Keystone attorney, NHA attorney to attend next school board meeting

The attorney that represents Keystone Charter Academy school board and an attorney from National Heritage Academies, that provides all educational services to Keystone Academy, are expected to lock horns at the next meeting of the charter academy school board at 6 p.m. Oct. 10.
At the school board’s regular meeting on Sept. 12, board president Vesta Losen said Keystone’s attorney agreed that the board should be signatories on its account at Chase bank since that’s how it reads in the services agreement signed with NHA.
“The problem was we were not getting our money,” Losen said of the $35,000 set aside for the board each year. “The PTO waited eight months for a check.”
A resolution prepared by Keystone attorney Candace Sorenson was discussed and tabled at the Aug. 8 meeting and then discussed and tabled again at the Sept. 12 meeting with the plan to have Keystone’s attorney present at the next meeting to explain why the resolution is proper.
Andrew Roth, who is in training to be the NHA representative to Keystone, said an NHA attorney should be there, too.
Secretary Connie Shull pointed out treasurer Charlene Derrick is not comfortable with passing the resolution. Derrick has said several times that the situation “does make me nervous.”
“She’s being made to feel uncomfortable,” said board president Vesta Losen, referring to the list of things Roth said Derrick would be responsible for if the present policy was changed.
Roth said Derrick would be responsible for accounting and retention of records and if there was a problem with the audit it would be hers.
“You can do whatever you want, but we still think it’s not a good idea,” Roth said.
Losen said according to the service agreement the only signers on the funds at Chase bank are the president and treasurer.
“People from NHA on there are not signatories on the major account,” Losen said. “We have no reason to touch the major account. What we’re concerned about is the board spending account. Only Charlene and myself can withdraw there. NHA can go in and see what checks we’ve written, otherwise nothing changes.”
Jeff Henders, longtime NHA representative to Keystone, explained the money goes from the state to charter authorizer Bay Mills Community College, which takes out 3%, and then it goes to NHA at Chase bank and then the $35,000 board funds to Keystone.
The budget shows some $6.8 million in state aid and federal funds in the major Keystone budget.
Losen insisted NHA would still be doing the financial report in the board packet each month.
“NHA has practices it follows,” said Henders. “We can supply you with reports, but not give information to the auditor… It sounds like you’re attempting to take on a big responsibility.”
“The problem was we were not getting our money,” Losen said. “The PTO waited eight months for a check.”
Henders agreed, “It’s all on us. It started when we had transition.” He referred to the change in principal.
Shull said there were delays with reimbursement for Christmas purchases and the scholarship for a student heading to college.
“I’m hesitant … on all sides,” said Henders. “I don’t think the process wasn’t followed.” He said Losen said she sent a bill to NHA and didn’t know who she sent it to. “We didn’t get it.”
“I think there was overload at NHA,” Losen said. “There were a lot of new schools … Andrew is new on the job … The service agreement. We have not followed it.”
Roth said the board treasurer would have to provide proof of financial steps.
“I have 60 years of experience,” Losen said. “I can help.”
She said Keystone needs to consult with its attorney. Losen said the board attorney said Len Wolfe of Bay Mills said he was not going to agree with NHA on this.
Henders disagreed, saying Bay Mills is very happy with how NHA handles the finances.
“We’re indemnified as board members,” Losen said.
“It’s an option you can use,” Roth said of the resolution. “I’m not saying you can’t… I do think it’s a bad idea, not the best choice.”
“We could be lazy and just let you do it,” Losen said.
“It’s not normal,” Roth replied.
“It does make me nervous,” board treasurer Derrick repeated.
“If we all work together, we can do it,” said board member Patricia Kirkpatrick.
Derrick asked if this is all because of what happened last school year.
“We hired an attorney for a reason. Let’s use her,” Losen said.
“You need a checkbook for the account?” Henders asked and Losen replied they do.
Henders said it’s never been disputed or stated as such by any other board in the NHA group and Keystone is the first board to question the procedure.
“I do understand the delays,” Henders said. “I’m committed to solving it with Jorvonna and Andrew.” He referred to Principal Jorvonna Drain and Roth, the new NHA representative.
Losen said the agreement requires the board to be in control and Automated Clearing House network withdrawals has the ability for NHA to pull the money out of Keystone’s account.
Losen said she signed the agreement two days before deadline because she expected the resolution to be passed by the board.
She said NHA could change the services agreement or they could fix it with the resolution.
“I want to do it right,” Losen said, noting she was in favor of tabling it that evening.
“I’d really like to see a solution,” Shull said.
Principal Drain said once she found out she was part of the process, she expedited payments.
“I don’t want you guys waiting a long time,” Drain said.
Losen said Chase bank does not understand why it’s set up this way.
In other business at the one-hour-and-20-minute meeting, the board:
• Unanimously approved the new medical health policy amendment required to be adopted by MCL 388.1766 for all schools in Michigan by Oct. 1. This requires a person employed by the school who distributes a family planning drug or device on school property or refers a student for an abortion shall be subject to a financial penalty of not less than 3% of that person’s annual compensation;
• Heard Principal Drain announce there were 699 students enrolled, with a goal of 768. She said they maintained about 750 last year;
• Heard Drain report there are 79 students enrolled in the Stars before- and after-school program as of Sept. 3. Losen said there is a $40 enrollment fee for that program each year and Keystone used to get 10% of that, but now NHA takes it. “I’m not giving up on this,” Losen said;
• Approved an after-school tutoring program at a cost to the board of $3,088;
• Approved the Teacher Evaluation and Employee Certification Warranty Resolution;
• Approved the Reading Assessment System Selection Resolution for the state’s third-grade reading law, selecting aimswebPlus for testing; and
• Heard Losen say that Keystone is not doing as well in reading as the last two years. She said she is encouraged by studies that are not based on learning how to teach them, but how students learn. “Common Core doesn’t work. It started seven years ago and we’ve gone down,” she said.