Oklahoma State Department of Education officials say Tuesday’s 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.
Carrie Burkhart, spokeswoman for the Education Department, said rather than any payments, “Instead they (Epic) have responded to the demand for repayment. Now, OSDE is systematically reviewing the response alongside the work papers produced by the State Auditor.”
In October, the state Board of Education voted unanimously to demand back taxpayer dollars from the operators of Epic One-on-One and Epic Blended Learning Centers after an investigative audit identified chronically excessive administrative overhead costs and inaccurate cost accounting.
The board set a deadline for repayment of within 60 days of Epic’s receipt of copies of the state auditor’s “work papers.” Those are public records obtained directly from Epic and interview notes made during the state’s investigative audit used as the basis for the auditor’s findings.
In late January, Brad Clark, general counsel for the state board, told the Tulsa World that the clock on Epic’s 60-day deadline officially began Jan. 23.
Asked Tuesday about Epic’s dispute of her office’s forensic audit findings, Oklahoma State Auditor and Inspector Cindy Byrd said: “We stand by our audit report of Epic Charter Schools. We’re confident the State Department of Education has the information it needs to recover millions of dollars in education funds on behalf of Oklahoma taxpayers.”
Byrd was tasked in 2019 with auditing Epic at Gov. Kevin Stitt’s request.
In an October report, the state’s investigative audit found Epic exceeded the state’s 5% state cap on administrative overhead costs intended to ensure public schools direct most resources on students “year after year.”
In all, $125.2 million of the $458 million allocated to Epic Charter Schools for educating students between fiscal year 2015 and fiscal year 2020 was found to have ended up in the coffers of Epic Youth Services, a for-profit charter school management company that has reportedly made millionaires of school co-founders Ben Harris and David Chaney.
But the state audit questioned how EYS could take $46 million in fees for management services while relying primarily on publicly funded administrative employees of Epic Charter Schools to do the work.
In demanding repayment, the state board of education zeroed in on three findings by the state auditor:
Underreported administrative payroll costs for six previous fiscal years totaling $8.4 million, of which Epic was already penalized about $530,000.
A 2016 episode first red-flagged by accountants at the Oklahoma State Department of Education that showed Epic “inaccurately reclassified administrative costs,” thus avoiding a $2.6 million penalty for exceeding Oklahoma’s limit on administrative costs.
And the discovery that $203,000 in Oklahoma taxpayer dollars was paid to Epic’s charter school in California.
According to public records requested by the World, Epic’s attorney Bill Hickman has responded to the state Department of Education about each of those three findings as follows:
Epic believes the state auditor overstated the penalty Epic should pay for underreporting its administrative payroll costs by almost $8.1 million, but acknowledges it should pay the state a penalty of $307,148.
Epic quoted a state statute that says an administrative cost penalty against a school should be applied by withholding funds the ‘following year,’ which for the 2016 episode in question would have been in 2017 — now five years ago. “We respectfully disagree that the OSDE has the authority to demand the repayment of an administrative penalty from 2016. In sum, Epic’s position is that the OSDE cannot go back more than one year to enforce an administrative penalty,” Hickman wrote.
The $203,000 total in Oklahoma taxpayer dollars paid to Epic’s California charter school between September 2016 and February 2018 were considered loans by the school’s operators. Hickman furnished Bank of Oklahoma statements from Epic’s private management company EYS purporting to show reimbursements between August 2018 and May 2019.
In a written statement, Epic Superintendent Bart Banfield told the Tulsa World the state’s largest school system is grateful for the additional review.
“Epic’s finance team and I have met with SDE officials to discuss the findings of the State Auditor and Inspector regarding the alleged $11.2 penalty. Our primary objective has been to provide the SDE with accurate information about the auditor’s report and demonstrate from Epic’s perspective what, if any, the correct penalty should be regarding the Oklahoma Cost Accounting System coding.
“It’s no secret that Epic disagrees with the (state auditor’s) audit findings regarding OCAS and we appreciate the SDE listening to our concerns and reviewing the data and facts we have and will continue to provide.”
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Improper transfers, chronic misreporting found. MATT BARNARD/Tulsa World
Epic Charter Schools: A Tulsa World investigation
Epic Charter Schools: A Tulsa World investigation
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.
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.
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