The EPIC ONE ON ONE CHARTER SCHOOL Board of Education voted unanimously (4-0, one absence) to accept the school'district'level financial audit for the year ended June 30, 2024, and later approved the financial statements for the period ending Jan. 31, 2025.

The audit presentation was delivered by partner Kenzie Duarte, who told the board the audit carried an unmodified opinion on the regulatory basis of accounting accepted by the Oklahoma State Department of Education but an adverse opinion relative to U.S. generally accepted accounting principles (U.S. GAAP) because the financial statements use a regulatory basis rather than U.S. GAAP. "We have an unmodified opinion on the regulatory basis," Duarte said. "There is an adverse opinion on The U.S. GAAP ... because it departs from U.S. GAAP."

The audit identified one material weakness (finding 2024-001) in internal control over financial reporting: a classification error that initially recorded about $4,247,000 as local revenue that auditors say should have been classified as federal revenue tied to the Emergency Connectivity Fund. Duarte described the issue as related to program classification and timing: "the reclassification was sort of about ... $4,247,000 from local sources to federal sources." Management provided a response on the finding and corrected the reclassification in the financial statements prior to issuance.

The auditors reported total federal expenditures of $44,454,000 for the year ending June 30, 2024, on the Schedule of Expenditures of Federal Awards (SEFA). The American Rescue Plan ESSER program (CFDA 84.425U) was tested as a major federal program; expenditures for that program were listed as $25,298,000. Under federal audit procedures (Uniform Guidance), auditors reported no material weaknesses or significant deficiencies for federal award compliance.

Deputy Superintendent of Finance Janice Flynn gave a separate financial update for the period ending Jan. 31, 2025. Flynn reported a fund balance of 11.8 (as stated to the board) and said January produced an increase of just under $5,800,000 (she described it as about $5.78 million), driven largely by a midterm revenue adjustment: "At January, our fund balance was at 11.8, and I noted the increase ... The increase in January was just under 5,800,000 ... which is great." Flynn said cash balance projections remain healthy and that monthly revenue and expense fluctuations reflect timing of federal reimbursements.

Flynn also described a modest increase in expenses in January tied to the learning fund: higher parent ordering through a new Amazon catalog led to greater spending that month. She told the board the finance team is filing federal reimbursement claims quickly to reduce timing variability.

Board members asked clarifying questions about the audit finding and resolution timeline. Duarte and board members confirmed the classification issue largely reflected timing and program interpretation; Duarte said because the identification occurred after June 30, 2024, the finding remained open for the 2024 report but auditors expect the item to be resolved in next year's audit once the later-period documentation is included. "That is timing ... since the report is as of 06/30/2024, an identification ... occurred after June 30, 2024 ... it should be completely resolved as it is now for the end of report," Duarte said.

The board accepted the audit report and the Jan. 31 financial statements by roll-call votes. The meeting also included a brief governance motion to approve recommended applicants for the Pathways adult high school completion program; that motion passed by the same recorded roll-call.

Votes at a glance:
- Motion to approve recommended applicants for the Pathways adult high school completion program: approved (yes: Miss Berry, Miss Casper, Miss Myers, Mr. Vela; absent: Mr. Hammonds).
- Motion to accept the EPIC ONE ON ONE CHARTER SCHOOL financial audit for fiscal year 2023'24: approved (yes: Miss Berry, Miss Casper, Miss Myers, Mr. Vela; absent: Mr. Hammonds).
- Motion to accept financial statements for period ending Jan. 31, 2025: approved (yes: Miss Berry, Miss Casper, Miss Myers, Mr. Vela; absent: Mr. Hammonds).
- Consent agenda approval and a motion to adjourn were each approved by the same recorded roll-call (4 yes, 1 absent).

The board did not take additional policy action in response to the audit finding at the meeting; auditors and finance staff said management had already implemented the corrected classification in the issued financial statements and that the item is expected to be closed in next year's audit cycle as additional documentation is processed. The board will receive further financial reports and the annual audit documentation in follow-up meetings.