Friday, March 18, 2016

BAY CITY ACADEMY DEFICIT PLAN WATCH: Michigan Department of Education Needed Assurance Bay City Academy “Has Severed All Ties With The Prior Company.” (Bwahahaha!)

Just when you thought you'd seen it all...you see more!

The Michigan's Department of Education (MDE) released its latest “Quarterly Report to the Legislature on Deficit Districts” on March 9, including an update on the Madison Avenue fraud factory known as the Bay City Academy, and the result is shocking. 

OK, it's not really shocking, but nearly as sickening as a wild chimp sanctuary just before morning cage clean-up.

The MDE is required to report quarterly to the Legislature on school districts incurring year-end deficits and the districts’ progress in reducing those deficits. 

The March 9 report states: 

“Representatives from Bay City Academy met with MDE staff to discuss the district’s deficit fund balance. This is the first academy that the Department has brought to Lansing for a deficit meeting as a result of going $1.4 million in deficit in one year. The deficit is largely the result of the prior management company’s misuse of academy funds. We needed assurance that the academy has severed all ties with the prior company. The district has submitted a revised DEP that is still under review.”

According to the Bay City Academy's 2014/2015 financial report, the charter school founded and formerly managed by convicted felon Steven Ingersoll incurred a significant operating deficit in 2015, resulting in a cash flow shortage — as of June 30, 2015, the Academy's current liabilities exceeded its current assets by $1,374,477. 

Stating that its finding was a result of observation and inquiry with the Academy's administration, the auditors determined the deficit was result of an overreliance on Smart Schools Management for financial oversight. As a result, there was “a lack of appropriate administrative oversight by the Board of Directors over the Academy's finances during the year. The effect of this condition resulted in actual expenditures exceeding budgeted amounts, and a year-end deficit fund balance.” 

Former Bay City Academy Superintendent Brian Lynch (a longtime Ingersollette, having spent his entire teaching career working for Smart Schools Management in Traverse City before conquering Bay City) and his new management company, Mitten Educational Management LLC, officially took control of the school on May 1, 2015. (I say officially, because we know Ingersoll still owns the buildings and controls the board through its president, longtime Ingersoll crony Craig Johnston.)

Under the Lynch insta-firm's two-year deal, it's paid roughly $360,000 a year to  provide “a variety of services including financial management, leased employees, education programs and consulting as well as teacher training” to the school.  

And here comes the chimp stink!

Although it's less than two months before the end of the school year, the Bay City Academy was apparently unable (or unwilling) to project its June 30, 2016 fiscal year-end general deficit, the only school on the list that neglected to include that significant detail.

As you can see from the table below (excerpted from State Superintendent Brian Whiston's official March 9 report), the Bay City Academy's fund balance went from a $31,187 surplus as of June 30, 2014 to a massive $1,359,477 deficit as of June 30, 2015.

The Bay City Academy was called on the carpet by Whiston after neglecting to proactively report its ominous financial straits as required, belatedly reacting only after the Michigan Department of Education interceded in November and ordered the charter school to file a formal deficit elimination plan.

The Bay City Academy's deficit elimination plan is still under consideration by the MDE...now about those “severed ties”.


  1. Severed ties bahaha. They all still taking orders from Ingersoll. As much as he is trying to pretend he has nothing to do with Bay City Academy and Grand Traverse Academy, his good ole boys are following his orders and his format for ripping off everyone. Remember everyone that was there while Ingersoll obsconded with millions are still there making sure everything goes as planned and the money is in their pockets and not invested in children. They have not severed any ties, give me a break. And his daughter in law keeps a close eye on all of it, while Ingersoll orchestrates his musical ripoff.
    When will they all be dancing behind bars to the jailhouse rock.

  2. We need to start creating some lyrics for the jailhouse or prison rock. Ingersoll may be there May 16 (finally and none too soon), and hopefully this will be the beginning of others being indicted, prosecuted and sent to their own personal cells.