The State Public Charter School Authority board approved two staff recommendations regarding Nevada Prep Charter School: (1) issue an organizational notice of concern for 2024–25 and (2) elevate the school’s financial notice of concern to a financial notice of breach and continue heightened monitoring.

SPCSA staff reported Nevada Prep was rated “does not meet standard” in governance, education personnel and operations and was therefore rated out of compliance in the organizational framework. Staff cited multiple missing governance items — including incomplete fingerprint/background confirmation for board members, missing board disclosure forms and absence of evidence that the school presented the SPCSA’s prior OPF ratings and compliance concerns at a board meeting — and delinquent PERS payments.

On the financial side, staff told the board Nevada Prep’s financial position had continued to decline in staff projections. Although enrollment increased from 358 to about 460 students, staff said the school’s ending fund balance remained negative and was projected to be approximately negative $754,000 by the end of fiscal year 2026. Staff reported increased short-term debt, delayed vendor payments, an outstanding FY25 true-up to NDE of roughly $55,000 and PERS arrears of about $84,000.

“Katie Broughton: Overall, Nevada Prep’s financial position has continued to decline per the projections provided,” staff said, and noted monthly reporting and budget documents were not consistently prepared in the fund-based format required by the Nevada Department of Education.

Board members discussed recently received documentation from the school; staff said additional items had arrived but had not been reviewed in time for the meeting and that the new submissions did not change staff’s recommendation to escalate to a notice of breach. The board adopted staff’s recommended motion to elevate the school to a financial notice of breach while maintaining heightened monitoring conditions: monthly budget-to-actual reporting, submission of updated budgets, monthly evidence of timely PERS payments and full access to requested accounting records.

The motion also specified that failure to provide requested documentation by deadlines set by SPCSA staff or to respond within three business days may prompt a subsequent board appearance and possible escalation to a notice of intent to revoke under the financial performance framework.

Representatives from Nevada Prep and affiliated consultants gave public comment after the motions were introduced, saying enrollment growth had created working-capital pressures because state per-pupil funding catches up later in the fiscal year and that the school has been actively paying down historical debts. School consultants asked the board to consider revoking or rescinding the breach in light of recent submissions and enrollment growth; staff responded that it had limited time to review materials received the prior afternoon and the elevation recommendation stands pending further review.