Epic Charter Schools Shifts Focus After Audit, Low Test Scores

Epic Charter Schools Shifts Focus After Audit, Low Test Scores

Epic Charter Schools says it is shifting its focus back to student achievement after a forensic audit identified serious financial management failures and new state testing results showed students continue to perform below Oklahoma averages.

The update comes as Oklahoma's largest virtual charter school works to move beyond a budget crisis that resulted in hundreds of layoffs, the closure of in-person learning centers and major operational changes. While the independent audit found no evidence of fraud or embezzlement, it concluded that poor financial oversight and inadequate internal controls contributed to the district's financial problems.

Epic Charter Schools Completes Audit Reforms

The Epic Charter Schools forensic audit, conducted by accounting firm Carr, Riggs & Ingram at the request of the Oklahoma Statewide Charter School Board, examined the district's recent financial operations after a significant budget shortfall.

Investigators found no evidence of embezzlement or fraud but concluded that inaccurate enrollment projections, weak financial oversight and a lack of internal accountability created a financial crisis that forced the district to eliminate programs, close learning centers and lay off approximately 500 employees.

The audit also noted that former Superintendent Bart Banfield and former Executive Director of Finance Jeanise Wynn declined to participate in interviews with investigators before leaving the district.

The Oklahoma Statewide Charter School Board required Epic to complete 15 corrective actions, including implementing zero-based budgeting and hiring an internal auditor. According to the Charter School Board, district leaders report all 15 recommendations have now been completed. Information about the board's oversight of Oklahoma charter schools is available at https://scsb.ok.gov.

Student Achievement Now Becomes Top Priority

With the financial restructuring largely complete, Epic leaders say improving academics has become the district's primary focus.

The latest Oklahoma School Testing Program results show Epic students continue to trail statewide averages, with some of the largest achievement gaps occurring among special education students, economically disadvantaged students and English language learners.

Among high school students receiving special education services, Epic posted a proficiency rate of 14.8%, compared with the statewide average of 51.9%. The district's overall performance index also fell to 60.81%, narrowly avoiding the 60% threshold that could place its charter renewal at greater risk.

The Oklahoma State Department of Education publishes statewide assessment results through the Oklahoma School Testing Program at https://sde.ok.gov.

New Leadership Says District Is Moving Forward

Superintendent Shaun Ross told the Statewide Charter School Board that the district's attention is now centered on improving classroom performance after spending the past year addressing financial instability.

Ross said Epic has introduced new systems to better monitor student engagement, improve test readiness and strengthen accountability throughout the district. He also reported the district has repaid a $30 million line of credit and is carrying a fund balance of approximately $58 million as it enters the new fiscal year.

The forensic audit represents a separate review from the long-running criminal case involving Epic co-founders Ben Harris and David Chaney, who have denied wrongdoing and continue to face pending felony charges stemming from a previous state investigation. The recent forensic audit focused on the district's current financial operations and found no evidence of fraud or embezzlement related to the budget crisis.

As Epic works to rebuild confidence, state officials say the district's long-term success will now depend on whether those financial improvements translate into stronger academic performance for students across Oklahoma.

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