Education and Public Works Committee Sout) Carolina House of Representatives P.O, BOX 11967 TELEPHONE: 794-3059 Room 429, Blatt Building Columbia, SC 29211 May 8, 2024 K. Earle Powell, Director South Carolina Legislative Audit Council 1331 Elmwood Ave # 315 Columbia, SC 29201 Dear Director Powell: We have révently received several concerns and complaints regarding Erskine College and the Charter Institute at Erskine (collectively “Erskine”). The South Carolina Charter Schools Act (the “Act") was enacted to, among other tI forms of accountability for schools.” The Act defines a “sponsor” to include “an independent institution of higher learning as defined in Section 59-113-50.” We understand that Erskine College meets the Act's definition ofa sponsor. The Act states that @ charter school sponsor shall, among other things: = Monitor, in accordance with charter contract terms, the performance and legal/fiseal compliance of charter schools to include collecting and analyzing data to support ongoing evaluation according to the charter contract. - Notify the charter school of perceived problems if its performance or legal compliance appears to be unsatisfactory. - Take appropriate corrective actions or exercise sanctions short of revocation in response to apparent deficiencies in charter school performance or legal compliance. These actions ‘or sanctions may include requiring a corrective action plan within a specified timeline Most recently, it has been reported to members of the General Assembly that Erskine invested approximately $1 Million in a private Educational Management Organization (“EMO”) that contracts with fone or more charter schools sponsored by Erskine. It was also reported to that private companies that contract, or desire to contract, with charter schools sponsored by Erskine have invested in, or made donations to, Erskine, We are concerned that if transactions such as these have occurred, they may compromise the ability of Erskine to perform its duties under the Act with fidelity and/or may cause Erskine to apply inconsistent standards of accountability to different charter schools that it sponsors. In order for members of the General Assembly to effectuate sound policy decisions regarding Erskine, we must be confident in the efficacy and validity of its actions taken under color of state law. For that reason, ‘we request that you conduct an audit with special consideration given to the following issues: 1 Has Erskine invested funds in an EMO? 2. Has Erskine received funds or donations from vendors that contract, or desire to contract, with charter schools sponsored by Erskine?3. Are there subsidiaries or related entities that are affiliated with, or have close ties to, Erskine College or the Charter Institute at Erskine? If so, do these entities improperly share board members, assets, or any items or personnel that may create conflicts of interest? We look forward to hearing your findings. Thank you for your assistance in this matter. Sincerely, Opes Die ive Shannon S. Erickson Represent Chair, Education and Public Works Committee District 124 CC: The Honorable G. Murrell Smith ‘The Honorable Ellen Weaver