In August of 2023, the WPSD cut a check to Merit Academy for $270,155 in money from the ESSER III grant the district received from the federal government (this was COVID relief funds). I believe this meets the definition of fraud, as I’ll outline below.
The WPSD budget for the 2022-2023 school year (fiscal year 23, or FY23) – allocated all ESSER money to be spent on the five ‘traditional’ public schools. None was allocated to go to Merit Academy.
Merit FY23 budget didn’t include any ESSER grant money (in fact, there’s only $15,273 in federal money listed)
Money moving from the WPSD to Merit Academy is documented in a monthly ‘flowthrough’ spreadsheet – these monthly spreadsheets never showed any ESSER grant money.
On 1/31/23, Merit headmaster Gwynn Pekron reached out to Del Garrick requesting ESSER grant money; she was told that all money had been allocated for FY23, and that Merit could request money in FY24 if they wished (click here to read the email exchange).
In early June, Merit Academy again reached out to the WPSD about ESSER grant money, requesting money from FY24 (as previously suggested by Del). However, the FY24 budget passed by the board on June 14th showed $858,241 in ESSER grant money, none of which was allocated to go to Merit Academy.
On June 30th, 2023, Merit Academy submitted an invoice to the WPSD requesting $270,155 in ESSER grant money. That invoice was processed and paid in August 2023 (presumably, the delay was due to the district being closed for summer break).
As Merit had not budgeted to receive any ESSER money, they created multiple ledger entries on 6/30/2023 to retroactively justify the expense of the ESSER grant money (click here).
One consequence of this process was that the WPSD started the year with an inflated grant balance, that caught up to the district in January. In January of 2024, middle school parents received an email that an after school academic assistance program was being cut immediately; we were told it was due to a lack of funds to continue the program (funds were quickly reallocated to continue this program). Data obtained from a CORA request showed the ESSER grant fund was already grossly overdrawn, and the budget for that had been slashed from the original $858,241, to now only $523,524 (that difference, $334,717, is greater than the $270,155 that went to Merit in August and is as yet unexplained).
When I asked the board of education about this, director Kimbrell told me, “We were required to include Merit in the allocation of ESSER funds but the prior staff did not include them in the FY22-23 budget even though it was against the law not to.” The CDE’s website does not support the claim that it’s against the law not to include Merit (scroll to the bottom of that link).
So in summary, the board never approved any ESSER grant money to go to Merit Academy, in either year. This substantial sum of money was allocated to be spent on the other schools. Instead of going through the proper channels of including this in a budget (which then allows the public to be aware of how this money is being spent), the district operated outside of board overview and negotiated this directly with Merit Academy. The board approved a budget for FY24 which had inaccurate fund balances as a result. The WPSD deceived the public about where this money was being spent, by not only never including it in any budget, but purposefully publishing a FY24 budget that showed money to be spent in the district that didn’t actually exist (I believe this can best be described as fraud).
There’s another side to this that warrants further investigation. Merit Academy started life as a contract school under ERBOCES, NOT the Woodland Park School District. ERBOCES awarded some ESSER grant money to Merit Academy for the previous fiscal year, FY22 (this is the $10,845.60 number you see in the general ledger screenshot linked above). The question I have is, how did the state and federal governments determine the amount of ESSER grant money to award to the WPSD? If they based this calculation on the number of pupils in the district, it’s clear that Merit Academy was not part of the district at the time of ESSER grant money calculation…did ERBOCES receive extra ESSER grant money that should have been transferred to WPSD when Merit Academy was absorbed into the district in the 2022-2023 school year?