Report documents past problems at charter school

By: STACY BRANDT - Staff Writer | Friday, December 7, 2007 12:01 AM PST ∞

VISTA ---- A county report released this week says poor judgment and lax oversight led to several problems at North County's largest charter school, where allegations of money mismanagement, nepotism and conflicts of interest erupted into an ugly power struggle last year.

The controversy at Vista-based Eagles Peak Charter School has since subsided; the massive academy split into two separate schools in early 2007. No criminal charges were filed against anyone at either school.

The county report says problems from the past could continue to haunt Eagles Peak, including the possibility that the school will have to return roughly $7.3 million in state funding. The school that branched off, River Springs Charter School, is not included in the audit and would not have to share that burden.

The report was released Tuesday by the San Diego Office of Education, which hired an auditing firm to look into 12 allegations against former administrators at the school that had been lodged by its board of directors. The report specifically studies what it describes as the actions of six top administrators who have since left Eagles Peak.

In addition to examining each of the allegations, the report offers recommendations for how to get the school back on track, including repaying $7.3 million in state funding that may have been based on falsely reported attendance figures.

The report also suggests that Eagles Peak develop policies for dealing with nepotism and conflict of interest, and that it streamline how the school reports attendance.

Eagles Peak executive director Rich Alderson, who took the helm after the controversy erupted, said Wednesday that administrators are already working to address most of the recommendations and have already made many changes. However, he said, there is still plenty to do.

"Certainly, we have our work cut out for us," he said. "We have quite a burden to overcome, but I'm quite confident that we can."

The report doesn't place all of the blame on former administrators. The school's board of directors contributed to the problems by not keeping an eye on expenses, the audit states. Before last year, the school board "provided minimal monitoring, at best," according to the report.

The report specifically examines several decisions and transactions by former Eagles Peak Executive Director Kathleen Hermsmeyer and her management team, including $18,284 worth of food purchases, $32,458 in balance transfers onto school credit cards and the lease of a beach-front condominium for visiting administrators.

Hermsmeyer didn't return phone calls this week. No charges of any kind have been brought against her.

Because school officials never asked for documentation of those credit card expenses, the auditors say it's impossible to determine exactly where that money went. When Hermsmeyer parted ways with the school earlier this year, the Eagles Peak board signed an agreement saying it would not seek to recoup any money.

The agreement was part of a contentious split between two factions within the school that eventually led to the formation of the two separate organizations, Eagles Peak and River Springs charter schools.

Hermsmeyer and several other administrators were hired at River Springs shortly after leaving Eagles Peak.

Eagles Peak runs sites in San Diego, Riverside and Orange counties; River Springs operates schools throughout Riverside County.

Each organization has more than 2,000 students and caters to parents who home-school or want more involvement in their children's education than traditional schools often offer.

Eagles Peak recently hired two top administrators to replace employees who have been filling in since the leadership team was fired.

Now that he has a team, Alderson said he is eager to leave the school's tumultuous past behind and begin planning for the future.

"Now, we want to focus on student achievement," he said.

Contact staff writer Stacy Brandt at (760) 901-4009 or sbrandt@nctimes.com.

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Pre-Registration Comments[-]Go to Top

Sylvia wrote on Dec 7, 2007 5:41 AM:Same names, same behavior, same outcome... They just move from one charter to another but they had their training at GPA. These folks should be held accountable ... What about the child's life that they affected, are the children able to bounce back?

Just the facts wrote on Dec 7, 2007 7:22 AM: Hum no criminal charges? Why not? The answer is simple perhaps the San Diego County Office of Education and the San Diego DA's office should be investigated for not doing their JOB!!! Where there are hundreds and thousands of dollars missing/unaccounted for/discrepancy and so forth the DA looks the other way. Then on the Palgate scandal the DA spent an enormous amount of money investigating $ 350.00 or so. What is wrong with this picture? By the way Stacy Eagles Peak is not the biggest charter school in the North County. The biggest and the meanest is Guajome Park ...

Mike wrote on Dec 7, 2007 8:26 AM:But charter schools are the answer to to all the problems in education right...

Listen up wrote on Dec 7, 2007 9:35 AM:All boards and councils should pay attention to this story- you absolutely MUST provide financial oversight! Do you hear me??????? Main Street groups and other city funded groups need a special look because this is government funding as well!

Kathleen wrote on Dec 7, 2007 9:46 AM: As magistrate Judge Barbara Major said, " If there are no sanctions, than where is the deterrence." The same can be said with these charter schools, "if there are no criminal charges, than where is the deterrence."

Where is the accountability in the North County wrote on Dec 7, 2007 10:26 AM:According to North County Times article, "Founder of large California charter school network indicted," from the Associated Press http://www.nctimes.com/articles/2007/09/05/news/sandiego/5_05_019_4_07.txt "C. Steven Cox, founder of the now-defunct California Charter Academy, One of California's largest charter schools was indicted on 56 counts of misappropriation of public funds and 56 counts of grand theft, according to Michael Fermin, a supervising deputy district attorney. Cox was also accused of failing to file a state tax return, he said." So why do our elected officials, County and local school boards, DA's office, and our local justice system fail monitor, audit or hold charter schools accountable in the North County?

epcs mom wrote on Dec 7, 2007 1:07 PM:I'd just like to say that my kids attend two different Eagle's Peak academies and that they are doing far better academically and socially than they ever did in the local school district.

EPCS EMPLOYEE wrote on Dec 7, 2007 1:20 PM:This school is better off than ever before, everything is moving in a positive direction, rather than backwords with the previous administration....

EMPLOYEE wrote on Dec 7, 2007 1:27 PM:This school is better off than before, everything is moving in positive direction rather than backwords..I wish Riverspring charter well in the future.

Alisha wrote on Dec 7, 2007 1:46 PM:Justice will be served...Nothing has changed at their NEW SCHOOL....just their location. Only time will tell.

Mike wrote on Dec 7, 2007 2:09 PM:The question is will any child at either of those charters be given any accurate information about sex, science or US History? I suspect the "indoctrinees" who attend these two charter 'schools' are the children of those who find facts to be "liberal" and accurate information something to be doled out in small amounts if at all.

I NEED CASH!! wrote on Dec 7, 2007 3:28 PM:$7.3 million I need cash!!! Where can I sign up to get this FREE MONEY and no questions asked by the San Diego DA? Will some please tell me so that I can go sign up? I better call Bonie DA maybe she can help me.

guajome student wrote on Dec 7, 2007 6:34 PM:Everyone needs to just lay off with the comments about Guajome! If you aren't a student there that actually knows what's going on, then you should probably be quiet. Your tax dollars don't even go to us!

ignorace wrote on Dec 7, 2007 7:54 PM:My dear it is our tax dollars that pay for your school. It is our tax dollars that pay for the Prop. O Bond, which cost us TAXPAYES 40 plus MILLION DOLLARS for the construction of Guajome Park Academy. So as TRUE TAXPAYERS we have every RIGHT to question and demand accountability. When you and your friends pay for the millions in tuition and Pro. O Bond costs only will your comments be justified. Please ask your administrators, teachers, and parents to enlighten you on TAXPAYER rights and civic responsabilities.

to ignorance wrote on Dec 9, 2007 7:06 AM:is it standard practice to label kids ignorant for defending their school? Your tone is degrading and patroninzing at the same time...if you have kids yourself they will resent this and you in the end..

ignorance wrote on Dec 10, 2007 8:05 AM: Oh please get a life, my kids love me and they can READ, WRITE and CALCULATE! They also know the facts about taxes, civic responsibility, truthfulness, honesty, integrity, and justice.

Encinitas wrote on Dec 10, 2007 12:24 PM:Is TIP Academy aware of this?

Charter Finance wrote on Dec 10, 2007 3:07 PM:Just a note that wasn't made clear in the article - the $7+ million that the audit recommended might need to be returned to the state was based on the SB 740 legislation that requires charters like EPCS to spend 80% of their revenues on instructional expenses. EPCS had said they spent 80.5% - the auditors felt that about 1%of this was actually administrative, reducing the instructional percentage to 79.54%. Dropping below 80% instructional expenses has the possibility of dropping the school's overall funding to 85% of normal. The auditors then assumed that the school would not resubmit the following year, but would accept the 85% funding level for a full three years without resubmitting (the school may resubmit in any year but schools with 100% funding generally take the maximum term). This is the $7.3 million figure quoted by the auditors - this is not "missing" money or money that was based on overstated attendance. While the auditors mentioned the possibility of attendance issues on a much smaller scale, this was not connected to the $7.3 million.

Logic wrote on Dec 10, 2007 7:38 PM:TIP academy is in the GIFTED clouds. Hum charter finance you analogy does not make sense at all. I know of many parents who spent thousands of their own money for their kid’s education. The charter school led them to believe that it was OK? No it is not Ok!!! These are home-schooled kids spending their own money for curriculum and materials while the charter school received money from the state!

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