Virtual schools inflate enrollment; ‘How did we miss this?’

INDIANAPOLIS (WISH) — A recent audit showed two Indiana virtual schools inflated their enrollment numbers, and the State Board of Education said Wednesday it wants millions of dollars in excess funding back.

Some of the findings:

A virtual school kept two students on the rolls who moved to Florida years ago.

Hundreds of enrolled students earned zero credits in the 2017-18 school year.

A deceased student was listed as enrolled.

State Rep. Ed DeLaney, an Indianapolis Democrat, said Wednesday, “This is the worst example of government failure at the legislative, administrative and accounting level that I have seen in 20-something years of Indiana politics.”

The State Board of Education’s audit found Indiana Virtual School and Indiana Virtual Pathways Academy inflated enrollment to at least twice as many students as they had. Because of that, millions in state money went to virtual schools.

“I’m angry as a taxpayer,” Rep. DeLaney said. “I think more important than the money: We put thousands of kids into a system that did nothing for them.”

Daleville Community Schools oversees both virtual schools.

Jennifer McCormick, the state superintendent of public instruction, said, “Obviously, the whole situation is a concern. I commend Daleville for at least, during those audits, they self-reported when things weren’t adding up from the organizer.”

Daleville School Superintendent Paul Garrison said, “This isn’t one of my proudest moments.”

In February, Garrison asked the Daleville School Board to revoke the charters.

The Indiana Department of Education “never received a report at any time, to my knowledge, that 740 students did not (enroll) until our analysis came forward and we put that as part of our objection,” Garrison said.

B.J. Watts, chairman of the State Board of Education, asked. “How did we miss this?”

The board decided Wednesday to try to get its millions of dollars back.

McCormick said, “Today, they decided to basically look at that ADM (average daily membership) number and adjust the monies that go directly to the school. When they cut that, which is a significant cut, that’s their operations for the first six months out of the gate.”

Watts asked if the audit shows potentially criminal activity.

Paul Joyce, an examiner with the State Board of Accounts, answered, “In situations like this, we do contact all of our law enforcement partners.”

Percy Clark Jr., superintendent of the Indiana Virtual School and the Indiana Virtual Pathways Academy, has called the State Board of Education’s review premature. He said, in part, in a letter dated Friday, “The State Board of Accounts (SBOA) admits its audits of the schools are presently incomplete. The SBOA’s evidentiary submission is based on a restrictive, unrepresentative 100 student non-random sample, likely pulled from information provided by Daleville Community Schools (“DCS”). Why rush to judgement when the SBOE essentially adopts the terms and conditions of the proposal Closure Protocols negotiated by the schools and DCS?”

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