Unjust Enrichment

Trying to avoid accountability.


"When the Ohio Department of Education dug into the attendance reporting of Provost Academy Ohio, a small, Columbus-based online charter school, it found that the school was being paid far more than it should have received based on the actual time students spent logged into school-related activities.


Some wonder what would happen if the same scrutiny was applied to online charter schools that are five to 90 times larger than Provost. As lawmakers crafted new charter-school reforms, questions arose about the accuracy of e-school attendance"


What would happen is that they would see that the attendance is grossly inflated, probably fabricated and that the schools are receiving improper funding.  I would bet big on this, thus the push back.


"Hanna would not say specifically what would cause problems for e-schools. “We all want to be accountable. We just need to find a way to meet their requirements within the systems that exist now.”"


I call bullshit on that statement. They do not want visibility or accountability. 


http://www.dispatch.com/content/stories/local/2016/03/01/lax-attendance-tracking-allows-800000-state-overpayment-to-online-charter-school.html


"According to its five-year forecast, Provost will repay the state up to $850,000 in “overfunded foundation payments” over the next three years.


As a result, the school’s operator, Edison Learning, needs to contribute to operations or defer management fees during these years, the report said. The management company is paid $250,000 a year to handle administrative and other duties.


The Ohio Council of Community Schools is paid 3 percent of the school’s state aid for a sponsorship fee. The report does not mention deferring or waiving sponsorship fees."


Pretty soon you are talking about real money!

The worm is turning for the online school scam

As it should be:


Online schools are losing support, creating divisions in the national charter school movement.


They will gladly take the money and promise result sometime in the future.  What is the cost to the students and taxpayers?  Online schools have been very good for the owners.


http://www.cleveland.com/metro/index.ssf/2015/11/online_schools_are_losing_supp.html


Poor test results at online schools are creating divisions in the charter school community in Ohio and nationally, leading some national leaders to question whether e-schools should even be part of the charter school movement anymore.
At the top of the list is Nina Rees, head of the nation's largest charter school organization, the National Alliance for Public Charter Schools, who is distancing herself from online schools and the damage they are causing to the public perception of charters overall.
After a visit to Ohio earlier this month, Rees said e-schools - schools where kids take all their classes by computer at home, instead of in classrooms - are dragging down the overall performance of charter schools in Ohio and other states.
"If you were to eliminate the (test scores of) online schools, the performance of the state would dramatically improve," Rees said.


Stanford study creating waves
The study in question, and one that has sparked a renewed debate over the entire online school model, came late last month from Stanford University's Center for Research of Educational Outcomes (CREDO). Researchers found that students in online schools – – learn far less than students in other schools.
Nationally, students learned the equivalent of 72 days of school less in reading and 180 days less in math, each school year, CREDO found.


CREDO found the scores of kids not only fell when they switched to online schools, but they rose when students went back to traditional schools.


Marie Hanna, executive director of Ohio Connections Academy, also had criticisms of the CREDO report, saying the virtual twin comparison "doesn't make sense."
That school is owned by Pearson, the international education giant that recently drew criticism in Ohio for its handling of the PARCC Common Core exams.
Hanna was far more reserved than the others and said that despite her reservations, CREDO's report is a call for more research.


"CREDO brings up some concerns," Hanna said. "No doubt about it. It brings up the need for more research in the e-school environment to really understand what's working and what isn't.''


Online schools receive about $6,800 per student a year in state tax dollars to run their schools, regardless of how much students learn.

A .375 GPA

Some insights from a recent auditor’s report.  I think  I am reading this correctly. 

Imagine Schools Inc. has been justifiably  criticized for paying a subsidiary more money in rent than it does for its teaching staff and producing poor results.  The national benchmark for rent is 15% according to an article in the Columbus Dispatch. 

A recent audit of Ohio Connections Academy shows that teaching and administration total $5,268,575.  Overhead totals $6,003,793.   113% more than the money for teaching salary and benefits.  Overhead is undefined.  This money flows out of the state to a Maryland management company, Connections Learning,  who does with it as they wish.  There is little in bricks and mortar expense.  Compare that to 15% rent benchmark.

The management company can recycle the same software year after year.  They can sell essentially the same software to multiple states.  The transfer and accounting of the overhead expense insures that the non-profit altruistic E-school never will show a profit.  Useful to show why they cannot pay teachers more or to elicit sympathy from parents or politicians.  They are the underdog. 

Yet it is a very profitable business for the management company. Connections Learning, K-12 and others are aggressively expanding in every state possible.  Underdog status also justifies the need for more money and more students.  See page 20 on the attached link. 

What are the latest state report card results for this E-school?  1 C, 2 D’s and 5 F’s.  A .375 GPA.  It would be nice if they could move the decimal point.

To help manage the multimillion dollar budget they hired a part-time treasurer  who is under indictment for her role as treasurer with Cincinnati College Preparatory Academy.  I guess there is no need for an on-site full time treasurer. 

The audit also shows unresolved title money issues totaling $668,642 (see page 46).  When will this be resolved?  To paraphrase a politician, pretty soon we are talking real money.  At best it shows that they are sloppy with their record keeping.  At worst is suggests that they are playing with the allocations to put more of scarce title money in their pockets at the expense of taxpayers. 

https://ohioauditor.gov/auditsearch/Reports/2013/Ohio_Connections_Academy_11-Hamilton.pdf

There is an obvious problem.  Look at the proliferation of E-schools in Ohio.  Who benefits?

What is needed?  Transparency, strong boards (which are not lead around by the nose by the management company), and oversight.  These characteristics exist in the vast majority of our public school districts.  Oh by the way, results  would be good too.

E-Schools, Charter Schools and Governance

The E-schools themselves are set up as nonprofits.  The nonprofits are run by an unelected board.  The K-12’s and Connection Academy’s of the world set up the board. The board agrees to contracts with K-12,  OHDELA or Connections Academy without competitive bidding.

The structure encourages malfeasance and the siphoning of profits to the parent companies.  For all intents and purposes the E-Schools run the boards.  The boards depend on the E-schools for the information to manage the school.  The board members are not paid.

An excellent article by Denis Smith here :

http://dianeravitch.net/2014/03/26/ohio-denis-smith-on-charter-school-governance-part-2-who-owns-charter-schools/?relatedposts_hit=1&relatedposts_origin=28843&relatedposts_position=2

“All control and direction for the school comes on high from corporate, and such constructs as school governing boards and local governance amount to distractions. Clearly, local control is an oxymoron to the Dennis Bakkes of the charter school industry.

The memo also makes it clear that no autonomy is expected of the boards which are chosen mostly by the company’s regional managers. While the best of our nation’s schools usually feature a collaborative model where teams of teachers work with school administrators, privatization of public schools that are operated by national chains seems to come only with a top-down approach, and any semblance of a governing board to provide guidance and oversight for the school’s operations is not to be tolerated in Bakke’s world.

In Ohio, the Revised Code treats a charter school as a school district, with its own treasurer, chief administrative officer, and governing board. But state law also allows great latitude regarding the operation and governance of the school, and current law requires that each school have a minimum of five board members, with no other qualifications stated in the law.”

Denis Smith was a consultant with the Ohio Department of Education and reviewed Ohio Charter schools.  His commentary is available through Diane Ravitch's Blog.  http://dianeravitch.net/2014/03/25/denis-smith-of-ohio-who-governs-charter-schools/

Raymond Lambert of Connections Academy once had this to say about boards.  I understand that he has set up many boards in Ohio, Michigan and Indiana.

“I wonder why people sit on Boards? Is it a cheap self esteem boost?”

 

 “ I often think the many Boards I have seen are lead around by the nose anyway.”

 

http://www.connectionsacademy.com/news/ray_lambert_school_leader.aspx

I know that the superintendent of Ohio Connections Academy, Marie C. Hanna, recruited her close friend and former neighbor, Pamela S. Bowers, to sit on her board.  Independent?  Objective?

 

Combine a couple of hand-picked board members and combine that with a couple of well-meaning but unqualified parent board members and you have a serious but profitable governance situation.  Again, where is the independence?

Keep in mind that a billion dollars has been transferred out of the public schools to charter schools in Ohio.