TEA Investigations of Children First Academy 2015

1701 North Congress Ave.
'
Austlr\,Texas
78701-1494
512463-9734
'
5124163-9B38FAX
'
www.tezi.state.tx.us
January 12, 2015
Sherwin Allen, Superintendent

Chlldren First
Academy
of Dallas
315 East Whealland Road

Dallas, Texas 75241
Dear Dr
Allen.
Re: Special Accreditation Investigation, as Authorized by the Texas Education Code, 39.057
and a9.osa
Texas Education Agency (TEA) Division of Financial Compliance auditors conducted an
on-sile
special accreditation investigation of the Children First Academy of Dallas attendance records
March 4-8, 2013. The review examined the charter school's attendance reporting for the 20112012 and 2012-2013 school years.
Enclosed you will nd our nal report on this investigation, including our auditors ndings and
corresponding required actions. as well as your response to the preliminary repoit.
We have completed our informal review of the arguments made in your letter dated December
16, 2014, and no changes were made to the nal reporl as a result of the review.
nal report may not be appealed.
If
The enclosed
you have any questions, please contact Justin Jons at (512) 475-1778.
Since
David Marx
Director of Financial
Compliance
DMM
Enclosure
c
Members
of the Board of Trustees

Complaints, Investigations, and Enforcement,
Division oi Charter School Administration, TEA
Bobby Parker, Consen/ator
James Holman, Conservator
Otce
of
TEA
Exhibit
Children First
Academy
of Dallas
January 12, 2015

Re: Special Accreditation lnvestigation
Special Accreditation Investigation

March 4-B, 2013
Children First Academy of Dallas
Executive
Summary
The charter school is in violation of the rules and laws goveming student attendance accounting
lor the 2011-2012 and 2012-2013 school years.
Attendance documentation provided by the charter school did not support the attendance data
reported to the Public Education Information Management System (PEIMS) for the 2011-2012
and 2012-2013 school years.
did not provlde all of the prekindergarten qualication documentation
requested by auditors. During the 2012-2013 school year, the charter school reported
prekindergarten students for funding purposes before completing the qualication process.
The charter school
Page
ol 5
Children First
Academy of Dallas
2015
January 12,
Re: Special Accreditation lnvestigation
Introduction
administration are responsible for maintaining a system of internal
controls and processes in accordance with the Student Attendance Accounting Handbook
(SAAH), adopted by reference by 19 Texas Administrative Code (TAC) 129.1025
The charter school board and
Superintendents, principals, and teachers are responsible to their school boards and to the state
to maintain accurate. current attendance records under the Texas Education Code (TEC),
42.004, and 19 TAC 129.21(a). The following ndings are based on SAAH, TEC, and TAC
provisions and address issues our auditors detected in their investigation.
Special Accreditation Investigation

Division of Financial Compliance Findings
Attendance Reporting for the 2011-2012 and 2012-2013 School Years
Finding 1: The charter school was unable to provide complete sets of original (i.e., source),
teacher-generated attendance documentation for the 2011-2012 and 2012-2013 school years.
Auditors examined teacher attendance rosters for both the Dallas and Houston campuses They
then compared the attendance data compiled lrom the teacher rosters to the data the charter
school submitted to the Texas Education Agency (TEA) through the Public Education
Information Management System (PEIMS).
the attendance reconstruction process, they noted that some of

the preprinted names of students who entered in the
contained
rosters
the teacher attendance
period; thus these rosters were not the source
reporting
attendance
six-week
middle of the
school personnel, and they conmted that
charter
spoke
to
Auditors
attendance documents.
attendance sheet was generated, and
six-week
a
new
school,
in
enrolled
when a new student
roster. Auditors were also provided
to
the
new
over
copied
manually
were
all attendance data
recorded electronically instead of
had
been
date
attendance
the
which
in
attendance meters
As auditors proceeded through
manually,
All
teachers at the chaner school take attendance by hand, so these computerwere not source attendance documents.
generated rosters
The charter school does not have procedures in place to ensure that the transferred attendance
data are accurate since the school does not have a process for teachers to verify their
attendance data. Auditors were on-site during the second week of the litth six-week attendance
reporting period and noted that all the teacher attendance rosters had already been signed by
the teachers.
Required Action: The charter school must ensure that:

I
teacher-generated attendance is reviewed and certied tor accuracy
attendance reporting period
(SAAH Section
2.3.5. Additional
at the
end of each
Required Documentation)
and
end of the
all source attendance documentation is maintained for ve years after the
Audit
General
Section
2.1,
request
upon
(SAAH
school year and is provided to the TEA
Requirements)
Page 2 ol 5
Children First
Academy
January 12, 2015
of Dallas
Re: Special Accreditation Investigation
Using only the attendance documentation that is acceptable under the rules of the
SAAH, auditors reconstmcted the charter school's attendance at the Dallas arid Houston
campuses for the 2011-2012 and 2012-2013 school years and found that the school
overreported days present at both campuses for both school years.
Finding
2:
While reconstructing attendance, auditors noted some instances in which the charter school
underreported days present to the PEIMS Adjustments have been made as part of this report to
ensure that the charter school is lunded for those days.
Dallas Campus #101

2011-2012 School Year
Over-IUnderrepcrted Days
Days Present
Days Present
Weeks
2nd Six Weeks
3rd Six Weeks
4th Six Weeks
5th Six Weeks
Sth Six Weeks
Attendance Sheets
11539.0
10,3680
1st Six
PEIMS
11,2o2.o
11,650.0
9,840.0
12s.o
11,026.0
11,2990
11,1525
10.8585
10,8525
10354.0
Present
Overreported 1,271.0
Overreported 448.0
Overreoorted 146.5
Overreoorted 10,7305
Underreported 101.5
2011-2012 School Year -- Houston Campus #102

Over-/Underreported Days
Days Present
Days Present
1st Six
Attendance Sheets
Weeks
10,4630
2nd Six Weeks
3rd
4th
5th
6th
8,273.5
7,595.5
9,164.0
7.32B.5
Six Weeks
Six Weeks
Six Weeks
Six Weeks
PEIMS
10,4965
10,5355
10,3165
10,122.0
10,0125
10,1365
10,1450
Present
Overreported 33.5
Overreportecl 958.0
Underrepcrted 8.5
2012-2013 School Year - Dallas Campus #101

Ov er-IUnderrepnrted Days
Days Present
Days Present
1st Six Weeks
'
10,9695
10,9625
0.0
Znd Six Weeks

3rd
4th
5th
6th
PEIMS
Attendance Sheets
10,9845
Six Weeks
Six Weeks
Six Weeks
Six Weeks
10,520.0
10,115.0
9,775.5
9,084.5
9,752.5
10,1995
9,873.5
9,720.0
2 012-2013 School
Day s Present
Atten dance Sheets
1st Six
Weeks
10,9855
2nd Six Weeks

3rd
4th
5th
6th
Six Weeks
Six Weeks
Six Weeks
Six Weeks
8,858.0
10.0920
10,4220
1
9,816.5
9.507 0
Present
Overreported 10,9695
Underreported 22.0
Overreported 405.0
Overreported 424.0
Uriderreponed 11.0
Underreported 32.5
Year Houston Campus #102

Days Present
PEIMS
11155.5
11,5920
11.2505
11.0085
.
10.501.0
10,5005
Over-/Underreported Days
Present
Overreported 170.0
Overreported 586.5
Overregurted 684.5
Overreported 993.5 ,__
Page 3 e15
Children First
Academy oi Dallas
2015
January 12,
Re: Special Accreditation investigation
Required Action: The charter school must implement procedures

-
to ensure that:
the school's student attendance
members enter attendance data accurately

accounting software system (19 TAC 129.21(a)),
the campus PEIMS clerks and teachers regularly verify that the data entered in the
attendance accounting system match the data recorded on the teacher attendance
rosters (SAAH Section 2.3.5, Additional Required Documentation), and
end of the
all source attendance documentation is maintained for five years after the
Requirements).
Audit
General
2.1,
Section
(SAAH
school year
in
staff
Effect of Findings: As a result of the above ndings, for the 2011-2012 and 2012-2013 school
years the agency has:
~
restored rened days for the six-week reporting periods in which the charter school
undeneported days present and
~
adjusted rened days for the six-week reporting periods in which the charter school
overreported days present.
result in a decrease of:
124.084 rened average daily attendance (ADA) for the 2011-2012 school year and
100.333 rened ADA for the 2012-2013 school year.
The adjustment will

I
Analysis of the charter school's response to Findings 1 and

reporting for the 2011-2012 and 2012-2013 school years:
The charter school did not provide any additional
2, related to
attendance
original teacher-generated attendance
documentation.
The charter school provided auditors with results from an internal review of their PEIMS
attendance data. The school's internal review determined that the TEA's adjustment
should have been 14.0 days for the 2011-2012 school year and 70.0 days for the 20122013 school year at the Dallas campus and 55.0 days for the 2011-2012 school year and
103.0 days for the 2012-2013 school year at the Houston campus. The documentation
that the school submitted as evidence of their lntemai review showed a comparison of
attendance data between teacher attendance rosters and information from the school's
attendance accounting software. No other evidence was provided. The school's intemal
review did not use the same methods used by the TEA auditors when we reconstructed
the school's attendance data for both school years using only teacher attendance rosters
that meet the requirements set forth in the SAAH.
The charter schoois corrective action plan Identies actions that adequately address the
ndings.
Prekindergarten
Finding
It:
Eligibility
The charter school did not provide program qualication documentation
for some
prekindergarten students and claimed some prekindergarten students for funding before
completing the qualication process.
Page 4 cl 5
January 12, 2015

Re: Special Accreditation investigation
Auditors reviewed prekindergarten qualication documentation for 42 students at the Dallas
campus and attempted to review the documentation for all the prekindergarten students at the
Houston campus for the 2012-2013 school year.
During the review, auditors noted that the chaner school had been claiming some of the
students for funding before completing the qualication process. The charter school used tl1e
free and reduced lunch applications to identify students who were economically disadvantaged.
But some dates for parent signatures on those forms were later than the student entry dates
recorded in the charter school's attendance accounting soltware and reported to the PEIMS.
Auditors were not able to check the qualication status of every prekindergarten student on the
Houston campus because the charter school did not provide qualification documentation for all
the prekindergarten students who were reported in the PEIMS.
Required Action: The charter school must develop procedures to ensure that:
- all documentation used to qualify students for prekindergarten is In place before claiming
the students for funding purposes (SAAH Section 7.2, Eligibility) and
the charter school maintains this documentation for ve years after the end of the school
year and provides it to TEA auditors upon request (SAAH Section 2.1, General Audit
Requirements).
Effect of Finding: As a result of the above nding, the agency has adiusted rened days for
those prekindergarten students who were served without proper qualification on le during the
2012-2013 school year. The adjustment will result in a decrease of 6.889 rened ADA.
Analysis of the charter school's response to Finding 3:

additional prekindergarten program qualication
ln 28 students having their ndjustrnents reversed or
resulted
that
documentation
The charter school provided
reduced. Because of the charter school's response,

from the preliminary report.
we have restored 9.703 rened ADA
The charter schools corrective action plan identies actions
that adequately address the
ndings.
Special Accreditation investigation

Effect of Division of Financial Compliance Findings
Adjustments to the charter school's refined ADA for the 2011-2012 and 2012-2013 school
for those
years based on the ndings described in this report will result in reductions in funding
funds
questioned
the
years We recommend that the TEA Division of State Funding reclaim
Page 5 ol 5
#057-811
Special Investigation $I13-002
Children Filsl Academy of Dallas
HEUULE OF STUDENT ATLEQDANCEAND AQJQLSTMENTS

AVERAQE ADAIFFE FOR TH_lX SIX-W_EKS Z011-2012
Reported
4/17/2013
Rened ADA [All Grades)

Less.
Special Eduualion
FTE
Career and Technical Educallon
Regular Raned
FT E
ADA
High School ADA

BilingnulIESL
ADA
Pregnancy Related Services FTE
Special Edumliun
Humebound
FTE
Hospital Class
Speech Therapy
Resuuma Roam
Moderale!Seve1e, Reg Campus
Sell Conlained Mlld 8Off Home Campus

Vocallmlal Adluslrnenl Class
Slate Schod
Residenllal Care
Mainslwam ADA
1!
Trealmenl
Tolal Special Educallon

Tulal
FTE
Weighted SpBCi8I Educlion FTE
Non-Public Contract
FTE
Stale Compensalovy Educalion
Gillsd and Talanled Enrollmenl
(NSLP)
Review
Dillerence
Results
716.364
592.300
(12-1.064)
4.291
0.000
4.291
0 .000
0.000
0.000
712.073
500.009
l124.054!
0.000
0.000
0.000
0. 000
0.000
0.000
0.000
0.000
0.000
0.000
0 .000
0.000
4.251
0.000
0.000
0.000
0.000
0.000
40 .450
0.000
0 .000
0.000
0 000
0.000
0.000
48.450
4.291
4.291
0.000
12.073
12.873
0.000
0.000
0.000
0.000
823.5
023.5
0.0
0.000
0.000
0.000
4.291
0.000
0.000
0.0 00
0.000
0.000
0.000
0.000
0 .000
0.000
0.000
0.000
0. 000
8057-Bl
Special Investigation Sl13-002
Dallas
ol
Academy
First
Children
HEDULE OF STUDENT ATTENDANCLAND ADJUSTMENTS

AVEBAQE ADAIFTE EOR T|;l lX SIX-WEEK 2012-ZQJQ
Reported
9/24/2013
Raviaw
Dierencs
Results
112 511
eos.zs5
(101 222)
6.254
0.000
6 264
0.000
0.000
0.000
706.253
599.031
$107 222!
0.000
0.000
0.000
ADA
0.000
0. 000
0.000
Pregnancy Related Serviccs FIE
0.000
0.000
0.000
0 000
0.000
0.000
6.264
0.000
0.000
0.000
0.000
0.000
33.811
0.000
0.000
0.000
6.264
0.000
0.000
0.000
0.000
0.000
33.811
S .264
6.264
0.000
18.792
18.792
0.000
0.000
0 .000
0.000
875.0
876.0
0.0
0.000
0.000
0.000000
Rened ADA (All Grades)

Less:
Special Education
FTE
Career and Tcchnlcal Educalinn FTE
Regular Rened ADA

Hlgh Sdiool
ADA
BilingualIESL
Special Education
Homebou nd
FIE
Huspital Class
Speech Therapy
Resource
Room
Sell Contained Mild
O Hume Campus
8-
Mode|alalSevere. Reg
Vucational Adlustment Class

State School
Resldenllal Care 8- Treatmant
Mainstream
ADA
Total Special Education
FTE
Total Weighled Special Education
Nan-Public Contract
FTE
State Compensatory Education
Gifted
FTE
and Talented Enrollment
(NSLP)
Campus
ii
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
0.000
>=-"=1
Ye=;ILIl49l5-173
ms-i:-2014 B2246 From:
Q0" I44,44%
4*
-v
Teadners Teaching. Students Learning, Parents involved

J l5 B. Wlmalhnd
Dallm rx.
M
mu
(maul 214-21142::
214-371-1545
(Fax)
RECENED
Aumm 12. zuu
N15 1 3 7m"
EDUCAWN AGENQY
MI. rm:-1
Division of Financial Compliance
-mus
Fducui
1%?No:1l\C<:;=e::I:nua
M1815-ll. rx 18701
1'
F\ner\<=l=\""
16. Z014
inquired Action Rnspnsc; Spill Ammlinaion lnvesdanlon dud July
me Spcial Aecredimi-m Inveuluun Inna dud July l6, 2014, The Childn-.n
Fm Acadcmy diilf-Q with we nding fmm Tens I-Zducalion Agency Divhiou of Flllllllll
In response to
Ccmplhnne.
Bud on the nmnhad lppmved lunch lppllmlolu and dlrea
(611-lDGI.l1.II
oiaur
pekhndcmmcumndana. we adlhnx11uCh1ldm\FimAnademyuesmlow:anymdirigm
We also diucru with uh:
the Texuiducminn Annoy pet(SAAH Sedan 7.2 Eligibility).
TEA: pxulhnlnary alculnionu ofovarpaymenuo n Childmnflm Academy based on nu:
is mung,audlmfs exunlnnim of PELMS menduwc dun The mil anmum nfSl.$49.4I6.00
elm
2"
aiuendmon
PEIM8
ofiha
miaw
M-Id=my's
incomct. Based an The Childru First
had-70 days.
20l2-Z013
-ll
for
and
had
sool
you
dgn
10ll-2012
revnkd lznnpm (l0l)
CIINIIS (102) h- -S5
tlnyl '10]
l~20lZ and for 2012-1013 had -I03 chysi
will dsvdop
Bednning Z014-Z015 schml yaw, llw upwinlznhnl Ind Administrative 51:5
Iwcunnng
Anzmlmae
Sludul
Edntllion
Agency
lb:
Tana
budon
puliclea Ind pwedwa
baud I81
the
gunning
Appnwed
bc
by
I-iandbuok (SAAH SecIl0n2,3.S). 111:9: pollda will
will be implemcnlod iuunndhmy.
svllhvill dwoiop
Beginning 2014-2015 school year. the superimandam and ndminisnuvc
which will be mainuined

policies and pxoeulums to include nil mince mundane: documentulon
Bduutinu
Agancy mording to
the
Texas
from
provided
aqua!
upon
for live yum: and will be
Sm
in
mm
1.
suhnhiei Tnus Education miicy Diiiiiin afliinancinl

and 2012-1013 sdml yun fur Childnn Firs! Audumy
-2012
l
20!
the
Aulilon.
Cnmpllucc
follows: Please refer in Exhibiz A. B, C,
(campus lOl) md (campus 102), um llinp
and D.
Buedon the 2 review
Id
um n
ELPEIEPEIL
l-viii
UB1/HIRE
F'a\e:1':|
Ta=17l34?15-I73
PUG-13-Emu B2141 From!
I adlninimlve mwill dzvebp

pollclesmdpmc:.4|uuu|:dnnl9TACl19.21(A)mm:unLl;uuun\emlmu:un:r
Begimingllb-2015 school you. lb:
meudmcedm ncounuly in nu u-Mal: lmndnnu wco\||\l'l|\g mwu: syswn, devzlop
ltsllllfly vui lhmlacdmcnmmdin Ihemnndame

mnchuudaumwdedon1e\achcrmenmnornmn(SAAH$cnion
mcuumlngnyaum
2J.5),anddImun=ua:nauaeauu1memmwlbemlmabndforwyeunuzh:nd
Requiuemms These policies wlll ho
Ill: sahpol yen: (SAAH Section Ll), General Audit
wl3d:sIoea1ur=lh:PElM8clert:
of
lppmvzd by lb: bond and will be impkmmled immndinlaly
Baginning 2014-20lS schwl yur. ma supc-immdem and ntmininnva mlfwill davelop

is
polleka and pmaedum no nuun all documcmnlion used In qualify Pnekiudergatlcn amdanu
nod
12
Eligibiliry)
Suction
pm-pose:
nndlng
in plan before chlmlng thc madam fa:
uflhc mhnol
Children First Amdamy will nuinuln docummmion for ve yam nmlu cad
(SAM!
nquul
nudilnn
upon
E:lucnionA|1en|:y
Texas
us
rlocumznuliun
prwldc
and
yur
and
the
baud
nppuved
bu
will
by
Section 1.1, Dew-1| Audit Rnquimnems). 112:: pollcics
(SMH
implunemed immedhtzly.
M nmull ofthn nding: from

mquuaing
N1). Exhibit B (campus I02) lid Exhibit C.

Education Agency Division nl'FinlIil|
Tex
that an
Chilmm Fin! Anmmy ls
pa zonu\u\dl|I:cdIy!fm'f\1I|1in5l'0I2\lll-Z012
ldjmtlhenned
Cnvlnplinnoc
rmw
Exhibil
A (campus
B,C.Dm:|E.B|scdono\|tlWi\h'
,
1013 schnnl yuxsblscd 0n1hend.inj:omExhiHlA.
yw201l'l'hCl\lldnnl=in:Acnd=my isrequaring due utaldnnccaljunmau u u school
20l2mnp|1s (I01) Ind nlmpul (I02) in lb lmounl 01' -69 dlys QMZOIZ-Z013 campm (llll)
andcunpus(102) in the unuunl. of-173 days.
Awvyoflh:anendmcn\mm|rya\|dlthelonAprl| 5,2013 bylustinlonsisuucbc
for
your
review.
Thank you very much for ymu owpomdoa.
ML
Slnwcly.
Shaw-In Allen.
Superlnuzndcm
a.@L..
FAD.
Z5
359$!
LVlBl'l"'lL
19 57'!
P IJZIBI/BB
\\QT
III.
'44,?
Teachers Teaching, Snnienu Learning,

3I5 E. Wheatland R11
Dallas, TX. 7524i
Deeember
David
I6.
Fuenu Involved
ZOI4
Mm
Director, Division of Financial
Cempliancz
Tenn! Education Agpllly

l70l North Congress Avenue
78701
Austin,
TX
Re:
Mr.
Special
Accrediuuon lnvesligalion. as Authorized
hry I.he'lexas
Education Code, 39.057
Ind 39.055
Mm
Childmn First Acanemy ofllhllns
is
requling nn informal revinw huad on
lb:
nding by the Texas
an on-sire special
(TEA) Division of Financial COI\'lp|iI-Mn audllnrs who conducted
Educalinn
aitmdance
examined
also
mview
The
20l3.
4-B,
lccrndiutian invsligann of attendance record; Math
years.
school
20lZ-20l3
ruponing for the Z011-20l2 and
Away
We
have submined
the lener dated December 2, 2014.
Children First Academy dlspuxes the nding in
smdum. Based
our
of
certification
direct
well
applications
as
adequate documenminn of smdenl lunch
to
the Texas
funding
owe
not
any
Fin!
does
Academy
Children
on lhe SAAH Section 7.2 Eligibility,
is no dollar amount gvan in fnvae
thue
Z014,
Deaemlm
lctmr
dared
2,
the
Based
on
Education Agency.
is no specics.
afar against CFA. We also cannot dzlmnine the error (s) hncausa were
We also disagm with the agency; calculllions of overpaymen: based on the
auditor; examinntian nf
PEIMS anzndance dam.

Respecrfully submitted,
}l\W,,j,,,,..,=,
wen.
Shannon Francis, M.Ed.

Dirwfnr of Business-Finance
Cc
DI. Sherwin Allen. Ed.

Superlnlcnden:
Kelly Evans
cm u-gal Counsel
22
'7"d
LLL9b2ISl6="J.
SIL'S'l6bElL
\1:lD1"-'43
l1l blB?D3C| 91
T Hr.
SEIUCA
.0
1701 North Congress Ave.
ENCY
Austin,ToXas 78701-1494
512 463-9734
512 463-9838 FAX
www.tea.statetx us
Michael Williams
Commissioner
March
12,
2015
Children First
Response Required by March 27,2015
Academy of Dallas
Sherwin Alien, Superintendent

315 Eesiwheaiiand Rd.
Dallas.
TX 75241
Dear Mr.
Allen
Fannie Mr Bradford
Board President
4401 Vandervori Dr
Dallas.
TX 75216
and Ms. Bradiord"
Re: Special Accreditation Investigation, as Authorized by the Texas Education

Code, 39.057
The Texas Education Agency (TEA)
Division oi Financial Compliance has concluded its special

accreditation investigation (SAI) of Children First Academy oi Dallas (CFA) included
with this
letter is the nal investigative report along with a corrective action plan. The
corrective action
plan takes into consideration a previous agreement between the charter holder and the
reached
in
June 2014.
TEA
This nal investigative report includes the charter holder's management responses to our
preliminary investigative report findings, as well as the TEA's analysis oi the district's response
lo each nding. it is noted that the TEA received two separate responses from
the charter
holder which, in some cases. were contradictory in those cases where the responses diftered,
we included both in the nal iEpDl'(,
The charter will have
corrective action plan

if
March 27, 2015 lo address the required actions contained

and to submit all required documentation to the TEA.
unlil
you have any questions. please contact
Since
Mr. Michael
in
the
Richmond at (512) 475-3403.
DeWd
Director of Financial
Compiian
Enclosure
Exhibit
Much
I1. ZOIS
RE: Spcchl Accmdiuuiun Invnsriguriun
CC:
Bemard Snawdan, Board Vice Presldenl

904 Foxwood Dr.
DeSoto,
TX 751 15
Doris F. Carter, Board Secretary

911 Femcliff Trail
Dallas, TX 75232
Domlhy L.
Crain, Board
806 Clear Fork Dr.
Dallas, TX 75232
Member
Brenda James, Board Member

313 Mayower Dr.
Red Oak. TX 75224
Barb]: McDade-Moore, Board Member
5627 Trallwood Dr.
Dallas,
TX 75241
George Woodrow, Board Member

215 Brazos Lane
Sunnyvale, TX 75182
TEA Special Accreditation Investigation

Final investigative Report
INTRODUCTION
This investigation was Initiated as a result of a complaint received by the Texas Edution
Agency (TEA). The complainant alleged multiple broad Infractions by charter school
administrators suriiclent to warrant an on-site investigation. Upon their review, the auditors
identied the following issues:
v
in connection with the superintendent and assistant superintendent recording

themselves as co-owners of charter holder real estate, the charter holder violated:
o its Contract for Charter. Paragraph 36, Charter School Facility,
o 19 Texas Administrative Code (TAC) 100.1053, Use of Public Property, and
o the Texas Education Code (T EC), 12.107. Status and Use of Funds
in relation to payments totaling $4,038,252 in construction and building repair contracts,
the charter school violated:

0 its Contract for Charter". Paragraph 3, Authority
and Paragraph 18 Financial
Accounting,
the TEC, 12.1053, Applicability of Laws Relating to Public Purchasing and
Contracting,
o the TEC, 12.107, Status and Use of Funds, and

o the Local Govemment Code (TLGC), Chapter 271, Subchapter
B.
connection with three individuals related to the superintendent receiving salaries from
the charter school when there was no evidence of them performing any actual services
for the school. the charter school violated:
c its Contract for Charter: Chapler1B, Financial Accounting and
o the TEC, 12,107, Status and Use of Funds,
When it obstructed the audit by misrepresenting to auditors that an employee was
terminated when he was requested for an interview, the charter holder violated:
o its Contract for Charter. Paragraph 37, Agency investigations and
o 19 TAC 100.1029, Agency Audits, Monitoring, and investigations
When it did not maintain adequate control over fuel purchases by allowing unknown
individuals to charge premium-grade fuel to the school's account, the charter school
violated its Contract for Charter: Paragraph 1B, Financial Accounting
When it engaged an unlicensed accounting rm to perfonn an audit of its nancial
statements for the year ending August 31, 2012, the charter school violated:
o its Contract tor Charter Paragraph 21 Annual Audit and
o 19 TAC 100.lO47 Accounting for Stale and Federal Funds.
in
in June 2014, the TEA reached an agreement with the charter school which allowed the charter
school to reopen tor the 2014-2015 school year. Some of the actions proposed in the June
2014 agreement may address certain issues contained in this report. An item of agreement in
the June 2014 agreement was that CFA would engage a forensic auditor to review construction
expenses and payroll irregularities. As of the date of this report. TEA has not received the
forensic audit.
Pcgelofltl
Children First
March
it-E:
I2,
Academy oi Dallas
20l5
Special Accreditation investigation
Findings
Property Purchase
Flndlng1:
The superintendent and assistant superintendent unlawfully recorded a personal

ownership interest tn the charter school property at 315 East Wheatland Road,
Dallas, Texas in violation oi their Contract tor Charter, Paragraph 36, Charter
School Facility; 19 TAC 100.1063, Use of Public Propey; and TEC, 1Z.1D7,
Status and Use of Funds.
A March 2013 review of Dallas County title records revealed that Superintendent Sherwin Allen
md Assistant Superintendent Ciaudis Alien each had a 33% ownership interest in the charter
school property located at 315 Wheatland Road in Dallas, Texas. Both Superintendent Sherwin
Nlen and Assistant Superintendent Claudis Allen were informed of the matter in May 2013. The
drarter school has since submitted evidence documenting a change in listed owners to the TEA
N1 on-line review of county records noted a deed transfer date of January 14, 2014, and
dtowed that the charter holder, Excellence 2000, lnc., was now the owner of the property.
improperly recording the superintendent and the assistant superintendent as owners of the
charter-holder property constituted a material violation of the charter school's contract for
charter and 19 TAO 10iJ,1063.
CFA Response:
CFA agreed to execute qultciaim deeds from the superintendent and the aaeiatant
superintendent to resolve the issue.
TEA Analysis of CFA Response:
CFA provided a copy of a qultctaim deed to the TEA prior to the issuance oi this
report. No further action is necessary. The CFA response is sufficient to satisfy
any required
action.
Based upon CFA's response, the nding stands.
Contracting for Construction Services

Finding 2:
The charter holder board of trustees did not adequately monitor or demonstrate
adequate oversight of the signicant activities of the charter school in violation of

its Contract for Chanen Paragraph 3, Authority Granted by Charter and
Paragraph 18, Financial Accounting; 19 TAC 51004073, improvements to Real
Property; TEC, 12.1053, Applicability of Laws Relating to Public Purchasing and
Contracting; TEC, 12.107, Status and Use of Funds Subchapter B; and TLGC,
Chapter 271.
The charter school superintendent, who also serves as the board president, unilaterally entered
into the following constmction and property improvement projects with ADI Engineering Inc.
(ADI) without approval or consent from the
full
board:
Pngc2ofiiJ
Children First Acndcmy oi'Daiias
March I2, ZDIS

RE: Special Accreditation
investigation
$3,749,252 - Construction of a campus facility on Wheailand Road in Dallas, Texas,

from July 2008 through April 2010.
$269,000 Roof replacements at the Houston campus location, March through July
2012.
0
~
in addition, the charter school tailed to follow required public notice and competitive bidding
requirements as stipulated in the TLGC, Chapter 271, Subchapter B, in alowing construction
and improvement contracts with ADI.
Each of these contracts was awarded subject to TLGC, Chapter 271, Subchapter B, which
stipulates the following:
The board must publish a notice of intent in a newspaper summaring the major
provisions of the contract; and
2) The board must follow certain competitive bidding procedures.
1)
The charter school could not produce any documentation indicating compliance with the statute.
The board of trustees lack of oversight and lack of action related to this contract places the
board
in violation of its
school.
duciary responsibility to oversee the signicant activities oi the charter
The charter school's iailure to comply with the statute makes the contracts voldabte, subjects
the charter school ofcers and employees to possible criminal charges, and constitutes a
material violation of the contract tor charter.
OFA Response:
CFA asserted that the charter holder board gave full consent to the actions of the
superintendent
in
procuring construction services.
Additionally, the charter school asserts ADI was engaged to perform construction
services based upon the presumption that ADI was a participant In BuyBoard, a
legally authorized purchasing cooperative, and it was not necessary to follow
public bidding requirements.
CFA could not provide board minutes to support the assertion that the board had
been intomied of the transactions with ADI either prior to or contemporaneously

with the engagement of that company to perform construction services.
Regarding ADl's association with the BuyBoard purchasing cooperative, ofiiciais

with BuyBoard stated to TEA auditors that ADI has never been awarded a
Buyoard contract. They further stated that ADI is only on their mailing list tor
notltication of bid opportunities. CFA's reliance on ADl's assertion that
competitive bidding was not required does not relieve CFA of their statutory
requirement to comply with competitive procurement regulations.
Page! of I0
Children First Academy
March
I2,
2015
oi Dallas
RE: Special Accreditation Investigation
Questioned Construction Payments

Finding
3:
The charter school failed to properly monitor payments to its construction
contractor allowing for overpayments to occur in violation of its Contract for

Charter, Chapter 16, Financial Accounting and TEC, 12.107, Status and Use of
Funds.
The charter school entered

with ADI:
'
-
Into
the following constmction and property Improvement projects
$3.749.252 Construction of the campus facility on Wheatland Road in Dallas, Texas,

from July 2008 through April 2010.
$2B9,00D Roof replacements at the Houston campus location from March 2012
through July 2012.
Upon review of information and documentation
noted the following issues:

0
provided by the charter school, the auditors
The amounts
the amended
paid to ADI for the construction of the Wheattand Road campus exceeded
contract amount The charter school provided a reconciliation of the
payments made on the project disclosing an overpayment to ADI. The charter school did
not provide documentation showing that ADI reimbursed the school.
The charter school did not provide evidence that the contractor reduced the balance
owed on the contract for the payments that the charter school made directly to the
subcontractors. This amount is not Included In the calculation of the overpayment.
The chatter school did not provide an executed contract for the Houston campus roong
project.
The roong
The charter school
project invoices provided to the auditors did not align with the
made to ADI.
payments
did not provide evidence that that the contractor received the
appropriate construction permits from the City of Houston. Nor did the contractor receive
inspection of the work performed according to City of Houston otticiais.
As of the date
of this report, the school has not provided evidence Indicating that
made to ADI.
action to recoup overpayments
it
has taken
CFA Response:
The charter school disagreed with the nding In
its entirety and reserved the right

to provide additional evidence or documentation at the completion of the forensic
audit as agreed to in June 2014.

The charter school's analysis of payments made to ADI Indicates that the charter
school overpaid the company on its contract. Therefore, the charter school has no
basis to deny the ttndlng In its entirety. Also, the charter school has yet to submit
the results of the forensic audit to which they agreed to perform In June 2014.
Based upon CFAs response, the nding stands.
Pagcl of I0
Children First Academy oi'DaIias
March I1, 2015

RE: Specini Accreditation
investigation
Payroll irregularities
Finding 4:
The charter school made salary payments to members of the superintendent's

family for work that was not pertormed in violation of its Contract for Charter:
Chapter 1B Financial Accounting and TEC, 12.107, Status and Use of Funds.
relatives of the superintendent who did not appear to work for the charter school regularly
reoelved payment through the charter school's payroll system.
Three
Debra Allen, sister of the superintendent; Sherwin Aaron Alien Jr., son of the superintendent;
and Niime Muhammad, son-in-law of the superintendent, received wages for work for which
they did not appear to perform.
1.
Debra Allen's federal W-2 form is mailed

intemet search for her indicated that she
Pembroke Pines, Florida, which is where an

and pursues her livelihood. During the
investigation, the charter school asserted that she was a full-time employee working variously
as the assistant business manager, an administrator, and a staff development/testing
administrator with work hours of 6:00 a.m. to 6:00 p.m. in September 2013, the charter school
asserted that Debra Allen was not a full-time employee, but that she was a part-time business
and technology consultant. The charter school submitted a letter dated June 1, 2013,
notifying her that her educational consultant/staff development position would not be renewed
to
lives
for the 2013-2014 school year. During the course oi the investigation, auditors telephoned
each CFA campus asking for Debra Allen and no one knew of her. The charter school paid
wages to Debra Allen of $25,500 in 2011 and $26,200 in 2012.
2.
3.
Sherwin Aaron Allen Jr.s position with the charter school was listed as PE/coach. The
auditors reviewed Public Education lnfonnation Management System (PEIMS) records and
interviewed CFA employees. Based on the results of their reviews and interviews, the
auditors concluded Mr. Allen did not perform any services for the charter school from which
he received a salary. in addition to the lack oi F'EiMS data, there were no time sheets or
other types of corroborating evidence to substantiate that any work was performed by Mr.
Alien. The charter school paid wages to Mr. Alien of $43,740.86 in 2011 and $49,230.86 in
2012.
Niime Muhammad received payment as the evening assistant PEIMS coordinator with work
hours of 6:00 p.m. to 10:00 p.m. During the on-site review of attendance data with the daytime PEIMS coordinator, there was no evidence that any work was being done in the
evening. Additionally, there were no time sheets to support the hours that were allegedly
worked. Although the charter school submitted an afdavit from Mr. Muhammad asserting he
perfomied all the duties assigned to him during the school year, there was no other
corroborative or independent evidence to support the wage payments made to Mr.
Muhammad. The charter school paid wages to Mr. Muhammad oi $35,833.40 in 2011 and
$37,533.36 in 2012.
CFA Response:
CFA disagreed with this nding asserting there was no violation of Texas
nepotism laws and that they would further respond

forensic audit as agreed to in June 2014.
upon completion of the
Pngeiofl
First Academy otDaiius

Month 12, ZOIS
RE: Special Accreditation investigation
Children
TEA Analysis of CPA Response:

Nepotlsm has never been an issue regarding the employment of these individuals.
is that there is no indication that these individuals performed the
services for the charter school tor which wages were paid.
The issue
The charter school agreed
in
issue, but the charter school
June 2014 to engage a Iorensic auditor to review this

has yet to submit the results of that audit.
Pattern of Non-Cooperation with

Finding 5:
TEA Audit Requests
The charter school engaged in actions

violation of
its
that obstructed the investigation in

Contract for Charter" Paragraph 37, Agency investigations and 19
TAC 100.1U29, Agency Audits,
Monitoring,
and
Investigations.
During an orrsite visit at the charter school's Dallas campus the auditors requested to meet with
a school employee to complete their on-site investigative activities. At that time the
superintendent and assistant superintendent responded that the individual was no longer
employed by the school. Documentation later submitted by the charter school in July 2013
indicated the individual was sliii an active employee.
Paragraph 31 of the charter school's contract for charter with TEA explicitly states that the
charter holder, its employees, and its agents must fully cooperate with agency investigations.
Failure by the chaner school to cooperate with the TEA is a material violation of the charter.
19 TAC 100.1029 explicitly states that a charter holder must fully cooperate with TEA audits,
monitoring. and investigations and failure to comply with lawful requests from the TEA
constitutes a material charter violation.
The charter school has had a
history of not responding to requests
from
this division's staff.
CFA Response:
CFA disagreed with this nding and stated that neither the superintendent nor the
assistant superintendent could recall this event.
TEA Analysis:
TEA auditors directly
requested from the superintendent and assistant

superintendent an interview with a transportation employee but were told the
employee was no longer employed, even though the employee was, in fact,
employed by CFA at that time.
Based upon CFAs response, the nding stands.
Page 6 of ll)
March
I2. ZOIS
RE: Special Accreditation investigation
Questionable Gasoline Use

Finding 6:
The charter school does not maintain adequate control of fuel purchases and
allows unknown individuals to charge premium-grade fuel to the school's account
in vlolation of its Contract for Charter: Paragraph 16, Financial Accounting; TEC,
12.107, Status and Use of Funds; and 19 TAC l 00.1047, Accounting for State
and Federal Funds.
The auditors reviewed charter school fuel purchases and noted a pattern occurring over several
months of premium~grade fuel purchases although none of the charter school vehicles required
this
type of fuel.
when questioned,
the transportation manager agreed that no school vehicle required premtum~

grade fuel and asserted that the gasoline station's pumps must be inaccurately recording either
regular-grade fuel or diesel fuel as premium-grade fuel.
The repeated unauthorized purchases in the name of the charter school of premium-grade fuel
by persons unknown represents a then of school resources. By not responding to these thes,
the school tailed to adequately safeguard the school's assets and it Indicates a break in the
school's system of internal control. This is a vlolation of the Contract for Charter. the TEC, and
the TAC.
CFA Response:
CPA disagreed with this nding and rst responded that the fuel in question was
purchased by a transportation employee who has subsequently been terminated.
In a second response to the preliminary report, CFA asserted that the fuel in
question was purchased for the school van, not for the school buses.
TEA Analysis:
The CFA transportation manager lnltlally asserted to TEA auditors that the
gasoline station pumps were erroneously charging the charter school for
premium~grade luel instead of diesel fuel because none of the school vehicles
required premium-grade unleaded fuel. The two responses to the preliminary
report were radically different and did not plausibly answer the question of who
was actually charging the premium-grade unleaded fuel to the school: account.
Page 7 of I0
Children First
Academy 0i'Da|las
March I2, 2015

investigation
Use of Unlicensed Certied Public Accountant

The charter school employed an unlicensed accounting nn to perform an audit
oi its nancial statements for the year ending August 31, 2012 in violation of its
Finding 7:
Contract tor Charten Paragraph 21. Annual Audit; 19 TAC 1DO.10-17,

tor State and Federal Funds; and TEC, 512.107, Status and Use oi
Accounting
Funds.
Nwachukvm
Company
issued an annual nancial and compliance report for the charter

2012 nancial statements on January 25, 2013. At the time of Issuance,
Nwaohukwu 8- Company did not have the required rm license Issued by the Texas State Board
8-
school's scal year
oi Public Accountancy.
TEA Division of Financial Compliance has referred Nwachukvvu & Company to the Texas State
Board of Public Accountancy
tor disciplinary action.
CFA Response:
response, CFA disagreed with this finding stating that they had
realn-ned with Nwachultwu 8- Company that the iirm's license to conduct audits
was valid at the time the audit was perfonned. In a second response, OFA agreed
that Nwa|:hukwu's status is under review by the State Board of Public
Accountancy, and CFA has agreed to abide by the temts of the June 2014
agreement by engaging a properly licensed auditor to perform their annual audit.
In their rst
TEA Analysis:
The terms of the agreement that CFA entered into with the TEA In June 2014
stipulated that the charter school would engage a properly licensed certied
public accountant to perform the scal year 2012 audit. As of this date, the TEA
has not received the audited nancial statements.
Page 8 oi I0
Children First
Academy ofDnllus
Mllth l2, 2015

investigation
Required Actions
The following required actions are to he immediately addressed and implemented by
CFA. CFA must submit documentation of the implementation to the TEA no later than
March 27, 2015. This documentation includes but is not limited to training schedules,
forensic audits of construction expenditures and payroll irregularities, audited nancial
statements for scal years 2012 and 2013, new policy directives, and purchasing
procedures governing fuel acquisition.
Property Purchase
Required Action:
1.
No action required. The charter school previously submitted qultclaim deeds from the
superintendent and assistant superintendent to TEA for the 315 East Wheatiand Road,
Dallas property.
Contracting for Construction Services

Required Action:
1.
The charter school hoard and school
administration
must ensure that the school follows
the appropriate competitive procurement regulations
2.
3.
in
future transactions.
The charter school must provide training in construction

applicable state laws to
all
personnel involved
in
service procurement and in the

procuring construction related services
The charter school must provide the TEA with (1) a schedule by date and name ofthose
employees selected to attend such training and (2) either a training agenda or a copy oi
training materials provided.
Questioned Construction Payments

Required Action:
1.
2.
The charter school must submit the forensic audit of questioned

to the
TEA.
The charter school must take action to seek restitution from ADI Engineering,
overpaymenls in the construction of the Dallas school facility and the roong
replacement
2014.
3.
construction payments
in
Houston according
to the ndings of the forensic audit
The charter school must submit copies of all communltion with ADI
regarding the recouprnent oi overpayments to the TEA.
Inc. for all
agreed to
in
Engineering,
June
inc.
P13090710
Children First Academy
oi Dallas
March I2, 20l5

Investigation
Payroll irregularities
Required Action:
1.
2.
The charter school must submit the forensic audit of payroll
irregularities to the
TEA.
The charter holder must take action to seek restitution from Debra Allen, Sherwin Aaron
and Nlime Muhammad for all monies paid to them for which there ls no
Allen, Jr.,
evidence these persons actually provided services to the school

ndings of the forensic audit agreed to In June 2014.
3.
The charter school must submit copies
of all
In
accordance with the
communication with these individuals
regarding the return of the irregular payments to the
TEA.
Obstruction of Investigation
Required Action:
1.
The Excellence 2000 board of lmstees must implement a policy directing charter school
employees to respond promptly and accurately to all requests from the TEA
Questioned Gasoline Use

Required Action:
1.
The charter school must Institute
2.
The charter school must submit copies
controls lo assure that all charter school fuel purchases

are properly budgeted, are within Internal purchasing procedures guidelines, and are for
the benet of the children of Texas.
of the purchasing procedures regarding fuel

purchases and an explanation of the internal controls in place to prevent future abuse.
Use of Unlicensed
Certified Public
Accountant
Required Action:
1.
2.
The charter holder must take all necessary actions to ensure the Annual Financial
Reports for scal year 2012 and all subsequent scal years are aucted by a rm
licensed by the Texas Slate Board of Public Accountancy according to the terms of the
June 2014 agreement.
The charter school must submit
and 2014.
audited nancial statements for scal years 2012, 2013,
Page I0 oflll

TEA Investigations of Children First Academy 2015

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TEA Investigations of Children First Academy 2015

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1701 North Congress Ave.

January 12, 2015

Sherwin Allen, Superintendent

315 East Whealland Road

Texas Education Agency (TEA) Division of Financial Compliance auditors conducted an

of the Board of Trustees

January 12, 2015

Special Accreditation Investigation

The charter school

The charter school board and

Special Accreditation Investigation

the attendance reconstruction process, they noted that some of

As auditors proceeded through

Required Action: The charter school must ensure that:

January 12, 2015

Re: Special Accreditation Investigation

Dallas Campus #101

2011-2012 School Year -- Houston Campus #102

2nd Six Weeks

2012-2013 School Year - Dallas Campus #101

1st Six Weeks

Znd Six Weeks

2nd Six Weeks

Year Houston Campus #102

Required Action: The charter school must implement procedures

the school's student attendance

members enter attendance data accurately

The adjustment will

Analysis of the charter school's response to Findings 1 and

The charter school did not provide any additional

original teacher-generated attendance

The charter school did not provide program qualication documentation

completing the qualication process.

Children First Academy of Dallas

January 12, 2015

Analysis of the charter school's response to Finding 3:

The charter school provided

reduced. Because of the charter school's response,

we have restored 9.703 rened ADA

The charter schools corrective action plan identies actions

that adequately address the

Special Accreditation investigation

HEUULE OF STUDENT ATLEQDANCEAND AQJQLSTMENTS

Rened ADA [All Grades)

Career and Technical Educallon

High School ADA

Pregnancy Related Services FTE

Moderale!Seve1e, Reg Campus

Sell Conlained Mlld 8Off Home Campus

Tolal Special Educallon

Weighted SpBCi8I Educlion FTE

Stale Compensalovy Educalion

Gillsd and Talanled Enrollmenl

HEDULE OF STUDENT ATTENDANCLAND ADJUSTMENTS

Pregnancy Related Serviccs FIE

Rened ADA (All Grades)

Career and Tcchnlcal Educalinn FTE

Regular Rened ADA

Sell Contained Mild

Vucational Adlustment Class

Total Special Education

Total Weighled Special Education

State Compensatory Education

and Talented Enrollment