Department of Education

Charter School Accountability Meeting

September 9, 2008

Academy of Dover Charter School

Attending Committee Members:

Nancy Wilson, Dorcell Spence, Mike Owens, Joanne Reihm, Clifton Coleman

Dr. Wilson called the meeting to order. The purpose of the meeting was to discuss Academy of Dover Charter School’s formal review and to take such action as deemed appropriate. For the purpose of the record introductions were made:

Nancy Wilson, Deputy Secretary of Education, Chair of Accountability Committee

Dorcell Spence, Associate Secretary, Finance and Administrative Services, member of committee

Mike Owens, Associate Secretary, Adult Education & Workforce Development, member of committee

Cliff Coleman, member of committee

Mary Cooke, Deputy Attorney General, counsel to the committee

Judi Coffield, Policy Analyst, State Board of Education

Joanne Reihm, member of committee

Scott Kessel, Charter School Finance

Linda Fleetwood, Charter Schools Office

Rebecca Acevedo, ISDC

Karen Scaggs, Charter Schools Office

Dr. Wilson reviewed the conditions that were placed on the school’s charter as a result of their renewal application. There was discussion about the school’s enrollment. As of September 8, 2008 the enrollment was 241 students which is 67% of the approved enrollment of 361. Mrs. Spence said the school received reduced start-up funding of 50% with another 25% to be provided after the September 30th unit count.

Dr. Wilson discussed the school’s litigation with Mosaica. The school has not yet provided information regarding a payment schedule. The school has no assets to pay the liability at this time.

Mr. Kessel said he had received an updated financial statement from the school but because of the power outage at the Department of Education was unable to provide a copy of the statement for the meeting. There was discussion about what the worst case scenario would be as far as the enrollment figures for the school to stay financially viable. Dr. Wilson said concerns were expressed to the school representatives about the accuracy of the financial information when the committee met with the school representatives on August 12th. At that meeting Mr. Rodriguez and Ms. Sanchez said they would correct the financial report. It does not appear this was done yet. There was discussion about the carryover amount listed in the budget. Mr. Kessel said it appears the budget is based on an enrollment of 257 students. He said the school is close to losing their principal unit. Mrs. Spence said the school did not earn a principal unit last year when they had an enrollment of 205 students. There was discussion about the September 30th unit count giving a clearer picture of whether the school could be financially viable. Dr. Wilson commented that the school had indicated they would need to hire an additional fourth grade teacher and asked if that expense was in the budget.

There was discussion about the school’s rent. Mrs. Spence said the rent is based on the number of students. Currently the school pays $420,000 a year if their enrollment falls between 261 and 280 students. If the enrollment falls below 261, the rent would be $410,000.

There was discussion about condition number 6 which states the schools’ board is to submit signed confirmations on a monthly basis that a board member has reviewed and agreed that the monthly financial report and forecast was accurate. Dr. Wilson said this is an issue because those confirmation letters are not always received.

Dr. Wilson asked Mrs. Cooke to review the by-laws.

Mrs. Fleetwood said there have been no changes with the board members since last year.

There was discussion about the internal control procedures manual not being used and lack of response to the audit findings. Mrs. Fleetwood said the charter schools office received a response to the audit findings on August 12, 2008 containing corrective actions.

Dr. Wilson asked Mrs. Reihm about student achievement results. Mrs. Reihm said the school is still a distance from the state’s percentage of children meeting the standard which is required by the school’s performance agreement. Dr. Wilson asked Mrs. Reihm to check the student lists for any discrepancies which change their achievement results.

There was further discussion about the conditions. The school had submitted their Annual Report timely and the board of directors had participated in board training. Dr. Wilson said the school had submitted their assurances with their consolidated application. She said condition 18 is incomplete and that condition 19 is ongoing with the school providing necessary information on a timely basis to the auditor’s office. Dr. Wilson pointed out that the school was to file a report on their nutrition services program by July 31st. To date that report had not been received. Mrs. Fleetwood said the school only had one uncertified teacher who is no longer employed by the school. Dr. Wilson said the school is still working on revisions regarding curriculum.

Dr. Wilson said in summary that she would suggest to the committee that there are 2 primary issues. One is the impact of the low enrollment which has a financial impact but is also having a programmatic impact. She said the second issue is that there are some continuing concerns about meeting the conditions fully. She said several conditions had responses submitted but not a full response in terms of what is needed to comply with the condition and that some conditions were not met on a timely basis.

Mrs. Spence said the school’s enrollment last year was 205. She asked if there was any indication that the low enrollment had hindered the instructional process. Dr. Wilson said the school is still not providing English Language Arts alignment. Mrs. Spence asked if this was because of a shortage in resources that the school can not provide this alignment. She said the school survived last year with an enrollment of 205 and are at 241 at this time. She asked what level of enrollment is not functional. Mr. Kessel said the school did deficient spend last year by borrowing on past money. Dr. Wilson said the school is on academic watch and were on academic review the year before. She said their overall academic performance rating has declined. Dr. Wilson said the committee needs to make a recommendation of whether or not further remedial measures are needed. She said Mr. Rodriguez made a comment at the meeting that the school did not have the staff resources to do everything he felt was appropriate. For example Frameworks books were purchased but they did not have any training to use them in a productive way. Mrs. Cooke commented if whether the committee is trying to connect some of the programmatic issues as a direct result of low enrollment. Mr. Coleman said he believes that connection has been made. He said Mr. Rodriguez commented that he has the books but he can’t afford the training. Mrs. Spence asked if the committee can draw some conclusions to provide support in saying there are concerns about the low enrollment.

Dr. Wilson commented that Mr. Rodriguez said there were a lot of procedures that were missing or were not being followed and that he felt that was contributing to some of the financial issues. Dr. Wilson said the food service audit was a concern. She referred to condition 24 placed on the school’s charter which states failure to comply with any condition of renewal shall result in the immediate placement of the school on formal review to begin the charter revocation process. Dr. Wilson referenced condition 20 which requires providing necessary information on a timely basis each year to the Department’s school nutrition services program. She said this is a program where the school has been in arrears, has had serious findings, had a recent audit, and had not done the financial report which was due July 31st this year.

Dr. Wilson made a motion that the preliminary report reflect the discussion of the meeting and recommend further remedial measures. She said the school is currently on probation. She said it needs to be documented that the school is not fully meeting the conditions that were assigned as part of the renewal application. Mr. Coleman seconded the motion.

Dr. Wilson said there should be some preliminary data regarding the September 30th unit count before the public hearing. Mrs. Spence said the audit review takes place in December. She said she will check with the food service division to determine if they are having any communication with the school regarding their July 31st report.

A vote was taken. All ayes, none opposed. Motion carries.

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