Rutherford County board issues notice of deficiency after authorizer flags academic, financial gaps at two charter schools

The Rutherford County Schools board voted Thursday to issue a formal notice of deficiency to two charter schools it authorizes after an annual report found multiple academic, financial and compliance shortcomings.

The board approved the notice and a requirement that the schools submit a plan of corrective action by March 25, 2026, after a presentation from authorizer staff that described academic scores, audit gaps and financial stress at American Classical Academy (ACAR) and Springs Empower. The motion to issue the notice was moved by Stan Vaught and seconded by Butch Vaughn and carried on a roll-call vote with all members present voting yes.

"Achievement of a rating of falls far below in multiple areas or does not meet a standard in a significant number of ratings will result in a notice of deficiency being issued to the school's governing board and a plan of corrective action being developed," said Jeff McCann of the authorizer during the presentation, summarizing the district's progressive-intervention policy. McCann told the board that the policy and the district's Policy 1904 outline options from a simple notice of concern up to a notice of deficiency.

The authorizer's FY25 audit review found ACAR with a low current ratio (0.61), negative unrestricted days cash, a substantial enrollment shortfall (end-of-year ADM 202 versus a budgeted 393, about 51 percent of projection) and a debt tied to facility rent of roughly $96,000 coming due June 26. Spring's audited financials were still pending at the time of the presentation; McCann described the missing audit as a material breach when not provided by the contract deadline and said the school had sought an extension from the state.

McCann also summarized academic results under the district's performance framework: both schools received low absolute achievement and growth results in ELA and math, though both scored well on English learner proficiency (ELPA). "We scored Springs a 1.9, which is very close to a 2.0, but for ACAR the overall academic average was 1.4 — falls far below," McCann said, noting the framework weights for comparative performance, student outcomes, mission-specific goals and TVOS growth.

Board members pressed for follow-up details and corrections already made. McCann reported that ACAR has hired a certified ESL teacher, put an RTI plan in place, and had an interim head of school, Dr. Alan Beck, while Springs had corrected a payroll/retirement posting issue that had triggered a notice of concern. He also said a part‑time nurse had been hired at ACAR and that several organizational deficiencies had been addressed, but that some compliance and financial issues remained unresolved.

Several board members said they were concerned about the potential for county-wide audit findings tied to charter schools that fall short on reporting or financial controls. "We've got to make people understand it — with tax dollars, you've got to make people understand it," said a board member during debate, urging swift action.

The motion requires the schools to submit a plan of action to the district by March 25, 2026. The board also scheduled opportunities to hear directly from charter representatives: administrators were asked to invite charter leadership to appear at upcoming meetings and at the board retreat to discuss progress and corrective steps.

The district's authorizer said it will continue to monitor academic outcomes and financial indicators and will work with the state charter commission and comptroller for guidance where audits and accounting practices remain unclear.