TO: Judy Skupa, Ph.D., Assistant Superintendent for Performance Improvement, Cherry Creek

School District FROM: NACSA DATE: September 21, 2015 RE: EMO Due Diligence Report: Academica Corp.

A quality authorizer engages in a range of activities to assess an applicant’s plans and their capacity to operate a high‐performing school. NACSA’s Principles and Standards for Quality Authorizing advise authorizers to conduct “due diligence to examine the applicant’s experience and capacity” when experienced charter school operators apply for a new school. Due diligence refers to review of an experienced operator’s record of academic, organizational and financial performance.

This due diligence report supplements an evaluation of the plan submitted by the applicant. The purpose is to provide evaluators and the authorizer information about the proposed education management organization (EMO) that may be relevant to a determination of whether the applicant has met the statutory criteria for approval. To the extent that the report identifies potential questions or concerns related to the criteria for approval, these findings are highlighted as areas for further inquiry.

Report Structure The introduction to the report provides an overview of the operator based on information provided in the application and supplemented by other information presented by the operator, primarily through the operator’s website. The introduction also summarizes key findings from the report.

The review of academic performance includes analysis of publicly available performance information for the operator’s existing schools. The review gives attention to the overall record of performance in comparison to the district or state in which the schools are located, as available.

The organizational performance section outlines the operator’s mission, vision, organizational history and leadership, and emphasizes capacity aspects of the EMO’s structure and operations.

The financial performance section provides a review of the operator’s financial health based on financial reports, audits and other relevant financial information.

Issues identified for further review are based on professional standards for sound financial health that are generally applicable to not‐for‐profit organizations and particularly to the operation of networks of charter schools.

Sources NACSA conducts due diligence as a regular part of its application management process and as a service to support authorizers in making quality application decisions. The reports present information gathered from the following types of sources:

• Self‐reported (charter application, operator website, etc.) • Online searches • Publicly available research studies, evaluations, and financial filings

• Publicly available authorizing agency reports (e.g., annual reports) • Publicly available state and local agency reports (e.g., state accountability information) • Interviews with authorizers and others in the charter community

INTRODUCTION

Academica Corp. (“Academica”) is for‐profit education management organization (EMO) which manages a network of loosely affiliated charter schools in six states across the United States. Florida brothers Fernando and Ignacio Zulueta founded the company and Fernando Zulueta serves as the company’s CEO.1 Academica’s first charter school opened in Florida in 1997. Now, Academica manages schools in Florida, Texas, Utah, Nevada, California, and Washington D.C. One hundred of Academica’s 125 schools are in Florida. Over the years, Academica has spun off a number of state‐based affiliated LLCs that manage or provide services to charter schools outside of Florida. A unique aspect of Academica’s model is that Academica schools do not need to all follow the same or similar educational model. Instead, Academica schools follow a number of educational models and contract with Academica for financial and management‐related services. The proposed charter school, Heritage Heights Academy (“HHA”), is planning to contract with Academica as a management service provider. HHA will serve grades K‐6 in its first year and later expand to grades 7 and 8. HHA is proposing a Core Knowledge educational program modeled after the program at the Liberty Common School in Fort Collins, Colorado. According to the Colorado Department of Education’s website, Liberty Common received ratings of “exceeds” in all categories (academic achievement, academic growth, academic growth gaps, and postsecondary and workforce readiness) for the 2013‐14 school year.2

ACADEMIC PERFORMANCE Credo Report Based on the results of a 2013 study of charter school student outcomes conducted by the Center for Research on Education Outcomes (CREDO)3 at Stanford University, Academica students showed mixed performance compared to similar students. The study analyzed academic assessments for 16,996 students across 26 Academica campuses over four years (2005‐06 to 2009‐10). These students showed higher learning gains in reading, but lower learning gains in math. The overall student population of the 26 Academica campuses in the study included less than 50 percent enrollment of low‐income students, black students and Hispanic students. Scope of Academic Analysis This report examines the enrollment and academic performance of 100 Academica schools operating in

1 See McGrory, Kathleen and Scott Hiassen. “Academica: Florida’s richest charter school management firm,” Miami Herald, December 13, 2011, http://www.miamiherald.com/news/special‐reports/cashing‐in‐on‐kids/article1939207.html. 2https://edx.cde.state.co.us/SchoolView/DataCenter/reports.jspx?_afrWindowMode=0&_afrLoop=578905898186348&_adf.ctrl‐state=11hksl3m08_9 3 Woodworth, James L. and Margaret E. Raymond. “Charter School Growth and Replication, Volume II”. Center for Research on Education Outcomes, Stanford University, January 2013.

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Florida. Academica’s Florida schools are located in 6 districts – Broward County, Miami‐Dade, Duval County, Monroe County, Orange County, and Palm Beach County. The schools serve various grade combinations (kindergarten through 12th grade) and opened between 1997‐98 and 2013‐14. Academica’s Florida schools represent 80 percent of the total number of schools Academica manages across the country. Enrollment, proficiency rates, and state accountability results are presented for individual schools and compared to their respective districts.

Florida School Summary Information Table 1

Campus Name City Year

Opened

Grades Served

2014‐15

Number of Students 2014‐15

Broward County School District Ben Gamla Charter HS Plantation 2011‐12 8‐12 131 Ben Gamla Charter School Miami 2007‐08 K‐8 594 Ben Gamla Charter School (Hallandale) Plantation 2011‐12 6 14 Ben Gamla Charter School (North) Hollywood 2010‐11 6‐8 76 Ben Gamla S. Broward Plantation 2009‐10 K‐8 382 Somerset Academy Pembroke Pines 2000‐01 K‐5 938 Somerset Academy (Miramar) Miramar 2012‐13 K‐1 105 Somerset Academy East Prep Miramar 2009‐10 K‐5 292 Somerset Academy ES Pembroke Pines 2006‐07 K‐5 646 Somerset Academy HS Pembroke Pines 2002‐03 9‐12 1,099 Somerset Academy Hollywood Miramar 2013‐14 K‐5 57 Somerset Academy Hollywood MS Miramar 2013‐14 6 11 Somerset Academy in Davie Davie 2003‐04 K‐5 150 Somerset Academy MS Pembroke Pines 2001‐02 6‐8 831 Somerset Academy MS (Miramar) Pembroke Pines 2006‐07 6‐8 439 Somerset Academy Miramar South) Miramar 2011‐12 9‐12 281 Somerset Academy Neighborhood School Miramar 1997‐98 K‐5 527 Somerset Academy Pompano Pompano Beach 2012‐13 K‐5 165 Somerset Academy Pompano MS Pompano Beach 2013‐14 6 24 Somerset Academy Village Wilton Manors 2010‐11 K‐5 248 Somerset Academy Village Charter MS Wilton Manors 2010‐11 6‐8 111 Somerset Arts Conservatory Pembroke Pines 2006‐07 9‐12 119 Somerset Pines Academy Pompano Beach 2010‐11 K‐8 489 Somerset Prep Academy Charter HS at N. Lauderdale North Lauderdale 2010‐11 9‐12 222

Somerset Prep Academy Charter MS Miramar 2010‐11 6‐8 336 Somerset Prep Academy Charter School at N. Lauderdale North Lauderdale 2010‐11 K‐8 709

Miami-Dade County School District Ben Gamla Charter School Hollywood 2010‐11 K‐8 249

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Campus Name City Year

Opened

Grades Served

2014‐15

Number of Students 2014‐15

City of Hialeah Educational Academy Hialeah 2008‐09 6‐12 613 Doral Academy Miami 1999‐00 K‐5 1,143 Doral Academy Charter HS Miami 2001‐02 9‐12 1,548 Doral Academy Charter MS Miami 2003‐04 6‐8 1,251 Doral Academy of Technology Miami 2011‐12 6‐8 186 Doral Performing Arts and Entertainment Academy Miami 2005‐06 9‐12 380 iMater Academy MS Hialeah 2013‐14 6‐8 779 iMater Elementary Charter School Hialeah 2013‐14 K‐5 564 iMater Prep Academy HS Hialeah 2013‐14 9‐11 402 Integrated Science and Asian Culture (ISAAC) Charter Sch Miami 2009‐10 K‐1 13

International Studies Charter HS Miami 2004‐05 9‐12 399 International Studies Charter MS Miami 2009‐10 6‐8 298 Just Arts and Management MS (JAM) Miami 2012‐13 6 100 Mater Academy Hialeah Gardens 1998‐99 K‐5 1,069 Mater Academy (Miami Beach) Miami Beach 2010‐11 K‐8 534 Mater Academy at Mt. Sinai Miami Beach 2012‐13 K‐5 150 Mater Academy Charter MS Hialeah Gardens 2003‐04 6‐8 1,363 Mater Academy East Charter MS Miami 2005‐06 6‐8 346 Mater Academy East Charter School Miami 2002‐03 K‐5 634 Mater Academy East HS Miami 2007‐08 9‐12 343 Mater Academy ES of International Studies Miami 2008‐09 K‐5 553 Mater Academy HS Hialeah Gardens 2002‐03 9‐12 1,759 Mater Academy HS (Miami Beach) Miami Beach 2011‐12 9 32 Mater Academy HS of International Studies Miami 2008‐09 9 20 Mater Academy Lakes HS Miami 2006‐07 9‐12 1,158 Mater Academy Lakes MS Miami 2006‐07 6‐8 833 Mater Academy MS of International Studies Miami 2008‐09 5‐8 191 Mater Brickell Preparatory HS Miami 2011‐12 K‐8 174 Mater Gardens Academy ES Miami 2006‐07 K‐5 580 Mater Gardens Academy MS Miami 2006‐07 6‐8 220 Mater Grove Academy Miami 2011‐12 K‐8 181 Mater Performing Arts and Entertainment Academy Hialeah Gardens 2005‐06 9‐12 333

Miami Children’s Museum Charter School Miami 2004‐05 K‐5 306 Pinecrest Academy (North) Miami 2010‐11 K‐5 442 Pinecrest Academy (South) Miami 2006‐07 K‐5 733 Pinecrest Academy Charter MS Miami 2003‐04 6‐8 532

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Campus Name City Year

Opened

Grades Served

2014‐15

Number of Students 2014‐15

Pinecrest Academy MS (North) Miami 2011‐12 6 22 Pinecrest Cove Academy Miami 2011‐12 K‐8 730 Pinecrest Palm Academy Miami 2013‐14 1 18 Pinecrest Prep Academy Charter School Miami 2001‐02 K‐5 651 Pinecrest Prep Academy HS Miami 2008‐09 9‐12 477 Somerset Academy (Miami‐Dade) Miami 2004‐05 K‐5 587 Somerset Academy Bay at Pinewood Acres Miami 2013‐14 K‐5 247 Somerset Academy Bay MS at Pinewood Acres Miami 2013‐14 6‐7 43 Somerset Academy Charter ES (S. Homestead) Homestead 2008‐09 K‐5 493 Somerset Academy Charter HS – S. Homestead Homestead 2011‐12 9‐12 114 Somerset Academy ES (S. Miami) Miami 2009‐10 K‐5 452 Somerset Academy HS (Miami‐Dade) Miami 2004‐05 9‐12 351 Somerset Academy HS (South) Miami 2008‐09 9‐10 30 Somerset Academy MS Pembroke Pines 2004‐05 6‐8 212 Somerset Academy MS (Country Palms) Homestead 2008‐09 6 36 Somerset Academy MS (Miami‐Dade) Miami 2008‐09 6‐8 219 Somerset Academy MS (S. Miami) Miami 2009‐10 6‐8 151 Somerset Academy Silver Palms Miami 2007‐08 3‐8 617 Somerset City Arts Academy Homestead 2008‐09 K‐5 360 Somerset Gables Academy Coral Gables 2010‐11 K‐6 411 Somerset Oaks Academy Homestead 2011‐12 K‐6 295 Somerset Prep Academy at Silver Palms Miami 2011‐12 K‐5 667 Sports Leadership and Management Academy (SLAM!) Miami 2013‐14 6‐8 565

Theodore R. and Thelma A. Gibson Charter School Miami 2003‐04 K‐8 256 Duval County School District Somerset Academy Charter MS (Eagle) Jacksonville 2010‐11 6‐8 108 Somerset Academy HS (Eagle) Jacksonville 2012‐13 9‐10 31 Somerset College Prep Academy Port St. Lucie 2013‐14 K‐8 363 Monroe County School District Key West Collegiate School Key West 2011‐12 9‐12 77 Orange County School District Cornerstone Charter Academy Orlando 2010‐11 K‐8 933 Cornerstone Charter Academy HS Orlando 2010‐11 9‐12 372 Pinecrest Creek Academy Orlando 2012‐13 K‐5 219 Pinecrest Prep Charter School (Orlando) Orlando 2010‐11 K‐8 228 Palm Beach County School District Somerset Academy Boca MS Boca Raton 2013‐14 6‐7 44

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Campus Name City Year

Opened

Grades Served

2014‐15

Number of Students 2014‐15

Somerset Academy Canyons HS Boynton Beach 2013‐14 9‐10 254 Somerset Academy Canyons MS Boynton Beach 2013‐14 6‐8 745 Ben Gamla Charter School Palm Beach Boynton Beach 2011‐12 K‐5 292 Somerset Academy Boca Boca Raton 2012‐13 K‐5 318

Sources: Florida Department of Education. Available at: http://www.fldoe.org/accountability/data‐sys/edu‐info‐accountability‐services/pk‐12‐public‐school‐data‐pubs‐reports/students.stml. School information from Academica. Available at http://www.academica.org/schools.

2014-15 Demographic Enrollment

Race / Ethnicity With the exception of Hispanic students, in 2014‐15, Academica schools overall in Florida served smaller proportions of minority students than their respective districts. Only 17 of the 100 schools serve higher percentages of Black students than their respective districts, while 38 schools serve more white students and fewer Black students. Of the 100 schools, 72 serve more Hispanic students than their respective district.

Table 2

District/School White Black Hispanic/

Latino Asian Broward County School District 23% 40% 31%

40% 40% 31%

31% 40%

4% Ben Gamla Charter HS 63% 18% 18% 0% Ben Gamla Charter School 65% 4% 29% 1% Ben Gamla Charter School (Hallandale) 29% 43% 29% 0% Ben Gamla Charter School (North) 58% 9% 32% 0% Ben Gamla S. Broward 52% 26% 18% 1% Somerset Academy 10% 15% 61% 12% Somerset Academy (Miramar) 7% 27% 57% 8% Somerset Academy East Prep 4% 69% 24% 2% Somerset Academy ES 7% 30% 54% 6% Somerset Academy HS 11% 22% 61% 4% Somerset Academy Hollywood 14% 51% 33% 2% Somerset Academy Hollywood MS 9% 36% 45% 0% Somerset Academy in Davie 41% 9% 49% 0% Somerset Academy MS 12% 17% 60% 6% Somerset Academy MS (Miramar) 5% 36% 51% 6% Somerset Academy Miramar South 3% 74% 20% 1% Somerset Academy Neighborhood School 3% 81% 13% 1% Somerset Academy Pompano 19% 44% 36% 1% Somerset Academy Pompano MS 13% 46% 42% 0% Somerset Academy Village 9% 67% 20% 0% Somerset Academy Village Charter MS 7% 63% 27% 0% Somerset Arts Conservatory 26% 17% 53% 2%

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District/School White Black Hispanic/

Latino Asian Somerset Pines Academy 35% 34% 27% 1% Somerset Prep Academy Charter HS at N. Lauderdale 5% 69% 22% 2% Somerset Prep Academy Charter MS 1% 75% 17% 2% Somerset Prep Academy Charter School at N. Lauderdale 4% 73% 18% 2% Miami-Dade County School District 7% 22% 68% 1% Ben Gamla Charter School 35% 0% 62% 1% City of Hialeah Educational Academy 3% 2% 95% 0% Doral Academy 5% 1% 92% 2% Doral Academy Charter HS 6% 1% 91% 1% Doral Academy Charter MS 8% 1% 90% 1% Doral Academy of Technology 7% 0% 87% 5% Doral Performing Arts and Entertainment Academy 9% 1% 90% 1% iMater Academy MS 1% 2% 97% 0% iMater Elementary Charter School 1% 3% 96% 0% iMater Prep Academy HS 1% 2% 97% 0% Integrated Science and Asian Culture (ISAAC) Charter Sch 8% 0% 92% 0% International Studies Charter HS 26% 2% 72% 1% International Studies Charter MS 25% 2% 71% 2% Just Arts and Management MS (JAM) 8% 1% 90% 1% Mater Academy 1% 1% 97% 0% Mater Academy (Miami Beach) 11% 1% 85% 2% Mater Academy at Mt. Sinai 12% 13% 71% 2% Mater Academy Charter MS 1% 4% 94% 0% Mater Academy East Charter MS 1% 3% 96% 0% Mater Academy East Charter School 1% 1% 97% 0% Mater Academy East HS 2% 1% 96% 1% Mater Academy ES of International Studies 1% 6% 92% 1% Mater Academy HS 2% 3% 95% 0% Mater Academy HS (Miami Beach) 9% 3% 88% 0% Mater Academy HS of International Studies 0% 10% 90% 0% Mater Academy Lakes HS 6% 2% 91% 1% Mater Academy Lakes MS 3% 3% 92% 1% Mater Academy MS of International Studies 1% 12% 83% 4% Mater Brickell Prep HS 6% 3% 90% 1% Mater Gardens Academy ES 3% 1% 95% 1% Mater Gardens Academy MS 9% 2% 89% 0% Mater Grove Academy 4% 2% 92% 1% Mater Performing Arts & Entertainment Academy 3% 2% 94% 1% Miami Children’s Museum Charter School 26% 12% 60% 1% Pinecrest Academy (North) 3% 1% 95% 1% Pinecrest Academy (South) 3% 0% 94% 2% Pinecrest Academy Charter Middle School 6% 1% 93% 0% Pinecrest Academy MS (North) 0% 0% 100% 0% Pinecrest Cove Academy 2% 0% 97% 0% Pinecrest Palm Academy 11% 0% 89% 0% Pinecrest Prep Academy Charter School 3% 0% 96% 1%

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District/School White Black Hispanic/

Latino Asian Pinecrest Prep Academy HS 4% 0% 95% 1% Somerset Academy (Miami‐Dade) 3% 3% 93% 1% Somerset Academy Bay at Pinewood Acres 12% 1% 86% 1% Somerset Academy Bay MS at Pinewood Acres 19% 0% 79% 2% Somerset Academy Charter ES (S. Homestead) 9% 8% 80% 1% Somerset Academy Charter HS – S. Homestead 18% 8% 73% 2% Somerset Academy ES (S. Miami) 11% 1% 87% 1% Somerset Academy HS (Miami‐Dade) 7% 8% 83% 1% Somerset Academy HS (South) 7% 3% 83% 3% Somerset Academy MS 6% 4% 88% 2% Somerset Academy MS (Country Palms) 28% 8% 64% 0% Somerset Academy MS (Miami‐Dade) 19% 14% 64% 2% Somerset Academy MS (S. Miami) 14% 2% 83% 1% Somerset Academy Silver Palms 5% 6% 87% 1% Somerset City Arts Academy 28% 3% 68% 1% Somerset Gables Academy 18% 0% 81% 0% Somerset Oaks Academy 7% 11% 80% 1% Somerset Prep Academy at Silver Palms 5% 8% 84% 1% Sports Leadership and Management Academy (SLAM!) 5% 16% 79% 1% Theodore R. and Thelma A. Gibson Charter School 1% 91% 8% 0% Duval County School District 37% 44% 10% 4% Somerset Academy Charter MS (Eagle) 5% 83% 11% 0% Somerset Academy HS (Eagle) 3% 84% 10% 0% Somerset College Prep Academy 5% 89% 2% 1% Monroe County School District 49% 10% 36% 2% Key West Collegiate School 62% 5% 26% 0% Orange County School District 29% 27% 37% 4% Cornerstone Charter Academy 61% 8% 24% 4% Cornerstone Charter Academy HS 54% 9% 32% 3% Pinecrest Creek Academy 1% 87% 11% 0% Pinecrest Prep Charter School (Orlando) 21% 7% 69% 2% Palm Beach County School District 33% 29% 32% 3% Ben Gamla Charter School Palm Beach 91% 1% 6% 1% Somerset Academy Boca 51% 4% 43% 1% Somerset Academy Boca MS 52% 0% 45% 0% Somerset Academy Canyons HS 52% 17% 26% 2% Somerset Academy Canyons MS 59% 12% 23% 4% State of Florida 40% 23% 31% 3%

Source: Florida Department of Education. Available at: http://www.fldoe.org/accountability/data‐sys/edu‐info‐accountability‐services/pk‐12‐public‐school‐data‐pubs‐reports/students.stml Note: Percentages may not total to 100 percent due to rounding and non‐reporting of groups that have fewer than 10 students. In addition, the “2 or more races” total was not included in the above graphs. Student Characteristics Overall, Academica schools in Florida enrolled lower percentages of students eligible for free or reduced lunch (FRL), English language learners (ELL), and students with disabilities in the 2014‐15 school year than

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their respective school districts. Compared to their respective districts, 44 of the 100 Academica schools enrolled about the same or higher percentages of FRL students. Only 30 Academica schools enrolled the same or higher percentages of ELL students than their respective districts. Of the 100 schools, 31 enrolled about the same or higher percentages of students with disabilities (SPED). Figure 1

Figure 2

Figure 3

State of FL

State of FL

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Enrollment - Student Characteristics, 2013-14 Table 3

District/School

Free/ Reduced

Priced Lunch Enrollment

English Language Learners

Enrollment

Students with Disabilities Enrollment

Broward County School District 63%* 11% 12% Ben Gamla Charter HS 53% 10% 13% Ben Gamla Charter School 50% 36% 10% Ben Gamla Charter School (Hallandale) 58% 0% 7% Ben Gamla Charter School (North) 71% 0% 14% Ben Gamla S. Broward 60% 15% 6% Somerset Academy 32% 14% 10% Somerset Academy (Miramar) 43% 25% 2% Somerset Academy East Prep 87% 21% 7% Somerset Academy ES 64% 14% 6% Somerset Academy HS 45% 1% 10% Somerset Academy Hollywood 78% 30% 5% Somerset Academy Hollywood MS 82% 0% 9% Somerset Academy in Davie 59% 12% 7% Somerset Academy MS 34% 2% 14% Somerset Academy MS (Miramar) 65% 4% 10% Somerset Academy Miramar South 66% 0% 8% Somerset Academy Neighborhood School 73% 11% 3% Somerset Academy Pompano 81% 28% 8% Somerset Academy Pompano MS 83% 0% 13% Somerset Academy Village 93% 21% 8% Somerset Academy Village Charter MS 90% 9% 17% Somerset Arts Conservatory 36% N/A 10% Somerset Pines Academy 71% 12% 8%

State of FL

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District/School

Free/ Reduced

Priced Lunch Enrollment

English Language Learners

Enrollment

Students with Disabilities Enrollment

Somerset Prep Academy Charter HS at N. Lauderdale 84% 12% 9% Somerset Prep Academy Charter MS 75% 4% 8% Somerset Prep Academy Charter School at N. Lauderdale 92% 13% 5% Miami-Dade County School District 75% 19% 10% Ben Gamla Charter School 36% 10% 3% City of Hialeah Educational Academy 87% 9% 9% Doral Academy 44% 33% 8% Doral Academy Charter HS 60% 4% 15% Doral Academy Charter MS 58% 4% 20% Doral Academy of Technology 53% N/A 42% Doral Performing Arts and Entertainment Academy 54% 0% 23% iMater Academy MS 90% 13% 12% iMater Elementary Charter School 95% 37% 5% iMater Prep Academy HS 87% 15% 11% Integrated Science and Asian Culture (ISAAC) Charter Sch 77% 0% N/A International Studies Charter HS 61% 23% 11% International Studies Charter MS 63% 23% 1% Just Arts and Management MS (JAM) 56% 0% 7% Mater Academy 93% 44% 2% Mater Academy (Miami Beach) 70% 29% 3% Mater Academy at Mt. Sinai 58% 24% 3% Mater Academy Charter MS 87% 5% 16% Mater Academy East Charter MS 96% 10% 4% Mater Academy East Charter School 86% 49% 3% Mater Academy East HS 96% 7% 10% Mater Academy ES of International Studies 98% 44% 1% Mater Academy HS 84% 7% 16% Mater Academy HS (Miami Beach) 87% 0% 3% Mater Academy HS of International Studies 100%** N/A N/A Mater Academy Lakes HS 76% 3% 9% Mater Academy Lakes MS 78% 4% 2% Mater Academy MS of International Studies 94% 15% 4% Mater Brickell Prep HS 53% 16% 4% Mater Gardens Academy ES 53% 22% 1% Mater Gardens Academy MS 60% 0% 11% Mater Grove Academy 58% 12% 4% Mater Performing Arts and Entertainment Academy 81% 0% 23% Miami Children’s Museum Charter School 15% 23% 18% Pinecrest Academy (North) 66% 10% 2% Pinecrest Academy (South) 63% 18% 19% Pinecrest Academy Charter MS 64% 3% 14% Pinecrest Academy MS (North) 73% N/A N/A Pinecrest Cove Academy 56% 5% 4% Pinecrest Palm Academy 33% 0% N/A

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District/School

Free/ Reduced

Priced Lunch Enrollment

English Language Learners

Enrollment

Students with Disabilities Enrollment

Pinecrest Prep Academy Charter School 55% 8% 15% Pinecrest Prep Academy HS 63% 2% 14% Somerset Academy (Miami‐Dade) 65% 15% 2% Somerset Academy Bay at Pinewood Acres 16% 0% 1% Somerset Academy Bay MS at Pinewood Acres 24% N/A 7% Somerset Academy Charter ES (S. Homestead) 85% 19% 3% Somerset Academy Charter HS – S. Homestead 87% 9% 8% Somerset Academy ES (S. Miami) 16% 2% 2% Somerset Academy HS (Miami‐Dade) 76% 3% 13% Somerset Academy HS (South) 83% N/A 7% Somerset Academy MS 66% 0% 4% Somerset Academy MS (Country Palms) 74% N/A 19% Somerset Academy MS (Miami‐Dade) 77% 8% 6% Somerset Academy MS (S. Miami) 17% N/A 2% Somerset Academy Silver Palms 84% 9% 2% Somerset City Arts Academy 69% 23% 6% Somerset Gables Academy 15% 16% 4% Somerset Oaks Academy 82% 28% 6% Somerset Prep Academy at Silver Palms 80% 25% 2% Sports Leadership and Management Academy (SLAM!) 86% 4% 14% Theodore R. and Thelma A. Gibson Charter School 100%** N/A 6% Duval County School District 46%* 4% 13% Somerset Academy Charter MS (Eagle) 16% 0% 7% Somerset Academy HS (Eagle) 14% 0% 10% Somerset College Prep Academy 23% N/A 10% Monroe County School District 50% 8% 15% Key West Collegiate School 5% 0% 27% Orange County School District 60%* 14% 11% Cornerstone Charter Academy 9% 4% 14% Cornerstone Charter Academy HS 11% 4% 12% Pinecrest Creek Academy 22% 11% 4% Pinecrest Prep Charter School (Orlando) 12% 28% 14% Palm Beach County School District 58% 11% 15% Ben Gamla Charter School Palm Beach 0% 0% 27% Somerset Academy Boca 0% 5% 13% Somerset Academy Boca MS 0% N/A 10% Somerset Academy Canyons HS 0% 0% 25% Somerset Academy Canyons MS 0% 0% 12% State of Florida 61% 9% 13% Source: Florida Department of Education. Available at: http://www.fldoe.org/accountability/data‐sys/edu‐info‐accountability‐services/pk‐12‐public‐school‐data‐pubs‐reports/students.stml Data on enrollment of students with disabilities provided by Florida Department of Education. N/A: Unavailable data. *Broward, Duval, and Orange school districts include some schools in which all students are reported as eligible for free or reduced lunch (FRL) under the US DOE Community Eligibility Provision that allows high poverty districts to waive certification of

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FRL eligibility. **100% of school students are reported as eligible for free or reduced lunch (FRL) under the US DOE Community Eligibility Provision that allows high poverty districts to waive documentation of FRL eligibility.

Student Proficiency Percentage of Students Proficient on State Assessments, 2013-14 In 2013‐14, Florida administered the Florida Comprehensive Assessment Test (FCAT 2.0) to students in grades 3‐10. The FCAT 2.0 tests included English language arts (grades 3‐10), writing (grades 4, 8 and 10) and math assessments (grades 3‐8) as well as science in Grades 5 and 8. End of Course (EOC) assessments measured achievement in middle and high school level courses in algebra I and II, geometry, biology I, Civics, and U.S. History. The state accountability system includes an evaluation of FCAT 2.0 results for grades 3 through 10 and EOC results for algebra I, geometry and biology I. The results presented below include reading and math results for Grades 3 through 10. In 2013‐14, 74 of the 96 Academica schools with test results met or exceeded their respective districts in reading and 69 of the 96 Academica schools with test results met or exceeded their districts in math. Additionally, 67 schools met or exceeded the state in both reading and math. Table 4

School

2013‐14 FCAT 2.0 Proficiency Rates

Charter School

District Average for grades served

by the charter school.*

State Average for grades served

by the charter school.*

Reading Math Reading Math Reading Math Ben Gamla Charter HS 50% 56% 52% 66% 54% 65% Ben Gamla Charter School 85% 87% 59% 59% 59% 59% Ben Gamla Charter School (Hallandale) 48% 63% 59% 47% 57% 50% Ben Gamla Charter School (North) 64% 73% 59% 51% 58% 52% Ben Gamla S. Broward 68% 63% 59% 57% 59% 57% Somerset Academy 82% 79% 59% 59% 60% 59% Somerset Academy (Miramar) N/A N/A N/A N/A N/A N/A Somerset Academy East Prep 61% 73% 59% 59% 59% 59% Somerset Academy ES 86% 84% 59% 59% 60% 59% Somerset Academy HS 73% 84% 53% 66% 54% 65% Somerset Academy Hollywood 36% 22% 59% 58% 59% 59% Somerset Academy Hollywood MS 62% 54% 61% 56% 60% 53% Somerset Academy in Davie 78% 78% 59% 59% 59% 59% Somerset Academy MS 78% 79% 59% 55% 58% 55% Somerset Academy MS (Miramar) 78% 83% 59% 54% 58% 54% Somerset Academy Miramar South 50% 65% 52% 66% 54% 65% Somerset Academy Neighborhood School 71% 70% 59% 59% 60% 59% Somerset Academy Pompano 33% 34% 59% 59% 59% 60% Somerset Academy Pompano MS 55% 50% 61% 56% 60% 53% Somerset Academy Village 50% 49% 59% 58% 60% 59% Somerset Academy Village Charter MS 44% 45% 59% 55% 58% 55% Somerset Arts Conservatory 86% 90% 52% 66% 54% 65%

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School

2013‐14 FCAT 2.0 Proficiency Rates

Charter School

District Average for grades served

by the charter school.*

State Average for grades served

by the charter school.*

Reading Math Reading Math Reading Math Somerset Pines Academy 57% 46% 59% 56% 59% 56% Somerset Prep Academy Charter HS at N. Lauderdale 36% 46% 52% 66% 54% 65% Somerset Prep Academy Charter MS 61% 52% 59% 56% 58% 55% Somerset Prep Academy Charter School at N. Lauderdale 39% 29% 59% 56% 59% 56% Ben Gamla Charter School 78% 72% 59% 56% 59% 56% City of Hialeah Educational Academy 50% 57% 54% 59% 56% 60% Doral Academy 86% 86% 60% 62% 60% 59% Doral Academy Charter HS 78% 89% 51% 65% 54% 65% Doral Academy Charter MS 83% 87% 58% 51% 58% 55% Doral Academy of Technology 97% 98% 58% 62% 58% 61% Doral Performing Arts and Entertainment Academy 87% 98% 51% 64% 54% 64% iMater Academy MS 59% 43% 59% 51% 58% 54% iMater Elementary Charter School 69% 69% 60% 62% 60% 59% iMater Preparatory Academy HS 43% 55% 51% 67% 54% 65% Integrated Science and Asian Culture (ISAAC) Charter Sch 91% 86% 56% 62% 57% 58% International Studies Charter HS 79% 90% 51% 65% 54% 65% International Studies Charter MS 84% 86% 58% 58% 58% 59% Just Arts and MS (JAM) 94% 88% 61% 53% 60% 53% Mater Academy 77% 74% 60% 62% 60% 59% Mater Academy (Miami Beach) 66% 63% 59% 53% 59% 55% Mater Academy at Mt. Sinai N/A N/A 59% 64% 59% 60% Mater Academy Charter MS 74% 82% 58% 54% 58% 56% Mater Academy East Charter MS 56% 43% 58% 51% 58% 55% Mater Academy East Charter School 76% 92% 59% 62% 59% 59% Mater Academy East HS 54% 52% 51% 66% 54% 65% Mater Academy ES of International Studies 61% 75% 60% 63% 59% 59% Mater Academy HS 64% 83% 51% 65% 54% 65% Mater Academy HS (Miami Beach) 53% 60% 50% 69% 53% 66% Mater Academy HS of International Studies 48% 84% 50% 64% 53% 64% Mater Academy Lakes HS 66% 82% 51% 66% 54% 65% Mater Academy Lakes MS 74% 80% 58% 51% 58% 54% Mater Academy MS of International Studies 64% 69% 59% 51% 58% 54% Mater Brickell Prep HS 76% 70% 60% 59% 59% 57% Mater Gardens Academy ES 78% 86% 60% 62% 60% 59% Mater Gardens Academy MS 74% 86% 58% 54% 58% 56% Mater Grove Academy 83% 81% 60% 59% 59% 57% Mater Performing Arts and Entertainment Academy 91% 98% 51% 64% 54% 64% Miami Children’s Museum Charter School 84% 82% 60% 63% 60% 59% Pinecrest Academy (North) 88% 95% 60% 63% 59% 59%

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School

2013‐14 FCAT 2.0 Proficiency Rates

Charter School

District Average for grades served

by the charter school.*

State Average for grades served

by the charter school.*

Reading Math Reading Math Reading Math Pinecrest Academy (South) 82% 81% 60% 62% 60% 59% Pinecrest Academy Charter MS 77% 71% 58% 52% 58% 55% Pinecrest Academy MS (North) 100% 100% 61% 53% 60% 53% Pinecrest Cove Academy 81% 78% 59% 59% 59% 58% Pinecrest Palm Academy N/A N/A N/A N/A N/A N/A Pinecrest Prep Academy Charter School 83% 77% 60% 62% 60% 59% Pinecrest Prep Academy HS 65% 61% 51% 65% 54% 65% Somerset Academy (Miami‐Dade) 85% 82% 60% 62% 60% 59% Somerset Academy Bay at Pinewood Acres 84% 76% 60% 62% 60% 59% Somerset Academy Bay MS at Pinewood Acres 84% 76% 61% 53% 60% 53% Somerset Academy Charter ES (S. Homestead) 60% 62% 60% 62% 60% 59% Somerset Academy Charter HS – S. Homestead 48% 46% 51% 64% 54% 64% Somerset Academy ES (S. Miami) 91% 86% 60% 62% 60% 59% Somerset Academy HS (Miami‐Dade) 66% 81% 51% 66% 54% 65% Somerset Academy HS (South) 73% 92% 52% 63% 55% 64% Somerset Academy MS 79% 88% 58% 59% 58% 59% Somerset Academy MS (Country Palms) 88% 77% 61% 53% 60% 53% Somerset Academy MS (Miami‐Dade) 61% 59% 58% 57% 58% 58% Somerset Academy MS (S. Miami) 91% 86% 58% 56% 58% 57% Somerset Academy Silver Palms 67% 74% 59% 53% 59% 55% Somerset City Arts Academy 71% 71% 61% 62% 60% 59% Somerset Gables Academy 89% 91% 59% 62% 59% 59% Somerset Oaks Academy N/A N/A N/A N/A N/A N/A Somerset Prep Academy at Silver Palms 82% 83% 60% 62% 60% 59% Sports Leadership and Management Academy (SLAM!) 61% 46% 59% 55% 58% 56% Theodore R. and Thelma A. Gibson Charter School 28% 37% 59% 57% 59% 57% Somerset Academy Charter MS (Eagle) 61% 52% 52% 46% 58% 54% Somerset Academy HS (Eagle) 24% 42% 49% 57% 53% 66% Somerset College Prep Academy 25% 15% 53% 51% 59% 56% Key West Collegiate School 31% 62% 56% 72% 54% 64% Cornerstone Charter Academy 77% 68% 59% 58% 59% 56% Cornerstone Charter Academy HS 71% 80% 53% 62% 54% 66% Pinecrest Creek Academy 39% 38% 59% 61% 59% 59% Pinecrest Prep Charter School (Orlando) 55% 52% 59% 57% 59% 55% Somerset Academy Boca MS 77% 73% 61% 57% 60% 53% Somerset Academy Canyons HS 69% 87% 55% 70% 53% 65% Somerset Academy Canyons MS 72% 70% 59% 57% 59% 54% Ben Gamla Charter School Palm Beach 83% 83% 59% 61% 59% 59% Somerset Academy Boca 75% 64% 58% 59% 59% 59%

Source: Florida Department of Education. Available at: http://schoolgrades.fldoe.org/default.asp N/A: Data not available due to untested grades at school.

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*State and district average proficiency rates include only the grades served by the charter school and are weighted to the charter school grade level enrollment to account for differences in charter school enrollment by grade and differences in statewide proficiency rates by grade. For example, if 40 percent of students tested in the charter school are in the 3rd grade, then the 3rd grade state proficiency rate counts for 40 percent of the weighted overall state proficiency rate. Performance Trends Student proficiency in reading increased at 60 of the 71 Academica schools with trend proficiency data for 2011‐12 to 2013‐14, and proficiency in math increased at 54 of the 71 Academica schools with trend proficiency data for 2011‐12 to 2013‐14. Table 5

School

Proficiency Rates 2011-12 2012-13 2013-14

Reading Math Reading Math Reading Math Ben Gamla Charter HS N/A N/A 50% 56% 50% 56% Ben Gamla Charter School 75% 84% 85% 91% 85% 87% Ben Gamla Charter School (Hallandale) N/A N/A 35% 41% 48% 63% Ben Gamla Charter School (North) 47% 42% 55% 64% 64% 73% Ben Gamla S. Broward 64% 52% 56% 48% 68% 63% Somerset Academy 77% 72% 75% 77% 82% 79% Somerset Academy (Miramar) N/A N/A N/A N/A N/A N/A Somerset Academy East Prep 56% 54% 64% 61% 61% 73% Somerset Academy ES 73% 80% 77% 82% 86% 84% Somerset Academy HS 63% 77% 68% 79% 73% 84% Somerset Academy Hollywood N/A N/A N/A N/A 36% 22% Somerset Academy Hollywood MS N/A N/A N/A N/A 62% 54% Somerset Academy in Davie 80% 80% 86% 83% 78% 78% Somerset Academy MS 76% 76% 79% 78% 78% 79% Somerset Academy MS (Miramar) 68% 84% 76% 79% 78% 83% Somerset Academy Miramar South 50% 48% 46% 52% 50% 65% Somerset Academy Neighborhood School 62% 58% 67% 59% 71% 70% Somerset Academy Pompano N/A N/A 29% 24% 33% 34% Somerset Academy Pompano MS N/A N/A N/A N/A 55% 50% Somerset Academy Village 35% 37% 40% 45% 50% 49% Somerset Academy Village Charter MS 42% 34% 43% 39% 44% 45% Somerset Arts Conservatory 78% 95% 78% 92% 86% 90% Somerset Pines Academy 63% 52% 55% 46% 57% 46% Somerset Prep Academy Charter HS at N. Lauderdale 25% 26% 34% 55% 36% 46% Somerset Prep Academy Charter MS 50% 49% 54% 45% 61% 52% Somerset Prep Academy Charter N. Lauderdale 48% 37% 48% 42% 39% 29% Ben Gamla Charter School 80% 72% 75% 65% 78% 72% City of Hialeah Educational Academy 37% 89% 57% 62% 50% 57% Doral Academy 83% 83% 81% 80% 86% 86% Doral Academy Charter HS 68% 77% 74% 89% 78% 89% Doral Academy Charter MS 79% 74% 81% 78% 83% 87% Doral Academy of Technology 100% 100% 97% 97% 97% 98% Doral Performing Arts and Entertainment Academy 79% 83% 85% 97% 87% 98% iMater Academy MS N/A N/A N/A N/A 59% 43%

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School

Proficiency Rates 2011-12 2012-13 2013-14

Reading Math Reading Math Reading Math iMater Elementary Charter School N/A N/A N/A N/A 69% 69% iMater Prep Academy HS N/A N/A N/A N/A 43% 55% Integrated Science and Asian Culture (ISAAC) Charter Sch N/A N/A N/A N/A 91% 86%

International Studies Charter HS 71% 77% 76% 80% 79% 90% International Studies Charter MS 72% 67% 82% 83% 84% 86% Just Arts and Management MS (JAM) N/A N/A 92% 67% 94% 88% Mater Academy 68% 73% 68% 75% 77% 74% Mater Academy (Miami Beach) 59% 63% 66% 57% 66% 63% Mater Academy at Mt. Sinai N/A N/A N/A N/A N/A N/A Mater Academy Charter MS 68% 76% 73% 76% 74% 82% Mater Academy East Charter MS 49% 44% 57% 45% 56% 43% Mater Academy East Charter School 74% 90% 77% 90% 76% 92% Mater Academy East HS 46% 50% 53% 61% 54% 52% Mater Academy ES of International Studies 50% 53% 51% 69% 61% 75% Mater Academy HS 63% 86% 65% 86% 64% 83% Mater Academy HS (Miami Beach) 59% 82% 93% 86% 53% 60% Mater Academy HS of International Studies 71% 60% 69% 97% 48% 84% Mater Academy Lakes HS 56% 58% 68% 75% 66% 82% Mater Academy Lakes MS 66% 69% 75% 76% 74% 80% Mater Academy MS of International Studies 66% 65% 73% 64% 64% 69% Mater Brickell Prep HS N/A N/A 62% 64% 76% 70% Mater Gardens Academy ES 75% 85% 76% 85% 78% 86% Mater Gardens Academy MS 75% 76% 74% 71% 74% 86% Mater Grove Academy 76% 78% 78% 64% 83% 81% Mater Performing Arts & Entertainment Academy 74% 96% 89% 98% 91% 98% Miami Children’s Museum Charter School 81% 69% 72% 66% 84% 82% Pinecrest Academy (North) 83% 86% 80% 92% 88% 95% Pinecrest Academy (South) 73% 78% 76% 76% 82% 81% Pinecrest Academy Charter MS 67% 64% 75% 70% 77% 71% Pinecrest Academy MS (North) 73% 80% 95% 84% 100% 100% Pinecrest Cove Academy 79% 76% 82% 81% 81% 78% Pinecrest Palm Academy N/A N/A N/A N/A N/A N/A Pinecrest Prep Academy Charter School 82% 73% 81% 79% 83% 77% Pinecrest Prep Academy HS 51% 53% 62% 71% 65% 61% Somerset Academy (Miami‐Dade) 80% 83% 80% 83% 85% 82% Somerset Academy Bay at Pinewood Acres N/A N/A N/A N/A 84% 76% Somerset Academy Bay MS at Pinewood Acres N/A N/A N/A N/A 84% 76% Somerset Academy Charter ES (S. Homestead) 66% 61% 58% 53% 60% 62% Somerset Academy Charter HS – S. Homestead 42% 64% 52% 69% 48% 46% Somerset Academy ES (S. Miami) 89% 89% 84% 86% 91% 86% Somerset Academy HS (Miami‐Dade) 46% 73% 67% 71% 66% 81% Somerset Academy HS (South) N/A N/A N/A N/A 73% 92% Somerset Academy MS 77% 73% 75% 80% 79% 88%

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School

Proficiency Rates 2011-12 2012-13 2013-14

Reading Math Reading Math Reading Math Somerset Academy MS (Country Palms) 39% 33% 68% 53% 88% 77% Somerset Academy MS (Miami‐Dade) 58% 47% 66% 56% 61% 59% Somerset Academy MS (S. Miami) 85% 70% 86% 76% 91% 86% Somerset Academy Silver Palms 62% 55% 67% 67% 67% 74% Somerset City Arts Academy 67% 56% 66% 70% 71% 71% Somerset Gables Academy N/A N/A 84% 78% 89% 91% Somerset Oaks Academy N/A N/A N/A N/A N/A N/A Somerset Prep Academy at Silver Palms 60% 53% 63% 57% 82% 83% Sports Leadership & Management Academy (SLAM!) N/A N/A N/A N/A 61% 46% Theodore R. & Thelma A. Gibson Charter School 24% 28% 32% 35% 28% 37% Somerset Academy Charter MS (Eagle) 51% 50% 59% 57% 61% 52% Somerset Academy HS (Eagle) N/A N/A 20% 82% 24% 42% Somerset College Prep Academy N/A N/A N/A N/A 25% 15% Key West Collegiate School N/A N/A 52% 78% 31% 62% Cornerstone Charter Academy 73% 68% 74% 66% 77% 68% Cornerstone Charter Academy HS 63% 48% 57% 71% 71% 80% Pinecrest Creek Academy N/A N/A 16% 22% 39% 38% Pinecrest Prep Charter School (Orlando) 47% 52% 59% 56% 55% 52% Somerset Academy Boca MS N/A N/A N/A N/A 77% 73% Somerset Academy Canyons HS N/A N/A N/A N/A 69% 87% Somerset Academy Canyons MS N/A N/A N/A N/A 72% 70% Ben Gamla Charter School Palm Beach 79% 81% 77% 72% 83% 83% Somerset Academy Boca N/A N/A 86% 66% 75% 64%

Source: Florida Department of Education. Available at: http://schoolgrades.fldoe.org/default.asp N/A: Data not available due to untested grades at school or opening date after given year. Subgroup Performance School performance data for economically disadvantaged students is available for 94 of the 100 Academica schools. In the 2013‐14 school year, economically disadvantaged students at 74 of these schools met or exceeded their peers (FRL) in the respective districts in reading. In math, economically disadvantaged students at 69 of these schools met or exceeded peers in their respective districts. Compared to statewide proficiency rates for FRL students, 76 of the Academica schools met or exceeded the statewide FRL average in reading and 72 of the Academica schools met or exceeded the state in math. In 2013‐14, 64 of the 100 Academica schools enrolled sufficient English language learners (ELL) students to report ELL testing results. ELL students at 50 of these schools met or exceeded their respective districts in reading. In math, ELL students at 46 of these schools met or exceeded their respective district peers. ELL students at 53 of these schools met or exceeded the statewide ELL average in reading and 51 of these schools met or exceeded the state in math. In 2013‐14, only 45 of the 100 Academica schools enrolled sufficient students with disabilities to report testing results. Students with disabilities at 31 of these schools met or exceeded their respective district peers in reading and students with disabilities at 33 of these schools met or exceeded their district peers in math. Comparing to statewide performance, 35 of these schools met or exceeded statewide rates for similar students in reading and 34 of these schools met or exceeded the statewide rates for similar

18

students in math. Figure 4

Figure 5

State of FL: 48% State of FL: 51%

State of FL: 34%

19

Figure 6

Table 6

District/School

Subgroup Proficiency Rates 2013‐14 Economically

Disadvantaged English Language

Learners Students with

Disabilities Reading Math Reading Math Reading Math

Broward County School District 48% 51% 37% 45% 32% 34% Ben Gamla Charter HS 49% 57% 31% 36% 33% 50% Ben Gamla Charter School 80% 84% 72% 82% 67% 73% Ben Gamla Charter School (Hallandale) 46% 69% N/A N/A N/A N/A Ben Gamla Charter School (North) 62% 72% 60% 67% N/A N/A Ben Gamla S. Broward 58% 50% 41% 54% 60% 45% Somerset Academy 75% 71% 67% 72% 54% 62% Somerset Academy (Miramar) N/A N/A N/A N/A N/A N/A Somerset Academy East Prep 59% 70% 51% 56% 28% 44% Somerset Academy Elementary 83% 79% 74% 84% 50% 37% Somerset Academy HS 62% 80% 52% 59% 41% 48% Somerset Academy Hollywood 40% 25% N/A N/A N/A N/A Somerset Academy Hollywood MS 60% 60% N/A N/A N/A N/A Somerset Academy in Davie 64% 70% N/A N/A 70% 90% Somerset Academy MS 71% 73% 46% 57% 57% 51% Somerset Academy MS (Miramar) 74% 81% 54% 79% 54% 54% Somerset Academy Miramar South 48% 65% N/A 80% 40% 50% Somerset Academy Neighborhood School 66% 66% 52% 56% N/A N/A Somerset Academy Pompano 29% 27% 22% 22% N/A N/A Somerset Academy Pompano MS 52% 48% N/A N/A N/A N/A Somerset Academy Village 48% 47% 44% 44% N/A N/A Somerset Academy Village Charter MS 41% 43% 35% 59% 22% 33% Somerset Arts Conservatory 81% 90% N/A N/A N/A N/A Somerset Pines Academy 52% 40% 42% 28% 17% 10%

State of FL: 29% State of FL: 32%

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District/School

Subgroup Proficiency Rates 2013‐14 Economically

Disadvantaged English Language

Learners Students with

Disabilities Reading Math Reading Math Reading Math

Somerset Prep Academy Charter HS at N. Lauderdale 34% 42% 8% 33% 31% 36% Somerset Prep Academy Charter MS 60% 48% 26% 42% 7% 6% Somerset Prep Academy Charter School at N. Lauderdale 40% 30% 26% 32% 11% 6%

Miami-Dade County School District 52% 56% 40% 48% 30% 34% Ben Gamla Charter School 74% 60% 73% 82% N/A N/A City of Hialeah Educational Academy 48% 55% 29% 35% 29% 33% Doral Academy 80% 79% 78% 84% 37% 47% Doral Academy Charter HS 75% 87% 55% 83% 71% 72% Doral Academy Charter MS 80% 85% 53% 68% 51% 59% Doral Academy of Technology 93% 96% N/A N/A N/A N/A Doral Performing Arts and Entertainment Academy 85% 98% N/A N/A N/A N/A iMater Academy MS 60% 43% 38% 25% 46% 26% iMater Elementary Charter School 67% 70% 61% 65% N/A N/A iMater Prep Academy HS 41% 54% 20% 43% 17% 17% Integrated Science and Asian Culture (ISAAC) Charter Sch N/A N/A N/A N/A N/A N/A

International Studies Charter HS 77% 89% 64% 85% N/A N/A International Studies Charter MS 86% 87% 49% 61% N/A N/A Just Arts and Management MS (JAM) 90% 87% N/A N/A N/A N/A Mater Academy 75% 73% 67% 68% 73% 64% Mater Academy (Miami Beach) 64% 63% 53% 55% 45% 55% Mater Academy at Mt. Sinai 85% 77% N/A N/A N/A N/A Mater Academy Charter MS 73% 81% 44% 64% 49% 67% Mater Academy East Charter MS 55% 44% 31% 26% 25% 19% Mater Academy East Charter School 75% 91% 69% 89% N/A N/A Mater Academy East HS 54% 51% 17% 35% N/A N/A Mater Academy ES of International Studies 60% 74% 55% 74% N/A N/A Mater Academy HS 63% 83% 32% 81% 50% 59% Mater Academy HS (Miami Beach) 50% 58% N/A N/A N/A N/A Mater Academy HS of International Studies 43% 83% N/A N/A N/A N/A Mater Academy Lakes HS 63% 80% 45% 76% 36% 60% Mater Academy Lakes MS 72% 79% 41% 61% 41% 65% Mater Academy MS of International Studies 62% 67% 43% 46% N/A N/A Mater Brickell Prep HS 64% 68% 56% 44% N/A N/A Mater Gardens Academy ES 78% 85% 65% 81% N/A N/A Mater Gardens Academy MS 75% 85% 40% 67% N/A N/A Mater Grove Academy 78% 81% 82% 86% N/A N/A Mater Performing Arts and Entertainment Academy 93% 99% N/A N/A N/A N/A Miami Children’s Museum Charter School 80% 78% 70% 70% N/A N/A Pinecrest Academy (North) 84% 94% 79% 96% N/A N/A Pinecrest Academy (South) 79% 76% 65% 73% 50% 57% Pinecrest Academy Charter MS 75% 68% 49% 38% 67% 42% Pinecrest Academy MS (North) 100% 100% N/A N/A N/A N/A

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District/School

Subgroup Proficiency Rates 2013‐14 Economically

Disadvantaged English Language

Learners Students with

Disabilities Reading Math Reading Math Reading Math

Pinecrest Cove Academy 80% 75% 61% 73% 56% 67% Pinecrest Palm Academy N/A N/A N/A N/A N/A N/A Pinecrest Prep Academy Charter School 81% 74% 68% 66% 46% 46% Pinecrest Prep Academy HS 62% 62% 55% 71% 44% 29% Somerset Academy (Miami‐Dade) 80% 78% 73% 72% N/A N/A Somerset Academy Bay at Pinewood Acres N/A N/A N/A N/A N/A N/A Somerset Academy Bay MS at Pinewood Acres N/A N/A N/A N/A N/A N/A Somerset Academy Charter ES (S. Homestead) 60% 60% 58% 57% N/A N/A Somerset Academy Charter HS – S. Homestead 39% 44% N/A N/A N/A N/A Somerset Academy ES (S. Miami) 81% 83% 80% 60% N/A N/A Somerset Academy HS (Miami‐Dade) 66% 79% 64% 73% N/A N/A Somerset Academy HS (South) 68% 92% N/A N/A N/A N/A Somerset Academy MS 78% 86% 44% 69% N/A N/A Somerset Academy MS (Country Palms) 81% 81% N/A N/A N/A N/A Somerset Academy MS (Miami‐Dade) 60% 58% 39% 39% N/A N/A Somerset Academy MS (S. Miami) N/A N/A N/A N/A N/A N/A Somerset Academy Silver Palms 66% 73% 44% 59% 39% 43% Somerset City Arts Academy 62% 69% 45% 61% 64% 64% Somerset Gables Academy N/A N/A N/A N/A N/A N/A Somerset Oaks Academy N/A N/A N/A N/A N/A N/A Somerset Prep Academy at Silver Palms 81% 81% 72% 82% N/A N/A Sports Leadership and Management Academy (SLAM!) 59% 44% 30% 30% 29% 29% Theodore R. and Thelma A. Gibson Charter School 28% 38% N/A N/A 10% 10% Duval County School District 41% 45% 23% 38% 30% 34% Somerset Academy Charter MS (Eagle) 56% 39% N/A N/A N/A N/A Somerset Academy HS (Eagle) 25% 53% N/A N/A N/A N/A Somerset College Prep Academy 20% 11% N/A N/A * * Monroe County School District 47% 51% 26% 32% 30% 35% Key West Collegiate School 18% 62% N/A N/A 20% 36% Orange County School District 48% 51% 34% 42% 26% 29% Cornerstone Charter Academy 71% 57% 53% 15% 40% 31% Cornerstone Charter Academy HS 61% 67% N/A N/A N/A N/A Pinecrest Creek Academy 38% 39% 55% 55% N/A N/A Pinecrest Prep Charter School (Orlando) 47% 50% 36% 39% 33% 33% Palm Beach County School District 47% 53% 29% 40% 31% 36% Somerset Academy Boca MS N/A N/A N/A N/A N/A N/A Somerset Academy Canyons HS 57% 78% N/A N/A 35% 71% Somerset Academy Canyons MS 66% 64% 75% 46% 30% 40% Ben Gamla Charter School Palm Beach 78% 87% N/A N/A 50% 43% Somerset Academy Boca 69% 55% N/A N/A N/A N/A State of Florida 48% 51% 34% 42% 29% 32%

Source: Florida Department of Education. Available at http://schoolgrades.fldoe.org/ N/A: Insufficient students tested to report results. *Proficiency rates are less than 5%.

22

Student Growth (Progress) Florida uses a points‐based learning gains model to determine how much individual students are learning each year. The model includes a comparison of the current year and previous year’s results on FCAT and EOC state assessments. Students are assigned points based on changes in proficiency levels from year to year. Individual student points are averaged and schools are awarded up to 100 points for ELA gains and for math gains each year.4 Overall, out of 96 Academica schools with reported growth results, 66 of them met or exceeded the gains points in reading of their respective districts, and 64 schools met or exceeded the gains points in math. On average, Academica schools met or exceeded the district in gains points in reading in Broward, Miami‐Dade, Orange, and Palm Beach counties, while in math, Academica schools met or exceeded the district gains points in math in Broward and Miami‐Dade counties.

Figure 7

4 For more information, see the Florida School Report Card website: http://schoolgrades.fldoe.org/pdf/1314/Guidesheet2014SchoolGrades.pdf

23

Figure 8

Table 7

School Gains Points

Reading Gains Points

Math Broward County School District 68 67 Ben Gamla Charter HS 65 59 Ben Gamla Charter School 75 73 Ben Gamla Charter School (Hallandale) 75 64 Ben Gamla Charter School (North) 72 81 Ben Gamla S. Broward 82 66 Somerset Academy 79 68 Somerset Academy (Miramar) N/A N/A Somerset Academy East Prep 70 90 Somerset Academy Elementary 82 64 Somerset Academy HS 75 78 Somerset Academy Hollywood 41 53 Somerset Academy Hollywood MS 68 84 Somerset Academy in Davie 71 68 Somerset Academy MS 76 79 Somerset Academy MS (Miramar) 82 79 Somerset Academy Miramar South 67 74 Somerset Academy Neighborhood School 70 69 Somerset Academy Pompano 73 65 Somerset Academy Pompano MS 66 70 Somerset Academy Village 75 64 Somerset Academy Village Charter MS 66 83 Somerset Arts Conservatory 67 70 Somerset Pines Academy 75 73 Somerset Prep Academy Charter HS at N. Lauderdale 55 51 Somerset Prep Academy Charter MS 78 69

24

School Gains Points

Reading Gains Points

Math Somerset Prep Academy Charter School at N. Lauderdale 54 47 Miami-Dade County School District 70 68 Ben Gamla Charter School 81 57 City of Hialeah Educational Academy 64 65 Doral Academy 87 79 Doral Academy Charter HS 73 83 Doral Academy Charter MS 77 86 Doral Academy of Technology 85 97 Doral Performing Arts and Entertainment Academy 70 89 iMater Academy MS 70 44 iMater Elementary Charter School 81 70 iMater Prep Academy HS 65 53 Integrated Science and Asian Culture (ISAAC) Charter School 85 76 International Studies Charter HS 74 79 International Studies Charter MS 80 66 Just Arts and Management MS (JAM) 90 92 Mater Academy 87 57 Mater Academy (Miami Beach) 76 71 Mater Academy at Mt. Sinai N/A N/A Mater Academy Charter MS 76 85 Mater Academy East Charter MS 69 55 Mater Academy East Charter School 71 90 Mater Academy East HS 60 55 Mater Academy ES of International Studies 81 71 Mater Academy HS 66 66 Mater Academy HS (Miami Beach) 66 69 Mater Academy HS of International Studies 54 82 Mater Academy Lakes HS 63 83 Mater Academy Lakes MS 78 78 Mater Academy MS of International Studies 74 80 Mater Brickell Prep HS 80 87 Mater Gardens Academy ES 82 86 Mater Gardens Academy MS 61 74 Mater Grove Academy 86 87 Mater Performing Arts and Entertainment Academy 72 74 Miami Children’s Museum Charter School 91 85 Pinecrest Academy (North) 85 84 Pinecrest Academy (South) 86 74 Pinecrest Academy Charter MS 77 65 Pinecrest Academy MS (North) 92 100 Pinecrest Cove Academy 75 70 Pinecrest Palm Academy N/A N/A Pinecrest Prep Academy Charter School 79 76 Pinecrest Prep Academy HS 69 58 Somerset Academy (Miami‐Dade) 84 61 Somerset Academy Bay at Pinewood Acres 65 70

25

School Gains Points

Reading Gains Points

Math Somerset Academy Bay MS at Pinewood Acres 65 70 Somerset Academy Charter ES (S. Homestead) 75 73 Somerset Academy Charter HS – S. Homestead 62 49 Somerset Academy ES (S. Miami) 85 76 Somerset Academy HS (Miami‐Dade) 67 77 Somerset Academy HS (South) 71 84 Somerset Academy MS 76 83 Somerset Academy MS (Country Palms) 100 100 Somerset Academy MS (Miami‐Dade) 73 76 Somerset Academy MS (S. Miami) 85 76 Somerset Academy Silver Palms 75 86 Somerset City Arts Academy 66 52 Somerset Gables Academy 89 100 Somerset Oaks Academy N/A N/A Somerset Prep Academy at Silver Palms 81 82 Sports Leadership and Management Academy (SLAM!) 68 46 Theodore R. and Thelma A. Gibson Charter School 54 62 Duval County School District 62 62 Somerset Academy Charter MS (Eagle) 70 63 Somerset Academy HS (Eagle) 36 44 Somerset College Prep Academy 43 25 Monroe County School District 69 69 Key West Collegiate School 67 64 Orange County School District 67 71 Cornerstone Charter Academy 68 66 Cornerstone Charter Academy HS 75 80 Pinecrest Creek Academy 66 49 Pinecrest Prep Charter School (Orlando) 83 75 Palm Beach County School District 67 71 Somerset Academy Boca MS 76 78 Somerset Academy Canyons HS 70 78 Somerset Academy Canyons MS 61 61 Ben Gamla Charter School Palm Beach 79 97 Somerset Academy Boca 72 49 Source: Florida Department of Education. School data available at: http://schoolgrades.fldoe.org/default.asp. District data available at http://schoolgrades.fldoe.org/default.asp N/A: Data not available. State Accountability Florida uses a points‐based system incorporating performance and learning gains (gains points) for elementary and middle schools on an A‐F scale. For high schools, college readiness and graduation rate components are also included. Schools are assigned an A‐F Progress Grade based on the number of points earned:5

5 For more information, see the Florida School Report Card website: http://schoolgrades.fldoe.org/pdf/1314/Guidesheet2014SchoolGrades.pdf

26

Elementary/Middle School

800‐point scale Middle School 900‐point scale

High School 1600‐point scale

A 525 points or more 590 points or more 1,120 points or more B 495 to 524 points. 560 to 589 points 1,040 to 1,119 points C 435 to 494 points 490 to 559 points 880 to 1,039 points D 395 to 434 points 445 to 489 points 800 to 879 points F Fewer than 395 points Fewer than 445

points Fewer than 800 points

In 2013‐14, 79 Academica schools received A‐F grades. Of these schools, almost two‐thirds earned the highest grade of A from the state accountability system. Academia distribution of school grades, 2012-146 Table 8

2011-12 2012-13 2013-14 Academica Florida Academica Florida Academica Florida

A 71% 48% 68% 33% 63% 36% B 14% 25% 14% 26% 16% 16% C 12% 19% 15% 26% 13% 28% D 2% 7% 3% 12% 1% 13% F 2% 1% 0% 3% 6% 7%

Note: Florida modified the A‐F methodology between 2011‐12 and 2012‐13. Figure 9

6 Percentages may not add up to 100% within a given year due to rounding. 27

Table 9

2012‐14 Florida State Accountability Results

Overall Grade District/School 2012 2013 2014 Broward County School District B C B Ben Gamla Charter HS N/A C Pending Ben Gamla Charter School A A B Ben Gamla Charter School (Hallandale) N/A N/A C Ben Gamla Charter School (North) B A A Ben Gamla S. Broward C C B Somerset Academy A A A Somerset Academy (Miramar) N/A N/A N/A Somerset Academy East Prep A A A Somerset Academy Elementary A A A Somerset Academy HS A A Pending Somerset Academy Hollywood N/A N/A F Somerset Academy Hollywood MS N/A N/A A Somerset Academy in Davie A A A Somerset Academy MS A A A Somerset Academy MS (Miramar) A A A Somerset Academy Miramar South A B Pending Somerset Academy Neighborhood School A B A Somerset Academy Pompano N/A N/A F Somerset Academy Pompano MS N/A N/A B Somerset Academy Village C C C Somerset Academy Village Charter MS C D C Somerset Arts Conservatory A A Pending Somerset Pines Academy C C B Somerset Prep Academy Charter HS at N. Lauderdale F B Pending Somerset Prep Academy Charter MS B C A Somerset Prep Academy Charter School at N. Lauderdale C C D Miami-Dade County School District B B B Ben Gamla Charter School A A A City of Hialeah Educational Academy A A Pending Doral Academy A A A Doral Academy Charter HS A A Pending Doral Academy Charter MS A A A Doral Academy of Technology A A A Doral Performing Arts and Entertainment Academy A A Pending iMater Academy MS N/A N/A C iMater Elementary Charter School N/A N/A B iMater Prep Academy HS N/A N/A C Integrated Science and Asian Culture (ISAAC) Charter School N/A N.A A International Studies Charter HS A A Pending

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International Studies Charter MS A A A Just Arts and Management MS (JAM) N/A B A Mater Academy A A A Mater Academy (Miami Beach) A B B Mater Academy at Mt. Sinai N/A N/A N/A Mater Academy Charter MS A A A Mater Academy East Charter MS C C C Mater Academy East Charter School A A A Mater Academy East HS B A Pending Mater Academy ES of International Studies C D A Mater Academy HS A A Pending Mater Academy HS (Miami Beach) N/A N/A C Mater Academy HS of International Studies A A B Mater Academy Lakes HS B A Pending Mater Academy Lakes MS A A A Mater Academy MS of International Studies A A A Mater Brickell Prep HS N/A C A Mater Gardens Academy ES A A A Mater Gardens Academy MS A A A Mater Grove Academy N/A B A Mater Performing Arts and Entertainment Academy A A A Miami Children’s Museum Charter School A B A Pinecrest Academy (North) A A A Pinecrest Academy (South) A A A Pinecrest Academy Charter MS A A A Pinecrest Academy MS (North) N/A N/A A Pinecrest Cove Academy A A A Pinecrest Palm Academy N/A N/A N/A Pinecrest Prep Academy Charter School A A A Pinecrest Prep Academy HS C A Pending Somerset Academy (Miami‐Dade) A A B Somerset Academy Bay at Pinewood Acres N/A N/A A Somerset Academy Bay MS at Pinewood Acres N/A N/A A Somerset Academy Charter ES (S. Homestead) B B B Somerset Academy Charter HS – S. Homestead N/A N/A Pending Somerset Academy ES (S. Miami) A A A Somerset Academy HS (Miami‐Dade) A A Pending Somerset Academy HS (South) N/A N/A A Somerset Academy MS A A A Somerset Academy MS (Country Palms) N/A C A Somerset Academy MS (Miami‐Dade) B A A Somerset Academy MS (S. Miami) A A A Somerset Academy Silver Palms A A A Somerset City Arts Academy B C C Somerset Gables Academy N/A N/A A Somerset Oaks Academy N/A N/A N/A Somerset Prep Academy at Silver Palms A B A Sports Leadership and Management Academy (SLAM!) N/A N/A C

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Source: Florida Department of Education. Available at: http://schoolgrades.fldoe.org/default.asp N/A – School not open or not graded due to business rules. Pending – Final grade has not been released. The evaluation team should consider further investigating the following: • Why doesn’t the overall enrollment at Academica schools reflect the demographic makeup of the

districts where schools are located? • What steps is Academica, if any, taking to address schools with low proficiency and/or failing

grades on the Florida’s A‐F accountability system? • What does Academica see as the reasons for the slight decline in schools receiving an “A” grade

on Florida’s A‐F state accountability system from 2012‐13 to 2013‐14, when the percentage of “A” grades statewide increased? What are its plans to address this decline, if any?

ORGANIZATIONAL PERFORMANCE

Note: For this Organizational Performance analysis, our due diligence research included speaking with three authorizers in Florida and one authorizer in Nevada who have experience overseeing schools operated by Academica or a state affiliate. All references to “authorizer sources” refer to these sources. Mission Academica’s website states that the company was founded in 1999 “on the principle that each charter school is a unique educational environment governed by an independent Board of Directors that best knows the right path for its school, and Academica's mission is to facilitate that Governing Board's vision.”7 According to the website, Academica’s comprehensive services include financial services, facilities, human resources, public relations, governmental liaison, strategic planning, accountability, and board

7 http://www.academica.org/

Theodore R. and Thelma A. Gibson Charter School D C C Duval County School District C C C Somerset Academy Charter MS (Eagle) B A B Somerset Academy HS (Eagle) N/A N/A F Somerset College Prep Academy N/A N/A F Monroe County School District A B B Key West Collegiate School N/A N/A Pending Orange County School District B C B Cornerstone Charter Academy A B A Cornerstone Charter Academy HS A A Pending Pinecrest Creek Academy N/A N/A F Pinecrest Prep Charter School (Orlando) B A A Palm Beach County School District A B B Somerset Academy Boca MS N/A N/A A Somerset Academy Canyons HS N/A N/A B Somerset Academy Canyons MS N/A N/A B Ben Gamla Charter School Palm Beach N/A A A Somerset Academy Boca N/A N/A B

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facilitation. Academica also offers “academic support” which includes curriculum research and development and data analysis, but does not include comprehensive academic program development and implementation.8 Background Little information is provided on Academica’s website or in other published or readily available written sources about Academica’s founding, organizational structure, or management team. Florida brothers Fernando and Ignacio Zulueta founded the company and Fernando Zulueta serves as the company’s CEO.9 Academica was established in Florida, where it is the largest charter school management firm operating in the state. Over the years, Academica has spun off a number of state‐based affiliated LLCs that manage or provide services to charter schools in other states, thus evolving into a network of affiliated organizations considered the “Academica Family.”10 No information regarding who serves on the board of directors for Academica or any of its affiliates is available on either Academica’s or its affiliates’ websites. In addition, Academica’s website provides no information about its management team or staff. In Florida, Academica provides comprehensive school management by contracting with charter schools that collectively offer a variety of school models under a number of charter networks (e.g., Somerset, Doral, Pinecrest, Mater, International Studies, Ben Gamla). The governing board of each charter network holds and oversees the charters for all schools within the network. In addition, each network may also provide educational services to Academica charter schools in other states that choose to contract with them, while the state‐based affiliated LLC (e.g., Academica Nevada, Academica West) provides mostly administrative and operational services to charter schools in the given state. The organizational structure of Academica and the Colorado affiliate or any other state affiliates, and the relationship between or among them, is not explained in HHA’s charter application. Outside of Florida, schools in the Academica network are governed by an in‐state or local governing board, which may oversee multiple campuses under the same academic model. In Nevada, the schools contract with Academica Nevada, LLC (“Academica NV”) for business and operational services, while they contract with one of the Florida‐based charter networks (e.g., Somerset, Pinecrest) for educational services, depending on the model they have chosen. Governance Structure Heritage Heights Academy (HHA) proposes to contract for school management services with a new affiliate, Academica Colorado, LLC (“Academica CO”). The charter application identifies Academica as the Education Management Provider and states that “Academica is a National company and will file all appropriate documents to commence operations in Colorado should the charter be awarded.”11 HHA’s Charter School Services and Support Agreement is between HHA and Academica Colorado, LLC. The Managing Member for Academica CO and the designated contact for HHA’s service agreement is

8 http://www.academica.org/services. 9 See McGrory, Kathleen and Scott Hiassen. “Academica: Florida’s richest charter school management firm,” Miami Herald, December 13, 2011, http://www.miamiherald.com/news/special‐reports/cashing‐in‐on‐kids/article1939207.html. 10 See http://www.academicanv.com/academica.php. 11 HHA Charter Application, p. 2.

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Ryan Reeves, who is also the Chief Executive Officer of Academica Nevada. Although it is not explained in HHA’s charter application, Academica CO is likely to be modeled after Academica NV and other state affiliates, as part of the “Academica Family” or network. Although Academica’s state affiliates such as Academica NV and Academica West (Utah) are described as comprehensive management providers on their websites, authorizers we consulted in those states say the affiliates provide primarily business and operational services rather than academic services to charter schools.12 HHA’s charter application, bylaws, and “Charter School Services and Support Agreement” (“Services Agreement”) with Academica CO are consistent and reflect the HHA governing board’s authority and control of the proposed school’s operations and Academica CO’s supporting role and duty as the contracted service provider. According to HHA’s charter application, the school governing board must include at least two parents of enrolled students, one licensed educator (not employed by the school), one member with knowledge or expertise in law or human resources, and one member with knowledge or expertise in finance or accounting. The proposed governing board currently consists of seven members: three licensed educators, two homeschool teachers, one legal assistant, and one CPA. Services Agreement The proposed Services Agreement between HHA and Academica CO is a ten‐page agreement that is largely consistent – in its general framing of the governing board’s authority and independence and roles and responsibilities – with the recommendations for third‐party education service provider contracts set forth in NACSA’s Principles & Standards for Quality Charter School Authorizing. However, the agreement is vague and open‐ended regarding the specific services to be provided by Academica CO. The agreement describes a general set of expected duties that are administrative/operational in nature (not pertaining to the school’s academic program), then lists a wide range of services that Academica CO could provide “if instructed by the Board.”13 Of these possible services, only Student Assessment and Curricular Development pertain to academics, so it is not clear what academic services, if any, Academica CO would provide to HHA. Similarly, the charter application states that HHA will use the Core Knowledge curriculum and model its instructional program after Liberty Common School in Fort Collins (a Core Knowledge charter school not affiliated with Academica or any of its existing schools).14 The application does not include a separate agreement for academic services with any entity and does not state exactly what, if any, academic services Academica CO would provide. Additionally, one important provision that is not addressed in the Services Agreement is how (how frequently, and by what methods and mechanisms) the governing board will oversee and evaluate the service provider’s performance under the contract. Academica CO’s base compensation is $450 per student (subject to adjustment annually based on changes in the Consumer Price Index). This covers the wide range of available services described in the agreement. Additional services outside the scope of the agreement – those “not within the regular course of running the School” – are available at additional cost.15

12 See, e.g., http://www.academicanv.com/ and http://academicawest.com/. 13HHA Charter School Services and Support Agreement, paragraphs 3‐20. 14 HHA Charter Application, p. 32. 15 HHA Charter School Services and Support Agreement, paragraphs 24 and 25.

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Leadership No school leader has yet been identified for HHA. According to the charter application and proposed Services Agreement, the HHA governing board will recruit, select, hire and employ the school leader. The governing board will also hire and employ all school staff. Authorizer sources are generally positive about the school leaders Academica or its affiliates have hired in the charter schools they oversee, describing them mostly as well qualified and capable, and in some cases “excellent.” One authorizer did note one principal, currently in his third year at an Academica‐operated school, who was a weaker leader in his first year but has improved greatly. This principal seems to be an exception to generally strong leadership at Academica campuses. Another authorizer mentioned his belief that in his state, Academicaneeds to strengthen its leadership pipeline and “grow its own” school principals rather than hiring from a pool of local district principals. School leadership tends to be stable among Academica schools overseen by the authorizers we consulted. Facilities As of the charter application filing, no facility has yet been identified for HHA. According to the charter application, HHA has budgeted 15% of its per‐pupil revenue for facility rental fees. The Services Agreement states that Academica CO “shall advise the Board and assist the School in identifying, procuring and planning the design of new facilities or in the expansion of existing ones. Service Provider may identify and solicit investors to acquire and develop facilities for lease or use by the school.”16 In addition, according to the charter application, Academica CO will be responsible for bringing appropriate facility financing options to the HHA board.17 In April 2014, the Miami Herald reported that Academica was the subject of a federal probe into its potential conflicts of interest and controversy regarding its real estate deals in Florida.18 Miscellaneous According to NACSA’s Charter Operator Tracker, one Academica‐managed school has closed since the 2012‐13 school year. That closure was not due to the school’s performance; rather, it occurred because the national governing board that held the charter decided (for reasons unrelated to the school’s performance) to relinquish the charter and the authorizer refused to allow the charter to be transferred to the de facto local board.19 No schools have terminated services with Academica according to our research. Authorizer sources reported describe Academica’s (or an affiliate’s) organizational performance as generally competent with room for improvement. Some specific organizational performance problems were noted:

• Extreme under‐enrollment was reported at one Academica‐managed high school, now in its fourth year of operation. The school has only 31 students currently enrolled in grades 9‐10 though it should be fully enrolled through grade 12 with 800 students at this point. The authorizer sited poor planning as the cause of under‐enrollment (This was an isolated example.)

16 HHA Charter School Services and Support Agreement, paragraph 19. 17 HHA Charter Application, p. 64. 18 See McGrory, Kathleen. “South Miami‐based charter school management company under federal scrutiny,” Miami Herald, April 20, 2014, http://www.miamiherald.com/news/local/community/miami‐dade/article1963142.html. 19 See Gartner, Lisa. “Pinellas abruptly closes Ben Gamlas charter school,” Tampa Bay Times, June 23, 2013, http://www.tampabay.com/news/education/k12/pinellas‐abruptly‐closes‐ben‐gamla‐charter‐school/2128236.

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• “Problematic enrollment conditions at a few schools” were noted by one authorizer. This includes excessive fees (e.g., for school uniforms) and requiring parents to purchase insurance as a condition of enrollment.

• Lacking socioeconomic diversity among the governing boards and student populations (in terms of reflecting their local community populations) of Academica‐operated charter schools in Nevada to better reflect their local community populations (an issue the Academica charter boards in Nevada reportedly recognize and are working to improve).

• Common complaints of lack of parental voice and access to governing boards of some Academica schools in Florida, and unresponsiveness of those boards to parental concerns. Those schools are governed by statewide/network‐level boards without local parent/school community representation, and due to distance from the board meetings, parents can participate in board meetings only via electronic feed. The board chair of the largest network (Somerset) lives in California, so interaction with that board chair – including the authorizer’s interaction – is almost exclusively electronic and virtual.

In addition, one authorizer noted that working with Academica’s corporate office involves an “exceptional level of politics” – the relationship is collegial as long as everything is going the way Academica desires, but if not, Academica becomes contentious and tends to seek legislative solutions through its state political connections.20

The evaluation team should consider further investigation of the following:

• How did HHA’s founding committee discover Academica? Why did they select Academica as the proposed education management company?

• What academic services, if any, will Academica provide for HHA?

• What is the proposed relationship between Academica CO and Academica? Is there overlap between the governing board of any Academica affiliate (including Academica CO) and the board of Academica?

• Aside from the Managing Member, what other individuals are a part of Academica CO’s management team? What are the roles, responsibilities, and qualifications of those individuals for the services they will provide?

• How frequently and by what methods and mechanisms will the HHA governing board oversee and evaluate Academica CO’s performance under the Services Agreement?

• How will HHA round out and strengthen the expertise on its governing board to ensure the board is capable of effectively overseeing a services contract with Academica CO?

• What was the outcome – or what is the current status – of the federal probe into Academica’s real estate deals in Florida?

• How many schools managed by Academica or any of its affiliates have been significantly under‐enrolled for more than one year? What were (or are) the reasons for such under‐enrollment, and how is Academica addressing the issue?

20 Academica’s political connections and influence in Florida have been the subject of media scrutiny. See, e.g., Hiassen, Scott and Kathleen McGrory, “Academica cultivates links to lawmakers,” Miami Herald, December 14, 2011, http://www.miamiherald.com/news/special‐reports/cashing‐in‐on‐kids/article1939208.html; McGrory, Kathleen and Scott Hiassen, “Academica: Florida’s richest charter school management firm,” Miami Herald, December 13, 2011, http://www.miamiherald.com/news/special‐reports/cashing‐in‐on‐kids/article1939207.html.

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• What is Academica’s strategic vision and growth plan – in what states and localities does the company hope to manage schools over the next 3‐5 years, and at what rate of growth?

• What is Academica CO’s strategic vision and growth plan for working in Colorado?

FINANCIAL PERFORMANCE Academica is a privately held for‐profit corporation; there are no publicly available records that assess the corporation’s financial health. As a result, we can only provide analysis of the financial position for the non‐profit organizations that hold charters for schools managed by Academica. This section of the report will focus on the following three organizations:

• Mater Academy, Inc. (“Mater Academy”): Mater Academy holds the charter for 24 of Academica’s schools and served 10,711 students in FY14 in Florida21. A review of this organization will provide significant insight into how Academica manages school finance for a large number of related schools.

• Somerset Academy, Inc. (“Somerset Academy”): Somerset Academy served a total of 15,736 students in FY14 in Florida and Texas22. A review of this organization will provide insight into how Academica manages schools in multiple states.

• Cambridge Preparatory Academy DC, Inc., d/b/a Somerset Preparatory Academy Public Charter School (“Somerset DC”): A review of this organization will provide insight into the finances of a single‐site, newly opened school.

Mater Academy Financial Health Analysis This analysis is based on the IRS Form 990 filings from FY13 and FY14. Based on the information below, Mater Academy has maintained a strong financial position for each of the last three years. Using three of the NACSA Financial Performance Framework Standards, we note the following:

Current Ratio (the higher the better)

FY13 FY14 NACSA Performance Framework Standard

Current Assets23 $27,016,884 $26,979,951 Current Liabilities24 $4,367,617 $6,044,960 Ratio 6.19 4.46 ≥ 1.1 Days Cash (the higher the better)

FY13 FY14 NACSA Performance Framework Standard

Cash and cash equivalents (includes current financial assets)

$27,016,884 $26,979,951

Total Expenses $60,910,141 $ 75,308,705 Days cash on hand 161.90 130.76 ≥ 60 days Debt to Asset Ratio (the lower the better)

21 Mater Academy, Inc., 2013‐2014 IRS Form 990 22 Somerset Academy, 2013‐2014 IRS Form 990 23 The IRS Form 990 does not provide complete information related to the current assets or current liabilities. As such, we have used the total cash for the current assets and total liabilities for the current liabilities. 24 Id.

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FY13 FY14

NACSA Performance Framework Standard

Total Assets $ 47,946,452 $ 55,950,273 Total Liabilities $4,367,617 $6,044,960 Ratio 0.09 0.11 ≤ 0.9

In addition, Mater Academy has operated with a surplus for each of the last three years. While cash flow has been slightly negative (in proportion to the total cash on hand), this is not a concern given the size of the network’s cash reserve. The Current Ratio and Days Cash are measures of the school’s liquidity, or ability to meet its near term financial obligations. Mater Academy has strong liquidity based on both of these measures. The Debt to Asset ratio shows that the network has a strong net asset position and carries limited debt. Somerset Academy Financial Health Analysis This analysis is based on the IRS Form 990 filings from FY13 and FY14. Based on the information below, Somerset Academy has maintained a strong financial position for each of the last three years. Using three of the NACSA Financial Performance Framework Standards, we note the following:

Current Ratio (the higher the better)

FY13 FY14 NACSA Performance Framework Standard

Current Assets25 $ 19,863,974 $ 26,182,899 Current Liabilities26 $ 8,837,154 $ 10,246,758 Ratio 2.25 2.56 ≥ 1.1 Days Cash (the higher the better)

FY13 FY14 NACSA Performance Framework Standard

Cash and cash equivalents (includes current financial assets)

$ 19,863,974 $ 26,182,899

Total Expenses $ 94,036,328 $ 116,833,765 Days cash on hand 77.10 81.80 ≥ 60 days Debt to Asset Ratio (the lower the better)

FY13 FY14 NACSA Performance Framework Standard

Total Assets $ 42,120,405 $ 48,733,682 Total Liabilities $ 8,837,154 $ 10,246,758 Ratio 0.21 0.21 ≤ 0.9

In addition, Somerset Academy has operated with a surplus for each of the last three years. While cash flow has been slightly negative (in proportion to the total cash on hand), this is not a concern given the size of the network’s cash reserve. The Current Ratio and Days Cash are measures of the school’s liquidity, or ability to meet its near term financial obligations. Somerset Academy has strong liquidity based on both of these measures. The Debt to Asset ratio shows that the network has a strong net asset position and carries limited debt. Somerset DC Financial Health Analysis

25 The IRS Form 990 does not provide complete information related to the current assets or current liabilities. As such, we have used the total cash for the current assets and total liabilities for the current liabilities. 26 Id.

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Somerset DC opened in the 2013. As such, there is only one year of audited financial statements available for our review. Using three of the NACSA Financial Performance Framework Standards, we note the following:

Current Ratio (the higher the better)

FY14 NACSA Performance Framework Standard

Current Assets $ 313,562 Current Liabilities $ 309,190 Ratio 1.01 ≥ 1.1 Days Cash (the higher the better)

Fiscal year 2014 NACSA Performance Framework Standard

Cash and cash equivalents (includes current financial assets)

$ 209,522

Total Expenses $ 2,950,782 Days cash on hand 25.92 ≥ 60 days27 Debt to Asset Ratio (the lower the better)

Fiscal year 2014 NACSA Performance Framework Standard

Total Assets $ 490,178 Total Liabilities $ 309,190 Ratio 0.63 ≤ 0.9

The organization operated with a surplus during its first year of operations. The Current Ratio and Days Cash are measures of the school’s liquidity, or ability to meet its near term financial obligations. Somerset DC did not meet the standard for the Current Ratio or Days Cash measures. The Current Ratio measures the near term assets that the organization has available to for near term liabilities. A Current Ratio of less than 1.1 suggests that the school may not have sufficient resources to meet its near term obligations. Days Cash indicates how long the school could meet its financial obligations without additional cash receipts. If there was a delay in funding or significant unanticipated expense, the school may not have the cash reserves to meet its immediate needs. In a standalone charter school such as the Somerset DC, these liquidity concerns could pose a threat to the school’s financial wellbeing. This is especially of concern given the school’s young age. Should the school have difficulty recruiting the targeted number of students, it may find itself in a financially precarious position. Heritage Heights Academy Budget Proposal A high‐level review of the Heritage Heights Academy budget proposal and associated budget narrative appear to be sound; however, the budget does not generate sufficient surpluses to protect the school from unanticipated expenses or lower than expected revenue. The budget anticipates that the school will generate annual surpluses. However, two major assumptions drive the school’s annual surplus forcasts:

1. The school assumes an average teacher salary of $40,000. While the reviewer is not familiar

with Denver area teacher salaries, this seems low. Should the school be unable to attract and

27 The NACSA Performance Framework Standards state that a school in its first year of operations must have Days Cash exceeding 30 days.

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retain staff at this average annual salary, it will have difficulty maintaining annual surpluses. 2. The facilities rental expense is estimated to be 14% ‐ 15% of per pupil revenue. This estimate is

of concern on two potential grounds. First, facilities expenses do not always scale with enrollment. In other words, the facilities rental expense allocated for the first year may be understated because the school will have fewer students in year one than later in the charter term. Second, since the applicant has not yet obtained a facility, it is unclear whether the stated assumption is realistic. If the facility is more expensive than anticipated, as is often the case, the school may find itself in a financially precarious position.

The proposed budget anticipates small annual cash surpluses, which may leave the organization in a precarious situation. As discussed above, the NACSA Financial Performance Standards call for 60 days cash on hand. In the school’s first year of operation, the days cash on hand will be just over 18 days and by the fifth year of operation it will be just under 35 days. This will leave the school in a precarious position should there be a delay or reduction in funding, difficulty recruiting the budgeted number of students, or significant unanticipated expenses. It is important to note that the applicant claims to mitigate this risk by creating an annual contingency line equal to 5% or per pupil revenues.

The evaluation team should consider further investigation of the following:

• How does Academica protect independent schools (not part of a larger network such as Mater Academy) from insufficient cash reserves?

• What financial metrics does Academica use internally to determine the financial health of its schools?

• What actions does Academica take when schools are not meeting its standards?

• How would the applicant modify the proposed budget should the staffing or facility expenses increase significantly over what has been budgeted?

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