Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Audit And Governance topic
No spam. Unsubscribe anytime.
EPIC ONE ON ONE CHARTER SCHOOL board reviews forensic audit, directs policy and oversight changes
Summary
The board reviewed a forensic investigation by Carr, Riggs & Ingram that found systemic financial-control weaknesses but no fraud. Directors voted to direct legal staff to update the consent-agenda and finance policies and discussed creating an internal audit function to strengthen oversight.
The EPIC ONE ON ONE CHARTER SCHOOL board reviewed a forensic investigation of the district's finances and oversight and voted to direct legal staff to update key governance policies.
Dr. Ross, EPIC's superintendent, told the board that auditors from Carr, Riggs & Ingram found "no finding of misappropriation or no fraud that was identified" while identifying 15 audit findings. He said 12 of the 15 findings "are either in progress to be corrected or had been corrected" and that three remaining items would be addressed quickly. "The audit provides us as an organization a clear roadmap to rebuilding stronger," Ross said.
Why it matters: EPIC reported roughly $120 million in year-to-date revenue and a $19.5 million fund balance as of the December close, while carrying a line of credit. The board's decisions affect how the organization documents controls, approves departmental budgets and monitors spending for tens of thousands of students.
What the board directed: Board members voted to direct the Department of Legal Services to develop and present an updated consent-agenda policy and to develop updated financial policies and procedures. Those motions passed with board members present voting in favor; the motions were seconded and recorded during the meeting.
On internal audit: When asked whether EPIC would hire internal audit personnel, Dr. Ross said the system will either create in-house audit positions or contract an outside CPA "to create that stopgap in those safety rails." No formal vote was recorded on creating an internal-audit position during the meeting; the board described the action as part of an implementation plan tied to the policy changes.
Audit findings summarized: Ross and the auditors told the board the report identified three unresolved governance and control gaps: (1) lack of clear, written budgeting and financial-monitoring rules; (2) absence of an internal progress-monitoring or internal-audit function; and (3) departmental budgets that lacked clear board approval and produced what auditors characterized as inconsistent operating-budget tracks. Ross said the first two items were being addressed through new policies and that the third would be corrected "systematically and immediately through transparency."
Board response and next steps: Board leadership framed the policy directions as course corrections to strengthen guardrails and improve transparency. Legal staff were directed to draft the consent-agenda and financial-policy updates for future board review; staff also presented options for establishing an internal-audit role or external contract oversight. The board did not take further formal action on the forensic report itself during the meeting.
The board said staff will return with draft policy language and implementation steps, and Dr. Ross committed to provide additional information on how the remaining audit items will be tracked and closed.
