WASHINGTON STATE

Charter School Commission
STUDENTS • INNOVATION • TRANSPARENCY

March 31, 2015
Board of Directors
First Place
172 20th Street
Seattle, WA 98112
RE:

Letter of Concern

Dear Board Members:
This letter places First Place, a Washington State based public benefit nonprofit (First
Place), on notice that the Washington State Charter School Commission (Commission) has
reason to believe that First Place has committed material and substantial violations of
material provisions of governing law and First Place’s contractual obligations.
If these concerns are founded, First Place has deprived students of: (1) their constitutional
right to a basic education, (2) their rights under federal law, and (3) the quality program
that was authorized by the Commission and that First Place promised to provide to the
educationally vulnerable children in its care. These newly identified concerns have
occurred throughout the school year, including while First Place has been on probation
and subject to corrective action for, among other things, failing to provide special
education services to its students. Because these possible deficiencies directly impact the
students at First Place and, if founded, indicate that they are not receiving the education to
which they are legally entitled, the Commission has reached out to a number of entities
that are poised to provide First Place with resources that will help it provide its students
with the education to which they are entitled. The Commission strongly encourages First
Place to immediately take advantage of the support and resources that are available to
you.
In an effort to ensure that the Commission’s ultimate decision regarding these perceived
problems is based on accurate information, First Place has an opportunity to supplement
the information previously provided to the Commission. Below, the Commission
provides First Place with a detailed discussion of the perceived problem and identifies
explicit information that it requires to render its decision. This is done in service of First
Place and will help to ensure that any decision is based on an accurate understanding of
the facts.
First Place has 10 working days within which to respond, in writing, to the perceived
problems identified in this letter. See WAC 108-40-030(4)(b).
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 WASHINGTON STATE

Charter School Commission
STUDENTS • INNOVATION • TRANSPARENCY

Failure to provide this information, or any other information requested related to this
investigation, will force the Commission to render a decision about the continued
operation of First Place on the limited record presented and the
information/documentation made available within the established timeline.
Background
On November 15, 2013, First Place submitted an application to operate a charter school.
The application included a Statement of Assurances signed by Sheri Day, acting as a duly
authorized representative of First Place. After the application was approved, First Place
and the Commission negotiated a contract that was executed on April 24, 2014, and
became effective on September 3, 2014, after First Place informed the Commission that it
had satisfied all of the conditions precedent to opening.
On December 16, 2014, First Place was placed on probation, resulting in increased
monitoring and the requirement that First Place successfully satisfy its obligations under
the Corrective Action Plan. There were several deficiencies that First Place was required
to address in the Corrective Action Plan, including First Place’s lack of a qualified special
education employee or contractor and its failure to provide its students with special
education services required by law. The Commission hired a consultant to assist First
Place identify students who had not received legally required special education services
and develop a plan to provide compensatory services.
First Place submitted a draft compensatory education plan to the Commission on January
30, 2015. The Commission continues to work with First Place to finalize the terms and
conditions of the Corrective Action Plan. Furthermore, the Commission continues to
monitor First Place to ensure its compliance with its ongoing obligation to enroll and
serve all special education students and provide a “free and appropriate education” as
required under the charter contract, state and federal law. See Charter Contract, Provision
4.4.9 (establishing school must comply with the Individuals with Disabilities Act and
Section 504 of the Rehabilitation Act of 1973); see also Charter Contract, Provision 4.9.1
(establishing school’s enrollment policy cannot discriminate based on special education
needs).
The Commission acknowledges the efforts taken by First Place to rectify its prior special
education noncompliance; nevertheless, the Commission continues to evaluate First
Place’s capacity to appropriately serve students with disabilities during the rest of this
school year and going forward.
Unfortunately, the Commission became aware of additional concerns beyond those
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related to special education enrollment and services. As a result the Commission sent a
Letter of Inquiry to First Place on February 2, 2015, requesting information and/or
documentation regarding new allegations concerning:
•
•

•
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Deficiencies in services being provided to English Language Learners (ELL).
Failure to adhere to the essential design elements of First Place’s education
program, or, more clearly, failure to satisfy material terms of its education model
as First Place detailed and committed to in its charter contract.
The unlikely financial viability of the school, threatening the school’s ability to
continue its operation during this school year and future school years.
Organizational and governance deficits underscoring First Place’s board’s failure
to support/oversee the school in an effective, contractually- and legally-compliant
manner.

Making matters worse, the Commission understands First Place knew of these new
deficiencies and failures on December 10, 2014, when it received a report issued by
SchoolWorks alerting First Place to multiple examples of its contractual and legal
noncompliance. Not only did First Place fail to share this third-party report with the
Commission, but First Place also disregarded its duty to notify the Commission of the
failures documented in the SchoolWorks report—a violation, in and of itself, of explicit
provisions of First Place’s charter contract. See Charter Contract, Provision 4.7.12
(requiring immediate notification of any known condition that causes First Place’s
operations to vary from the terms of the contract, federal and state law).
First Place’s failure to inform the Commission of these documented deficiencies has begun
to erode the Commission’s confidence in First Place’s capacity to identify, acknowledge,
and remedy its noncompliance. Furthermore, in most instances First Place’s response to
the Commission’s February 2, 2015 Letter of Inquiry validated and amplified the
Commission’s concerns about the school’s performance and legal compliance.
This Letter of Concern provides First Place one final opportunity to respond to the
concerns that have been identified. In an effort to help First Place provide the
Commission with the necessary information, the Commission has set forth specific
information First Place must provide in response, without limiting First Place’s ability to
provide any additional information it believes relevant.
Academic and Educational Program Deficits
The possible academic and educational program deficits identified below give rise to
significant concern for the educational welfare of the students attending First Place. This
school serves at-risk youth; many of whom require and are legally entitled to specific
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interventions and services in order to ensure their growth and academic success.
The deficits, if confirmed, place these at-risk students at even further disadvantage,
deprive them of the education to which they are lawfully entitled, and illustrate First
Place’s failure to offer key components of the educational program it was authorized to
operate. These perceived deficits are particularly troubling given that First Place currently
is on probation (and has been since December 2014) and is subject to corrective action for
failing to satisfy its contractual, legal, and educational obligations to serve students with
disabilities.
Perceived Problems:
•
•
•

Failure to comply with federal and state law concerning ELL.
Failure to satisfy contractual obligations concerning ELL.
Failure to implement ELL program components established in its charter school
application.

Washington State charter schools: (1) cannot discriminate based on national origin, (2) are
required to provide students with a basic education, (3) comply with state and federal
laws governing English Language Learners (ELL) education, and (4) “provide resources
and support to English language learners to enable them to acquire sufficient English
language proficiency to participate in the mainstream English language instructional
program.” See Charter Contract, Provision 4.9.1, Provision 4.4.2(a) and Provision 4.4.8.
Charter schools also are required to “employ and train teachers to provide appropriate
services to English language learners.” Charter Contract, Provision 4.4.8.
ELL students have the right to meaningfully participate in their educational programs and
services under both federal and state law. See Title VI of the Civil Rights Act of 1964;
Equal Educational Opportunities Act of 1974; RCW 28A.150.220(3)(e). ELL students who
require transitional bilingual instruction also possess rights as part of Washington’s
constitutionally mandated right to basic education. See Const. art. IX, § 1, 2; and
RCW 28A.150.220(3)(e).
Accordingly, charter schools must identify ELL students in need of assistance in a timely
manner, provide language assistance services that give ELL students an equal opportunity
to meaningfully and equally participate in their education, and have sufficient staff and
resources to effectively implement ELL programs.
First Place was aware of its legal obligations when it submitted its application to open a
charter school, it expressed an understanding of what ELL students need to achieve
academic success, and identified with specificity its methods for identifying and meeting
the needs of ELL students who enrolled in First Place.
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The Home Language Survey is the first step in identifying ELL. In its application First
Place identified the following components of its program for ELL identification,
instruction, monitoring, and evaluation:
•
•
•
•
•
•
•

A home language survey conducted during “intake, before the child starts school.”
Obtain records from the child’s previous schools.
Parent interviews when the home language survey indicates that a child may be an
ELL student.
Administration of the Washington English Language Proficiency Assessment
(WELPA).
Creation of an individualized Student Learning Plan for each student that includes
an English Language Acquisition Plan (ELAP).
Employment of an ELL-endorsed teacher and staff who work directly with the
student.
Review of the ELAP by the Collective Care Team at least yearly.

First Place also represented the following with regard to staffing and training:
•
•
•
•
•

It had one teacher with an ELL endorsement.
Classroom teachers will be required to include ELL training in their professional
development.
The school’s lead teacher has received training in Guided Language Acquisition
and Development (GLAD).
Classroom teachers will regularly use authentic assessments to monitor and
evaluate the progress and success of ELL students.
The results of these assessments will be addressed each trimester as the Student
Learning Plans are updated.

The Commission requested ELL student assessment results in its February 2, 2015 Letter
of Inquiry. Until the Commission made this request, First Place had not informed the
Commission of its failure to satisfy its contractual and legal obligations to serve and
support ELL.
First Place provided no assessment results in response and stated “[t]o date there has been
no evidence of any calculation completed to illustrate the capacity of our ELL students in
our school.” The response was dated February 2015; school has been in session since
September 3, 2014. Therefore, it appears First Place did not implement the components of
the ELL program pledged in its application, and has failed entirely to satisfy its
obligations under its charter school contract as well as state and federal law.
Moreover, during the six months of operation which ELL students were not identified or
served, First Place chose not to notify the Commission of its known failure to comply with
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its contract and with state and federal law, once again violating its contractual notification
obligations. See Charter Contract, Provision 4.7.12(b) (requiring immediate notification of
any known condition that cause First Place’s operations to vary from the terms of the
contract, federal and state law).
Equally troubling, during its planning phase First Place projected 14.7% of its students
would be ELL and 4.9% would qualify as transitional bilingual. Accordingly, First Place
has been receiving funding based on these assumptions. However, by First Place’s own
admission, these funds have not been allocated to serving ELL students.
The financial documentation supplied by First Place itself underscores the gravity of this
perceived problem. As revealed by the financial documents First Place submitted in
response to the Commission’s February 2, 2015 Letter of Inquiry (facts which were
subsequently confirmed by the Office of Superintendent of Public Instruction), First Place
has been receiving and spending its transitional bilingual apportionment dollars since
September 2014; but admits it has not provided services to those students to date and only
just began identifying students who should have been identified at the start of the school
year. It is unclear how these transitional bilingual funds have been spent, and it is of grave
concern to the Commission that such funds have been received and potentially
misallocated.
First Place’s failure to serve another group of highly vulnerable students (and failure to
notify the Commission of such), after being placed on probation for, among other things,
the school’s failure to serve special education students, significantly increases the
Commission’s growing concern and vastly diminishes the Commission’s confidence that
First Place can comply with its contractual and legal obligations to provide all students
with the basic education components to which they are entitled. It greatly troubles the
Commission that a pattern of noncompliance with respect to serving all students,
especially educationally vulnerable populations, may be emerging at First Place.
First Place is required to respond in writing to this perceived problem within 10 days.
First Place’s response should provide complete information, documentation, and
explanations regarding the services it has, or has not, provided to ELL students since
September 3, 2014, and the monies spent to provide such services.
Specifically, First Place must answer each of the following questions and provide
documentation and information that supports the answer. The following questions link
directly to program components described by First Place in its charter application:
•

Did First Place give any students a home language survey as part of its preopening intake?

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•

•
•
•

•

•

•
•
•
•

Did First Place ever request or obtain records concerning ELL from the students’
previous schools, and if yes, when were they requested/obtained and how were
they used by First Place?
Has First Place conducted parent interviews when the home language survey
indicated a child may be an ELL, and if yes, when?
Has First Place administered the Washington English Language Proficiency
Assessment (WELPA), and if yes, when?
Has First Place created of an individualized Student Learning Plan for each
student that includes an English Language Acquisition Plan (ELAP), and if yes,
when and was it implemented with fidelity?
Does First Place contract with or employ an ELL-endorsed teacher and/or staff
who work directly with students? (List each individual and dates of employment
or contract.)
Did First Place have a teacher with an ELL endorsement from the time of it began
operations as a public school (September 3, 2014) to present? (List each individual
and dates of employment or contract.)
Have classroom teachers been required to include ELL training in their
professional development and/or received such training, and if yes, when?
Did/does the school’s lead teacher receive training in Guided Language
Acquisition and Development (GLAD), and if yes, when?
Why didn’t First Place communicate its failure to identify and serve ELL students
to the Commission?
How did First Place spend the funds it received to serve ELL students?

Perceived Problems:
•
•

Failure to implement assessments designed to monitor and improve student
performance.
Failure to discharge essential design elements of the approved educational
program.

Monitoring and assessment is an essential design component of the educational program
detailed in First Place’s charter school application and the resulting contract. First Place
pledged to conduct ongoing progress monitoring and assessment to measure both
academic and social-emotional growth. Moreover, the monitoring and assessment was of
particular importance to First Place’s educational program because it would have enabled
First Place to adjust scope and sequence to better meet the needs of its targeted students—
those who have experienced multiple traumas. The education program designed and
committed to by First Place requires enrollment, weekly, monthly, periodic, and quarterly
assessments in order to meet students’ needs and deliver the educational program

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outlined in its application and incorporated into the charter contract.
In its February 2, 2015 Letter of Inquiry, the Commission requested confirmation and
evidence proving First Place was meeting the following monitoring and assessment
obligations, which were created in its application and agreed to in its contract:
•
•
•
•
•

Enrollment assessments.
Weekly monitoring of academic growth to demonstrate acceleration of each
student’s academic performance.
Interim reading and math assessments.
Quarterly assessment of social-emotional growth.
Meeting minutes indicating intervention strategies were developed and
implemented using information obtained from the assessments.

In response to the Commission’s request, First Place did not provide adequate,
meaningful documentation or information to allow the Commission to confirm each
student’s academic performance and social-emotional well-being has been monitored as
required by the charter contract. Instead, First Place provided documentation that was
inconsistent, incomplete and, in many instances, void of information that would support a
finding that First Place has been meeting its obligations. In the documentation that was
provided, First Place often provided summary information that was insufficient to enable
the Commission to ascertain whether its specific legal obligations have been/will be
satisfied. More specifically:
•

•

•
•

•

With regard to math assessments, First Place only provided “placement tests”
results with the date range for the assessment being February 6-12; no evidence of
interim assessments was provided.
With regard to reading assessments, First Place provided no copies of student
interim reading assessment results. First Place provided copies of myLexia Auto
Placement reports for students in grades K-5. The reports contain student results
for reading as a content area; specifically word recognition and comprehension.
No documentation was provided regarding student enrollment assessment results
in any other content areas.
The number of students for whom the reports were provided does not align with
the school’s September enrollment; therefore, it is unclear if enrollment
assessments were administered for all students.
No documentation was provided regarding quarterly student assessment results.
Instead, First Place provided trimester report cards. Report cards and student
assessment data have a different purpose and there is no data regarding student
assessments.

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•

•

The trimester report cards reveal inconsistent reporting from teacher to teacher
and there were fewer report cards provided than there are students who are
purportedly attending First Place.
Finally, there is a lack of consistency regarding the Social-Emotional Reports
teachers are providing students and families.

Absent this monitoring and assessment, First Place cannot create interventions designed
to meet the needs of the educationally vulnerable students who it sought, and was
approved, to serve. It cannot adjust the scope and sequence of instruction nor can it use
data to drive differentiated teaching and learning to ensure its students are progressing
academically. Not only does the information provided to date suggest First Place is in
clear violation of its commitments and obligations under its charter contract, but by failing
to perform the monitoring and assessments set forth in its charter application and
contract, the school is also failing the very students it recognizes may be at-risk for
academic failure, students who First Place knows (because of its extensive and
longstanding work in the Seattle community) need additional support and tailored,
individualized educational services.
As a result, the school is being notified that a perceived problem exists at First Place
regarding satisfaction of its obligations under the specific provisions of its charter contract
that require monitoring and assessment as critical facets of its educational program. See
Charter Contract, Provision 4.4.1b and Provision 4.4.1c (setting out the school’s goals and
objectives, which were drawn directly from First Place’s application.) Moreover, as
discussed previously, First Place also carries the affirmative duty to notify the
Commission of any failure to perform a material term of its contact. See Charter Contract,
Provision 4.7.12(b) (requiring immediate notification of any known condition that causes
First Place’s operations to vary from the terms of the contract, federal and state law).
Therefore, once again, not only has First Place failed to satisfy its contractual and legal
obligations, but it has also failed to notify the Commission about its failure, ultimately
further eroding the Commission’s confidence in First Place’s capacity to remedy its
growing pattern of noncompliance.
First Place is required to respond in writing to this perceived problem within 10 days.
First Place’s response should provide complete information, documentation, and
explanations regarding the monitoring and assessment that has, or has not, occurred
beginning with enrollment to the present.
The following questions and requests link directly to the goals and objectives First Place
described in its charter application and committed to in its contract. First Place must
respond to each item and provide documentation and information that supports the
answer:
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•
•

•

•

•

•

Whether enrollment assessments occurred for every student, the dates on which
they occurred, and copies of the assessment results.
Whether weekly monitoring of student academic growth is occurring, when it
began, whether it has occurred every week, how it is documented, and how it is
used.
What systems and processes have been implemented since the beginning of school
to facilitate teachers’ efforts to monitor student academic growth? Information
provided should include an explanation of how teachers are assessing the impact
of their instruction on student learning and how their instruction is changing as a
result of weekly student monitoring.
Whether First Place has been monitoring progress of students’ social-emotional
growth through a Social-Emotional Report, how often it has occurred, and how it
is used and documented.
Identify the dates and times that academic progress was reviewed and the school
developed or implemented intervention strategies using information obtained
from the assessments.
Copies of all student exit forms.

Financial Deficits Implicating the School’s Financial Viability
The possible financial deficits identified below give rise to significant concern about the
financial viability of First Place. The importance of financial viability cannot be
overstated. If the school lacks financial viability, the school risks abruptly closing, leaving
its educationally vulnerable, at-risk students, who already have experienced multiple
traumas, in the even more vulnerable position of scrambling to find another school where
they can complete their school year. Moreover, as a steward of public funds the school
must be fiscally responsible and comply with generally accepted accounting principles, as
well as its own internal accounting procedures. See RCW 28A.710.040(2)(e); Charter
Contract, Provision 4.12 (School Finance); Provision 4.2.8 (Non-comingling and
accounting for public funds and assets); and Provision 4.13 (Annual Budget requirements
including a prohibition on expenditures and inter-fund transfers in excess of available
revenues and beginning fund balances). Therefore, the school must concretely
demonstrate financial viability, in part, by demonstrating adherence to appropriate and
applicable accounting practices.
In its February 2, 2015 Letter of Inquiry, the Commission requested information to
ascertain whether First Place is financially viable. Specifically, the Commission requested
information about the significant decrease in enrollment, current financial status reports,
and First Place’s most recent bank account statements. The Commission also requested
assurances that First Place is financially viable.
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The information provided reveals that the school’s current budget does not align with the
budget that was submitted as a preopening condition on July 31, 2014. In addition, the
current financial status report projects a year-end deficit of $280,230 and includes a
$750,000 fundraising goal of which only $6,477 has been realized. First Place also has
experienced significant loss of student enrollment. As a result, in addition to the
contemplated year end deficit identified above, First Place will be obligated to reconcile
with the Office of Superintendent of Public Instruction for approximately $266,964 in
allocation overpayment. Additionally, the Commission has information that First Place
has not paid, or is more than 60 days past due on payments, to a number of vendors.
Although the Commission recognizes the first year of operation may present cash-flow
challenges to any school, the Commission also expects every school to demonstrate
financial responsibility and creativity to find and secure additional funds as needed. With
respect to First Place, the Commission was told (in the school’s charter application) the
school would have access to two substantial pools of resources to ease any financial strain
encountered through the school’s early years of operation: (1) a $3.2 million endowment
with approximately $100,000 in annual earned interest, and (2) $9 million in building
assets owned free and clear by First Place. See Charter Contract, Section 3, Budget
Narrative, p. 371-72.
These assets were pledged to support the school’s operation. The Commission considered
and approved First Place’s charter application based on this representation; in fact, it was
the commitment of these extra resources by the charter-holder that provided the
Commission additional assurance that First Place would be able to accommodate any
financial struggles experienced in the school’s early years. Now, given that such financial
struggles have arrived, the Commission is concerned that these abundant, previouslypledged assets seem to no longer be available to the school or are now characterized as an
expense (e.g., lease between First Place and the newly created First Place Scholars Charter
School).
Additionally, in response to the Commission’s February 2, 2015 Letter of Inquiry, First
Place provided only a recent bank account statement for a Wells Fargo bank account in
the name of First Place Scholars Charter School. However, two other bank accounts are
referenced in board meeting minutes provided to the Commission in response to the
February 2, 2015 Letter of Inquiry. The August 12, 2014 board meeting minutes reference
an interest bearing savings account, but no information was provided by First Place
regarding this account in its recent response to the February 2, 2015 Letter of Inquiry. In
addition, the October 28, 2014 board meeting minutes reference a Bank of America bank
account and “other financial accounts owned by First Place, First Place Scholars and First

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Place Family Services,” but no information was provided by First Place regarding these
accounts in response to the February 2, 2015 Letter of Inquiry. First Place must provide
current bank statements for all of its accounts.
Finally, in response to the Commission’s request for assurances that First Place has the
financial capacity to operate the school as required under the charter contract, and meet
its financial and legal obligations for the remainder of the school year, or, alternatively, a
statement confirming that First Place lacks such capacity, First Place provided a document
containing a conclusory statement asserting the school has the financial capacity to meet
its financial and legal obligations for the remainder of the school year.
First Place identified the following funding streams without linking them to concrete
numbers to demonstrate its financial health or viability:
•
•
•
•
•
•

State apportionment dollars
Special education reimbursement
Title I reimbursement
USDOE grant
Transportation
Donations - First Place Scholars receives donations from First Place Incorporated
which has a substantial endowment

This information is insufficient. Conclusory statements and vague descriptions of
potential revenue streams do not provide adequate evidence of First Place’s financial
viability. Rather, it is quite the opposite. The lack of information and documentation
heighten the Commission’s concern about First Place’s financial health and viability, and
raise substantial doubt about First Place’s ability to satisfy its financial and legal
obligations under state statute and its charter contract.
With such limited information, the Commission is not able to verify the representation
that First Place has adequate funds to keep the school open for the remainder of the school
year. Additionally, based upon the updated budget First Place submitted per the
February 2, 2015 Letter of Inquiry and the unabated possibility that First Place may run
out of money before the end of the school year, there is grave concern that First Place will
not be able to meet its legal obligations for the remainder of the school year. To illustrate
the potential risk and harm ahead, a sampling of the legal obligations that may be
unsatisfied by First Place due to its dwindling budget include:
•
•

Inability to pay its teachers and staff.
Inability to maintain all required insurance.

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•
•

Inability to pay student transportation costs.
Inability to meet its legal obligations under McKinney Vento and IDEA.

And notably, this list is by no means an exhaustive one.
Furthermore, with First Place developing and implementing a Special Education
Compensatory Service Plan as required by its Corrective Action Plan, it has obligations to
provide substantial special education services that could be costly; calling into further
question the school’s ability to meet its financial and legal obligations for the remainder of
the school year.
Moreover, it has come to the Commission’s attention that First Place never purchased the
performance bond required by its charter contract. See Charter Contract, Provision
4.5.1(e)(2). The purpose of this performance bond was to safeguard the public funds
received by First Place in the event that First Place failed to meet its material obligations
under the charter contract. This failure is particularly troubling given that First Place has
already been found to have breached the material obligation of providing special
education services to its students, which must be remedied at significant cost, and now
First Place is subject to scrutiny for several other material violations.
Based on the foregoing, the Commission doubts the ability of First Place to successfully
reach and maintain compliance with its financial and legal obligations. Moreover, the
Commission has no evidence to demonstrate that First Place will have the financial ability
to remain open until the end of the school year or beyond. Accordingly, the Commission
issues this notice of perceived problem.
First Place is required to respond in writing to this perceived problem within 10 days.
First Place’s response should provide complete information, documentation, and
explanations specific to its current financial status.
First Place also must provide the following:
•
•
•
•
•

A full staffing plan of the school both at the time the original budget was created
and currently.
Current balance sheet.
Current accounts receivable and accounts payable reports for each vendor.
The most recent bank account statements for all accounts associated with the
Washington nonprofit corporation First Place.
Confirmation that First Place obtained and is maintaining the insurance and bonds
as required by its contract; any performance bond must be retroactive and cover

1068 Washington Street SE • PO Box 40996 • Olympia WA 98504-0996
360.725.5511 • info@charterschool.wa.gov • www.charterschool.wa.gov

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 WASHINGTON STATE

Charter School Commission
STUDENTS • INNOVATION • TRANSPARENCY

•
•

•

•
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First Place’s pending and previous breaches.
Projected expenses associated with First Place’s special education compensatory
service plan and planned Summer Scholars Program.
A detailed response with supporting documentation regarding how First Place
plans to balance its budget, remain open for the remainder of the school year, and
reconcile with OSPI the overpayment it received during its first year of operation
based on its original projected enrollment, without negatively impacting students
who currently attend First Place.
Identify individuals with knowledge or documentation regarding the bank
accounts associated with the Washington nonprofit corporation First Place with
whom the Commission may follow up.
Details for each funding stream listed with projected revenues, current funds
received, and projected revenues for the remaining months of the school year.
Information and documentation showing that projected revenues are not merely
speculative.
For the endowment that is referenced, First Place must provide a detailed report
regarding the endowment’s current balance and the amount that is accessible and
available to be used for the school.
Identify individuals with knowledge or documentation regarding the history and
current status of First Place’s endowment with whom the Commission may follow
up.
Identify individuals with knowledge or documentation regarding First Place’s
financial capacity.
List all outstanding bills or debts, when they were incurred, when payment is due,
and to whom payment is owed.

Organizational Deficits
The importance of Board governance already has been demonstrated during this school
year. The Board has final authority for the academic, financial, and organizational
performance of First Place. The Board ultimately, and in the eyes of the law, carries full
responsibility for ensuring compliance with the charter contract. See RCW 28A.710.030;
Charter Contract, Section 4.2, Governance.
The items detailed in this notice raise concerns about First Place’s organizational capacity
to satisfy its legal obligations. Additionally, it appears that First Place may be changing its
structure or affiliations in a way that materially impacts its financial status and reflects a
departure for the structure that existed at the time of application. First Place is the
nonprofit corporation that submitted an application to the Commission and qualified as a
public benefit nonprofit entity under the Charter Schools Act. See RCW 28A.710.010(1);
Charter Contract, Appendix 2. First Place is the charter holder and First Place’s assets and
1068 Washington Street SE • PO Box 40996 • Olympia WA 98504-0996
360.725.5511 • info@charterschool.wa.gov • www.charterschool.wa.gov

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 WASHINGTON STATE

Charter School Commission
STUDENTS • INNOVATION • TRANSPARENCY

funding sources were identified in the application as available to the school, including a
specific statement that there would be no lease payments because the school already
owned its building. Charter Contract, Appendix 9, Application, pp. 66-71 and
Application Attachments 21 and 24. Yet, First Place now submits a backdated lease
between itself and a newly created nonprofit corporation known as First Place Scholars
Charter School. Additionally, First Place has demonstrated a pattern of noncompliance
with its legal obligations and, possibly, a lack of financial oversight consistent with its
own policies as well as its contractual obligations. This directly implicates the
organizational capacity of First Place.
First Place is required to respond in writing to these perceived problems within 10
days. First Place’s response should provide complete information, documentation, and
explanations as follows:
•

•

Explanation of the purpose and role of the newly created nonprofit “First Place
Scholars Charter School,” a list of that nonprofit’s board members and that
nonprofit board’s governance policies.
Minutes from the meetings in which it was decided to lease a facility not owned by
the Washington public benefit corporation/nonprofit First Place.

Looking Forward
The Commission appreciates your immediate attention to the perceived problems detailed
herein and will consider your response, and any other available information and
evidence, to determine what steps are necessary to remedy these issues. Given the grave
nature of these identified deficiencies, if they are confirmed, the Commission will have no
choice but to take action, which could include revocation of First Place’s charter contract.
See RCW 28A.710.200.
As these concerns are vetted, the Commission cannot ignore the risk to the educationally
vulnerable students at First Place, some of whom have already been deprived of special
education services, and more whom may have been deprived of the services and
educational program in the manner outlined above. We are confident you will agree that
these students’ needs are paramount.
Please contact me directly if you have any questions or concerns.
Sincerely,

Joshua Halsey, Executive Director, Washington State Charter School Commission
1068 Washington Street SE • PO Box 40996 • Olympia WA 98504-0996
360.725.5511 • info@charterschool.wa.gov • www.charterschool.wa.gov

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 WASHINGTON STATE

Charter School Commission
STUDENTS • INNOVATION • TRANSPARENCY

c:

Dawn Mason, Evelyn Thomas Allen, Phyllis Yasutake, Hannah Getachew,
Josephine Howell, Robert Van Tassell, Ed Jefferson, Rev. Harriet G. Walden, Anisa
Mason, Cordell Carter, Roger McKeague, John Kerr, and Juan Cotto

cc:

Linda Whitehead
Washington State Charter School Commission Commissioners
Aileen Miller, AAG

1068 Washington Street SE • PO Box 40996 • Olympia WA 98504-0996
360.725.5511 • info@charterschool.wa.gov • www.charterschool.wa.gov

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