WFLA

Windsor Prep faces scrutiny over $300K consulting fees, district demands changes

Mark Douglas

PINELLAS COUNTY, Fla. (WFLA) – The Pinellas School District is giving the financially-troubled Windsor Preparatory Academy until March 11th respond to serious concerns and 30 days to deliver a mandatory “corrective action plan” or face sanctions that could result in termination of that charter school contract. According to audits the school’s running a deficit approaching $1million after two years of operation.

In a letter sent last week, Rick Wolfe, Director of Carter Schools and Home Education raised seven district and parent concerns ranging from deteriorating financial condition to unsubstantiated inventories, teacher turnover, and the school’s private management company that collected “unsubstantiated consulting fees in excess of $300,000.”

Wolf says parents are also concerned about the $75,000 federal grant that Windsor had to return last summer because no one could substantiate how that money was spent. At a gathering of angry parents outside of the school Tuesday, Bruce McWilliams, guardian to several children who attend the charter school said he feels betrayed. “Come on we’re not blind and we’re not stupid,” McWilliams said.

Parent Felicia Strysick expressed frustration over the $300,000 in consulting fees that the School District can’t account for in recent audits. “This is a misuse of funds which could be going back to academics for our school and our faculty and staff,” Strysick said.

Windsor Principal Veronica Fly refused to meet with Eight on Your Side for an on-camera interview, but in a later email characterized the Pinellas School District letter as “Grossly inaccurate.”

Fly insists the $300,000 is a legitimate fee paid to the schools private management company Newpoint Education Partners. Fly claims that fee was agreed to by Windsor’s board and the District before the school opened.

According to budget figures for the 2015-16 school year that the Pinellas School District gave to Eight on Your Side, Windsor allotted $375,771 to fund “Board Contracted Consultants” for its elementary school and $192,926 for its middle school operations. The estimated total expenses for both schools for the current school year was estimated at just under $7 million.

Newpoint has been forced to close other charter schools in South Florida and Tampa due to financial and management issues and is currently in the process of losing responsibility to manage still another charter school in Clearwater.

Fly blames last summer’s return of $75,000 in federal grant money on the school’s former accounting firm that “did not follow all the necessary procedures for documenting grant expenditures.”

She insists there is no shortage of “curriculum” as the Wolfe claims in his letter. “Currently, there are teacher manuals for every grade level,” Fly wrote.

“Our teachers are hanging on by a thread,” Wenzel said. “They get paid less than district teachers and they don’t have many benefits.”

As for Windsor’s million dollar deficit, Fly doesn’t give a clear explanation of how it happened or what it’s going to take to fix the problem.. “We have had clean audits ever year of operation,” Fly writes.

None of this sits well with some Windsor parents who put their faith and trust in the school years ago as an independent alternative to public school. “The resources the teachers need they’re not getting, said Wenzel. “The textbooks the kids need they’re not getting.” “It’s very sad to see the outcome,” Strysick said.

Some parents have banded together hoping to dump Newpoint Education Partners, and appoint a new board to run the school. But Fly insists her school-which received a “C” rating last year, is making great strides and attributes all the criticism to a handful of disgruntled parents.

“We are currently in the process of responding to the school district’s request for more information by their deadline,” wrote Fly.

Windsor Preparatory Academy Principal’s Response To News Channel 8

QUESTION: What happened to the $300,000 paid in consulting fees?

Principal Veronica Fly responds:  The line item in the budget labeled “Board Consulting Fees” represents the management fee negotiated in the original contract, which was approved by both the school’s governing board and the school district when the charter was originally approved in 2012.QUESTION: Why couldn’t the school document how it spent the $75,000 federal grant?

Principal Veronica Fly responds: In a financial review, we discovered East Windsor’s former accounting firm did not follow all the necessary procedures for documenting grant expenditures, which made the expenses ineligible for the grant. As a result, we took the only appropriate action, which was to return the money to the school district.  The reimbursement of grant funds ($75,000) was for East Windsor Middle Academy, not Windsor Preparatory Academy, which is the subject of the letter.  However, it is important to note that money was not factored into the East Windsor budget for this school year, so reimbursing it to the state did not have a negative impact on the budget.QUESTION: Why no curriculum, textbooks, teachers quitting etc?

Principal Veronica Fly responds: We have a robust curriculum at Windsor, utilizing an instructional framework that emphasizes three components:  Whole group instruction, peer-to-peer and small group instruction.  These components use both printed text and technology tools in all classrooms which include desktop computers, Chrome books and tablets.  Since the beginning of this school year, the school has purchased additional instructional materials (textbooks, consumables, software, and intervention program licenses).  Currently, there are teacher manuals for every grade level.

Regarding teachers, our goal is to have the best team of teachers possible so we can meet the needs of all of our students. We have had several new teachers join our instructional team this year and they’re getting great results: Our students are showing learning gains in reading, math and science.  Teacher compensation is competitive, and so are the benefits.  Many teachers prefer to work in our schools because of the family atmosphere, flexibility in lesson planning, and administrative support.  In fact, the majority of our staff have chosen our schools for their own children.QUESTION: Why is the school nearly $1 million in debt?

Principal Veronica Fly responds:  Each year, an independent, third-party accountant is hired to audit our finances as required by Florida law and we have had clean audits every year of operation.  We currently in the process of  responding to the school district’s request for more information by their deadline of April 5, 2016.

Letter from Pinellas County School District to Windsor Preparatory Academy

Letter dated: February 24, 2016

Dear Mr. Pergolizzi,

This letter is to memorialize the concerns expressed by Windsor parents at the 2/1/16 board meeting. Additionally, I have been in attendance at the two previous board meetings (12/8/15 and 1/7/16) where similar concerns were shared with the board.  Below is a summary of parent and district concerns:

#1: Deteriorating financial condition

Although the board stated that the audits are “clean”, the school’s 2015 Independent Auditor’s Report findings reported that The school’s overall financial condition is deteriorating.  A letter was sent on 2/23/16 to the Commissioner of Education and Windsor’s governing board with notification that the school is in a state of deteriorating financial condition.

#2: Inaccurate, unsubstantiated inventory

In June, 2015, PCS Property & Records staff conducted an on-site inventory.  A follow-up inventory was conducted by the Florida Department of Education (FLDOE) on 2/8/16.  As a result of inventory inaccuracies (items not labeled, funding source not identified, no identification numbers or location) and in accordance with article 4.13 of the school’s contract, the inventory does not meet compliance.

#3: Lack of curriculum

On 11/19/15, Amy Hayes, Senior Coordinator, and I conducted a site visit where we observed inadequate curriculum.  Based on follow up visits and parent complaints, there continues to be a lack of curriculum (teacher editions, etc.) for every classroom teacher.

#4: Gifted services

The PCS Charter School Office continues to receive complaints from parents that their children are not receiving Gifted services in accordance with their child’s Educational Plan (EP).  A parent reported being told that the dedicated Gifted teacher was moved to a teaching vacancy in the middle school and that this was the decision of the management company not to hire another teacher because the school is not at capacity.  The school is currently providing Gifted services in a “cluster” model by out-of-field teachers; services delivered in a cluster model require a Gifted endorsed teacher.  Based on The school’s current employee roster, only one teacher is Gifted Endorsed; however, this 3rd grade teacher is not teaching Gifted classes.  In addition, sending home out-of-filed letters does not meet Gifted compliance requirements.  Gifted services must be provided in accordance with the school’s contract.

#5: Spanish

First semester Spanish classes were eliminated without parent notification and in violation of the school’s contract with the district.  Although an online Spanish program has been implemented for second semester, parents expressed their displeasure with the online program and Spanish being taught by out-of-field teachers.

#6: Teacher turnover

The board agreed to use state School Recognition funds for teacher bonuses.  Parents commented that they believe this will do little to entice and retain teachers due to the severity of issues at the school. Two teachers and the assistant principal have resigned since the February 1st board meeting and the date of this letter.

#7: Newpoint Education Partners Management Company

Parents questioned why Newpoint high school’s board is separating from the management company and Windsor’s board continues their involvement with the management company in lieu of the numerous issues.  Parents shared their concerns about Newpoint Education Management Company’s reimbursement of $75,000 to the district and the impact this may have on the school; unsubstantiated consulting fees in excess of $300,000; a multi-year fund deficit currently reported at $991,600 in the school’s Independent Auditor’s Report (resulting in a deteriorating financial condition); and the additional costs incurred with the hiring of a new accounting firm, additional custodial services, and new computers.

As a result of these concerns, I am requesting the governing board submit a written response by March 11th, 2016, to each of the concerns addressed in this letter.

Thank you,

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