EPIC Blended Learning Charter board accepts 2023–24 audit, hears Jan. 31 financial update

The EPIC Blended Learning Charter governing board voted to accept the school—s financial audit for the 2023—24 fiscal year and approved financial statements for the period ending Jan. 31, 2025, after hearing a presentation from the auditing firm and a month-end financial update.

The audit presentation, delivered on Zoom by partner Kenzie Duarte, said the auditors issued an unmodified opinion on the Oklahoma State Department of Education—s accepted regulatory basis of accounting but noted an adverse opinion relative to U.S. generally accepted accounting principles (GAAP).

"We have an unmodified opinion on the regulatory basis," Duarte said. He also told the board the audit identified one material weakness in internal control related to the classification of revenue and required a reclassification of certain amounts from local to federal sources stemming from Emergency Connectivity Fund activity. Management recorded corrections during the audit and provided responses in the report.

Why it matters: the board heard that federal awards and reimbursements materially affect reported revenue timing and classification. The audit—s schedule of expenditures of federal awards (SEFA) listed total federal expenditures for the year ending June 30, 2024, at $44,454,000, and identified Elementary and Secondary School Emergency Relief (ESSER) programs (CFDA 84.425U) as a major program tested under the Uniform Guidance for federal awards.

Board members asked for clarification about the internal-control finding. Duarte described the finding (referenced in the report as 2024-001) as a failure to consistently identify and classify certain program receipts as federal revenue rather than local revenue. He said the reclassification included roughly $4,247,000 moved from local to federal sources on the statement of activities and that management worked to locate documentation and correct the reporting once the issue was raised.

Janice Swin, deputy superintendent of finance, gave a Jan. 31 financial update to the board, reporting that the district—s fund balance rose in January by about $5.78 million after a midterm adjustment and that cash-balance projections remained positive. Swin acknowledged month-to-month fluctuations driven by timing of federal reimbursement claims and noted a modest increase in learning-fund expenses tied to higher ordering activity over the winter break. "I feel like I could just sit here and cry for a while with the release," Swin said after the audit acceptance vote.

Votes at a glance: the board approved (1) recommended applicants for the Pathways adult high school completion program; (2) acceptance of the EPIC Charter School financial audit for the year ending June 30, 2024; (3) acceptance of financial statements for the period ending Jan. 31, 2025; (4) the consent agenda; and (5) a motion to adjourn. For each vote taken on these items, the recorded roll call was: Miss Berry: yes; Miss Casper: yes; Mr. Hammonds: absent; Miss Myers: yes; Mr. Vela: yes.

What—s next: the audit report includes standard auditor communications under Government Auditing Standards (the Yellow Book) and a schedule of findings and questioned costs. The report notes management—s response to the classification finding; auditors indicated the timing of reimbursements meant the issue was not fully resolved at June 30, 2024, but expected to be resolved in the subsequent reporting period. The board did not direct additional formal actions during the meeting beyond accepting the reports and approvals recorded in the votes.