LA School Report has learned that ‘fiscal mismanagement’ and a host of other irregularities are the reasons behind the sudden closure last month of two LA Unified charter schools, Magnolia Science Academy 6 and Magnolia Science Academy 7, according to a letter sent from LAUSD’s Charter Division.
Both are considered high-performing schools; MSA-6 is a middle school in Palms serving about 140 students, and MSA-7 is an elementary school in Van Nuys which serve 300 students.
The document was sent by the district on June 27, to the schools’ non-profit parent organization, Magnolia Public Schools (MPS) which operates 11 schools across the state, some of which have also been subject to scrutiny.
Mehmet Argin, Chief Executive Officer of MPS says the decision by LAUSD to rescind their charters came with no warning, leaving families with few options. “Shocked. I was just shocked and surprised,” he told LA School Report.
In the letter, the district outlined the results of its recent audit that found ‘significant’ problems including what it said was a state of financial insolvency, accounting and reporting irregularities, and governance issues. In all, the district says the schools were “unlikely to successfully implement program[s]” and therefore did not meet the bar for their conditional renewal.
According to the letter, the audit revealed that:
- The parent company, MPS, met the IRS definition of being insolvent as of June 2013 and owed money to its schools. One of the schools Magnolia 6, also met the definition of insolvent, the other, Magnolia 7, operated in a deficit mode. Continue reading