Notice of Prospect of Revocation

​Dear Ms. Royale and the Governing Board of Kona Pacific Public Charter School (KPPCS):

​This letter provides you with the formal Notice of Prospect of Revocation required by §8-­‐505-­‐16, Hawaii Administrative Rules (HAR) and in accordance with the action taken on March 14, 2019, at the State Public Charter School Commission’s General Business Meeting.

​Under §302D-­‐18(g), Hawaii Revised Statutes (HRS), the Commission took action to initiate the revocation of KPPCS’s charter contract based on the information presented and gathered to date that indicates that KPPCS failed to comply with the provisions of the law and:

  • committed material and substantial violations of the terms, conditions, standards, or procedures required under Section 302D-18, Hawaii Revised Statutes, and the State Public Charter School Contract;
  • failed to meet sufficient progress toward performance expectations set forth in the contract;
  • failed to meet generally accepted accounting procedures of fiscal management; or
  • substantially violated any material provisions of law from which the charter is not exempted.

The Commission’s concerns include but are not limited to:

  • Commingling of funds between the school and the non-profit, Friends of Kona Pacific Public Charter School (FKPPCS)
  • Continuous overpayment of lease rent from KPPCS to FKPPCS for every year except school year 2016-2017
  • Fronting money to FKPPCS to cover FKPPCS cash flow problems
  • Failure to maintain sufficient funds to cover the school’s payroll as evidenced by its bank statement showing a negative <$18,586.97> balance on July 20, 2018.
  • Evidence of FKPPCS driving the financial decisions of the school’s governing board
  • Conflicts of interest and ethical concerns with the governing board and employees of the school
  • Constitution of and actions by the governing board of KPPCS that may be out of compliance with HRS 302D-12(h)

Under HAR §8-­‐505-­‐16, KPPCS has thirty days from the date of notification, to respond to this Notice of Prospect of Revocation. The school also has the option of requesting a hearing on this matter in accordance with HAR §8-­‐505-­‐20 and may request legal representation subject to Section 28-­‐8.3, HRS. For more details, we refer you to HAR §8-­‐505, Subchapters 4 and 5.

​We will also be notifying parents and KPPCS’s staff of the Commission’s decision on March 18, 2019, along with the process that will occur. The Commission will also be setting up information on our website to provide the most updated information.

If you have procedural questions, please contact Chief Operations Officer Yvonne Lau (Yvonne.Lau@spcsc.hawaii.gov or (808) 586-­‐3775.

​

Sincerely yours,

​

​John S.S. Kim

Chairperson

State Public Charter School Commission

​

Sione Thompson

Executive Director

State Public Charter School Commission