Epic Audit Finds Causes For Past Financial Problems
- Trezli Cramer
- 3 days ago
- 2 min read
The Oklahoma Statewide Charter School Board audit followed layoffs at Epic and the need for a $30 million loan
An unprecedented financial crunch at Epic Charter Schools that led to some 500 people losing their jobs and the need for a $30 million loan stemmed from too-rosy enrollment predictions and mismanagement, according to a forensic audit released earlier this month.
The Oklahoma Statewide Charter Schools Board ordered the audit, which found no evidence of criminal wrongdoing. The audit, from national accounting firm Carr, Riggs & Ingram, coincided with layoffs that rocked Epic and sparked concerns about use of public funds and appropriate financial oversight at the state's third largest school district.
According to the audit, Epic rushed into overly ambitious growth to meet perceived demand statewide without properly considering cost and usage. This rapid expansion of microsites and other properties helped squeeze the district financially at a time when it was facing a financial cliff following the end of ramped-up federal pandemic funds.
Epic also over-hired for the 2024-25 school year based on questionable enrollment projections, auditors found. The district expected an increase of approximately 6,000 students and staffed accordingly. However, enrollment fell short of that, with enrollment around 30,000 students.
The audit took months to complete and involved examining more than a year's-worth of Epic's financial records. Auditors also interviewed a number of current and former staff members to determine what happened and why the district felt compelled to make the decisions it made. Auditors also weighed in on the district's oversight and governance procedures.
In a statement to ENN, Epic spokeswoman Erin Hatfield noted the audit revealed no misappropriation of funds. She said the district plans to address or has addressed the 15 recommendations auditors made to ensure Epic remains financially sound going forward.
"We are grateful for the audit as it presented Epic with a clear roadmap on the work that needs to be done, and we look forward to restoring trust in Epic for every student, family, teacher and staff member. We are driven by our promise to educate our 31,000 students and prepare them for their bright futures," Hatfield said.
Two of the key members of the district's leadership team, former Supt. Bart Banfield and former Chief Financial Officer Jeanise Wynn, resigned last year. Epic has since hired Dr. Shaun Ross as superintendent. He started Jan. 6.
The state charter school board chairman pointed to Wynn's habit of keeping two separate budgets and lack of transparency overall as part of the problems the audit was intended to address.
“These findings underscore why independent board oversight matters, why engaged executive leadership matters, and why basic financial controls are non-negotiable in public education,” SCSB Chairman Brian Shellem said in a press release. “The consequences of what happened at Epic were real and tragic, with nearly 500 people losing their jobs and public funds being mismanaged.”