JUST IN: LAUSD expands probe into Magnolia charter schools
Posted on July 17, 2014 1:30 pm by Vanessa Romo
Magnolia Science Academy 7 LAUSD
Magnolia Science Academy 7
* Updated
LAUSD’s audit of two Magnolia Science Academy charter schools leading
to their possible closure has triggered investigations into the
financial health of six other schools run by the same non-profit
group.
“We are looking at the other Magnolia charter schools through the
Office of the Inspector General,” Superintendent John Deasy told LA
School Report today.
The district denied the charter renewal applications for Magnolia
Science Academies 6 and 7 after an independent audit conducted on
behalf of the district determined that the schools’ parent company,
Magnolia Public Schools (MPS), is insolvent. The audit uncovered a
number of fiscal management violations.
MPS, which is based in Westminster, Calif., operates eight schools
within LA Unified that serve more than 2,700 students. It also runs
three other schools in San Diego, Santa Clara and Costa Mesa.
The organization told LA School Report today it is appealing the
denials to the LA County Board of Education, an avenue that state laws
provide. The schools have also filed for an injunction in LA Superior
Court to allow the schools to remain open. A hearing is set for July
24.
LA Unified’s chief legal counsel, David Holmquist, said the district
routinely expands the scope of its investigations when there is
evidence of potential instability.
“It’s our normal course of action when we get a report that says
something is wrong,” he explained.
Holmquist said the findings of further investigations could launch the
revocation process for the remaining Magnolia schools, putting the
future of more than 2,300 students in jeopardy.
About 140 students who attended Magnolia Science Academy 6 in Palms
and another 300 who attended Magnolia Science Academy 7 in Van Nuys
will have to find new schools to attend starting in the fall.
Fiscal mismanagement problems and low enrollment have plagued most the
LA Magnolia campuses since the first charter was founded in 2002. Most
recently, a 2012 audit of Magnolias 1, 2 and 3 by the Inspector
General’s office found that Magnolia “needed to strengthen their
internal control systems and their oversight of fiscal and financial
operations.”
According to that review of the non-profit group’s financial
statements and accounting records numerous concerns emerged such as:
non-disclosure of transactions; failure to maintain required reserves;
failure to appropriately apply accrual basis of accounting;
insufficient monitoring of cash receipts and deposits process;
insufficient documentation for disbursements; a lack of control over
journal entries, and lack of adequate training for the accounting
staff.
Despite the irregularities, the district did not initiate the
revocation process for any of schools. Instead, it made
recommendations for the charter management company to correct the
problems.
These are Magnolia’s eight schools in LA Unified:
Magnolia Science Academy 1- Reseda
Enrolls 538 Students
Charter renewed in 2012 and expires in 2019
Magnolia Science Academy 2 – Valley
Enrolls 440 students
Charter renewed in 2012 and expires in 2017
Magnolia Science Academy 3 – Carson
Enrolls 426 students
Charter renewed in 2012 and expires in 2017
Magnolia Science Academy 4 – Venice
Enrolls 202 students
Charter renewed in 2013 and expires in 2018
Magnolia Science Academy 5 – Hollywood
Enrolls 240 students
Charter renewed in 2013 and expires in 2018
Magnolia Science Academy 6 – Palms
Enrolls 137 students
Charter was up 2013, not renewed
Magnolia Science Academy 7 – Van Nuys
Enrolls 301 students
Charter was up 2013, not renewed
Magnolia Science Academy 8 – Bell (Pilot School)
Enrolls 497 students
From: Baghdasarian