BRIAN SANDOVAL Governor

STATE OF NEVADA

STEVE CANAVERO Director

STATE PUBLIC CHARTER SCHOOL AUTHORITY

1749 North Stewart Street Suite 40 Carson City, Nevada 89706-2543
(775) 687 - 9174 Fax: (775) 687 - 9113

November 2, 2012

Christina Fuentes, Governing Body President Quest Academy Preparatory Education 402 River Glider Ave. North Las Vegas NV 89084

Dear Ms. Fuentes: My office has recently received a number of communications from persons associated with Quest Academy Preparatory Education Charter School (Quest) questioning certain practices at the school. The issues raised regarding these practices suggest, among other transgressions, fiscal malfeasance on the part of the schools administrator, a lack of governing body oversight of the school, and violation of Nevadas open meeting law. The purpose of this letter is to share with you these concerns and to request from you information regarding them. 1. Please ensure that all AOIS Files, Permanent and otherwise, including contracts and board meeting agendas and approved minutes, are up to date. The August 2012 Reporting Requirements Manual provides guidance regarding which documents must be submitted into AOIS. Concerns submitted by Marc Abelman, Quest Governing Body (Board) Member, October 25, 2012; please reply to the following questions and requests for information and documents: 2. Payroll records [show] that Administrator [Connie Jordan] has received a $5,000 raise each year since inception with the exception of 2012-13. a. Please submit copies of Connie Jordans employment contracts with Imagine in the Valle and Quest spanning the entire period of her employment at these schools. b. If Ms. Jordan has received a $5,000 raise each year as stated by Mr. Abelman, and contracts do not reflect it, please explain how Ms. Jordan was given these raises. Ensure that any information you provide is consistent with past reports and documents submitted to the schools sponsor and the Nevada Department of Education, including Board meeting agendas and minutes.

3. [Three] checks were cut on June 30, 2011 to Connie Jordan and signed by Christina Fuentesin the closed session of August 1, Christine Fuentes lied to the board and indicated that Connie [Jordan] [had] not received a raise or bonus and recommended a $5,000 bonus. This recommendation was in full knowledge that Connie had received a $15,000 bonus unknown to the governing board. a. Was a Board meeting held August 1 or 2, 2012? If so, did the meeting include a closed session? It is noted that the agenda for the August 2, 2012, Board meeting indicates no closed session. It is also noted that the August 2, 2012, agenda may fail to comply with the Open Meeting Law because item 7, Principal Report: Discussion and possible action, is vaguely stated; the Authority may refer this possible violation of the Open Meeting Law to the Attorney Generals office. If this or any other agenda item was conducted as a closed session, that may also represent a violation of the Open Meeting Law; closed sessions must be indicated in agendas. b. Tom McCormack sent Connie Jordan an email October 22, 2012, requesting the approved minutes of the August 2, 2012, Board meeting. Because another meeting was conducted August 13, 2012, the minutes for the August 2, 2012, meeting should be in AOIS by now: NAC 386.345(7) states Not later than 30 business days after each public meeting held by the governing bodythe governing body shall submita copy of the minutes of the meeting. The minutes of each public meeting must be approved at the next meeting of the governing body It is noted in the minutes of the August 13, 2012, meeting that the minutes from the August 2, 2012, meeting were approved. Pursuant to the Open Meeting Law and Nevada Administrative Code, submit approved minutes of the August 2, 2012, Board meeting, including approved minutes of any closed session that was conducted during that meeting. Submit also the audio recording of the meeting and closed session. Failure to audio record regular or closed sessions of Board meetings is a violation of Nevadas Open Meeting Law which applies to charter schools. c. Please respond to Mr. Abelmans statement. For what purpose were the three checks to Connie Jordan, signed by you, written? In what amount was each check? If the checks were for either a raise or a bonus, why was the Board unaware of them? Please recall that an uninformed board may indicate a failure by the board to govern the school, a violation of regulation applicable to charter schools. If the checks were for either a raise or a bonus, and Mr. Abelmans allegations are accurate, why did you recommend an additional $5,000 bonus for Ms. Jordan to the Board? 4. Connie and Christina intentionally kept the [draft] State [Annual Performance Audit] from the other member[s] of the board because of the implications that she received an extra $15,000 reported on her W-2. This then adds to the cover-up of the bonus Connie received. a. Please respond to Mr. Abelmans statement. Was the draft Annual Performance Audit sent to you by Allyson Kellogg May 29, 2012 via email shared with the Board during a public, open meeting? If so, provide the date of the meeting. If not, please explain why such a matter was not discussed with the Board. 5. Mr. Abelman alleges Connie Jordan falsified documents that were submitted to the State Public Charter School Authority: Connie had her contract altered for the response to the state. Her contract had no statement about a buy-out of PTO time.

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a. Please respond to Mr. Abelmans allegation. Concerns submitted by Lucretia Glidewell, financial contractor with Quest, October 29, 2012; please reply to the following questions and requests for information and documents: 6. in July of 2011, in order to maintain a contract with Quest, Connie Jordan (Administrator) told me that I would need to pay her $500 per invoiceI know of others she is doing this too, alsoInstances of payrolls being processed by Ms. Jordan for bonuses that the Governing Board is not aware and then requesting a payment in cash to her, is also a continuing practice. a. Please respond to Ms. Glidewells statement. If the statement is accurate, what entity or person received the $500 payments? For what purposes were the payments used by that entity or person? b. If Ms. Glidewells statement is accurate, provide documentation of the Boards knowledge of the arrangement described in the statement. If the Board was unaware of the arrangement, and Ms. Jordan did indeed request payments from Ms. Glidewell, it would be expected that the Board would take appropriate disciplinary action against Ms. Jordan; not doing so could be interpreted as a failure of the Board to govern the school, a violation of regulation applicable to charter schools. 7. As the financial contractor, I was, also, asked to help cover up additional illegal practices. Three checks of $5,000 each were cut to Connie Jordan on June 30, 2011. Connie then came to me and told me the checks were to be voided, since she did not receive board approval. I did so in the accounting system, then when the July bank statement was reconciled, the three checks had to be replaced in the system, because they had been cashed. This was a self-administered bonus of $15,000. a. Please respond to Ms. Glidewells statement.

8. the three checks were signed by the Board President, Christina Fuentes. Ms. Fuentes was very aware that the Governing Board had not approved any such bonuses for Ms. Jordan. Also, the by-laws state that a check greater than $5,000 must have two signatures, thus the reason for three checks rather than one of $15,000. a. Please respond to Ms. Glidewells statement. 9. when the Draft Annual Performance Audit was sent to Ms. Fuentes, she withheld this audit from the Governing Board to keep them from knowing of the $15,000 bonus that had been givenThe Business Manager and myself were told to make sure that no one saw this audit. a. If the draft Annual Performance Audit (Audit) that was sent to you May 29, 2012, was shared with the Board, provide the date of the meeting at which this occurred; if it was not, please explain why not. The schools sponsor expected that the draft Audit would be shared with the entire board. If this was not done, the sponsor would expect the board to take disciplinary action against you, the Board President, for failure to present to the Board such a vital document. A Board that has no objection to the President withholding from it a document such as the draft Audit could be seen as failing to govern the school, demonstrating a violation of regulation applicable to charter schools.

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10. In June 2012, Ms. Jordan knowing the APA [draft Audit] had uncovered the unapproved $15,000 bonus then asked the Business Manager to change her contract to reflect the pay-out of PTO timethis was not a practice equally available to all employees who did not use all of their PTO. Thus the response to the [Audit] was further falsified. I witnessed Ms. Jordan asking the Business Manager to back date the altered contract and the Business Manager refused. The Ms. Jordan removed the signature page from the original contract and attached it to the altered contract for the file. a. Please respond to Ms. Glidewells statement, perhaps after conferring with Ms. Jordan. Is the Board aware of Ms. Glidewells allegations? 11. Ms. Jordan, also, had the response [to the draft Audit] indicate that the additional funds were for Extra Duty Pay. However, these extra duties, or the payment for such, were never authorized by the Quest Governing Board. a. The Quest Academy Annual Performance Audit No. 12-2711-266 Final Findings (copy attached) included in the October 29, 2012, Annual Performance Audit sent to you by Allyson Kellogg addresses concerns related to those identified in this letter. Response statement 2 for Item 10 is [Quest] stated a clearly defined written policy will be an agenda item for the July 2012 board meeting Status statement 2 for Item 10 is In general we find the corrective action acceptable. However in the Academys response, they did not provide the new written policy or evidence of the Boards approval of bonuses paid in excess of employees contracts. The approved minutes of the March 19, 2012, Quest Board meeting state Mr. Law made a motion to approve the Governing Board Policy Manual contingent upon changes recently discussed by the board. Also, once the document is updated, it will be submitted to the stateMotion passed Ensure the version of the Manual or written policies resulting from this Board action are in AOIS. Submit the evidence of the Boards approval of bonuses paid in excess of employees contracts. 12. Melanie Natividad, at the High School Campusis teaching students math with no degree or teaching license. a. According to the NAC 386.350, 2012-2013 Quest employee report, Ms. Natividad serves as an non-instructional, administrative assistant at the school. The situation Ms. Glidewell alleges would be a violation of statute applicable to charter schools. Please respond to Ms. Glidewells allegation. Concerns submitted by Kaide Dodson, Assistant Principal of Quest, October 24, 2012; please reply to the following questions and requests for information and documents: 13. the overcrowding of the main campus needs to be corrected immediately a. Please provide, for all three facilities used for pupil instruction by Quest (Grand Montecito Parkway, Meadows Lane , and Alexander Road), fire official documentation of building capacity. Also provide the number of persons occupying each facility on a typical school day. It is noted that as of October 31, 2012, no official documentation of building capacity was found in the AOIS Permanent Files.

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