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TX’s Kauffman Leadership Academy to Close with One Week’s Notice to Parents

February 22, 2020

The Texas Education Agency (TEA) will be closing the Kauffman Leadership Academy (KLA) (Cleburne) charter school with one week’s notice, as reported in WFAA.com.

In this February 13, 2020, letter to KLA leadership, TEA cites, “the [closure] order was issued as a result of the financial situation at the charter school having deteriorated significantly, including federal tax liens and levies issued by the Internal Revenue Service (IRS) that had frozen all accounts of the charter school.”

KLA filed with the Texas Secretary of State (SOS) as a business entity on August 23, 2010 (search here; KLA’s taxpayer ID# is 32042519895). According to KLA’s charter application dated 02/23/11 and on file with TEA, KLA planned “to open in August 2011 operate as a private school, pending charter approval.” These archived web pages from July 2011 and May 2015 have KLA identifying itself as an “open enrollment private school pending charter approval.”

According to the IRS, KLA received nonprofit status in August 2014, and according to KLA’s website, the school opened as a charter school in August 2016.

What took TEA so long to identify KLA’s suspicious financial situation is a looming question.

According to the IRS, KLA has only ever filed 990-N tax forms, also known as “e-postcards,” because according to KLA, for tax years 2013 to 2017 (the most recent filing,) KLA has reported “gross receipts not greater than 50,000.”

So, for five tax years, KLA told the IRS, “We have almost no money,” and the public– including TEA– had ready access to that information.

Meanwhile, on its website, KLA states, “every employee of the Academy earns the same salary, $35,000,” a statement that has remained consistent on its website since the time KLA received its charter in fall 2016, as evidenced by this October 2016 archived web page announcing KLA’s grad opening celebration.

If KLA had $50K or less per annum in 2016, that would have been enough for only a single KLA employee based upon state funding for perhaps 8 students.

Red flag, no?

This crash-and-burn did not have to wait for an IRS account freeze. Based upon KLA’s anemic tax filings, TEA should have caught this one years ago.

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