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Property of OPS News Tracker and members of the Oklahoma Press Association.
Bartlesville Examiner-Enterprise
CHARTER
SCHOOLS
State
Feb education
13
department
2020 fines Epic
Page $530,000
A007 By Nuria Martinez-Keel
The Oklahoman
Clip
resized Epic One-on-One vir-
39% tual charter school has
been fined $530,527 for
exceeding a legal limit on
administrative costs.
The Oklahoma State
Department of Education
will subtract the amount
from Epic’s appropriation
of state funds.
Epic Superintendent
Bart Banfield was notified
of the penalty on Jan. 23
in an email from the state
Department of Education,
as first reported by The
Frontier.
“(Epic One-on-One)
exceeded the allowable
limits on expenditures for
these purposes by 5.58%,
or $530,527.20,” the
email to Banfield stated.
“As a result, the OSDE
is required to assess a
penalty in the amount of
$530,527.20, which will
be deducted from the
District’s next State Aid
payment.”
Oklahoma school dis-
tricts with more than
1,500 students are
required to keep costs
for administrative ser-
vices at no more than
5% of their budget. The
$530,527 penalty equals
the amount Epic One-on-
One is in excess of the 5%
limit.
Epic spokeswoman
Shelly Hickman said a
coding error caused the
virtual charter school to
exceed the cap.
Epic officials mistak-
enly included principals
in the administration
category, she said. At
the same time, all of the
virtual charter system’s
administration was listed
under Epic One-on-One
rather than reporting
administrative costs of
Epic Blended Learning
Centers separately.
“It is our understanding
that EPIC is identified as
exceeding the admin-
istrative cap because of
a coding error and the
State Department of
Education requiring us to
list administration under
one charter rather than
allocate it appropriately
between our two char-
ters,” Hickman said in a
statement.
Property of OPS News Tracker and members of the Oklahoma Press Association.
Enid News & Eagle
Feb
13
2020
Page
A003
Clip
resized
52%
Property of OPS News Tracker and members of the Oklahoma Press Association.
Muskogee Phoenix
Feb
13
2020
Epic charter school penalized $530K
School accused of penalty issued over the past three enforced.”
years, according to documents ob- Epic One on One is a virtual
Page exceeding state limit on tained by The Frontier. school authorized by the Statewide
A006 administrative spending Epic claims the penalty is a mis- Virtual Charter Schools Board,
take. while Epic Blended also combines
Clip
resized By Ben Felder “It is our understanding that virtual and in-person instruction
52% CNHI Oklahoma EPIC is identified as exceeding and is authorized by Rose State
the administrative cap because of College in Midwest City.
Epic One on One virtual charter a coding error and the State De- Both charter schools are man-
school has been penalized more partment of Education requiring aged by the company Epic Youth
than $530,000 for exceeding the us to list administration under Services, which receives millions in
state limit on administrative one charter rather than allocate state funding from both schools.
spending, a limit imposed by state it appropriately between our two Epic One on One expenditures
statute meant to keep the bulk charters,” said Shelly Hickman, in 2019 topped $90.2 million, with
of state education funding in the a spokeswoman for Epic and an $5 million spent on administrative
classroom. assistant superintendent at the costs. Epic Blended’s total expen-
Epic’s superintendent, Bart Ban- school. “EPIC administration ditures were $41.6 million with
field, was notified of the penalty serves both charters so we don’t $164,950 in administrative costs.
last month, according to an email understand the agency’s direction. In 2018, Epic appeared to spread
obtained by The Frontier through It is also confus- out some of its
an open records request. ing to us because administrative
The total penalty of $530,527.20 the agency has us costs between its
is based on Epic exceeding the allocate admin- two schools, as
allowable limits on administrative istration appro- Epic One on One
expenditures by 5.58%. priately between spent $1.5 million
School districts with more the two charters on administrative
than 1,500 students are not al- in annual school costs, compared
lowed to spend more than 5% of personnel report- to $1 million by
expenditures on administrative ing. Amid this Epic Blended.
costs, which includes salaries for confusion, we are Epic’s two
superintendent, assistant superin- exploring options, schools now top
tendent or any employee who has which will likely include applying 28,000 students and have drawn
responsibility for administrative for a statutory waiver from the scrutiny in recent years following
functions of a school district. State Board of Education.” rapid growth. The school also has
The amount will be deducted However, state superintendent drawn the attention of Oklahoma
from Epic’s next state aid pay- Joy Hofmeister told The Frontier State Bureau of Investigation,
ment, according to the email to there is no statutory waiver or ap- where investigators claim the
Banfield. peal available to Epic. school has falsified enrollment re-
Thirteen school districts exceed- “Even if there were, I wouldn’t cords and that Epic’s founders split
ed administration spending limits recommend it,” Hofmeister said in at least $10 million in state fund-
in fiscal year 2019, according to a a text message statement. “Epic ing that was sent to Epic.
report from the State Department waited until the 11th hour to certi- Epic has denied any wrongdoing
of Education. fy this data as accurate under pen- and no charges have been brought
The penalties for the 12 other alty of law. (The State Department against the school or its employees.
districts averaged $19,468, with of Education) sent Epic a lengthy The Frontier is a nonprofit focus-
penalties on school districts rang- list of questions on Dec. 20, 2019. ing on investigative and watchdog
ing from $27.39 to $39,514. Epic’s Despite multiple inquiries, Epic journalism. For more information
penalty of more than half a million has yet to respond. There is no or to donate, go to www.readfron-
dollars is 10 times more than any confusion here. The penalty will be tier.org.
Property of OPS News Tracker and members of the Oklahoma Press Association.