Boys Preparatory Nashville

"Case of Boys Prep shows charter schools face same startup challenges."  The City Paper (TN), 6/21/2013

Dozens of students have left the school. Parents have accused the executive director of assaulting two students. And although the year-end test scores have yet to be released, school leaders say they won’t be pretty...

Rivalries within the leadership at the school shifted attention from the kids in the building to the adults in the boardroom. Meanwhile, handling the school’s 100 seventh-grade boys — a third of whom have some form of learning disability — proved tougher than the founders fathomed...

The Boys Prep board also began hemorrhaging members. In the charter’s short history, 18 people have left the board, some of whom said they felt forced out or were exhausted from dealing with the school’s internal politics.

While The City Paper reached out to current and former members of the Boys Prep board, many never responded, and almost all who did reply refused to talk about their experience on the record, if at all. That includes Monica Davis, an instructor at MTSU who resigned from the board this month after finishing two-thirds of her three-year term. She, too, refused to comment.

“The turnover that they’ve had is primarily related to their inability to settle on strong leadership and consistent board leadership at the beginning,” said Alan Coverstone, MNPS’ charter school guru and the executive director of the district’s Office of Innovation, which oversees charters.

“Lots of groups have good ideas about what a school would look like, but actually running a school is a bigger challenge,” he said. “This is a startup organization. It’s a school. It’s a nonprofit. It’s a lot of things all at once. If you don’t have a pretty good board collegiality — and a pretty good board understanding of how organizations work — it’s a big red flag that we look for,” he said.

That red flag waved high shortly before Boys Prep opened its doors. Three months ahead of the first day of school, Kennedy narrowly survived a no-confidence vote from the Boys Prep school board...

In the meantime, two teachers provided by the Teach for America alternative teaching certification program left the school for more stable gigs elsewhere, leaving Boys Prep suddenly short on staff...

Concerned with possible tinkering with test scores and other misconduct, Kennedy fired the popular school principal, the third since the school’s inception.

While the school board backed the move, it was the first in a series of events that would eventually lead to the founder being ousted from the school...

At least 39 of the 100 students who started with Boys Prep left last school year, and 16 others entered. The number of students cycling out gives the school one of the highest attrition rates in the district. Braddock said he counseled some boys out of the school because it was a good move for those individuals at the time, but would urge them to consider coming back...

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“Charter School Leader Comes Under Fire Over Discipline Methods.” NewsChannel5 (TN), 2/12/2013

NASHVILLE, Tenn. - Tempers got heated Tuesday night at a charter school board meeting in South Nashville where parents say enough is enough.  The founder and president of Nashville Boys Prep has come under fire for his methods of discipline during the first semester of the school year.

Tuesday night's meeting went on for three hours.  The vast majority of that meeting focused on allegations against Dr. Martin Kennedy.  He's been on administrative leave from the school since December. 

That's when DCS and Metro Police opened an investigation into accusations of abuse.  Several parents made their case in front of the board Tuesday night...

DCS has completed its investigation and the agency found the allegations into the accusations of abuse against Kennedy to be unfounded. Metro Police still haven't come to a conclusion in their case. 

Dr. Kennedy told NewsChannel 5 he fully expects to be reinstated as president of Boys Prep.

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“DCS investigating Nashville charter school founder.” WSMV (TN), 12/19/2012

NASHVILLE, TN (WSMV) - The leader of a Nashville charter school is facing investigation over claims he assaulted two students.

Police and the Department of Children's Services are interviewing students and teachers to find out whether Dr. Martin Kennedy went too far when it comes to discipline at Boys Preparatory Charter School.

"I do not feel this individual is stable at all to be around kids. He has no self control, by no means," said school parent Lynn Mullins.

Mullins said her seventh-grade son is scared to go back to Boys Prep after, she claims, he was assaulted by Kennedy...

Marciecilla Giddens said her son was also attacked by the same teacher...

Both mothers have filed police reports, claiming Kennedy - a teacher and the founder of the small south Nashville charter school - took discipline too far...

Neither police nor DCS has commented on the investigation into the parents' allegations...

Also, according to that board member, Kennedy is no longer teaching in the classroom, but as founder of the school, he still has an affiliation with the school...

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Bradenton Charter School

“Manatee charter school scheduled to close.” News 13 (FL), 4/21/2013

MANATEE COUNTY -- About 100 Manatee County students will need to find a new school for next year.

After 13 years, the Bradenton Charter School is closing.

Karen Carpenter Chair of the Manatee County School board said the school is closing because the school failed to meet standards particularly in the area of curriculum and governance.

But parents like Dana Russell say the school is a safe place for children to learn. Half of the kids have learning disabilities and many others have been bullied.

“If they go to public schools they are going to be lost. But here they get one on one. I believe they need this school,” said Russell.

The Manatee School Board is planning to discuss the future of the charter school during Monday’s school board meeting.

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“Parents oppose closing of Bradenton Charter School.”Herald-Tribune, 4/21/2013

... Problems listed in the report include an unstable governing board, no detailed curriculum, no assessment monitoring plan, no ESE or ESOL certified staff, no food sanitation policies and lack of documentation on staff members. Bradley explained that some areas of concern are the same from the school's last review five years ago...

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Imagine School of North Port

“Imagine School fight ends; principal to leave.” Herald-Tribune (FL), 5/9/2013

NORTH PORT - The agreement came at 1 a.m. Thursday for the two sides fighting for Imagine School at North Port after nearly 16 hours of talks...

It was an ending to the charter's contentious legal fight, which began in February when the North Port school tried to fire its parent company and become independent...

In February, Matthews and the local officials complained about paying hefty management fees with public tax dollars every year to the nonprofit company. The board voted to break off from Imagine Schools — one of the largest charter school companies in the nation — and run its own school, a move that the corporation viewed as a coup détat.

Almost immediately, Imagine Schools sued Matthews and the local board for more than $15,000 in Sarasota County Circuit Court and accused them of several charges, including breach of contract.

The high-profile legal battle was fused by multiple court hearings, back-and-forth contradictory emails to parents and a petition to support Matthews that supporters passed around the school parking lots...

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“All eyes on charter fallout.” WWSB ABC 7 (FL), 3/13/2013

SARASOTA COUNTY - Tuesday a judge ruled the principal of Imagine School in North Port could keep his job. However, it looks as though it will be a long fight over the future of the school.

Wednesday we talked to school board and legal experts who say the case moving forward may just impact the future of charter schools across the country.

The future of a local independent charter school and educating more than 1,000 children in it was in a court room this week. "It is not a healthy situation." The judge now suggesting the local school district get more involved. Sarasota County School Board member Caroline Zucker says it's a gray area. "There is no clear cut understanding of who owns what and who is responsible for what."

The fight between the Imagine parent company and the local governing board it appointed will likely continue through the court system. It may also have a bigger impact then just here...

As officials get ready for the upcoming year at Imagine School at North Port, its legal team will prepare for court...

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“North Port charter school breaks off from Imagine Schools.” Herald-Tribune (FL), 2/19/2013

... The drama comes after the local charter school's governing board voted unanimously last week to end its management contract with Imagine Schools, its out-of-state parent company.

“It looks like we're going to war with our former management company,” said principal Justin Matthews, who has led the school since it opened in 2008...

Matthews announced that the school's new name would be Sarasota Preparatory School...

But Imagine Schools isn't willing to let go so easily.

Within hours, the Virginia nonprofit had filed a lawsuit seeking more than $15,000 in Sarasota County Circuit Court.

The complaint says Matthews and the North Port school defamed Imagine Schools with their comments to parents, the School Board and the public.

Imagine Schools also alleges that Matthews violated his non-compete contract when he abandoned his post at Imagine School at North Port and created a rival institution...

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“Imagine School, North Point students arrested after gun found on campus.” WPTV (FL), 1/302013

NORTH PORT, Fla. (AP) -- Police arrested two students at school in North Port after a gun was found on campus.

The Sarasota Herald-Tribune ( http://bit.ly/WPsZ6q0 reports officials were tipped off about the 9 mm handgun when a student told a teacher Tuesday afternoon at Imagine School...

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Fulton Science Academy High School*

“School board: Fulton Science Academy appeal must wait till May, June.” NorthFulton.Com (GA), 4/14/2013

FULTON COUNTY, Ga. – With May 23 the final day of school in Fulton County, it appears probable a decision on the future of the Fulton Science Academy High School will come just days before that date, putting in flux the academic plans for hundreds of high school students.

Last year, the Fulton School Board voted to terminate the charter with FSA HS on June 30, ending its relationship with the charter school after an eight-year partnership. Because there were two years remaining in the charter agreement, the action must be approved by the Georgia Board of Education (GBOE), following a recommendation from the Georgia Department of Education (GDOE), which is handling the appeal.

FSA HS appealed Fulton's decision to the state in January, but officials with the GDOE noted the process was not complete in time for the GBOE's April 4-5 meeting. The date of the May meeting has not yet been set and state officials are not promising completion of the process even then...

However, minutes of the board meeting show about a 7 percent decline in enrollment following the Fulton School Board's action in December, and an open house for prospective students in the spring was canceled because of the uncertainty of the appeal. FSA HS had an enrollment of 250 students at the start of the school year.

Last year, its sister school, Fulton Science Academy Middle School, lost its public school charter and converted to a private school. Morgan did not comment on whether plans have been made to follow the same route for the high school.

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“Financial, operational deficiencies cited in Fulton Science Academy closure.”NorthFulton.com (GA), 12/11/2012

ALPHARETTA, Ga. – The looming closure of the Fulton Science Academy High School has seen none of the drama created last year with the closing of its sister school, the FSA Middle School, as a public charter school.

Noticeably absent are the local politicians and community leaders who came out in force to try and stop the Fulton County School System from revoking last year the charter from the high performing middle school. One year later, few voices have come forward in support of keeping its sister high school open as a charter school.

Last week, the seven-member Fulton County Board of Education voted unanimously to begin termination proceedings against the charter high school at the end of June 2013. If successful, the high school will either close its doors completely in June, or convert to a private high school —the route taken by the FSA Middle School...

The recommendation to close the high school came after an extensive audit over the summer that examined the financial and operational processes of the school. The audit concluded significant deficiencies were apparent, and serious enough to warrant a closing of the school...

In recommending the closing of the FSA HS, Avossa pointed to a number of issues at the school, centered on governance board activities, low enrollment and its practice of charging students hundreds of dollars to take core classes, which should be offered at no cost.

Avossa noted FSA High School has never connected with the community or lived up to its goal of being the feeder school for the FSA Middle School. Its current enrollment of just over 250 students is well below the projected enrollment of 450...

"We've had numerous issues with the school since 2007 and have given them many opportunities to try and improve their operations," said Avossa. "The governance board has had a long history of ineffective leadership and poor decision-making, which has led to many of the current issues."

He pointed to the default on a $19 million bond, which was taken out last year to finance the construction of a campus to eventually house the FSA elementary school (Fulton Sunshine Academy), FSA Middle and FSA High. After Fulton County revoked the charter for the middle school, plans for construction stopped and the loan went into default in June. How the remaining $10 million will be paid back is still in legal limbo...

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* Gulen charter school

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Challenge Charter School

“Newton charter school owes $165K for insurance, rent.” Newton Citizen (GA), 3/27/2013

COVINGTON -- Challenge Charter Academy owes about $165,000 to local and state groups.

The Georgia Department of Community Health, which provides state health insurance benefits for employees, notified the school and Newton County Board of Education on Monday about the school's delinquency of $116,477.57. The department also notified the state Board of Education and the Georgia Charter School Commission about the matter, according to a letter sent to the school...

Additionally, the school owes $48,000 for eight months of rent to the Cousins Community Center, which is a nonprofit entity that was established to preserve the former Cousins campus, from which it rents its building on Geiger Street...

In October, school Principal Ernetta Dailey-Worthy told the Newton County school board that her staff would work to incorporate changes, and she hired a new chief financial officer for the school to develop a strategic plan and help better promote the school.The charter school is expected to close at the end of this school year, after officials with the school decided earlier this month to withdraw the school's petition that would have renewed the charter school for the next three years. In February, the Georgia Department of Education notified the school's foundation that the school's petition would be submitted to the state Board of Education with a recommendation for denial...

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“Newton charter school to close after this year.” Newton Citizen (GA), 3/9/2013

COVINGTON -- Challenge Charter Academy will close at the end of this school year.

#The Newton County School System announced Friday that the school will close, after officials with the school decided to withdraw the school's petition that would have renewed the charter school for the next three years.

Officials with the Georgia Department of Education notified the Challenge Foundation last month that the school's petition would be submitted to the state board of education with a recommendation for denial, according to NCSS.

On Friday, the GaDOE provided a recommendation letter it sent the school on Feb. 27. The letter lists some of the major reasons for its intent to suggest the denial:

-- The school was not able to articulate why it required a charter; there are no ascertainable uses of flexibility and the school appears to function as more of an educational program rather than a school.

-- The governing board is relatively new but knows very little about the operation of the school. The school also lacks a succession plan and board training program.

-- There is no clear separation between the governing board and a proposed school leader, although there is a requirement that the board be autonomous.

-- The school is not able to provide the level of services and programs required of a high school in order for the students to succeed.

-- Student performance does not meet expectation for charter schools and higher accountability, and there no discernible plan to increase student performance...

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Baxter Academy of Technology and Science

“Portland charter school, ousted founder settle legal dispute.” Maine Sunday Telegram (ME), 4/10/2013

PORTLAND — Portland’s first charter school and its founder, who was fired by the board of directors, have settled their legal disputes, both parties announced Tuesday...

The school and Jaques voluntarily dismissed the legal dispute with prejudice, which means both parties agree not to file any further claims associated with the dispute...

The board of directors fired Jaques, who was serving as executive director, in March, citing a pattern of financial mismanagement. Jaques initially refused to relinquish control of some school assets online, and the school sued him to get the material. He complied but then countersued, claiming defamation, and sought punitive damages.

Jaques said the board fired him because a donor insisted on it. The donor confirmed that he wouldn’t have made a $250,000 donation if Jaques had remained as executive director...

Although the two sides have settled, there may still be a state investigation into the application process for Baxter Academy and other charter schools.

The dispute between Baxter officials and Jaques prompted Portland Mayor Michael Brennan to ask the Maine Attorney General’s Office to investigate the allegations of financial mismanagement and determine whether the Charter School Commission properly reviewed the school’s finances. Attorney General Janet Mills declined, saying she lacked the authority...

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Magnolia Science Academy charter schools

“Audit Report – Magnolia Science Academy-Charter Schools.” Los Angeles Unified School District, Office of the Inspector General, 8/20/2012

EXECUTIVE SUMMARY

This report contains the results of our audit of Magnolia Science Academy –Charter Schools (“MSA Schools”). The MSA Schools referred to in this audit were the Magnolia Science Academy-1, Magnolia Science Academy-2 and Magnolia Science Academy-3. The MSA Schools are part of twelve Magnolia Public Schools (MPS) operated by the Magnolia Educational and Research Foundation (MERF)...

Our audit found that the MSA Schools were not in full compliance with the selected provisions, standards and procedures outlined in their respective Charter Agreements. We also noted that the MSA Schools needed to strengthen their internal control systems and their oversight of fiscal and financial operations.
Some of the significant conditions we noted during the audit included:

• The governing board needed to review its existing governance structure to allow for the increased participation of parents, community members and other parties in the Charter Schools’ policy decision areas and other school advocacy.
• The MSA Schools did not maintain all employment documentation in the employee files as prescribed by the California Education Code and the Charter Agreement.
• The MSA Schools did not maintain all the enrollment documentation required by the written enrollment procedures and by the provisions of the Charter Agreement.
• Review of the financial statements and accounting records noted: non-disclosure of related party transactions; failure to maintain required fund reserves; failure to appropriately apply accrual basis of accounting; lack of monitoring of cash receipts and deposits process; lack of documentation for disbursements; lack of control over journal entries, and lack of adequate training for the accounting staff.
• The processes and controls over the bank reconciliation were inadequate. We found one Charter School that dated all reconciliations three days prior to this audit. We also noted that some deposits in transit remained outstanding in bank reconciliations from five months to almost a year.

Conclusion: Our audit noted control weaknesses in governance structure, employment documentation and qualifications of staff, admission/enrollment requirements and various financial control issues managed by the Magnolia Public Schools Central Office at the MSA School sites visited...

Potential Impact

The conditions described above, along with their underlying causes, may have increased the risk of fraud, waste and abuse of the MSA Charter Schools’ funds that could potentially result from the inability to detect irregularities, improper use of public funds or misappropriation of assets. Also, the questioned costs and questionable accounting practices identified in the course of the audit may have resulted in misstated and inaccurate financial statements of the MSA Charter Schools...

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NOTE: Although this internal audit report of these three Gulen charter schools was released in August 2012, the serious findings have not been presented to the public by the media, nor publicly discussed by the LAUSD school board as of 12/1/2012. It is also not known who ordered the audit, or why. If you live in LA, I urge you to pressure your local media to cover the story. More on the Magnolia chain HERE.

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Quest Academy (NV)

“Quest Academy board considers disciplining other school employees.” KTNV 13 News (NV), 1/30/2013

Las Vegas, NV (KTNV) -- It was another late night on Tuesday at Quest Academy...

Principal Connie Jordan was fired for abusing her authority and using taxpayer dollars for personal gain...

A former employee wrote a letter to the board saying the high school administration is incompetent and self-serving...

Also facing action Tuesday night was business manager Robin Vitiello and office manager Melissa Hester. Board members told Hester that school video cameras caught her and Jordan destroying records in Jordan's office last Monday when the school was closed for Martin Luther King Day.

The auditor that Quest hired found checks cut to Robin Vitiello that appeared to be unapproved bonuses. There are also allegations that she was forced to kick some of that money back to former principal Jordan.

Board member Linda Kuhn pointed out, however, that they're not the only entity investigating allegations and that this may be far from over as the case is in the hands of the Attorney General...

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“Quest Academy audit sparks emergency action.”KTNV 13 News (NV), 1/22/2013

Las Vegas, NV (KTNV) -- ... Contact 13 began reporting on Quest in November amid allegations from Miller and other parents and staff about misuse of school money.

Though the State Public Charter School Authority investigated the allegations and found evidence of fiscal malfeasance and abuse of authority, the Quest governing board hired a private auditor to investigate further.

Almost $270,000 tax dollars are in question.

Contact 13 obtained the just-released forensic audit of Quest's finances...

Some of the report centers around Quest Principal Connie Jordan and $15,000 she took in June 2011. The auditor found her explanations for that money are bogus...

In October, 2011, Quest credit cards show more than $4,300 in travel expenses and more than $500 at Walmart for three Kindles, food items and gift cards.

On Connie Jordan's card in November 2011, he found more than $1200 spent on meals, postage, travel, gift cards, a frame, food and tools.

And Jordan spent $5600 more of your tax dollars. At Barnes and Noble she bought eight Nooks and Nook accessories.

At Best Buy: DVDs, a Nintendo DSi and two Turtle Beach Call of Duty video game headsets.

At Walmart: a blu-ray player, movies, clothes, board games, music, Wii games and a lava lamp...

The auditor also found tens of thousands in irregular payments to Jordan and several other school administrators: checks that circumvented the normal payroll process and the board.

The auditor says those checks may indicate that Jordan forced a few employees to kickback money to her from their paychecks...

Reacting to the auditor's findings, the Quest board took emergency action Monday to secure and protect the school.

They took away Principal Jordan's ability to hire and fire, and froze all of her access to school money...

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“You Paid for It: Quest Academy.”KTNV Las Vegas (NV), 11/19/2012 

Teachers quitting, parents enraged and demanding answers, and students caught in the middle. That's what's going on at a local school under investigation by the state. And it's raising issues of abuse of authority and waste of your tax dollars...

Teachers are quitting, citing a hostile work environment. Five have left in just the last month...

It all stems from allegations against Quest Academy Principal Connie Jordan and most of the school's governing board.

Multiple school employees and one board member have filed formal complaints with the State Public Charter School Authority.

In a Nov. 2 letter to the Quest board, the authority says the issues raised in those multiple complaints suggest "among other transgressions, fiscal malfeasance on the part of the school's administrator and a lack of governing body oversight of the school."...

Lucretia Glidewell was contracted as Quest's financial manager. She told the state in her complaint that she was forced to kickback $1,000 a month out of her paycheck to the principal in order to keep her contract.

She also told the state she was "asked to help cover up illegal practices" regarding three $5,000 checks, which she calls an unapproved "bonus" the principal gave to herself...

[Principal] Connie Jordan told the crowd to wait for the state's findings...

She's also facing allegations that she "falsified documents" to the state -- altering her contract to explain the checks as a payout of unused personal time off...

... One week after [assistant principal ] made allegations of wrongdoing to the board, she was placed on paid administrative leave...

While the Charter School Authority conducts its investigation, the Quest governing board will be spending more tax dollars to hire outside companies to audit and investigate their school...

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A website devoted to this situation @ http://questacademylvexposed.blogspot.com/

Letter (11/2/2012) to Quest Academy Governing Body President from State Public Charter School Authority:

http://www.scribd.com/doc/113454427/state-letter-to-QUEST-ACADEMY

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Madrone Trail Charter School

“Madrone Trail parents seek intervention.” Mail Tribune (OR), 11/20/2012

A parent of two Madrone Trail Charter School students urged the Medford School Board Monday to intervene with the operations of the charter school board.

Lorraine McDonald said she represented a number of parents who have come together to share their worries about the charter school board...

McDonald said she was one of the founding parents of the 200-student, Waldorf-inspired charter school, and since its opening, she has grown concerned over the board's ability to manage the school's future...

Members of the Medford School Board said that in order for the charter to be renewed next year, a lot of progress would have to be made very quickly...

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Happy Valley School

“Insiders benefiting in charter deals, Board members, school officials did more than $70mil in business.” The Arizona Republic, 11/17/2012

... The Gaddie family reflects how family ties can run deep at charter schools.

Happy Valley School in Peoria has a three-member non-profit board made up entirely of Gaddie family members, according to the most recent federal tax return. Ernest Gaddie is president. His wife, Delite Gaddie, is secretary, and their son, Glen Gaddie, is a board member...

For several years, the school has contracted with Gaddie Curriculum & Education Consulting, a business owned by Ernest and Delite Gaddie. The company provides business consulting, maintenance and operations services and licenses curriculum to the school, according to tax returns and audits...

In 2010, the school’s auditor in the annual audit began questioning the contracted services with the Gaddies’ company, and said the value of the agreements “were not supported by documentation that provides the method and/or rationale for how such fees for services were determined to be at fair value.”...

The 2011 audit expressed the same concerns...

Nothing prohibits a school’s board from being all family members.

The state doesn’t set limits on the number of family members. The Internal Revenue Service doesn’t restrict board membership, but in recent years it has required non-profits to disclose more information about their boards...

Charter officials say it’s common for family to be involved in the same charter school...

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Burnham Wood Charter School District (three schools)

“Problems bring TEA monitor for Burnham Wood Charter School District.” El Paso Times (TX), 7/21/2012

The Texas Education Agency has assigned a monitor to the Burnham Wood Charter School District as a sanction for many problems the state previously found, including school leaders who misused public funds on some business deals and campuses not properly serving at-risk students.

The charter district's Superintendent Iris Burnham did not return phone calls this week, but in an email she said the district is contesting the education agency's decision to assign a monitor...

A state audit report released earlier this year showed that the district, which runs three charter schools in El Paso [see * below], misused public funds on some property transactions, which allegedly resulted in private benefits for Burnham, who is also the president of the district's board of directors.

The board breached its fiduciary duty when in September 2006 it approved using $1.2 million in revenue bonds to buy property on the West Side from Burnham for Howard Burnham Elementary, a charter school named for the superintendent's late husband, according to the state audit.

Education agency investigators concluded the purchase price far exceeded the property value...

Rebeca Perez, a former textbook administrator at the district who has claimed she was fired for raising concerns to school administrators and to the state education agency, said there should be harsher punishments against the charter district's leaders for misusing public funds.

TEA officials have not said whether the agency reported any of its findings to law enforcement authorities...

"Based on the audit, there's a lot of factual information that tells us there are violations of criminal activity," Perez said. "(Iris Burnham) basically is paying herself from the money entrusted to her. The citizens of El Paso should be concerned because this is taxpayer money."...

The more than two-year state investigation into the district held its accreditation status in limbo for three school years, but the education agency has since accredited the district...

The agency will reassess Burnham Wood's accreditation status if problems at the school are not resolved.

"I wish to express my concerns and caution the board regarding the lack of governance oversight that has resulted in these findings," Scott wrote. "I strongly urge the board to take swift and decisive action to address the many continuing deficiencies identified for the school."

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The three schools of the Burnham Wood Charter School District are the Howard Burnham Elementary School, the Da Vinci School for Science & the Arts, and Vista del Futuro. They are operated by the El Paso Education Initiative, Inc. and are also known as Burnham Wood Schools or the Burnham Wood Family of Fine Schools.

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Context Middle School

“Financial woes, doomed charter school.” The Press-Enterprise (CA), 3/11/2012

Temecula’s Context Middle School was billed as a small learning environment where teachers would emphasize how lessons related to the real world.

When it opened in August, the charter school set out to focus on technology and the arts, with dozens of laptops for students and music lessons during and after school.

Less than six months and more than $800,000 in taxpayer dollars later, Context was gone.

It joins a list of 26 other Inland charter schools that have closed or had their charters revoked in the past 20 years. Charter schools, created to foster innovation and freed from some state rules, sometimes struggle with the administrative tasks and finances needed to run a campus, experts say...

Context was plagued by financial problems, mismanagement and infighting that began almost as soon as its doors opened, according to correspondence and financial documents obtained by The Press-Enterprise under the California Public Records Act.

Among the school’s problems:

Context was in the red as early as September, and school officials failed to address financial concerns raised by the Temecula Valley Unified School District. The school’s board missed a deadline to file a required financial report.

Context founder Michele Smith, a parent who worked in consulting but had no education background, was dismissed from the school’s board of directors in October because of concerns over her handling of school finances.

Rita Blickenstaff, Joanne Gilbreath and Robert Heveron, who made up the Context board when it closed, did not respond to numerous phone and email requests for comment.

In a brief interview in early February, Smith said she spent thousands of dollars of her own money to open Context and wasn’t responsible for its financial problems. Smith blamed problems on other board members and the company Context hired to help with business operations.

Sandro Lanni, president of the firm, Charter School Management Corp., did not respond to a phone message seeking comment. In a Feb. 2 email to Temecula Valley officials, he blamed the Context board, saying the firm was “stunned at the continuous awful governance” by the board.

Smith said the Context board would not address problems, and “anything that would allow the process to cure itself they failed to do.” She did not respond to recent messages seeking further comment.

Board minutes and correspondence between Context and the Temecula school district indicate others believe Smith was to blame for the financial problems...

As early as September, the school was having problems balancing its books, district correspondence indicated. By February, Context had less than $10,000 in the bank, documents show...

As board infighting and financial issues continued, parents tried to work with the school board to address the problems but were rebuffed, said Osmana Nagata, who was president of Context’s parent council.

“We were told just shut up and fundraise,” she said last month...

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Florida charter schools (investigator observations)

“Experiences As A Police Officer With The Ugly Side Of Charter Schools And Their Management Companies.” Florida Public Employees Partnership, 12/15/2011 

With such a strong push for continued expansion in Florida, I am compelled to share my experiences as a police officer with the ugly side of Charter Schools and their management companies. As a former investigator and supervisor of a public corruption unit, several years ago my unit was responsible for a series of criminal investigations involving personnel, owners, and partners of Charter Schools. Where as some of these investigations resulted in schools being shut down and arrests others culminated in utter frustration resulting from criminals getting away with fraud. A fact made possible by industry wide practices that benefit from weak laws and the impossibility of effective industry oversight. 

During the course of these investigations members of my unit worked with a host of local, state, and federal investigators. One of which became the target of a multi-state Federal Bureau of Investigations criminal investigation. Where as, I do not claim to be an expert in the business of running Charter Schools my investigative experience provided a good insight into the big businesses of collecting Tax Dollars for educating public school children. It is from this insight that I share the following:

In everyone of our investigative cases, the schools were set up as nonprofit organizations. Most hired management companies to oversee the day to day operation of the schools. They all had a Board of Directors, had applied for and granted a Charter to be a school from local school districts as governed by Florida State Statute 1002.33 http://www.leg.state.fl.us/statutes/. Their main source of revenue was per pupil funding – called Full Time Equivalent (FTE). Some received more funding based on student disabilities.  In every case the drive to recruit more students was the primary focus of the schools and management companies. Most schools had received additional funding from available grants and all claimed Tax Exemptions as nonprofit organizations.

In just about every case the founders of the Charter Schools had ties to the Board of Directors which authorized the hiring of the management companies to run the schools. Even worse, we discovered the owners of the management companies were either the same as the school founders or were directly connected to them.  All of which revealed major conflicts of interests in most of the decisions made on the spending of Tax Dollars and education of students.

Like the Miami Herald’s Charter Schools expose, we confirmed the common practice of management companies charging for the leasing of school site facilities, vehicles, and materials. Items that were either owned by the management company or linked to their owners.  A practice that was followed with exorbitant management fees charged for services that often could not be explained, were unjustified, or could have been done by school staff for less. In all, these companies’ rule over all matters of business resulted in the majority of the schools’ money being collected by the management company or vendors of their choice without the benefit of competitive bids.

Internally, school staff like teachers, school administrators, and other staff were generally paid less than their public school counterparts. Staff had no benefit of collective bargaining, union representation and as such were at will employees.  Teachers were commonly discovered to be teaching out of field. Interviews revealed there were individuals hired with minimal to no qualifications to teach or perform the job functions of their assignments. The majority of these schools were found to be ill equipped with teaching materials that often were substandard to those in public schools.  The lack of common resources available in public school districts was a constant...

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