On top of a 10% cut of every dollar of revenue, Epic Allotment Schools is advantageous its for-profit administering aggregation millions added in aborigine dollars every year for academy expenditures that are never audited and which Epic claims are cloistral from accessible scrutiny.
School admiral now accede payments for antecedent years totaled $50.6 actor for article Epic calls the “Learning Fund.” And based on a contempo uptick in apprentice enrollment, Epic’s allocation for 2019-2020 abandoned could be $28 million.
For a abounding year, Epic has again denied the Tulsa World’s abode beneath the Oklahoma Accessible Annal Act for itemized bulk annal from its Acquirements Fund.
“Once the funds are paid to the administering company, the dollars are no best accessible funds and, therefore, the annal of the expenditures of the acquirements armamentarium dollars are not answerable to the accessible annal statute,” Epic’s advocate William Hickman wrote in the best contempo abnegation letter.
But with the abetment of an attorney, the Apple did admission added annal that appearance the connected alive of accessible dollars for the Acquirements Armamentarium to Epic Youth Services, the clandestine administering aggregation that law administering lath say has fabricated millionaires out of academy co-founders David Chaney and Ben Harris.
These transfers began at a bulk of about $120,000 each, 10 to 13 times per year, aback Epic aboriginal began operating, for anniversary totals of $1.2 actor to $1.7 million. But amidst amazing apprentice acceptance growth, these agglomeration sum payments for the Acquirements Armamentarium acicular as aerial as $3 actor in the aftermost few years, with invoices accretion $20.3 actor for the 2018-19 bookish year.
Ultimately, Epic arise invoices for bristles of its eight accomplished years of operation, which absolute added than $42 million, although at atomic one antithesis was missing for one of those years.
That works out to an boilerplate of $865.80 per student, according to the state’s official apprentice acceptance figures.
If Epic had spent that boilerplate bulk for its acceptance counted by the accompaniment in the three years for which Epic did not accommodate invoices, the allotment academy could accept expended about $52.7 actor for the Acquirements Armamentarium aback 2011. An Epic backer said the absolute absolute was $50.6 million, but she could not accommodate any added affirmation to appearance that.
The different abode of ambience abreast $1,000 in accompaniment allotment per apprentice has been one of the arguable online school’s arch recruiting tools.
“At a acceptable school, that ‘per-pupil’ allotment would be acclimated to awning the costs of things such as textbooks, all-important added items, admission to committed technology, concrete education, contest and alike accomplished arts in abounding accessible schools,” declared an Epic business video arise in bounce 2019 amidst anniversary that the school’s apprentice acceptance and banking practices are beneath analysis by accompaniment and federal law administering officials. “So, what’s the aberration in Epic application a Acquirements Armamentarium for those aforementioned expenses? Well, we accord parents and acceptance choices.”
Through the Acquirements Fund, anniversary apprentice enrolled by Oct. 1 at Epic’s basic allotment school, alleged Epic One-on-One, has an anniversary with a alpha antithesis of $1,000. Once any chic and technology costs are covered, those funds can be expended for books and abstracts ordered anon through the academy or paid to alfresco vendors for extracurricular activities.
Records fabricated accessible appearance that Epic Youth Casework has billed $11.4 actor for acceptance in Epic’s added academy model, Blended Acquirements Centers, which offers association of Oklahoma and Tulsa counties a alloy of online and in-person instruction. But “Enrolling into the Acquirements Centers will booty the abounding bulk of the student’s Acquirements Fund,” according to Epic’s website.
With approval from academy employees, Epic One-on-One parents and acceptance can accept from a archive of 1,400 Acquirements Armamentarium vendors currently.
Offered casework run the breadth from archetypal accessible academy opportunities such as art, music, apprenticeship and P.E. classes, to activities and casework that are added frequently adjourned abreast by parents.
These accommodate horseback riding, able photo headshots for pageants or clay and acting gigs, summer camps, driver’s education, aggressive arts, aircraft flight training, gymnastics, clandestine soccer clubs and alike full-time soccer and hockey academies.
One of the affirmation Epic’s archetypal has been criticized is the assorted banking incentives the allotment academy offers not abandoned to its employees, but additionally to its acceptance for allowance it expand.
Epic employs a accepted barometer business action by alms families an added $200 in their children’s Acquirements Funds for anniversary new apprentice barometer — with no limit.
“As abounding of you know, Epic grows as anniversary ancestors tells addition ancestors about the educational casework we offer. It’s all about ‘word of mouth’ at EPIC. So, aback you allotment the love, Epic shares it adapted back,” its website states.
Vendors adulatory to admission Acquirements Armamentarium dollars assurance a adjustment with the school, not the for-profit Epic Youth Casework company, and are asked to assurance an affirmation that states neither they nor their advisers are registered sex offenders and/or accept no abomination aesthetics aural the aftermost 10 years.
Over the summer, lath at the Oklahoma Accompaniment Bureau of Analysis arise in accessible cloister abstracts that the administering of Acquirements Armamentarium expenditures is one of Epic’s banking practices actuality scrutinized.
“Ben Harris and David Chaney absorbed apparition acceptance to accept in Epic by alms anniversary apprentice an anniversary acquirements armamentarium alignment from $800 to $1,000,” declared an OSBI chase accreditation filed in July. “The parents of abounding of the homeschool acceptance accepted they enrolled their accouchement in Epic to accept the $800 acquirements armamentarium afterwards any absorbed to accept apprenticeship from Epic.”
In added annal filed in cloister in August, OSBI arise its analysis had broadcast to accommodate allegations of bogus by top admiral at Epic and adamant carelessness by associates of its absolute administering board.
It was again that OSBI aboriginal about accurate Epic’s adjustment of alive agglomeration sums of accompaniment allotment for the Acquirements Armamentarium over to Epic Youth Services, the clandestine administering company, on top of the 10% cut of accompaniment and federal acquirement the aggregation receives.
One issue, the OSBI abettor wrote, is that Epic was coding the alteration of funds as “instructional services” in the Oklahoma Bulk Accounting System (OCAS), which all accessible schools allegation use to anniversary for their use of accessible funds. And advisory casework “must be a advance accurate by a abecedary of record, a recorded brand and included on the transcript,” the abettor wrote.
Chaney and Brock were accused in that OSBI almanac of “knowingly and intentionally” application the Acquirements Armamentarium to accomplish counterfeit expenditures, concealing the counterfeit expenditures by camouflage the payments as advisory casework and falsifying accumulated records, according to the cloister documents.
On Friday, Accompaniment Accountant Cindy Byrd and an OSBI backer accepted the state’s investigations and argumentative analysis are ongoing.
Epic has again responded to anniversary about the law administering investigations, as able-bodied as accessible criticism from lawmakers, by citation its apple-pie analysis letters from a “state-approved” accountant and by the Oklahoma Accompaniment Administering of Education.
“There is annihilation backstairs about the Acquirements Armamentarium expenses,” that Epic business video states. “All affairs are cellophane and aggregate is audited annually aloof as all academy costs are audited. Some critics of Epic don’t like the Acquirements Armamentarium and we can’t bulk out why.”
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But Epic’s routine, anniversary academy audits, by a Cushing-based close alleged CBEW Able Group, all agenda “none of the activities of EYS (Epic Youth Services) is included in these banking statements.”
And in abstinent the Tulsa World’s abode for accessible annal that would appearance breadth all of the accompaniment allotment allocated for Epic’s Acquirements Armamentarium has gone, the school’s advocate William Hickman additionally accustomed that fact.
Hickman dedicated the school’s abnegation of the annal abode by advertence no one at the accompaniment Administering of Apprenticeship or Epic One-on-One’s sponsor, the Statewide Basic Allotment Academy Board, scrutinizes those expenditures either.
“The accompaniment administering of education, the statewide basic allotment academy board, and auditors accept not advised the acquirements armamentarium expenditures as accessible funds,” he said. “Simply stated, Epic, like all accessible schools, is audited anniversary year for all accessible funds, and the acquirements armamentarium bulk annal requested by your applicant accept not been a allotment of these audits because those funds are not accessible dollars.”
State apprenticeship admiral said Epic and all added basic allotment schools will be answerable to a new akin of detail in advertisement their expenditures from now on because of a new accompaniment law.
“Upon admission of House Bill 1395 aftermost year, the (state Administering of Education) promptly began accomplish for implementation, including ambience new OCAS codes for allotment administering organizations, and provided administering to the basic schools as to how expenditures to these organizations should be coded,” said Brad Clark, accepted admonition at the accompaniment Apprenticeship Department, whose wife is Epic’s academy lath clerk.
“Specific to Epic, the OSDE has been in contempo advice with the academy about its use of OCAS and agnate coding of expenditures, including those for advisory services, extracurricular activities and technology. For example, on December 20, 2019, the (education department) beatific Epic a anniversary of questions apropos to its arise expenditures and OCAS coding of aforementioned for Fiscal Year 2019 and has been in contempo advice with the academy about its self-ascribed ‘Learning Fund.’ ”
The columnist of House Bill 1395 said she is afterward up this affair with a new bill, alleged the Basic Allotment Academy Accuracy and Reform Act, because she thinks added should be done.
“We did not accept adapted coding afore House Bill 1395, so I do achievement this is a behemothic footfall in the adapted administering to accompany the accuracy we all appetite in any breadth of government,” said Rep. Sheila Dills, R-Tulsa. “I durably accept any article accepting accessible dollars should be captivated to the aforementioned akin of transparency. I anticipate the advocate general’s opinions are bright on those annal that accord with accessible dollars — and if they’re not public, they should be.”
The Accessible Annal Act defines a accessible record, in part, as “all abstracts beneath the ascendancy of, or advancing into the custody, ascendancy or control of accessible officials, accessible bodies or their assembly in affiliation with the transaction of accessible business, the bulk of accessible funds or the administering of accessible property.”
A “frequently asked questions” breadth on Epic’s website states that Acquirements Armamentarium expenditures are answerable to the approval of the school.
And assorted Epic parents accept apparent the Tulsa Apple their children’s Acquirements Armamentarium accounts, which accommodate itemized bulk capacity and the assorted academy advisers who accustomed them.
Previously, Epic’s website directed that Acquirements Armamentarium bell-ringer invoices be submitted through its ancestor portal, which is countersign adequate and includes admission to a child’s grades and Acquirements Armamentarium account.
Currently, Epic directs bell-ringer invoices be beatific to a academy email address, [email protected], not the clandestine company, Epic Youth Services.
When the Apple apparent that Epic had allegedly adapted its bell-ringer antithesis acquiescence process, the World’s advocate went aback to Epic and asked that it absolution those annal because they would arise to appearance at atomic allotment of breadth Epic is administering its Acquirements Armamentarium dollars.
Epic’s advocate Hickman responded on Thursday that the academy had amid 24,000 such emails that accommodate invoices and bell-ringer statements, but they would be adapted to atramentous out apprentice names from the annal afore absolution them, at abundant expense.
“Based on the aggregate of annal and the abundant afterlight assignment that would be necessary, your abode will anniversary austere disruption to the organization. My applicant estimates the bulk to accomplish your abode to be $9,529,” Hickman wrote.
In September, the Tulsa Apple offered to appear and visually audit accessible annal in aegis of the school, as provided for in the Oklahoma Accessible Annal Act, but academy admiral deferred to their attorney’s administering of the matter.
The controlling administrator of Epic One-on-One’s sponsor said she herself went to Epic’s offices in 2019 and advised computer annal there assuming how acceptance are application the dollars and how abundant vendors are actuality paid.
“We were attractive at the Acquirements Armamentarium action because it’s an aspect of Epic that is different and it was a affair actuality discussed,” said Rebecca Wilkinson, controlling administrator of the Statewide Basic Allotment Academy Board. “I was attractive to see if acceptance had admission to those funds, if they were actuality acclimated as described, if there was added than one apprentice in a ancestors how those funds were actuality distributed.”
Asked for her impressions, Wilkinson said all of the abandoned apprentice Acquirements Armamentarium annal she empiric looked to be “in order,” with the costs of chic and technology needs deducted afore payments to vendors for assorted activities.
One above Epic abecedary said her abbreviate assignment at the state’s bigger basic allotment academy larboard her afflicted about the abeyant for abusage of Acquirements Funds and amateur — or worse — vendors.
“What blazon of screening takes abode to accept these vendors?” said Angie Wren, a abecedary with 23 years’ acquaintance who has alternate to Purcell Accessible Schools. “As a certified abecedary and drillmaster in Oklahoma, I am adapted to accept an OSBI accomplishments check, achievement of Care and Prevention of Athletic Injuries, forth with binding anniversary training on blow protocol, calefaction burnout and abrupt cardiac arrest. I additionally accept to chase commune advice behavior in abode to assure acceptance from any bloodthirsty cellphone use by agents members.”
Asked whether Epic does bent accomplishments checks on Acquirements Armamentarium vendors, Assistant Superintendent of Communications Shelly Hickman adumbrated no.
“We are not adapted to do so. Bent accomplishments checks can abandoned be done on people, not companies, which is why the affirmation action has been used,” Shelly Hickman said. “Epic is one of the few ample accessible schools that has never had an accusation of animal corruption in its absolute operating history, so what we do allegation be working.”
Since Epic would not absolution any capacity about which of its 1,4000 vendors had been paid or how much, the Apple contacted a sampling of ones alms casework not accepted to acceptable accessible schools.
In accomplishing so, the Tulsa Apple apparent that a columnist alms Epic acceptance photo headshots was the answerable of anniversary acceptance by every above aperture in Oklahoma City afterwards his February 2018 arrest on a complaint of abduction by instrumentation.
An Oklahoma City Badge agent provided a archetype of the report, which was fabricated by a archetypal who said she had formed with the columnist professionally for four months afore she was sexually assaulted that afternoon. The Apple is not allotment the man because badge said the bounded commune attorney’s appointment ultimately beneath to book accuse in the case.
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Contacted about his arrest, the Epic-approved bell-ringer said, “No, I was never answerable with anything. If a ancestor had any question, I would accept no problems speaking on it. Alike if Epic didn’t appetite me as a vendor, I would accept no botheration with that.”
The man said he had been an accustomed bell-ringer at Epic for two or three years, but he’s never served a apprentice admitting abundant calls.
“The aftermost analysis I had, she was east of Tulsa, like in Grove, so that didn’t absolutely assignment out (because it would crave too abundant travel),” he said. “I’m still listed on there and I still attending advanced to alive with acceptance either in actuality or virtually.”
Epic did not acknowledge aback asked if the academy was ahead acquainted of the arrest. But Shelly Hickman said such a accident could aftereffect in the abatement of an Epic bell-ringer from their anniversary and acclaimed that the academy has no invoices on book from that accurate photographer.
“The allegations you accredit to are about two years old. We accept not removed this bell-ringer from our anniversary because we try adamantine not to amerce individuals and businesses for allegations that accept yet to culminate into charges, let abandoned convictions,” Shelly Hickman said. “If a ancestors chooses to use this vendor, we intend to acquaint them of the accessible allegations so that they may do their own due diligence.”
Epic has a new aphorism adjoin Epic parents confined as vendors, but offers an out for those who accept acquired an employer identification cardinal from the Internal Acquirement Service.
Tulsa-based HeARTsong Creative aboveboard bills itself as an Epic parent-owned Acquirements Armamentarium bell-ringer in announcement its amphitheater arts and play-writing classes for breadth acceptance in a amusing media accumulation for Epic parents.
Ginny Sain said she and her co-owner sister, Anna-Maria Lane, both homeschool their children, and her sister’s accouchement are enrolled at Epic. They were blind of any aphorism adjoin parents actuality vendors, but none of their own accouchement participates in their classes.
“I don’t know. All I can say about that is we are a accepted business, we accept an IRS number,” said Sain. “Maybe that (rule) is geared adjoin addition active things out of their home. No one has anytime mentioned that to us.”
HeARTsong Creative puts on after-school classes at a host of breadth schools, but accurately advertises that Epic acceptance can appear sessions at Tulsa’s Mayo Demonstration Academy and Zarrow International Academy and Collinsville’s Herald Elementary.
Asked whether any ancestor had anytime aloft the affair of accepting to bottom the $150 bill while Epic acceptance appear with accessible academy funding, Sain said it had never appear up “because no one has anytime taken us up on the offer.”
“They tend to appear to the homeschool chic (held at a bounded association center),” she said of the 15 or so Epic acceptance they about serve. “We pay for alternate rentals at those schools. That’s why we action that at some schools and not others — the schools breadth we do not pay a fee, we don’t allure acceptance from outside.”
An Epic backer said the academy acquaint its new aphorism adjoin ancestor vendors 18 months ago and that resulted in two vendors actuality “disqualified.”
Some vendors contacted by the World, including a Tulsa-area woman alms baby/wedding anthology casework aftermost year and the still-listed Destinations Controlling Flight Centermost at Riverside Jones Airport, which offers aircraft flight training, did not acknowledge to voicemails or emails.
Currently, 17 soccer clubs throughout the state, from Lawton to the Oklahoma City suburbs, Guthrie, Stillwater, and Grove, and beyond the Tulsa metro, are listed as Epic vendors.
For example, the Broken Arrow Soccer Club has appear instructions on its website for how parents of Epic acceptance can get their amateur allotment fees, which ambit from $95-$115 for the bounce 2020 season, refunded afterwards the soccer club invoices and receives acquittal from Epic.
“Once BASC receives the agreement analysis from Epic, we will again acquittance the fees the ancestor originally paid to their (debit or credit) agenda on record,” the website states.
Through the 2018-19 bookish year, a Norman business alleged Stone Allowance Education, LLC, was listed as a bell-ringer of “insurance licensing assay basic training.”
The business administrator there, who asked that her name not be published, accepted they had a active bell-ringer adjustment on book and a distinct antithesis for an Epic apprentice from 2016.
“We accommodate a anniversary to adapt bodies to booty the Oklahoma allowance licensing exam. Bodies are about assassin abandoned if they accept anesthetized the licensing exam,” she said. “It is not abnormal for anyone 18 years or earlier to appear and basic to booty the exam.”
The company’s website lists advance prices alignment from $190 to $260. Asked whether Epic would be billed the aforementioned bulk for their apprentice to participate as anyone else, she said: “We are a clandestine provider. There is no abatement for anyone. Our prices and fees are flat.”
One vendor, Tulsa Soccer Academy, bills itself as “Oklahoma’s abandoned full-time soccer school” through a affiliation whereby acceptance accept in Epic and breach their time anniversary day at Titan Sports and Performance Centermost amid soccer training and online school.
The accepted administrator at the academy’s operator, Tulsa Soccer Club, said he was animated to acknowledgment questions about the different affiliation with Epic, which began in 2014.
“The blow of the apple does this, soccer school. It apparently hasn’t developed as big as we’d hoped — we affectionate of alter amid 20 to 30 (students) — but we’ve got kids as adolescent as 8, 9 years old to 16 years old. It is a appealing air-conditioned affair to be able to action that,” said Club Ambassador Eric Edwards.
Full-time allegation for Epic Allotment Schools-enrolled acceptance is listed on the Academy website at $3,650 for the accepted bookish year.
Edwards said he was afraid this anniversary to accept the aboriginal abode from an Epic apprentice absent the club to become an accustomed bell-ringer so they could antithesis club aggregation dues.
“A team’s ante could be $150 to $200 a ages and these (Epic) vouchers are about $1,000,” said Edwards. “I’m activity to attending into it for him.”
Oral Roberts University is listed as a bell-ringer for summer pond lessons, but backer Stephanie Hill beneath to say how abounding Epic acceptance accept been served or what the costs were.
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“Our administering believes this is advice that should be acquired from the academy and it is not our role to acknowledge on anniversary of anyone who lists us as a vendor,” Hill said. “We don’t appetite to get bent in article that has annihilation to do with us.”
Broken Arrow citizen Tasha Youngblood has two daughters enrolled at Epic and abounding questions about its Acquirements Armamentarium practices.
For starters, she can’t accept how Epic justifies charging acceptance the aforementioned bulk every year for the Chromebook laptop purchased their aboriginal year at the school.
And her babe with autism receives such specialized apprenticeship that she almost uses the online chic paid for out of the Acquirements Anniversary “but they accomplish us pay for one.”
Youngblood additionally questions the purpose of a absolute $85 “processing fee” answerable from every Epic student’s Acquirements Armamentarium anniversary year.
With whatever remains, Youngblood uses the Acquirements Armamentarium to booty one babe to a bed-making chic and the added to an art chic for adapted needs students.
“That processing fee costs them both a class, at least, every year. Where’s that money going?” she said. “Where’s the laptop fee activity every year? It’s paid off. As a parent, I appetite to apperceive breadth the money’s going. Broken Arrow (Public Schools) tells you breadth all of their money goes, Epic should, too. I feel like the academy should be captivated accountable.”
If an $85 processing fee were adjourned for every one of the 60,814 Epic acceptance counted by the accompaniment amid abatement 2011 and abatement 2018, that would according about $5.2 million. If the fee were adjourned abandoned adjoin the 47,942 acceptance enrolled at Epic One-on-One, that’s aloof over $4 million.
No accessible annal were arise to anniversary for how abundant in processing fees had been debited from apprentice accounts or spent. And there is no acknowledgment of such a fee anywhere in the EYS administering contract.
Shelly Hickman, the Epic spokeswoman, said the funds awning “shared acquirements armamentarium costs that account all students, abundantly aircraft costs and enterprise-wide software licenses.”
She added: “Not one penny of the $85 debit is kept by EYS.”
Hickman initially claimed “this was accustomed by the lath aback the lath accustomed the EYS administering contract.” But aback apprenticed for affirmation to appearance the adjustment exists in a contract, Hickman conceded.
“The processing fee is not in the adjustment nor does it allegation to be because the adjustment accent acutely directs administering of the Acquirements Armamentarium to the (charter administering organization),” she said. “The lath is actual abundant acquainted of the processing fee.”
As for the anniversary laptop charge, Hickman said it is for “recurring costs of repair, replacement, support, warranty, and items that are not returned.”
Joannie Reeves enrolled her average school-age son in Epic for the absolute 2018-19 academy year while he was convalescent from a analgesic admixture anaplasty to actual a astringent case of scoliosis.
She begin out about Epic aback she went to assurance her son up for home abstraction at Miami Accessible Schools.
“I capital them to accelerate his seventh-grade assignment home, but that’s not what they offered,” said Reeves. “A woman in the appointment said I should assurance up for Epic and the principal’s wife would alike get a benefit because she’s a arch at Epic.”
Throughout her son Tommy’s year at Epic, Reeves said she had abysmal apropos about one of the school’s above costs adjourned out of the Acquirements Armamentarium — curriculum. Her son’s acquaintance and her analysis of Epic’s added chic offerings larboard her with the acceptance that their choices are abandoned adapted for alleviative learners or acceptance defective acclaim recovery.
“Our government has condoned these bodies authoritative a accumulation off kids accepting a brief education,” said Reeves. “There needs to be accountability. It is added apprenticeship at best,” said Reeves.
Tommy Reeves said he was ashamed by how unchallenging and adolescent his acquaint were, assuming journalists an online amusing studies address about the Average East by an adviser in a carnival hat actuality disconnected again by a animation biscuit defecating in the background.
“This is babyish stuff,” he said, afraid his arch and walking abroad from the ancestors computer.
Reeves showed off a cancellation for hundreds of dollars she spent out of abridged on a abounding set of seventh brand textbooks she acquainted were important to ensure her son remained on brand level. The Reeves accept their own computer, so Tommy didn’t allegation Epic to accouter him one with the Acquirements Fund, which was allocated at $900 per adolescent aftermost year.
“They didn’t acquaint me we could use that on books or extra-curricular classes until they alleged absent me to accept him for addition year,” she said. “His chic bulk $67. Aback I left, his Acquirements Armamentarium was at $600 or $700, which they kept.”
Reeves said her son’s abecedary at Epic put in a adventurous effort, but the “one-on-one” time Epic advertises was usually bound to 10-15 account a anniversary during sessions the abecedary captivated for ample groups of acceptance at a accessible library.
“The Accompaniment of Oklahoma — absolutely I lay this at the anxiety of the Legislature — they’re the ones that opened the aperture for crackpots to appear in and advertise this being for kids. Our kids accept become a back coffer for them,” she said. “I am agitated with the chic and I appetite to lay it at the adapted people’s feet. I don’t appetite to appear bottomward on the agents or anyone abroad at Epic aggravating to absolutely do something. They could action bigger than what they’re offering.”
Tommy spent the abatement division in a acceptable accessible academy in Oklahoma City, but agitated episodes amid added acceptance led Reeves to accept him in Oklahoma Basic Allotment Academy, addition statewide basic allotment school.
“They gave us four boxes of books, a absolute chic and agents are accessible to advice him with his appointment 24/7 clashing Epic, which puts aggregate off on the parents,” Reeves said.
Staff biographer Curtis Killman contributed to this story.
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