Leaders of Costa Mesa charter flagged for possible violations granted one more extension

A Costa Mesa charter school under scrutiny for possible violations, including overreporting enrollment, unpermitted facility use and charging pupils fees for instruction has been granted more time by the Orange County Board of Education to resolve its issues.

Trustees in a July 7 meeting heard an update on the International School for Science and Culture, whose leaders are tentatively planning to begin a new school year as soon as Aug. 23. The school was flagged by the Orange County Department of Education’s Charter School Unit for several improprieties.

Aracely Chastain, director of the unit, claimed school officials misreported enrollment to the state, offered classes in a city-owned building not zoned for K-12 education and charged fees to families who partook in “childcare” services during the pandemic that included instruction.

Staff requested in June that the board issue a notice of violation to begin the formal process of documenting the problems so they might be resolved, but trustees instead opted to give ISSAC officials until the July 7 meeting to respond informally.

Chastain told board members at last week’s meeting officials had submitted conflicting budgets with inaccuracies and discrepancies in expenditures and fund balances.

“It is troubling that ISSAC administrators and the school’s governing board continue to make decisions that disregard education code, the school’s approved charter and the agreement with this board as their authorizer,” she said.

In a series of public comments, a handful of parents painted a very different picture of the charter school, describing how teachers and administrators went above and beyond to provide a quality education, especially during the pandemic.

“We were amazed at how flexible they were,” said Jay Claus, father of a rising first grader. “Our daughter enjoyed learning, she was challenged and thrived. ISSAC charter schools is, in my opinion, essential for the community and especially for the well-being of our kids.”

A team comprising founder and executive director Padmini Srinivasan and a handful of experts on legal and financial matters — including California Charter School Assn. manager Michelle Anderson, who was brought in to assist ISSAC through a contract approved by the board — detailed steps that had been taken to resolve the issues.

They explained how the pandemic created new and confusing attendance reporting requirements that caused the school to submit the incorrect budget to the state and assured no funds would have to be returned.

Arturo Garcia with San Diego-based ICON School Management said ISSAC would need a cash flow loan while the state funding issue was corrected but anticipated it would be quickly repaid as new, higher levels of funding followed a robust enrollment of more than 200 students in the months ahead.

“We see a very stable year for ISSAC in 2021-22,” he said, projecting an operating surplus of around $600,000 in the year ahead.

School representatives said leaders were in the process of obtaining a city permit to hold classes in the Boys and Girls Club of Costa Mesa in the coming school year and expected approval by Aug. 9 at the latest.

As for the fees, they assured board members everything paid by parents for childcare last year was being refunded, except in three instances, where families donated the refunds back to the school.

“All of these [fees] had been reported in our monthly financials — we really had not an inkling that there was something that was incorrect,” Srinivasan said. “(Now), we are at a point of reorganizing, of strengthening our structure so that we can meet every issue with the care and thoroughness it deserves.”

Board trustee Beckie Gomez said she was concerned OCDE staff had to request information and documents multiple times before school leaders complied, saying it showed a lack of oversight.

But board President Ken Williams came to the school’s defense.

“We’ve taken a lot of flak from the community, from differing (and) political opinions on how your school would be successful. I think it was successful, but we have to admit something happened,” he said. “I hope that you can work things out.”

Trustees voted 4-1 (with Gomez opposed) to hold off on issuing a notice of violation, giving Srinivasan until the board’s Aug. 4 meeting to clear up outstanding issues.

“We’re going to put you in the hot seat — we’re going to make you uncomfortable,” Williams cautioned.

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