NOTE: This story was updated at 6:20pm on Tuesday, Aug. 20, 2024 to reflect the Eagle Academy PCS board’s recent decision.
The D.C. Public Charter School Board (DCPCSB) recently denied Friendship Public Charter School’s request to absorb and fully operate Eagle Academy Public Charter School, a public charter school (PCS) that’s struggling to keep its two campuses open after years of declining enrollment and financial mismanagement.
Those on the board, like Shantelle Wright, who voted against the asset acquisition agreement, and the change in Friendship’s charter that would facilitate such an agreement, said they did so to ensure that Eagle Academy wouldn’t escape accountability.
“I don’t agree that a school should be able to abuse its autonomy with financial mismanagement and turn around and be able to unilaterally decide what the response to that behavior should be,” Wright told her fellow public charter school board members on the night of Aug. 19.
Wright, along with DCPCSB chair Lea Crusey, secretary Shukurat Adamoh-Faniyan, and board member Carisa Stanley Beatty voted against the asset acquisition agreement while DCPCSB vice chair Jim Sandman, and board members Nick Rodriguez and Dwight Davis voted in favor of it.
The 4-3 vote followed more than 90 minutes of discussion about various aspects of the asset acquisition plan, including whether the D.C. Department of General Services (DGS) would approve the lease transfer of Eagle Academy’s flagship campus on Wheeler Road in Southeast. Other points of contention focused on whether Eagle Academy exhausted every option to remain fiscally viable on its own.
Despite her three colleagues’ impassioned calls for continuity and a smooth transition, Wright zeroed in on what she said she long believed to be an abused tool in the public charter sector.
“Our systems shouldn’t allow a failing LEA (local education agency) to decide the response to its behavior, regardless of the time of year,” Wright said. “The current policy practice [of asset acquisition] plays out to circumvent true accountability.”
The Question of What Comes Next
On Tuesday, DCPCSB confirmed that Eagle Academy PCS relinquished its charter. This leaves more than 350 students without a school less than a week before the start of the 2024-2025 school year.
For some Eagle Academy PCS community members, like one who reached out to The Informer anonymously, and even alerted us to the charter relinquishment, the writing was on the wall for several months as Eagle Academy PCS continued to reel from financial mismanagement.
“There has been zero transparency,” the community member wrote. “The firing of staff has continued from Christmas break up until the very last week of summer school and beyond, leaving many people in hard times. I don’t know what the solution should be but there needs to be a deeper investigation into where the money was actually going.”
In 2003, Cassandra S. Pinckney, in collaboration with Dr. Joe Smith, launched Eagle Academy Public Charter School, the District’s first exclusively early childhood public charter school, at the McGogney building, eventually becoming the institution’s flagship location.
After Pinckney died in 2016, Smith would continue to serve at the helm of the school until his resignation earlier this summer, as Eagle Academy’s precarious financial situation, and lack of transparency around it, became increasingly apparent to the District’s public charter school board.
On July 10, Eagle Academy entered a financial corrective action plan with the board, with stipulations that included the strengthening of internal accounting controls, the submission of the budgeted weekly cash flow statements, monthly budget monitoring for variance throughout Fiscal Years 2025 and 2026, and commencing the search for a sublessee in the McGogney building.
Though Eagle Academy PCS’ board embraced the financial corrective action plan, and had been on a path to a rebound with the replacement of Smith as CEO/CFO, the hiring of a new CFO and accounting firm, ongoing financial assessments and staff cuts, they voted unanimously on June 12 in favor of an asset acquisition with Friendship PCS.
During a special DCPCSB meeting on Aug. 14, Jennifer Leonard, Eagle Academy’s newly installed CFO, told public charter school board members the more-than-$1 million in liabilities incurred by the public charter school increases the likelihood that the institution wouldn’t be able to operate throughout the entire school year.
“We’re starting this year with a deficit,” Leonard said. “We don’t want to get into the school year and find out we can’t make the changes on leases or we didn’t get the students we need to make the budget.”
Over the last three weeks, Friendship Public Charter School administrators have made their presence known at Eagle Academy’s two campuses, engaging community members and raising their awareness about the probable merger.
Teachers at Eagle Academy also received provisional offers of employment from Friendship, while leaders continued to engage DGS in dialogue about the lease transfer of the McGogney building. These moves, Patricia Brantley, CEO of Friendship, said on Aug. 14, hinted at the public charter network’s ability to absorb two more campuses without incident.
“Every school is different in terms of demographic, but the demographics of the two Eagle Academy sites is similar to Friendship,” Brantley said. “Eagle does have a high number of students with special needs. It’s not typical for schools that are preschool to third grade. However, we’re operating schools with younger, high-need, special needs populations.”
With asset acquisition no longer on the table, DCPCSB, under the leadership of executive director Dr. Michelle Walker-Davis, will explore the possibility of charter revocation for Eagle Academy.
Some of the public charter school board members who voted in opposition to asset acquisition cited what they called the lack of transparency around Eagle Academy’s deal with Friendship; they suggested that the option be open to more public charter LEAs.
Meanwhile, some people, like Eboni-Rose Thompson, president and Ward 7 representative on the D.C. State Board of Education (DCSBOE), say that DCPCSB should pursue Eagle Academy’s charter revocation. She pointed out, among other things, its financial malfeasance and the possibility that the McGogney building could serve as swing space for students attending District public schools undergoing modernization.
“While the closure of a school is always unfortunate and disruptive, making this decision now allows families to begin the school year afresh. More importantly, it creates an opportunity for long-term stability in Ward 8 and across the education landscape east of the river,” Thompson said in her email to public charter school board members.
“The McGogney building, for instance, presents a unique opportunity to establish a turnkey swing space within Ward 8. This would enable students to remain in the community while their schools undergo much-needed modernizations, and it would prevent scenarios where schools like Nalle are forced to sacrifice play and community space to serve as temporary swing spaces.”
Looking Back at Eagle Academy’s Financial Missteps
In the years leading up to his resignation this summer, Smith served simultaneously as Eagle Academy’s CEO and CFO. This arrangement, board members told DCPCSB during a July 10 public charter school board meeting, laid the foundation for Eagle Academy Public Charter School’s financial troubles.
For years, Eagle Academy struggled to maintain fiscal liquidity, all while relying on grants, lines of credit, and for some time, COVID relief funds, to remain in operation. Between Fiscal Years 2019 and 2023, enrollment decreased by 51% while operating revenues decreased by 17%. A cash infusion from stabilization funding, Paycheck Protection Program loan, and COVID relief funding boosted net assets during the period of declining enrollment.
By Fiscal Year 2023 however, when COVID relief reduced and expenditures more than doubled, Eagle Academy experienced a combined $5.6 million reduction in net assets and cash and cash equivalents.
As enrollment continued to fall, and federal funding along with it, Eagle Academy suffered $3.8 million reduction in net assets and cash and cash equivalents during the 2024 fiscal year. An audited financial statement, issued on Jan. 18, showed that the charter school had 23 days of cash on hand, below the 30-day minimum that DCPCSB requires. By June 28, Eagle Academy had only six days of cash on hand and $2.9 million net loss for Fiscal Year 2024.
Per DCPCSB’s July 10 financial corrective action plan report, the public charter school board noticed Eagle Academy’s deficient financial reporting as early as June 2023, or during Fiscal Year 2023, when the public charter school showed signs of noncompliance and the lack of internal controls to ensure the timely review of key accounts and submission of documents to DCPCSB.
By the end of 2023, DCPCSB also noticed significant differences between its Fiscal Year 2024 Quarter 1 financial statement and its first revised budget for the same period. This triggered demands by DCPCSB’s finance team for Eagle Academy PCS to revise monthly financial statements.
By March, when Eagle Academy’s liquidity had diminished, DCPCSB requested revised budget forecast projections for Fiscal Year 2024 and a preliminary Fiscal Year 2025 budget. These discussions, according to the July 10 document, continued through Eagle Academy’s change in leadership.
During its Aug. 14 meeting, the public charter school board posed several questions about its decision to merge with Friendship PCS, including the prior notice they had given parents. However, as time went on, DCPCSB members, like Wright, remained focused on what she called the Eagle Academy PCS board’s callous attitude toward its fiduciary responsibilities.
“It’s sad that [the Eagle Academy PCS] board lost sight of safeguarding public funds. When we don’t safeguard funds, children always pay the price,” Wright said. “The same population that you highlighted as high needs … can’t afford that. This is not to embarrass you. This is to say that this is what accountability looks like. This board will hold schools accountable when you don’t do what’s right with public dollars.”
One Community Member Questions DCPCSB’s Competence
Some people, like Valerie Jablow, say that DCPCSB didn’t go far enough in holding Eagle Academy PCS accountable.
For years, Jablow counted among several District residents who’ve inquired about, and even documented, the history of fiscal malfeasance at Eagle Academy PCS. In her testimony before the public charter school board on Aug. 14, Jablow criticized board members, not only for renewing Eagle Academy PCS’ charter before an investigation into its finances, but what she called its lack of transparency around its asset acquisition deal with Friendship PCS.
In the spirit of transparency, Jablow reached out to DCPCSB shortly after the July 10 board meeting to request the fiscal out of compliance notice that DCPCSB issued to Eagle Academy in January after the school missed a filing deadline.
That document, Jablow said, counts among several, including a fiscal cause for concern document from last summer, that shows what DSCPCSB hid from Eagle Academy families.
“The public had no idea that something was afoot,” Jablow said. “The public charter school board reviewed the charter and gave Eagle Academy PCS the ‘all clear’ and mentioned nothing about finances. Then they turn around in less than six months and say they’re going to put it on financial monitoring. Either it’s pure incompetence or complicity. There’s no third way.”
Later, while speaking with The Informer, Jablow questioned why DCPCSB didn’t bring Smith to testify during the July 10 and Aug. 14 meetings about his tenure as CEO/CFO at Eagle Academy PCS. Their failure to scrutinize Smith, Jablow said, hints at the DCPCSB’s eagerness to sweep Eagle Academy’s unscrupulous behavior and the public charter school board’s lack of accountability, under the rug.
In the end, she said, District families and taxpayers end up at a disadvantage while Friendship PCS acquires the former McGogney Elementary School on Wheeler Road in Southeast, where one of Eagle Academy’s campuses is currently located.
“Those fiscal notices of concern aren’t made public so families had no choice,” Jablow said in reference to documents that DCPCSB compiled about Eagle Academy PCS during June of last year. “And now it’s an ‘emergency’ and Friendship PCS has to take over and provide a choice. Families’ interests aren’t being recognized. Just Friendship’s. It can get the lease of McGogney, which is worth a lot of money. If you have that real estate, you have power.”
Joe Smith needs to be in JAIL. Please look into the two Charter schools in Nevada and Ohio as well where Joe Smith’s nephew Scott is the head of school and was on Eagle Academy’s payroll. In matter of fact Joe sent computers, IPADS, and furniture to Ohio from DC paid by DC tax payers. All of this was told to the charter board and PCSB defended Joe Smith which shows they will protect white people.
Joe Smith made more money than the Mayor of DC and even lived in the Watermark hotel. Anyone who went to either Ohio or Nevada should be in jail as well because they went to those schools and knew DC funds were used to for students outside DC
https://eagleschoolsoh.org
https://www.8newsnow.com/news/local-news/a-charter-school-in-las-vegas-faces-closure-if-more-than-800k-in-taxpayer-funds-are-not-repaid/
Valerie Jablow Is absolutely correct! This is a huge disadvantage to all parties involved including staff and students. This is beyond low enrollment and if the staff were told about these board meetings from the jump there would be more understanding of how the school was actually being ran. There were times when they weren’t sending out paychecks on time, changing the pay day the week of. At one point insurance was cut off in spring. There were no incentives for staff the entire year, there were many staff members who didn’t even have the needed materials and had to pay out their own pockets . Staff received notifications via email/ letters that the Aflac bill was not paid at the beginning of the summer but eagle continued to take the money out of the checks . Sept, 29 2023 charter LEAs received money for staff ( pay scale increase & retroactive pay) and NOTHING was said to staff about it until June 2024. At the same time they told staff about the possibility of the school closing. A email was sent out about who qualified via the OSSE website, but only a portion( a few paragraphs) was attached to the email. Many teachers/staff had to questions if they qualified bc once again there were not transparency and some eventually just let it go without knowing when the staff received these funds and even if they were supposed to receive it. While staff & students suffered higher ups were still receiving up to 6 figure salaries and some exceeded beyond 200,000. This information was not even available to the public until Eagle started to get investigated. There has been zero transparency. On top of that they decided to place Sabrina O’Gilvie as the schools interim, who continued to NOT be transparent with staff. Not only does she have poor rapport with many staff members but often talked to staff as if they were indeed replaceable or didn’t communicate at all, unfortunately. While some staff made it clear how “close” they were with Sabrina and were able to keep their jobs even though they may not had the qualifications others were fired. Many holding Certs, Bachelors, Masters and even Doctorates and who served eagle for years. Unfortunately the firing of staff has continued from Christmas break up until the very last week of summer school and beyond. Leaving many people in hard times. I don’t know what the solution should be but there needs to be a deeper investigation into where the money was actually going.
JUST NOW Today, August 20, 2024 Eagle just let go of all the rest of there staff at the end of the day, and said they “voluntarily revoking from the charter.” Leaving all the rest of the staff without employment.
This is very sad and unfortunate. Innocent staff and kids will now have to suffer due to the arrogance of those board members that decided to make an example out of Eagle Academy PCS. Listening to that board meeting last night as a former employee of Eagle Academy was disheartening because I know some of the employees that are at Eagle and some have been there for over 20 years. Friendship should have been allowed to merge with Eagle and that’s the BOTTOM LINE!
Valerie Jablow Is absolutely correct! This is a huge disadvantage to all parties involved including staff and students. This is beyond low enrollment and if the staff were included in these board meetings there would be more understanding of how the school was being ran. There were times when they weren’t sending out paychecks on time, changing the pay day the week of. At one point insurance was cut off in spring. There were no incentives for staff the entire year, there were many staff members who didn’t even have the needed materials and had to pay out their own pockets . Staff received notifications via email/ letters that the Aflac bill was not paid at the beginning of the summer. Sept, 29 2023 charter LEAs received money for staff ( pay scale increase & retroactive pay) and NOTHING was said to staff about it until June 2024. At the same time they told staff about the possibility of the school closing. A email was sent out about who qualified but only a portion( a few paragraphs) was attached to the email. Many teachers/staff had to questions if they qualified bc once again there were not transparent and some eventually just let it go without knowing when the staff received these funds and even if they were supposed to receive it. And not much is said about the former CEO/CFO? While staff & students suffered higher ups were still receiving their 6 figure salaries and some that exceeded beyond 200,000. This information was not even available to the public until Eagle started to get investigated. There has been zero transparency. On top of that they decided to place Sabrina O’Gilvie as the schools interim, who continued to NOT be transparent with staff. Not only does she have poor rapport with many staff members but often talked to staff as if they were indeed replaceable or didn’t communicate at all, unfortunately. While some staff made it clear how “close” they were with Sabrina and were able to keep their jobs even though they may not had the qualifications others were fired. Many holding Certs, Bachelors, Masters and even Doctorates. Unfortunately the firing of staff has continued from Christmas break up until the very last week of summer school and beyond. Leaving many people in hard times. I don’t know what the solution should be but there needs to be a deeper investigation into where the money was actually going.
Today 08/20/2024 staff reported into work to be told at the end of the day that they are all being let go because they are “voluntarily revoking from charter”