Just two weeks before the deal for the jet was approved, IDEA — the largest charter school network in the state — had promised the Texas Education Agency that it would be “strictly enforcing” new fiscal responsibility policies enacted in response to that ongoing investigation.
State education authorities in 2021 began an investigation into IDEA for its financial practices, but the existence of the earlier inquiry makes it clear that allegations of improper spending and conflicts of interest at the charter school network stretch back further than has been previously reported, starting with a whistleblower’s complaint in 2015.
Since then, the Texas-based chain of 143 schools has received more than $3 billion in public education funding. IDEA serves 60,000 students in Texas, with four schools in the greater Houston area and 30 in the greater San Antonio area.
At present, both the U.S. Department of Education and the state education agency are investigating IDEA’s spending and procurement — investigations that were launched in response to “potential financial wrongdoing” that IDEA reported to the authorities, an IDEA spokeswoman said.
The parallel investigations and associated audits have already led to the departure of two CEOs and other top officials at the chain; IDEA points out that the deal for the jet used money raised privately — not public education funds.
In a statement, IDEA spokeswoman Candice Burns wrote: “Every dollar entrusted to IDEA Public Schools should support the success of our students. As IDEA’s board of directors discovered and shared publicly more than a year ago following an investigation they commissioned, unfortunately there was a period in IDEA’s history when a small group of senior executives did not uphold our commitment to direct every resource toward IDEA’s educational mission.
“Instead, these executives directed the use of financial, staff and other resources for their personal benefit. Along the way, they took steps to hide, obscure and misrepresent their activities from board members and other entities responsible for oversight. Those individuals no longer work here.”
Earlier this year, IDEA hired a new superintendent, former TEA deputy commissioner Jeff Cottrill, who was in charge of the agency’s audits and investigations into IDEA.
Questions loom about hotel purchase
The first Texas Education Agency investigation into IDEA’s finances started in 2015 after a whistleblower alleged misuse of state funds, contract procurement violations and conflicts of interest, state records show.
As part of that inquiry, the agency directed an audit of IDEA, which “found no misappropriation of taxpayer funding; however, it illuminated for IDEA’s board some instances where internal controls during the review period should have been stronger,” Burns wrote.
Chief Financial Officer Wyatt Truscheit was given new power to make purchasing and contracting decisions on behalf of IDEA, and purchasing policies were updated.
Then, in October 2019, IDEA purchased a hotel in Cameron County valued at more than $1 million. The Progress Times has reported that lawyers for IDEA are investigating the purchase of the hotel after identifying accounting discrepancies attributed to Truscheit. Last year, IDEA sued the state Attorney General’s office to try to withhold records relating to the hotel purchase from the public.
IDEA says Truscheit resigned. In a lawsuit against IDEA over the terms of his departure, Truscheit says he didn’t resign, that he did nothing wrong and that he was “terminated without explanation.”
“Throughout Truscheit’s tenure as CFO there was never any question that the finances of IDEA were properly accounted for and duly reported in federal tax returns, certified audits and reports to private donors,” his lawyers say in court records. “In all respects, Truscheit’s work for IDEA met or exceeded the standards established by the CEO, Board of Directors, the Finance Committee and the external auditors.”
Less than two months after buying the hotel, IDEA’s board voted to lease the jet — a deal that was cancelled after its terms were reported by the Houston Chronicle.
IDEA founder and then-CEO Tom Torkelson defended the jet purchase in a statement to the newspaper.
“Opponents of education reform have falsely attacked a prudent management decision, creating a distraction from our core work. Though at no time public funds would have been used for the aircraft, IDEA has decided not to move forward with the lease,” Torkelson said.
IDEA investigates itself
In addition to the jet, news outlets reported that IDEA executives routinely used first-class travel, flew on chartered flights, chauffeured SUV services and enjoyed other expensive perks.
Then in February 2020, TEA closed its investigation into IDEA, saying the charter network had complied with the agreed-upon policy changes through the investigation.
In April of that year, Torkelson resigned, accepting a $900,000 severance payment and saying, “I think there was 100 percent unanimity that this was the right call for the organization at this time.” He was replaced as CEO by JoAnn Gama, IDEA’s president.
Within months, freshly cleared from the TEA audit, IDEA launched a second, internal investigation of its own, this time led by a former federal prosecutor. That investigation ultimately confirmed financial wrongdoing from top officials and efforts to cover it up, according to IDEA spokeswoman Burns.
“Former IDEA executives took steps to obscure their activities from board members and other entities responsible for oversight. Those individuals have not worked for IDEA in more than a year. What was uncovered about their activities has been reported to law enforcement as well as regulatory authorities,” Burns wrote.
Now, after self-reporting the results of its internal investigation, IDEA is the subject of an ongoing federal audit conducted by the U.S. Department of Education.
TEA followed, opening a new investigation into the matter on May 25, 2021.
edward.mckinley@chron.com
"Idea" - Google News
August 17, 2022 at 04:16PM
https://ift.tt/hMRXctP
IDEA Public Schools leased luxury jet in 2019 despite state audit - Houston Chronicle
"Idea" - Google News
https://ift.tt/L9omYAW
https://ift.tt/qwscCYA
Bagikan Berita Ini
0 Response to "IDEA Public Schools leased luxury jet in 2019 despite state audit - Houston Chronicle"
Post a Comment