A charter school is in breach of contract with Denver Public Schools for using $60,000 of designated money to set up a separate charter school in another part of the metro area.
Denver’s Southwest Early College High School used the money to pay salaries and benefits of employees for the new Early College High School in Arvada, according to a letter sent by district officials this month.
Money came from per-pupil operating revenue designated every year by the state for school operating expenses, capital reserve and risk insurance.
The contract between Southwest Early College and DPS specifies per-pupil money cannot be commingled with any other person, entity or organization.
“As you acknowledged in our meeting on July 31, 2008, the school’s actions constitute a material breach of (Southwest Early College’s) charter school contract . . . and may violate state law,” according to a Sept. 8 letter written by Parker Baxter, DPS’s charter school director.
DPS officials learned about the matter in July from an anonymous letter requesting an investigation by the district.
The charter had already initiated its own probe, hiring an outside investigator to look into the allegations, finding that the money had indeed paid for wages at the new school as well as for supplies, equipment and services.
District officials in August contacted the Denver district attorney’s office to determine whether laws had been broken, but no investigation has been launched, said DA spokeswoman Lynn Kimbrough.
The district is demanding that Southwest Early College turn over all documentation of how money was used to support Early College High School. It also seeks proof showing the status of repayment and details on how the school will prevent further commingling.
Baxter’s letter also requires the school to improve its financial oversight and add at least three more board members.
DPS officials Tuesday refused to comment, as did Southwest Early College’s former administrator, Chris Gerboth — who resigned at the end of last school year.
Gerboth founded Southwest Early College and was responsible for the school’s $3 million annual budget, according to the new school’s website. He now is chief executive of Early College High School.
The new school is being set up off West 60th Avenue in a former credit union building under the authority of the Charter School Institute, a state agency that grants public school charters.
Randy DeHoff, Charter School Institute’s director, said he believes the $60,000 was being used to set up the new school until a state startup grant was available.
“You’re not supposed to do that,” DeHoff said. “My understanding is all of those funds have been repaid. We’re doing closer monitoring so it doesn’t happen again. I can’t see any circumstances where it would happen again.”
Jeremy P. Meyer: 303-954-1367 or jpmeyer@denverpost.com
