Kipp DC Public Charter Schools

“In december 2021, kipp dc discovered that a former employee defrauded the network of $2.2 million intended for student technology and services. Within days of kipp dc becoming aware of potential irregularities, kipp dc alerted the dc u.s. Attorney's office, which subsequently investigated. Kipp dc also hired outside counsel to conduct an internal investigation. The u.s. Department of justice (doj), along with kipp dc's internal investigation, concluded that the fraud was an isolated incident conducted by a single individual. The doj has filed a civil forfeiture suit to recover as many of the defrauded assets as possible. Kipp dc has already recovered $1 million from insurance and management is optimistic that we will recover another $800,000 through the doj's asset recovery suit. At all times, kipp dc has made every effort to support the u.s. Attorney's office and doj and has been proactive in addressing the situation with its authorizer, the public charter school board. Since discovering the fraud, kipp dc's management has taken steps to build on existing financial controls and oversight practices, especially around asset management and vendor verification. Kipp dc's board has added an audit committee, and kipp dc is in the process of adding a managing director of compliance role, which will serve an internal audit function.”

“The district of columbia public charter school board (pcsb) is kipp dc's chartering authority and has a duty to monitor the academic achievements and fiscal management of all dc public charter schools. Certain contracts with a value of $25,000 or more must be approved by the kipp dc board of directors and submitted for review by the pcsb.”

“Kipp dc's finance committee, a committee of the board of directors, meets with management and the form 990 paid preparers to review the final draft of the form 990. After this review, the final draft of the form 990 is distributed to all members of the kipp dc board of directors before it is filed with the irs.”

“Kipp dc's directors complete an annual statement affirming that they have received a copy of kipp dc's conflicts of interest policy, have read and understood the policy, and agree to comply with the policy. They also disclose in the annual statement any actual or possible conflicts of interest they may have. After disclosure of the actual or possible conflicts of interest and all material facts, the interested person must leave the board of directors meeting. The board of directors then decides if a conflict of interest exists and, if so, the procedures for addressing the conflict of interest.”

“The board chair leads the process for recommending the compensation level for the ceo, and the full board of directors approves the final ceo compensation level. The chair considers the following factors in developing the recommended ceo compensation: comparable data including data from other kipp regions and an analysis by a national charter school funder on ceo compensation relative to geography as well as number of schools; the change in scale and scope of the organization; the organization's performance as well as student performance; the ceo's prior compensation; and the financial ability of the organization to pay the recommended compensation.”

“The organization makes its governing documents, conflict of interest policy, and financial statements available upon request for the same period of disclosure as set forth in section 6104(d).”

“Volunteers support kipp dc through a wide range of projects including tutoring, mentorship, campus beautification, and the chaperoning of field trips.”

“Gain on extinguishment of debt, net 16,630,200.”