(The Center Square) — The Louisiana Board of Elementary and Secondary Education has taken action to reconstitute the governing board of Education Explosion Inc. following an audit that accused the charter school’s CEO of misusing more than $2 million in public funds for personal expenses.
BESE, which oversees Type 2 public charter schools, stated that it has a responsibility to ensure compliance with charter contracts, state laws, and sound fiscal management practices.
“BESE has a statutory obligation to our students, our educators, and the taxpayers of Louisiana to exercise budgetary and fiscal control over state and federal funds for educational programs and services,” BESE officials said in a statement.
The decision follows concerns raised by constituents, community leaders, and stakeholders regarding Education Explosion’s governance.
“Our review confirmed numerous violations of Louisiana charter law, BESE policy, open meeting laws, and general accounting practices,” state officials said, adding that reconstituting the board was done in lieu of revoking its charter and it will “closely monitor” the operations of the school to ensure compliance with state law.
The decision comes on the heels of a Louisiana Legislative Auditor investigation accusing Education Explosion CEO Chakesha Scott of financial misconduct.
According to the audit, Scott allegedly diverted over $1.5 million in charter school funds to an account she controlled under the name Friends of Impact Charter School.
An additional $171,659 was funneled to a third party through FICS, while more than $221,000 in payments from students and parents were also redirected to unauthorized accounts.
Auditors found that at least $130,494 was spent on luxury family trips to destinations including Egypt and Disneyland Paris, and more than $166,000 in school funds were used to lease or purchase a 2017 Acura MDX and a 2021 Land Rover Velar.
Other expenditures flagged in the report include a $42,371 withdrawal allegedly used to purchase a Tesla Model S and additional purchases of Louis Vuitton handbags.
“By improperly diverting funds to FICS’ bank account and using those funds for their personal benefit, Ms. Scott and her family may have violated the Louisiana Constitution and state and federal law,” the audit summary states.
Education Explosion announced plans to pursue legal action against the Louisiana Legislative Auditor over what it claims are factual inaccuracies in the report.
“Despite providing the auditors with documented facts and evidence refuting these claims, they still moved forward with publishing their report without making corrections,” the school’s statement read. “This disregard for factual accuracy has left us no choice but to take legal action to protect the integrity of our school and ensure due process.”
It is unclear if that “legal action” will continue.
Friends of Impact Charter Schools, the nonprofit that handled financial transactions for Education Explosion, also objected to its inclusion in the audit findings.
“Thank you for providing my office and Friends of Impact Charter Schools a draft of your investigative audit report on Education Explosion. As you know, our firm represents FOICS. As an independent nonprofit organization, FOICS operates outside the jurisdiction of the Louisiana Legislative Auditor. Therefore, FOICS respectfully declines to provide a response and objects to its inclusion in the audit findings. FOICS requests that any reference to it be removed from the audit report.”
Education Explosion, a state-funded nonprofit operating a charter school in Baker, Louisiana, received 99% of its funding from public sources between July 2014 and January 2024, according to the audit. Scott, who has led the nonprofit since 2009, is also the founder and CEO of Impact Charter Schools.
Impact Charter Schools released a separate statement defending Scott and contesting the audit’s findings.
“The Louisiana Legislative Auditor’s (auditors) report contains misleading and inaccurate claims that misrepresent the reality of our school’s operations and financial integrity,” the statement read. “It is essential that our community understands the truth. The auditors’ report does not provide an official audit, opinion, or assurance of wrongdoing. The report itself states that it is based on selected inquiries and does not meet standard auditing procedures. The findings in the report are not supported by factual evidence and present a distorted view of Impact Charter School’s financial and operational practices.”