In a unanimous decision on July 14, 2025, Oklahoma’s Statewide Charter School Board approved a forensic audit of Epic Charter Schools, the state’s largest virtual charter school and its third-largest school district. This move follows a severe financial shortfall that triggered widespread layoffs, program cuts, and operational upheaval, raising questions about the school’s fiscal management.

Epic, serving approximately 30,000 students, has struggled to adapt to a significant decline in enrollment from a high of 60,000 during the 2020-21 school year, when virtual learning surged due to the COVID-19 pandemic. According to Skyler Lusnia, the board’s financial compliance officer, Epic overestimated its revenue while failing to curb spending, pushing the school toward potential insolvency. This mismanagement prompted two rounds of layoffs in the 2024-25 school year, affecting 501 staff members, including 83 teachers and 274 administrators. The school also shuttered in-person learning centers in Tulsa and Oklahoma City, eliminated meal services, and scaled back academic offerings, such as Chinese, Latin, and specialized English Language Arts courses.

The financial strain led to significant leadership changes. Superintendent Bart Banfield resigned in June 2025, following the second wave of layoffs, and Deputy Superintendent of Finance Jeanise Wynn stepped down in April. Interim Superintendent Justin Hunt has pledged cooperation with the audit, emphasizing Epic’s commitment to stabilizing its operations for the benefit of its students.

The forthcoming audit, to be conducted by an external accounting firm, will scrutinize the timeline of Epic’s financial decisions, the delay in addressing the enrollment drop, and the role of the school’s governing board. Board Chairperson Brian Shellem described the situation as a case of “crystal clear” negligence, though no evidence of fraud has been identified. The audit aims to uncover the root causes of the crisis and provide actionable recommendations to prevent future instability.

Despite the challenges, Epic ended the 2025 fiscal year with a positive fund balance, largely due to the cost-cutting measures. To bridge funding gaps for the 2025-26 school year, the school secured a $30 million line of credit, as state aid payments are delayed until mid-August. However, the crisis has sparked broader concerns about the sustainability of virtual charter schools, particularly those heavily reliant on enrollment-driven funding.

Epic’s history adds context to the current scrutiny. A 2020 state audit raised allegations of financial mismanagement, resulting in criminal charges against co-founders David Chaney and Ben Harris, as well as former CFO Josh Brock, for embezzlement and racketeering. While those issues are unrelated to the current crisis, they underscore long-standing questions about Epic’s oversight and transparency.

The audit’s findings, expected to be made public, will likely shape the future of Epic Charter Schools and influence how Oklahoma regulates its virtual education sector. As the school navigates these challenges, its ability to restore trust and ensure educational quality for its students remains a critical focus.