In a recent board meeting held by Epic One On One Charter in Oklahoma, the focus turned to the financial health and compliance of the school, particularly regarding federal expenditures. As the meeting unfolded, the atmosphere was charged with a sense of responsibility, as board members and auditors delved into the intricacies of the school’s financial statements.

The auditors presented their findings, highlighting a total of $44,454,000 in federal expenditures for the fiscal year ending June 30, 2024. A significant portion of this amount, $25,298,000, was attributed to the American Rescue Act of 2021, specifically under the ESSER program. This program was identified as a major federal expenditure, underscoring its importance in the school’s financial landscape.

However, the auditors also pointed out areas of concern. They reported an adverse opinion on the financial statements due to the use of a regulatory basis of accounting that, while accepted by the state, raised questions about the overall financial reporting. Additionally, a material weakness in internal controls over financial reporting was noted, particularly regarding the classification of revenues. A substantial amount, initially recorded as local sources, needed to be reclassified as federal revenue, amounting to approximately $4.247 million. This reclassification was essential to ensure accurate reporting and compliance with federal guidelines.

Despite these challenges, the auditors commended the management for their prompt response to rectify the issues once they were identified. There were no significant deficiencies found in the federal awards, indicating that while internal controls needed improvement, the handling of federal funds was largely compliant.

As the meeting progressed, board members engaged in discussions about the implications of these findings. Questions arose regarding the timeline for fully resolving the identified issues, with assurances that the necessary changes would be implemented in the upcoming fiscal year.

In conclusion, while the meeting revealed critical insights into the financial operations of Epic One On One Charter, it also highlighted the ongoing commitment to transparency and accountability. The board's proactive approach in addressing these findings sets a positive tone for future audits and financial management, ensuring that the school remains on a path of improvement and compliance.