Kern County board issues notice of violation to Central Academy of Arts and Technology over fiscal concerns

The Kern County Board of Education voted to approve issuance of a formal notice of violation to the Central Academy of Arts and Technology (CAT) on April 8, 2025, after the Kern County Office of Education (Kern County Office of Education, KCSOS) presented evidence that the charter school is operating with significant fiscal instability and incomplete financial reporting.

KCSOS staff told trustees that CAT’s second interim statements showed rapidly growing deficit spending, a negative projected ending fund balance for the current year and material inconsistencies between the numbers reported to the board and entries in the school’s general ledger. The county office said those discrepancies, combined with repeated failures to post minutes and agendas under the Brown Act, together created a material and uncured violation under Education Code § 47607. The board approved issuing a notice of violation, which gives CAT 15 days to submit a corrective remedy; the county board will review that response at its May meeting and may proceed toward a revocation hearing in June if the problems are not cured.

Why it matters: If CAT cannot demonstrate short-term solvency and a credible plan for sustained operations, the county may begin revocation proceedings. KCSOS officials said delay without corrective action could leave the county liable for unpaid payroll and other obligations if the school runs out of cash.

What KCSOS presented KCSOS assistant superintendent Jonathan Medina and other finance staff laid out the office’s findings. Key elements cited by the county office included: - Large drop in reported average daily attendance (ADA) from figures used in CAT’s original petition (petition listed 370.5 ADA) to certified mid‑year counts: first‑interim assumptions dropped to ~199.41 ADA and CALPADS P‑1 actual ADA was reported at 168, the presenters said. - A swing from a modest projected deficit at first interim into an almost $700,000 projected deficit in the second interim, producing a negative ending fund balance for 2024–25 (county staff characterized the available resources as negative roughly $394,000 based on the second‑interim package submitted to the office). - Material mismatches between amounts the charter reported in its second‑interim submittal and the general ledger supplied by the charter’s back‑office provider: revenue reported to the county was about $175,000 higher than ledger entries, while expenditures reported were roughly $300,000 lower than the ledger — a combined material variance the county called a “lack of confidence” in the charter’s financial reporting. - Failure to post timely board agendas and minutes and other Brown Act compliance problems that KCSOS staff flagged in prior letters of concern.

KCSOS timeline and process KCSOS staff told the board the office had been communicating concerns to CAT since at least February 21, 2025, and had issued a letter of concern earlier in the school year. Because the county determined the violation to be material and uncured, the recommended next step under Education Code § 47607 is a formal notice of violation. The timeline presented by KCSOS: if the county board approves issuance tonight (April 8), CAT has 15 days to submit a remedy (the county office set an April 23 deadline for that submission). The county board will review the charter’s remedy and supporting evidence at its May board meeting (May 15). If the remedy is not adequate the county board may issue a notice of intent to revoke and set a public hearing in June. KCSOS emphasized that a formal notice of violation is an enforcement step, not an immediate revocation; it opens the statutory cure period required by law.

School leaders and parents respond Dozens of parents, teachers and students addressed the board during public comment, urging trustees to allow the school time to correct the problems and to avoid shutting down a school they said has produced strong social and academic results for many enrolled students. Parents and students described academic gains, improved attendance and stronger family engagement since the school opened, and urged trustees to provide CAT a chance to show a solvency plan. Several parents and students said they or their children would be harmed if the school closed.

CAT’s board president, David James, and executive director Joanna Kendrick told trustees they were working with lenders and a back‑office partner to secure short‑term financing that would close the cash‑flow gap and allow the school to finish the year and carry toward 2025–26. School representatives said a private loan under discussion would cover the immediate deficit, and they asked the county to allow the corrective process to proceed so underwriting could complete. KCSOS staff said they had been notified of loan efforts, but the county needs verifiable documentation (loan agreement terms, closing schedule and cash‑flow support) to accept that remedy. KCSOS also said it had not received certain requested documentation in a timely way.

Formal action and vote The county board approved issuance of the formal notice of violation. The adopted motion instructs KCSOS to deliver the notice to Central Academy of Arts and Technology and to accept any corrective remedy submitted by the charter within the statutory cure period; the county board will evaluate CAT’s response at its May meeting and may schedule a June hearing if the remedy is inadequate. The vote at the April meeting recorded affirmative votes by the trustees present; no formal opposition was recorded on the motion on the meeting record.

What happens next - CAT has a statutory window (15 days from delivery of the notice) to file a written remedy with supporting documentation to the county office. KCSOS staff said they will review that submission and present findings to the board on May 15. - If the charter demonstrates credible, verifiable financing and remedial steps, the county could discontinue a revocation and place the charter under close monitoring — including requirements to deliver monthly fiscal reports and other conditions. If the remedy is insufficient, the county board may issue a notice of intent to revoke and schedule a public hearing in June under Education Code § 47607.

Key speakers (selected) - Jonathan Medina, Assistant Superintendent, Fiscal Support, Kern County Office of Education (presented financial analysis) - Dr. Mindenborough, Superintendent, Kern County Office of Education (overview and legal process) - Joanna Kendrick, Executive Director/Principal, Central Academy of Arts and Technology (CAT) - David James, President, CAT Board of Trustees (CAT board spokesperson) - Multiple parents and students who provided public comment; student speakers described academic and social improvements at CAT.

Clarifying details and figures - Petition year‑one ADA listed in the charter petition: 370.5 (as reported by KCSOS review of the petition) — used as original budget basis. - First interim ADA assumption used in revised budget: ~199.41 ADA (county notes this was a downward revision from the petition assumptions). - CALPADS P‑1 (actual certified) ADA cited: 168 (county cited P‑1 actual certified data). - Projected deficit growth (first interim → second interim): county described a jump from roughly $125,000 deficit at first interim to roughly $700,000 projected deficit at second interim (material growth reported by CAT’s submitted second interim). - KCSOS said the charter’s submitted second interim reported revenue of about $2.4M while the general ledger posted $2.3M; second interim reported expenditures ~ $3.2M while ledger posted ~ $3.6M (material variance on both sides). - A cash‑flow chart included a $2,000,000 projected inflow in April 2025 the charter referenced as a potential loan; KCSOS said that inflow was not represented elsewhere in the charter’s budget documents and the loan terms had not been provided to the county for verification.

Proper names and entities mentioned Central Academy of Arts and Technology; Kern County Office of Education (KCSOS or county office); Kern County Board of Education; California Education Code § 47607; Fiscal Crisis and Management Assistance Team (FICMAT); Grow (back‑office provider referenced by CAT); CALPADS; Education Code notice and interim reporting processes.

Searchable tags: ["charter","fiscal","notice_of_violation","Education Code 47607","Kern County","CAT","KCSOS","audit","public_comment"]

Salience Overall: 0.88 — material risk to a local school, immediate deadline and possible revocation. Impact scope: local; attention level: high; budgetary significance: 0.75 (material deficits and cash‑flow risk); affected population: estimates of enrolled students approx. 200 (approximate, not specified by the charter in a single consistent number).