote, Epic board members gave unanimous approval to the terms of a “consent agreement,” which their attorney will deliver to the Statewide Virtual Charter School Board for consideration.
Epic board votes to change secret Learning Fund
From April 14, 2021: Governing board members for Epic Charter Schools just voted to make a change that will end one of the school’s most controversial accounting practices used to shield the use of tens of millions of taxpayer dollars over the last decade.
Epic’s Learning Fund dollars for student needs will be placed in new bank accounts solely under school personnel control beginning July 1.
Legislation to negate board decision would send medical marijuana money to some charter schools
From April 7, 2021: Legislation intended to effectively negate a state school board decision would create a new structure for charter schools, including a “building fund” financed by the existing medical marijuana tax.
The new legislation was triggered by the State Board of Education’s 4-3 vote to settle a long-standing lawsuit with a charter school organization in such a way as to make tens of millions of dollars in local school taxes available to charter schools.
Statewide virtual school board sets termination proceedings
From April 6, 2021: The Statewide Virtual Charter School Board has voted to move ahead with contract termination proceedings against Epic Charter Schools in a two-day trial set for May 12-13.
At a meeting, all three board members present also voted to deny Epic’s motion to dismiss the termination proceedings altogether.
House to get legislation addressing issues raised by charter schools decision
From April 5, 2021: Legislation prompted by a controversial State Board of Education vote last week is expected to be introduced in the Oklahoma House of Representatives Common Education Committee.
Rep. Kyle Hilbert, R-Bristow, confirmed that he intends to file a committee substitute to Senate Bill 229 that would bar virtual charter schools from receiving local building fund revenue.
TPS demands state board rescind vote on state funding lawsuit
From March 29, 2021: Tulsa Public Schools demanded that the Oklahoma State Board of Education rescind its Thursday vote that could have the practical effect of redistributing tens of millions of state dollars to charter schools.
Superintendent Deborah Gist said to distract from how underfunded as a whole Oklahoma’s public school system is, state leaders are pitting different kinds of public school leaders against one another.
Majority of state ed board votes to settle years-old charter schools lawsuit
From March 26, 2021: The Oklahoma State Board of Education split 4-3 in voting to settle a years-old lawsuit seeking tens of millions more in the share of state taxpayer dollars that all charter schools receive. The move came against the strong objections of State Superintendent Joy Hofmeister and apparently the legal advice of the board’s own attorney. In her public comments during the remote meeting, Hofmeister made a point of revealing that the settlement offer had been received only one day earlier.
State board's deadline for $11.2 million repayment by Epic passes with no payment
From March 24, 2021: Oklahoma State Department of Education officials say the deadline for Epic Charter Schools to repay $11.2 million passed without payment and they are considering next steps and reviewing Epic’s latest response to the state auditor’s findings.
“As required by statute, this matter will be on Thursday’s State Board of Education agenda to consider their response and determine next steps, which may include litigation,” said State Superintendent Joy Hofmeister, in a written response to the Tulsa World.
State Senate, House hear no bills related to Epic Charter Schools audit findings
March 15, 2021: The State Auditor and Inspector’s report on Epic Charter Schools last fall included a host of recommendations for policymakers to consider to increase transparency and accountability for the use of tens of millions of taxpayer dollars every year.
So why have leaders in the Oklahoma Senate and House of Representatives not heard any legislation related to the forensic audit findings?
A coalition of 16 grassroots parent organizations for public schools across the state says it sees the Legislature’s inaction as a glaring omission in a session in which numerous education bills have been brought to the forefront.
Epic co-founder's audit recommendations make it into legislation
March 11, 2021: In Epic Charter Schools co-founder’s recommendations for how State Auditor and Inspector Cindy Byrd’s office operates found their way into a bill that passed the Senate floor.
On Oct. 1, Byrd’s office issued an audit highly critical of Epic’s handling of tens of millions of taxpayer dollars, but Epic has denied criminal wrongdoing and branded the state’s investigative audit report as an attack on school choice.
Termination proceedings against Epic Charter Schools delayed once more
State lawmakers this session have not yet taken up any legislation to address issues noted in a state audit of Epic Charter Schools.
$11.2 million repayment from Epic Charter Schools to state is delayed; public records lawsuit stalls
Jan. 26, 2021: Epic Charter Schools’ deadline for repaying the state $11.2 million has been pushed back a month, and the State Auditor’s Office has reportedly identified additional administrative payroll cost violations, the Tulsa World has learned.
Meanwhile, the State Auditor and Inspector’s lawsuit in pursuit of public records to account for Epic’s previous use of another $79 million in taxpayer dollars for something Epic calls its “Learning Fund” appears to have stalled.
Epic Charter Schools adding human, financial resources to address deficiencies ID'd by state auditor
Jan. 25, 2021: Epic Charter Schools’ statewide virtual charter school added new hires and contracted with a second accounting firm in response to issues identified in a recent state investigative audit.
At Epic One-on-One’s monthly governing board meeting, the hiring of Jeanise Wynn, who has been the business manager at Edmond Public Schools, was announced. Wynn will serve as the school’s new assistant superintendent of finance, reporting directly to the governing board.
Longtime Epic Chief Financial Officer Josh Brock will now serve only the school’s outside, for-profit management company, called Epic Youth Services.
School funding adjusted: Tulsa County districts down $31 million; Epic gains $156 million
Jan. 12, 2021: An influx of new students netted Epic Charter Schools’ two primarily online school choices an additional $156 million, while four other growing online schools picked up another $13.9 million.
But about 500 of the state’s 509 school districts and 31 charter schools saw reductions, with almost 120 of those down 10% or more from what the state told them to expect in late August.
School finance chiefs call on state leaders to intervene before hike in funding to Epic Charter Schools
Dec. 11, 2020: In a letter sent this week, chief financial officers from 14 school districts called on state leaders to see to it that Epic’s upcoming midyear adjustment in state funding be “stayed or modified” until Epic’s student “enrollment numbers and other business practices are verified to be lawful and compliant.”
It was signed by district officials from Tulsa, Ardmore, Bartlesville, Broken Arrow, Enid, Lawton, Moore, Muskogee, Mustang, Norman, Putnam City, Tahlequah, Union and Yukon.
Two board members barred from all Epic Charter Schools matters over conflict-of-interest concerns
Dec. 9, 2020: In two separate votes, the board voted 3-2 to recuse Mathew Hamrick and Phyllis Shepherd from discussions, debates and votes on Epic One-on-One, Oklahoma’s largest virtual school.
Hamrick and Shepherd cast the “no” votes in both instances.
Epic Charter Schools' board amends contract with for-profit management company, directs accounting practice changes
Dec. 8, 2020: In a meeting that went late into the night, the governing board at Epic Charter Schools passed yet another resolution directing a host of accounting and oversight changes and amending its contract with a for-profit school management company.
Board members and their attorney said the actions on behalf of Epic One-on-One, Oklahoma’s largest virtual school, were in response to various concerns and deficiencies identified recently by the Oklahoma State Department of Education, the State Auditor and Inspector’s Office and the Statewide Virtual Charter School Board.
Governor removes board president leading inquiries into Epic
Nov. 14, 2020: Gov. Kevin Stitt removed the president of the Statewide Virtual Charter School Board who recently led the initiation of termination proceedings against Epic Charter Schools and challenged two other board members about potential conflicts of interest with Epic.
John Harrington was notified by Stitt’s newly appointed secretary of education that his service on the Statewide Virtual Charter School Board was over effective immediately.
Epic Charter Schools gets a pass on accreditation downgrade
Nov. 12, 2020: The Oklahoma State Board of Education chose to put off the advice of its attorney to take punitive action against the state accreditation of Epic Charter Schools.
General Counsel Brad Clark presented to the board records he said showed a years-long history of Epic’s “nonresponsiveness and noncompliance” with state Department of Education requests for information about its use of taxpayer dollars — and new deficiencies discovered in reviews of Epic’s federally funded programs for special education and homeless students and English learners.
Lawmakers call for audit of State Department of Education
Nov. 11, 2020: Some Republican lawmakers are calling for an audit of the State Department of Education, citing a recent audit that found problems with Epic Charter Schools and the agency. “If the state auditor is correct in her assessment that the State Department of Education repeatedly neglected its responsibility to ensure compliance with OCAS (Oklahoma Cost Accounting System) and other required reports, one must ask if this dereliction of duty was confined solely to Epic Charter Schools or if it permeates throughout or public education system,” said a statement released by the lawmakers. “If SDE did in fact routinely fail to perform its regulatory duties, this could result in the discovery of hundreds of millions of dollars of misused funds.”
<&underline>Click here to read more</&underline>Tulsa lawmaker vows systemic overhaul
Oct. 27, 2020: Rep. Sheila Dills, R-Tulsa, announced that she is working on legislation that could significantly alter Oklahoma’s system for overseeing public school finances to “protect taxpayers.”
“Part one of the state audit of EPIC Charter Schools confirmed an alarming breakdown with the current system of public school oversight,” Dills said in a written statement released statewide.
“We must reorganize the system to ensure all schools are held accountable, not just virtual charter schools. Taxpayers deserve protection and efficient government, and it is imperative this never happens again in any school.”
Epic Charter Schools governing boards respond to recent actions by two state education boards
Oct. 21, 2020: An Epic Charter Schools’ governing board member called the findings of a state investigative audit and the resulting actions by two separate state education boards “politically motivated.”
The same governing board members serve both Epic One-on-One and Epic Blended Learning Centers, Epic’s two separate schools with different models and separate charter school sponsors.
At an Oct. 21 meeting, attorneys for Epic reviewed their point-by-point response document rebutting most of the forensic audit findings State Auditor and Inspector Cindy Byrd released on Oct. 1.
“I’ve sat here for 10 years, and I’ve never heard of anything like this. And now all of a sudden this — and that doesn’t quite measure up to me,” said board member Mike Cantrell.
Epic Charter Schools board member resigns amid state audit fallout
Oct. 20, 2020: One of Epic Charter Schools’ governing board members has resigned amid fallout from the state’s new investigative audit findings.
According to posted board agendas for meetings of the Epic One-on-One and Epic Blended Learning Centers boards, Liberty Mitchell has resigned and the board will consider accepting applications for her replacement.
The Oklahoma State Auditor and Inspector’s Oct. 1 report found oversight to be lacking on the part of Epic’s “handpicked” governing board members, selected by school co-founders David Chaney and Ben Harris, “whose for-profit school management company contract and performance should be overseen by an independent board,” the report states.
In all, $125.2 million of the $458 million allocated to Epic Charter Schools for educating students the past six years was found to have ended up in the coffers of Epic Youth Services, Chaney and Harris’ charter school management company, which reportedly has made them millionaires.
Education policy leaders from state Senate, House reflect on Epic Charter Schools audit findings
Oct. 19, 2020: The State Auditor and Inspector’s report on Epic Charter Schools included a host of recommendations for policymakers to consider to increase transparency and accountability for the use of taxpayer dollars in the future.
So what do education policy leaders from the Oklahoma State Senate and House of Representatives make of the forensic audit findings?
Most said the need for additional legislation was made clear — and none gave any credence to Epic’s claims that State Auditor Cindy Byrd’s findings were politically motivated or rooted in opposition to charter schools or parent school choice.
Statewide Virtual Charter School Board member is relative of Epic co-founder
Oct. 15, 2020: The lone member of the Statewide Virtual Charter School Board to vote no on termination proceedings against Epic Charter Schools this week is a family member of one of the school’s two co-founders who have reportedly become millionaires through their deal to manage the school.
In multiple public social media posts, board member Phyllis Shepherd wished Epic’s David Chaney “Happy birthday, nephew” and signed anniversary well wishes to him from “Aunt Phyllis.”
A tip-off to the posts prompted the Tulsa World to track down public genealogy records that show Chaney and Shepherd are related on Chaney’s father’s side of his family.
Statewide Virtual Charter School Board votes to begin contract termination process against Epic Charter Schools
Oct. 13, 2020: The Statewide Virtual Charter School Board voted Tuesday, Oct. 13 to begin contract termination proceedings against Epic Charter Schools based on the state’s new forensic audit.
Assistant Attorney General Marie Schuble recommended that the board pursue the matter based on information that the operators of the state’s largest virtual school may have failed to meet contract standards for fiscal management and violated various laws, as well as for “good cause.”
State education board demands $11.2 million back from Epic Charter Schools over state audit findings
Oct. 12, 2020: The Oklahoma State Board of Education voted unanimously to demand back $11.2 million in taxpayer funding from Epic Charter Schools based on an investigative audit that identified chronically excessive administrative overhead costs and inaccurate cost accounting.
Brenda Holt, audit manager for the special investigative unit of the State Auditor and Inspector’s Office, detailed the new state audit findings for the board.
“Oversight as a whole was weak. There was very little verification of the underlying documentation from Epic,” Holt told the board. “The information was taken at face value.”
Lawmakers announce joint hearing on Epic Charter Schools audit
Oct. 12, 2020: State lawmakers announced that they will hold a joint hearing to go over an investigative audit critical of Epic Charter Schools.
State Reps. Rhonda Baker, R-Yukon, and Mark McBride, R-Moore, said they would hold the joint hearing Oct. 21 to go over the audit and quiz State Auditor and Inspector Cindy Byrd about the report’s findings.
Oklahoma AG's Office takes reins in Epic Charter Schools investigation
Oct. 12, 2020: The state attorney general has appointed special counsel to take over a review of Epic Charter Schools after the results of an investigative audit prompted Oklahoma’s superintendent of schools to vow to recoup millions in taxpayer dollars.
Attorney General Mike Hunter said Oct. 12 in a news release that Melissa McLawhorn Houston will serve as special counsel in the matter, and that he has recused himself and many in his office from further review of the audit due to their involvement in several Epic-related investigations and litigation. The office also serves as counsel to the Virtual Charter School Board, which on Oct. 13 could vote to terminate the contract with Epic.
State education board calls special meeting on Epic Charter Schools audit
Oct. 9, 2020: A special meeting of the Oklahoma State Board of Education has been called to discuss the newly released findings of the state’s forensic audit of Epic Charter Schools.
The meeting is to be conducted virtually beginning at 11 a.m. Oct. 12, according to the agenda posted Oct. 9 morning.
That agenda includes a presentation and discussion about the audit and a possible executive session with the board’s legal counsel “concerning a pending investigation, claim or action” concerning Epic.
Superintendent Hofmeister responds to accountability failures cited in state audit of Epic Charter Schools
Oct. 5, 2020: State Superintendent Joy Hofmeister is vowing to take new actions to “recoup” millions in taxpayer dollars from Epic Charter Schools amid a new forensic audit that paints a damning picture of her administration’s handling of Epic for many years.
The office of State Auditor and Inspector Cindy Byrd found within the Oklahoma State Department of Education an accounting system preoccupied with school district compliance — with little to no verification of the information they report or accountability for falsehoods or other failings.
In an interview with the Tulsa World, Hofmeister pointed to an earlier reporting deadline imposed on schools last year that already resulted in the state Board of Education slapping Epic with a $530,000 penalty.
'Epic owes Oklahoma $8.9 million': Improper transfers, chronic misreporting found by state auditor's investigation
Oct. 2, 2020: The Oklahoma State Auditor and Inspector’s much-anticipated investigative audit of Epic Charter Schools has found it sends about 1 in 4 taxpayer dollars it receives as a public school to its co-founders’ for-profit company.
Part I of what is expected to be a two-part report documented accounting practices that allowed Ben Harris and David Chaney’s Epic Youth Services charter school management company to boost their earnings by nearly $2 million amid lax school board oversight and little to no accountability for Epic schools’ chronically inaccurate cost reporting to state education officials.
In all, $125.2 million of the $458 million allocated to Epic Charter Schools for educating students the past six years ended up in the coffers of EYS, according to State Auditor and Inspector Cindy Byrd.
Officials call Epic audit findings 'concerning,' 'deeply disturbing,' 'troubling'
Oct. 1, 2020: Although the state audit of Epic Charter Schools took more than a year to complete, reactions to some of its findings on Oct. 1 came much more swiftly.
The first of what is expected to be a two-part report — which detailed improper transfers, chronic misreporting of costs and lax oversight — was released Oct. 1 afternoon by State Auditor Cindy Byrd in conjunction with a news conference.
“While we are still reviewing the entire contents of the audit, the initial findings are concerning,” said Gov. Kevin Stitt, who called for the audit last year.
Key findings and conclusions from the Oct. 1, 2020, report
Epic One-on-One and Epic Blended Learning Centers paid EYS, the school co-founders' for-profit management company a total of $79.3 million in taxpayer money for student learning needs in lump sum payments first detailed to the public in an investigation by the Tulsa World. But EYS has blocked the state auditor access to records of how those public dollars are being spent.
Key findings and conclusions from the Oct. 1, 2020, report
Epic Youth Services “erroneously received” an excess of $686,0000 in management fees for the last five years, and the school’s own, handpicked auditors failed to identify the calculation issue year in and year out. The state auditor said EYS should return those dollars to the schools.
Key findings and conclusions from the Oct. 1, 2020, report
Epic Youth Services, the school co-founders' for-profit charter school management company, “improperly transferred” $203,000 in Oklahoma taxpayer dollars from the student Learning Fund account to help cover payroll shortages at Epic’s California charter school.
Key findings and conclusions from the Oct. 1, 2020, report
Epic has improperly commingled, or mixed, public dollars allocated for its two, separate charter schools, including the use of one single bank account for student Learning Funds for both schools. The audit also found $6 million in payments and $3.3 million in loans from one school to the other without school board approval.
Key findings and conclusions from the Oct. 1, 2020, report
Epic’s multi-year deals totaling $525,000, for the school’s promotional advertising and branding on playgrounds inside shopping malls in Tulsa and Oklahoma City violate the Oklahoma Constitution.
Epic Charter Schools targets state senator again in pre-election email to parents
Aug. 25, 2020: Epic Charter Schools’ feud with a state senator who has questioned how it reports some of its student enrollment and attendance has continued through the eleventh hour before Tuesday (Aug. 25)’s primary runoff election.
In an email to students’ parents sent late last week, Epic called Sen. Ron Sharp, R-Shawnee “a dishonest and relentless critic of our school” and denied being obstructive or engaging in negative campaigning against him.
Epic Charter Schools founders and backers keep up campaign influence spending amid state investigations
Aug. 21, 2020: The operators of Epic Charter Schools and their backers have continued to promote and protect their political interests at the state Capitol by donating to candidates as law enforcement and state auditor’s investigations have been underway.
A review of the state’s campaign finance records through Aug. 17 show those with ties to Epic Charter Schools have contributed $73,660 to various candidates and causes since January 2019.
Then-State senator sued by Epic Charter Schools awarded legal fees plus $500,000 in sanctions
Aug. 13, 2020: A judge ordered Epic Charter Schools to pay a state senator it had targeted in a libel and slander lawsuit $36,000 for his legal fees plus $500,000 in sanctions.
Sen. Ron Sharp, R-Shawnee had raised questions in the summer of 2019 about the school’s student attendance and enrollment practices, and Epic sued him in December, seeking at least $75,000.
Enrollment already up 77% across Oklahoma's six virtual charter schools amid COVID-19 pandemic
Aug. 12, 2020: Parents looking to forgo any in-school instruction for 2020-21 have already sent student enrollment in Oklahoma’s statewide online public schools sky high, according to new information from a state education agency.
The Statewide Virtual Charter School Board has tracked Aug. 1 student enrollment since 2015 and found a year-over-year increase of nearly 77% between this year and the same time last year.
Epic co-founder claims innocence in new video address amid back-to-school student recruiting drive
July 30, 2020: One of the co-founders of Epic Charter Schools took to YouTube and addressed parent skepticism of the school because of the still-looming law enforcement investigation and state investigative audit into its use of public funds.
In the newly posted video, Ben Harris said Epic is seeing an extraordinary spike in enrollment in its online school model because of the COVID-19 pandemic and that he hopes families looking for a new alternative “shed any concerns they have about Epic because of what they have seen in the news.”
Epic becomes Oklahoma's largest school district as pandemic pushes virtual enrollment
July 23, 2020: Epic Charter Schools counted 38,026, making it the biggest district in the state.
This exceeds the previous No. 1, Oklahoma City Public Schools, which predicts 34,867 students this fall. Tulsa Public Schools projects 34,405 students, not including sites for alternative schools and partnership programs. The virtual school is adding 1,000 new students a day in an enrollment spike that began this month, said Shelly Hickman, assistant superintendent of communications.
Oklahoma Statewide Virtual Charter School Board wants to weigh in on court case involving Epic
July 15, 2020: The Oklahoma Statewide Virtual Charter School Board supports the position of the state auditor and inspector, who has gone to court over Epic’s lack of compliance with her public records requests and administrative subpoenas. At issue is Epic’s shielding its use of tens of millions of taxpayer dollars for something it calls the Learning Fund.
State Chamber says no conflicts of interest in legal filing despite Epic Charter Schools' membership, school founder on Chamber board of directors
May 27, 2020: The State Chamber of Oklahoma wants to intervene in the state’s legal effort to compel Epic Charter Schools’ for-profit operator to comply with an investigative audit but did not disclose to the court that Epic is a dues-paying member and its founder is on the chamber’s board of directors.
Epic Charter Schools' for-profit management firm refuses to release documents to investigators, Oklahoma attorney general says
March 5, 2020: The Oklahoma Attorney General’s Office went to court on Thursday because it says Epic Charter Schools’ for-profit operator has not been cooperating with the state’s investigative audit.
In July, Gov. Kevin Stitt requested an investigative audit of Epic and all its related entities by State Auditor and Inspector Cindy Byrd. But in a motion filed in Oklahoma County District Court on Thursday, the Attorney General’s Office says Epic Youth Services has been refusing to comply with the auditor’s public records requests or subpoenas for months. Read the story from Staff Writer Andrea Eger
'Our kids have become a piggy bank': Epic Charter Schools shields $50M in taxpayer funds from public scrutiny
Feb. 23, 2020: On top of a 10% cut of every dollar of revenue, Epic Charter Schools is paying its for-profit management company millions more in taxpayer dollars every year for school expenditures that are never audited and which Epic claims are shielded from public scrutiny.
School officials now acknowledge payments for previous years totaled $50.6 million for something Epic calls the “Learning Fund.” And based on a recent uptick in student enrollment, Epic’s allocation for 2019-2020 alone could be $28 million. Read the story from Staff Writer Andrea Eger.
Lawmakers accuse Epic of intimidation attempt with defamation lawsuit against state senator
Dec. 14, 2019: Tulsa-area lawmakers blasted Epic Charter Schools for suing a state senator for slander and libel over statements he reportedly made while questioning the school’s student attendance practices. Rep. Sheila Dills, R-Tulsa, called the lawsuit filed against Sen. Ron Sharp, R-Shawnee, an attempt to silence constituents whose concerns legislators are sworn to represent and an attempt to intimidate other lawmakers just before their first deadline to file bills for the upcoming 2020 session.
Read the story by Staff Writer Andrea Eger.Epic Charter Schools sues state senator who questioned student attendance and funding, accusing him of slander
Sen. Ron Sharp speaks in his Capitol office about Epic Charter Schools’ lobbying efforts last year. MATT BARNARD/Tulsa World file
Epic Charter Schools promoting itself with multimillion-dollar advertising campaign, plus $9,000 per month shopping mall playground sponsorships
Aug. 30, 2019: Turn on the television or radio, get online or even go to a shopping mall and you’re likely to see ads and promotions for the state’s largest virtual school, Epic Charter Schools.
How much is this back-to-school advertising blitz costing? Nearly $2.5 million.
And sponsoring children’s play areas inside Tulsa’s Woodland Hills Mall and Oklahoma City’s Penn Square Mall through multiyear leases with the malls’ owner adds up to $105,000 in costs per year. Read the story by Staff Writer Andrea Eger.
OSBI investigating new allegations of forgery by Epic Charter Schools' co-founder and CFO, willful neglect by board members
Aug. 22, 2019: The Oklahoma State Bureau of Investigation executed another search warrant in its investigation into Epic Charter Schools, and its inquiry now includes new allegations against administrators and governing board members. Read the story by Staff Writer Andrea Eger.
How does Epic Charter Schools stack up academically? Check out student proficiency test scores
Aug. 20, 2019: Epic Charter Schools trails statewide averages on all 14 state tests for students in grades three to eight and posted proficiency rates on four of those tests on par with or even lower than the perennially low Tulsa and Oklahoma City inner-city districts.
Epic’s new superintendent points to funding levels for his school and the lagging achievement levels of the throngs of students who have made the switch to Oklahoma’s largest online school system. Read the story by Staff Writer Andrea Eger.
Epic Charter Schools' expansion into Texas in limbo amid new revelations about criminal investigation
Aug. 1, 2019: Epic Charter Schools’ expansion into Texas has been halted just a few weeks before the start of the new school year.
On June 5, Epic publicly announced it had a deal with iSchool Virtual Academy of Texas, or iSVA, a public charter school, to offer students there in grades 3-12 its blended learning model, which combines online and in-person instruction. iSchool Virtual Academy’s governing board approved the contract with Epic on June 14. Read the story by Staff Writer Andrea Eger.
Tulsa lawmaker uses rarely invoked legal provision to attend closed-door meeting on Epic Charter Schools investigation, educators
July 27, 2019: When the Oklahoma State Board of Education met behind closed doors this week to discuss investigations into Epic Charter Schools and proposed actions against educators’ state certifications, they had a unique observer present.
State Rep. Sheila Dills, a freshman Tulsa lawmaker, used a rarely invoked legal provision in state law to sit in on the state board’s executive session. Read the story by Staff Writer Andrea Eger.
New records reveal Epic Charter Schools' sponsor was in touch with state auditor for months before scandal
July 22, 2019: The Tulsa World has obtained public records that indicate one of Epic Charter Schools’ own charter school authorizers has been in touch with the State Auditor’s Office for months about a possible audit. On Friday, Gov. Kevin Stitt requested an investigative audit of Epic and its related entities by State Auditor Cindy Byrd. Byrd declined to comment on Stitt’s request, but confirmed her office has already been in contact with the Statewide Virtual Charter School Board about questions. Read the story by Staff Writer Andrea Eger.
Governor requests state audit of Epic Charter Schools; school's sponsor already in touch with state auditor
July 20, 2019: Gov. Kevin Stitt on Friday requested an investigative audit of Epic Charter Schools and its related entities by State Auditor Cindy Byrd.
The Tulsa World has also obtained public records that indicate one of Epic’s own charter school authorizers has been in touch with the State Auditor’s Office for months about a possible audit.
Byrd declined to comment on Stitt’s request, but confirmed her office has already been in contact with the Statewide Virtual Charter School Board about questions. Read the story by Staff Writer Andrea Eger.
Records show FBI has also been looking into Epic Charter Schools, along with federal education investigators
July 18, 2019: The Federal Bureau of Investigation and the U.S. Department of Education’s law enforcement arm have also been probing Epic Charter Schools’ student enrollment practices and finances, public records obtained by the Tulsa World show.
Emails with officials at the Oklahoma State Department of Education and Statewide Virtual Charter School Board reveal that federal investigators were at work behind the scenes in the years after the Oklahoma State Bureau of Investigation’s initial inquiry into allegations of fraud at Epic resulted in no charges. Read the story by Staff Writer Andrea Eger.
State superintendent reacts to Epic Charter Schools investigation; online school official claims innocence
July 17, 2019: State education officials pledged their assistance to investigators who have accused the operators of Oklahoma’s largest online school of embezzlement and racketeering.
In late February, the Tulsa World was the first to report that Epic Charter Schools was under investigation by state and federal authorities.
On Tuesday, the Oklahoma State Bureau of Investigation filed records in Oklahoma County District Court revealing that it had seized evidence in its investigation of whether Epic had wrongly obtained millions of taxpayer dollars by falsely inflating its student enrollment figures. Read the story by Staff Writer Andrea Eger.
State senator raises new questions about Epic Charter Schools and oversight by Oklahoma State Department of Education
July 12, 2019: A state senator is raising new questions about Epic Charter Schools, the operator of Oklahoma’s largest statewide virtual charter school and centers that blend online and in-person instruction in Tulsa and Oklahoma counties. Read the story by Staff Writer Andrea Eger.
Leadership change at Oklahoma's largest virtual charter school likely necessitated by new transparency, conflict of interest law
May 7, 2019: New restrictions on conflicts of interest at virtual charter schools will necessitate a change at the top of the organizational chart at Epic Charter Schools, according to the Tulsa lawmaker who sponsored legislation to crack down on such practices. Read the story by Staff Writer Andrea Eger.
State Senate passes new transparency reporting requirements for virtual charter schools; bill headed to Gov. Stitt next
April 25, 2019: New restrictions on virtual charter schools sailed through the Oklahoma Senate on Wednesday, in a similar fashion to the state House of Representatives’ vote on the measure last month. Read the story by Staff Writer Andrea Eger.
State education officials deny clearing Epic Charter Schools in investigation, despite school's new claims
April 24, 2019: Epic Charter Schools on Tuesday issued a news release and social media posts for their teachers and parents declaring that a newly issued audit by state education officials proved they are in “full federal compliance” with requirements for low-income and special education students. Read the story by Staff Writer Andrea Eger.
Epic Charter Schools, school reform and funding needs on the minds of Tulsa Republicans at Friday event with State Superintendent Joy Hofmeister
March 16, 2019: State Superintendent Joy Hofmeister fielded questions Friday about accountability, implementing new reforms and a statewide virtual charter school that is under investigation by state and federal law enforcement. Read the story by Staff Writer Andrea Eger.
New transparency reporting requirements for virtual charter schools advance to state Senate
March 14, 2019: One of the few surviving measures aimed at adding new restrictions on virtual charter schools sailed through the Oklahoma House of Representatives on Wednesday morning. Read the story by Staff Writer Andrea Eger.
Parents, students pack Capitol to tell lawmakers about 'the array of reasons to choose Epic'
March 11, 2019: Thousands of students and their parents descended on the state Capitol Monday to share with lawmakers their myriad reasons for choosing an online education through Epic Charter Schools. Not all of them came to oppose various pieces of legislation that would require the school and its for-profit management company to disclose more about how it spends public tax dollars. Read the story by Staff Writer Andrea Eger.
15 people with ties to Epic Charter donated $180,000 to 78 candidates for state office
March 3, 2019: The operators of Oklahoma’s rapidly expanding virtual charter school opened their wallets during the 2018 state political campaign season in an effort to combat what they perceive as threats to the school’s continued growth. Read the story by Staff Writer Curtis Killman.
Epic Charter Schools under investigation by state, federal law enforcement agencies
Feb. 27, 2019: Epic Charter Schools, the Oklahoma-based online education juggernaut, is now the target of scrutiny by state and federal law enforcement in addition to state lawmakers. Read the story by Staff Writer Andrea Eger.
A study in contrasts: Most Tulsa County districts lose students while virtual numbers soar
Jan. 29, 2019: Most Tulsa County school districts, including Owasso’s, posted enrollment declines — some for the first time in more than a decade — as Epic Charter Schools flourished with online school offerings, newly released student enrollment data from the state reveal. Read the story by Staff Writers Andrea Eger and Kyle Hinchey.
496 Tulsa Public Schools students left for EPIC virtual school since August. TPS to lawmakers: Regulation is needed
Jan. 18, 2019: Officials at Tulsa Public Schools decried the loss of nearly 500 students to the state’s largest virtual charter school just since school began in August at a Thursday morning meeting with area lawmakers. Read the story by Staff Writer Andrea Eger.
Skyrocketing student enrollment nets Epic Charter Schools nearly $39 million more in midyear adjustments to state funding for public schools
Jan. 8, 2019: Epic Charter Schools is seeing its share of state aid soar by $38.7 million in annual, midyear adjustments just made by the Oklahoma State Department of Education. Read the story by Staff Writer Andrea Eger.
Epic Charter Schools co-founder audit recommendations make it into legislation
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