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us
IMPORTANT:
FINAL AUDIT
FINDINGS
CERTIFIED MAIL & EMAIL

015-824
2010-2011
February 11, 2011
Dr. Richard Clifford, Superintendent

San Antonio Preparatory Academy
P.O. Box 29690
San Antonio, Texas 78229
Subject: Preliminary Investigative Report

Complaint number 201 0-06-1 03
Dear Dr. Clifford:
Enclosed is the final investigative report from Rita Chase, Director of Financial Audits, detailing the
findings and required actions resulting from an on-site investigation of the San Antonio Preparatory
Academy (SAPA).
The report contains the auditors' findings and the auditors' analysis of the board of managers' response
on behalf of the charter school to the original findings. This report is being issued as a final report in
which the charter school's response is incorporated as an attachment. The responses from Roi Garcia
and Raul Garcia also are addressed in the report.
Should you have any questions, please contact Mike Richmond in the Division of Financial Audits at
(512)463-9095.
Sincerely,
Laura Taylor
Associate Commissioner
Department of Accreditation
LT:rc
Enclosures
cc: SAPA Charter Holder Board Members
SAPA Board of Managers
Travis County District Attorney
Office of Inspector General, United States Department of Education
Raul Garcia
Roi Garcia
MEMORANDUM
TO: Laura Taylor, Associate Commissioner for Accreditation

&£-»
FROM: Rita Chase, Director of Financial Audits
DATE: February 11,2011
SUBJECT: Special Investigation of San Antonio Preparatory Academy #015-824

Complaint number 2010-06-103
On September 20-24, 2010, and October 11-14, 2010, Texas Education Agency (TEA, the
agency) auditors from the Division of Financial Audits conducted an on-site investigation of the
San Antonio Preparatory Academy (SAPA) (the charter school) in response to a complaint filed
with the TEA as well as reports from the TEA-appointed superintendent.
Because of the seriousness of the violations described in this report, the TEA has determined
that it is important to issue its findings to date in this report. However, the TEA may make
additional findings based on field work that already has been completed. Any additional findings
will be issued in a separate report. The exhibits in this report contain illustrations of investigative
findings and are not all-inclusive.
The auditors reviewed financial records and conducted interviews with the charter school
administrators and staff, including the superintendent currently assigned by the TEA to the
charter school.
This report supersedes the prior report dated January 21, 2011, and reflects the TEA auditors'
analysis of the charter school's, Roi Garcia's and Raul Garcia's responses to the original report.
Through verbal inquiry and examination of charter school records, the auditors discovered the
following:
Background: In 2001, Sendero Academy applied for and was granted a contract for charter to
operate a charter school in Texas. Raul Garcia was the founder and chairman of the governing
board of the charter holder. In 2002, the charter school requested a charter amendment to
postpone opening the charter school until 2003. In 2003, the San Antonio Preparatory Academy
began operations at 8308 Fredericksburg Road. At the time of opening, the San Antonio
Preparatory Academy charter school operated one campus, also referenced as the San Antonio
Preparatory Academy. Raul Garcia's son, Roi Garcia, was hired as the superintendent of the
charter school.
The charter school initially leased its campus facility from Pathway Educational Ministry, Inc.
(Pathway Educational Ministry), and this lease continues to the present day. Roi Garcia appears
to control Pathway Educational Ministry because Mr. Garcia deposits his personal paychecks
and personal reimbursements into a bank account owned by this entity. The charter school
campus shares the space with Baruch Hashem Messianic Congregation and several other
churches. Roi Garcia serves as the senior rabbi of the Baruch Hashem Messianic
Congregation.
Laura Taylor
February 11, 2011
Page 2 of 13
As referenced above, Raul Garcia is the founder of the San Antonio Preparatory Academy
charter school and has served as the charter holder board chairman and as the Operations
Manager during much or all of its period of operation. Because it is unclear to TEA in what
position(s) Raul Garcia served during the time period examined in this report, he will be
presented as the founder of the charter holder. During the first five years of the charter school's
operations, Raul Garcia was serving the charter school and, at the same time, operating his
own private school, the Sendero Christian Academy. In 2008, the Sendero Christian Academy
ceased operations, and the location became a second campus of the charter school, referenced
as the Sendero Academy. The Sendero Academy campus is located at 5408 Daughtry Lane.
This location of the former private school is also the location of the Sendero Church, for which
Raul Garcia serves as the founder and senior pastor. The charter school leased the space for
the Sendero Academy campus from the Sendero Church.
In September 2009, governance concerns arose at the charter holder level when Roi Garcia
enacted his own board of directors to serve as the governing body of the charter holder. When
it was learned by Raul Garcia that there was another board operating as a governing body, he
reasserted the authority of his board as the governing body. It was later determined that the
board appointed by Roi Garcia was not the official board, and the actions taken by the board
were reversed by action of the original governing board (see Exhibit 1).
In August 2010, a TEA-appointed board of managers and superintendent were assigned to

operate and govern the charter school.
The following findings contained in this report are a sampling of the charter holder board's
failure to properly exercise its fiduciary responsibility over the charter school's assets and the
public funds expended by the charter school.
Concern: The charter holder may be in violation of Internal Revenue Code §501(c)(3),
which states that the organization must not be organized or operated for the benefit of
the private interests of an individual, such as the creator or members of the creator's
family (see Appendix A). In addition, the charter school had a material weakness in
internal control that may have allowed its officers and employees to violate Texas Penal
Code (TPC) §39.02, Abuse of Official Capacity (see Appendix B), and §32.45,
Misapplication of Fiduciary Property (see Appendix C). The charter school also may have
also allowed its employees and officers to violate TPC §37.10, Tampering with
Governmental Record (see Appendix D).
Findings: The following was discovered through review of the charter school's financial
documents and interviews with charter school personnel:
i. There were specific instances in which the former superintendent (Roi Garcia)
deposited vendor checks paid for with school funds into the Pathway
Educational Ministry's bank account (see Exhibit 2). The Pathway Educational
Ministry's bank account appears to be owned and operated by Roi Garcia. This
account appears to have been used as a personal bank account by Roi Garcia;
he deposited his personal paychecks, payroll advances and reimbursements
directly into this account. Below is a list of checks that were written to vendors
of the charter school but that were actually deposited into a separate account
controlled by the former superintendent (Roi Garcia).
Laura Taylor
February 11,2011
Page 3 of 13
Check
Date Amount Vendor
Number
11774 11/20/09 $6,837.38 Rhino Sports
Heave Ho Crane
11410 8/28/09 $335.00 Company
11425 8/31/09 $2,150.00 Universal Cleaning
11475 8/31/09 $895.00 Universal Cleaning
3865 11/15/04 $690.00 Jorge Garcia
4153 2/15/04 $645.00 Jorge Garcia
3956 10/24/04 $667.50 Jorge Garcia
3938 12/15/04 $4,622.43 Jorge Garcia
4328 4/1/05 $1,754.00 Humbert Escamilla
3652 9/15/04 $305.50 Edgar Ibarra
San Antonio Water
4363 4/7/05 $1,102.23 System
4241 3/11/05 $2,756.41 CPS Energy
4141 3/11/05 $7,371.00 CPS Energy
4353 4/8/05 $1,490.11 CPS Energy
ii. TEA obtained a signed statement from an individual, who previously worked
as a contractor, stating that the former superintendent (Roi Garcia) required
the return of at least four of his paychecks because they were written
incorrectly or were for excess money. He also stated that he never received
payment for the time worked for which the returned checks were originally
issued. Upon review of the checks, it was discovered that the checks were
deposited into the Pathway Educational Ministry's bank account, which is
owned and operated by Roi Garcia and is used as his personal bank account.
iii. TEA interviewed a contractor and obtained a signed statement stating that the
former superintendent (Roi Garcia) gave the contractor a false social security
number to use because the contractor did not have one. Roi Garcia provided
his spouse's social security number to the contractor so the charter school
could set the contractor up as a vendor in its accounting system. The
contractor also stated that he was asked to pay $35.00 for use of the number,
but he never paid it. In reviewing the checks submitted to this vendor, it was
noted that some of the checks that were addressed to this contractor were
diverted into the Pathway Educational Ministry's bank account, which is
controlled by the former superintendent, Roi Garcia.
iv. Based on review of charter school financial documents, including invoices and
copies of cleared checks, and interviews with school personnel, it was
determined that a charter school's founder (Raul Garcia) signed and
authorized payments to a landscaper who completed landscaping jobs for a
private school operated by the charter school board member. The checks
Laura Taylor
February 11,2011
Page 4 of 13
were made out to the landscaper but were endorsed and deposited into the
private school's bank account. Questioned costs: $6,300 (see Exhibit 3).
v. The San Antonio Preparatory Academy campus is located at the site of the
Baruch Hashem Messianic Congregation. The lease between the San Antonio
Preparatory Academy and Pathway Educational Ministry indicates that the
charter school was responsible for all utilities at the San Antonio Preparatory
Academy campus, even though the charter school was limited to using the
building from 6:00 a.m. to 6:00 p.m. Monday through Friday. In addition, the
charter school's insurance listed the owner of the building as additionally
insured, even though the charter school paid for all of the insurance.
Furthermore, the charter school was made responsible for the costs of all
construction activities and building repairs for the building; even though some
of the repairs and/or updates were made in support of church-oriented
activities (see Exhibit 4). Therefore, it appears that the charter school paid all
of the costs associated with these transactions, even though the transactions
also benefitted the Pathway Educational Ministry. The former superintendent
Roi Garcia controls Pathway Educational Ministry, Inc.
vi. Through discussions with school administrators, it was disclosed that the
school paid for the painting of the entire interior of the Sendero Academy
campus in 2009, even though the charter school leases the building from the
church and does not have exclusive use of it.
vii. In a review of the 2008-2009 check register for the charter school, it was noted
that the school paid a total of $6,210 to the Emmanuel Worship Center for
desks and chairs (see Exhibit 5). In an interview, school personnel stated that
the former superintendent, Roi Garcia, purchased the items at an auction. A
school official also stated that the charter school may have received some of
the desks but did not receive an amount that was close to the number
referenced on the invoices. Another school official stated that the Sendero
campus never received any of the desks or chairs. Auditors examined the
documents supporting the check to the Emmanuel Worship Center and
discovered two invoices, which described the items purchased. The two
invoice's combined totals were 440 desks, 210 plastic chairs, 55 office chairs,
22 pre-kindergarten chairs and 275 folding chairs. The invoices are from the
Emmanuel Worship Center, a church for which the former superintendent is
the senior pastor.
The two invoices, which were issued around the same time, are different,
leaving the impression that they were generated by different accounting
systems. The word "Emmanuel" is spelled differently on the two invoices. It
also was noted that each invoice has a different address; one address is the
San Antonio Preparatory Academy campus, and the other address belongs to
the Church on the Rock Bookstore, the old name of Emmanuel Worship Center
and the location where the church held services prior to the San Antonio
Preparatory Academy location.
viii. Auditors discovered what were purported to be third party invoices which actually
were created by an employee of the charter school and submitted for payment.
Laura Taylor
February 11,2011
Page 5 of 13
These documents were found on a computer that the former superintendent, Roi
Garcia, used when he worked for the charter school. Subsequently, these checks
were deposited into a bank account operated by Roi Garcia. Auditors interviewed a
vendor whose name appears on these suspect invoices. The vendor denied that
the he created these suspect invoices and noted that his name was misspelled on
the "invoices."
Another employee stated to the auditors that she was directed by Roi Garcia to
create a duplicate third party invoice for a vendor of the charter school. She
further stated that she was then directed to alter a receipt for goods purchased by
Roi Garcia for the church. Roi Garcia told this employee that he planned to submit
this altered receipt to the charter school for reimbursement
ix. A check was written in July 2009 for $3,000 to one of the charter school's vendors.
This check was not cashed until December 2,2010 (16 months after it was written).
A school official stated that he talked to the vendor, who said that he was not
missing any payments and had not recently cashed any checks from the school.
The vendor sent an e-mail verifying this (see Exhibit 6). The check was purportedly
endorsed by the vendor; however, the check was never controlled by the vendor
and was in Raul Garcia's possession before the check cleared the bank.
School officials state that they were told by a representative of the Region 20
Education Service Center (ESC) that it was contacted by Raul Garcia
approximately six weeks before the check referenced above was cashed. It was
further stated that Raul Garcia specifically inquired about the status of this
particular check but also inquired about the status of others. Other school officials
told the auditors that Raul Garcia had inquired about the status of this $3,000
check before it was cashed.
x. Proper internal controls prevent employee theft by segregating duties (see Special
Supplement to the Financial Accountability System Resource Guide - Charter
Schools, §1.5, p. 14). In this instance, key charter school personnel had the
authority to authorize payment and also had the ability to take possession of
checks that they authorized. This weakness in internal control could have allowed
certain key personnel the ability to generate and take possession of checks.
These findings indicate that Roi Garcia and Raul Garcia may have violated TPC §39.02, Abuse
of Official Capacity, because they both appear to have misused property that came into their
possession through their official capacity at the charter school, and they both appear to have
acted with the intent of obtaining a benefit The findings also indicate that Roi Garcia and
Raul Garcia may have violated TPC §32.45, Misapplication of Fiduciary Property, because the
charter school holds the state funds it receives in trust for the benefit of the students (TEC
§12.107(2)), and the funds were used for a purpose not authorized by TEC §45.105. These
findings also indicate that Roi Garcia may have violated TPC Section 37.10, Tampering with
Governmental Record, by making, presenting and using false invoices with the knowledge
that the invoices were false.
Analysis of the charter school's response:

Laura Taylor
February 11,2011
Page 6 of 13
The board of managers, on behalf of the charter school, agrees with this finding. The
responses of Mr. Roi Garcia and Mr. Raul Garcia are addressed below.
Concern: The charter school may be in violation of Texas Education Code (TEC) §12.120,
which states that a person may not serve as a member, an officer or an employee of an
open-enrollment charter school if the person has been convicted of a felony (see
Appendix E). The charter school may have also violated TPC §37.10, Tampering with
Governmental Record, by filing documents falsely stating that the charter school's
former superintendent, Roi Garcia, had not been convicted of a felony (see Appendix D).
Findings: The charter school employed Roi Garcia as the charter school's
superintendent until March 2010, when Roi Garcia resigned. He stated that he was
resigning due to health issues, but his resignation occurred after an anonymous letter
was mailed to TEA and Raul Garcia, which documented that Roi Garcia was convicted of
felony Bank Fraud and served time in a federal prison. Therefore, he was prohibited from
being employed by the charter school in any capacity by TEC §12.120 (a)(1).
There were numerous years during which the charter school filed an annual governance
reporting form declaring that Roi Garcia had not ever been convicted of a felony. This
finding indicates that the charter school made, presented, and used a government record
(the Governance Reporting Form) with knowledge of its falsity. This conduct may have
violated Texas Penal Code §37.10, Tampering with Governmental Record.
Concern: The charter holder may be in violation of Internal Revenue Code §501(c)(3)
which states that "the organization must not be organized or operated for the benefit of
the private interests such as the creator" (see Appendix A). In addition, the charter
school may have had a material weakness in internal control that allowed its employees
and officers to violate TPC39.02, Abuse of Official Capacity (see Appendix B); §32.45,
Misapplication of Fiduciary Property (see Appendix C); and TPC §37.10, Tampering with
Governmental Record (see Appendix D). The charter school did not maintain adequate
documentation to comply with requirements for the State Fiscal Stabilization Fund of the
American Reinvestment and Recovery Act (ARRA).
Finding: In a review of actual expenditures of ARRA funds, auditors discovered that the
charter school bought used playground equipment from the former superintendent (Roi
Garcia), who purchased it in an auction from a neighboring school district for $4,110 on
February 5, 2010 (see Exhibit 7, total of lots 7, 10 and 15). On or about February 8, 2010,
the charter school processed an "authorization voucher for vendor payment" for Planet
Playgrounds of Texas. The voucher was for the purchase of playground equipment in the
amount of $9,795. The voucher is signed by Roi Garcia.
Auditors attempted to verify the existence of Planet Playgrounds (the vendor) by calling
the number listed on the invoice, but the person who answered the phone informed the
auditors that the phone number did not belong to the Planet Playgrounds. Further, the
Laura Taylor
February 11,2011
Page 7 of 13
address listed on the invoice was the same address as the personal address of an elder
in the church that employs Roi Garcia as the senior rabbi, Baruch Hashem Messianic
Congregation. Auditors contacted the authorized Texas dealer for a company called
Planet Playgrounds, and this authorized dealer denied that the document in question was
his invoice and noted that he does not have a San Antonio address. The invoice also
contained the tax identification number of the charter school, not the purported vendor.
Because of these discrepancies, the auditors were not able to verify the validity of the
transaction (see Exhibit 7 page 7).
The auditors then examined the payment that was purportedly issued to Planet
Playgrounds and noted that the check had been processed without an endorsement and
stamped "Credited to the Account of within named payee Lack of endorsement
guaranteed."
The auditors concluded that the invoices appear to be fraudulent given that the vendor
denied the existence of the invoice, the invoice contained an address that did not belong
to the vendor, and the invoice contained the tax identification number of the charter
school and not the vendor. Because the equipment was purchased with federal funds,
the expenditures are not allowable due to lack of documentation. See 34 C.F.R. §74.21
(b)(6) and (b)(7) (Appendix F).
Given that: 1) the original equipment was purchased at an auction by Roi Garcia; 2) Roi
Garcia signed the authorization for vendor payment listing invoices from a vendor that
had not done work with the school; and 3) the check written to Planet Playgrounds was
for $9,795 rather the $4,110 purchase price, it appears that Roi Garcia may have created
false invoices to cause the check to be written. The fact that the check was processed
without an endorsement indicates that an employee(s) of the Wells Fargo Bank may have
allowed this fraudulent transaction to occur through either misfeasance or malfeasance.
These findings indicate that the charter school may have allowed part of its earnings to
inure to the benefit of its employees and officers. Further, the charter school may have
allowed Roi Garcia to violate TPC §39.02, Abuse of Official Capacity, because he appears
to have misused property that came into his possession through his official capacity at
the charter school, and he appears to have acted with the intent of obtaining a benefit.
The findings also indicate that the charter school allowed Roi Garcia to violate TPC
§32.45, Misapplication of Fiduciary Property, because the charter school holds the state
funds it receives in trust for the benefit of the students (TEC §12.107(2)), and the funds
were used for a purpose not authorized by TEC §45.105. These findings also indicate that
the charter school may have allowed Roi Garcia to violate TPC Section 37.10, Tampering
with Governmental Record, by making, presenting and using false invoices with the
knowledge that the invoices were false.
Additional questionable expenditures include an invoice from a contractor for $5,300,

which states that services provided included a playground foundation and a toilet (see
Exhibit 7). However, there is no foundation for the playground and no toilet in the
playground area. An additional expenditure of $5,950 was made to the Smart Electric Co.
However, the Smart Electric Co. refunded the charter school $4,950, and the charter
school has failed to reimburse the remaining $4,950 to the ARRA fund.
Laura Taylor
February 11,2011
Page 8 of 13
As a result of these findings, auditors question the use of $9,795 of funds for the
purchase of playground equipment, $5,300 for the installation of the equipment, and
$4,950 for electrical work. Total questioned costs are $20,045.
Concern: The charter school may have been in violation TPC §39.02, Abuse of Official
Capacity (see Appendix B), and §32.45, Misapplication of Fiduciary Property (see
Appendix C).
Finding: In interviews with charter school personnel, it was disclosed that, on a few
occasions, Sendero Assembly of God Church used buses, leased by the school, for
church functions without reimbursing the charter school. In review of charter school
leases it was noted that the charter school leased buses from Sendero Assembly of God
Church for three years, beginning September 1, 2009. Costs related to fuel, bus drivers'
salaries, bus insurance, bus inspections, license plates, flat tires, and tire replacements
were the charter school's responsibility (see Exhibit 8). However there was no
documentation provided to show that the church reimbursed the charter school for the
use of the buses.
Concern: The charter school was allowing the daycare located on the San Antonio
Preparatory Academy campus to feed children not enrolled in the charter school from the
charter school lunch program without reimbursing the charter school for the lunches.
Finding: The Pathway Educational Ministry, which is controlled by the former

superintendent, Roi Garcia, operated a daycare at the San Antonio Preparatory Academy
campus facility starting in 2003 and ending in 2008, when the daycare was closed
because it was operating without a license. Based on interviews with school personnel,
auditors determined that, during the time that the daycare was in operation, the daycare
would accept any child in San Antonio ages 3 and 4 years old. At times, the children
enrolled in the daycare located on the San Antonio Preparatory Academy campus had
the option to pay the daycare for meals that were provided by the charter school, even
though the children were not enrolled in the charter school. There was no evidence
provided to the auditors to demonstrate that the Pathway Educational Ministry
reimbursed the charter school for the cost of these meals.
Laura Taylor
February 11,2011
Page 9 of 13
Concern: The charter school has a history of failing to disclose the total compensation
for members of the governing board and their family members. This information is
required to be disclosed on the annual governance reporting form as required by TEC
§12.119(b) and 19 Texas Administrative Code (TAC) §100.101.
Finding: A review of the charter school's Annual Governance Reporting Forms revealed
that the school has failed to disclose the information required by TEC §12.119(b) and 19
TAC §100.101 (see Exhibit 9). The charter school has failed to disclose contractual
relationships between the founder of the charter holder (Raul Garcia), an officer of the
charter school (Roi Garcia), and a board member.
Raul Garcia had a contractual relationship with Sendero Church where he serves as the
Senior Pastor. Sendero Church leases buses to the charter school.
Roi Garcia controls the following companies who had contractual obligations with the
charter school: Gershoni Security (provides security cars parked at the SAPA campus,
Pathways Educational Ministry (leases the building to the SAPA campus) and
Educational Care (provided afterschool care for the SAPA campus and 15 passenger
vans).
Also a board member provided campus security in the morning and afternoons under the
company name Lone Star Security.
The charter school is required by 19 TAC §100.101 to disclose all compensation,

remuneration, and benefits received by board members and by officers of the charter
school. The charter school submitted governance reporting forms that failed to disclose
any compensation, remuneration, or benefits received by any of the board members or
charter school officers.
Concern: Charter school employees may have been utilized to conduct personal
business and perform personal services for the charter school's superintendent (Roi
Garcia), which may constitute a violation of TPC §39.02(a)(2) (see Appendix G).
Findings: The auditors interviewed and obtained a signed statement from a contractor
who stated that he provided personal services to the charter school's superintendent
(Roi Garcia) while on school time. The personal services included services such as
mowing the grass and moving exercise equipment during school hours.
Laura Taylor
February 11,2011
Page 10 of 13
Concern: The charter school may have preferentially contracted with individuals who
have relationships with the founder of the charter holder, including family members and
members of the congregation of the church for which Raul Garcia serves as the pastor.
Findings: The charter school entered into a series of transactions with the individuals
who have relationships with the founder of the charter holder where these individuals
appear to have received preferential treatment.
i. The charter school employs several individuals who have relationships with the
founder of the charter holder (Raul Garcia), including: his son, Roi Garcia, as the
superintendent, who also owns or controls Pathway Educational Ministry, Inc.,
Educational Care, and Gershoni Security; a niece as the REIMS Coordinator and,
at one time, the bookkeeper; his daughter as an accounting clerk; a son-in-law
as a school's vice principal (the son-in-law also serves in Raul Garcia's church
as a senior pastor); a grandson as an accounting clerk; another grandson as a
teacher's aide; a sister-in-law to Roi Garcia as a teacher's aide and, at one time,
a daycare employee; a brother-in-law as a contractor for the heating, ventilation,
and air conditioning; an associate pastor at Raul Garcia's church as the
business manager; and two other church members as charter school board
members who also hold contracts with the school.
ii. The brother-in-law of the former superintendent (Roi Garcia) was the heating
and air conditioning repairman. He was responsible for all maintenance and
repairs on the heating, ventilation, and air conditioning system. Upon review of
the Texas Department of Licensing and Regulation website, it appears that he
was not certified or licensed to work on the heating and cooling system.
iii. As of September 21, 2010, there were 29 family and church members that were
employed with the charter school.
iv. These transactions violate the laws and rules applicable to charter schools as
follows:
a. The charter school's hiring practices contain a material weakness in

internal control because the charter school did not properly authorize,
approve and document all changes in employment (additions and
terminations), salary and wage rates, and payroll deductions. It appears
that the positions held by people with relationships to the founder of the
charter holder did not go through the charter school's normal hiring
practice of posting the job notice, collecting applications, and selecting the
best qualified candidate through a process including interviews and
reference checks, as required by the Financial Accountability System
Resource Guide, §1.5.4.7 (see Appendix H).
b. The charter holder breached its fiduciary duty to use its state funding for
the benefit of the students, TEC §12.107(2) (see to Appendix I). The charter
school failed to ensure that it obtained the most qualified candidate for the
positions held by people with relationships to the founder of the charter
holder because it engaged in self-dealing by restricting its candidate pool
Laura Taylor
February 11,2011
Page 11 of 13
to members of the charter holder's and superintendent's family and

church members.
c. The charter holder board members breached their duty to act in the best
interests of the non-profit corporation. Texas Business Organizations Code
(TBOC) §22.221 refer to Appendix J for TBOC §22.221). The corporate
board members failed to ensure that the corporation obtained the most
qualified candidate for the positions held by people with relationships to
the founder of the charter holder because they allowed the charter school
to restrict the candidate pool to people with relationships to the founder of
the charter holder.
d. The non-profit corporation may have allowed part of its net earnings to
inure to the benefit of the founder, superintendent and his family in
violation of Internal Revenue Code §501(c)(3) (see Appendix A). The
charter school preferentially hired several people with relationships to the
founder of the charter holder. Because the family and members were not
subject to the normal hiring process, they may be receiving compensation
in excess of the fair market value of their services.
Required Actions:
1. TEA take appropriate administrative actions regarding the violations of state and
federal rules and regulations and the failure of the charter holder board to uphold
their fiduciary responsibilities in safeguarding the assets of the school.
2. The charter school must notify appropriate law enforcement authorities of the
possible fraudulent activities which have taken place during the past several
years.
3. The charter school must reimburse all questionable costs for which there is
insufficient evidence that the expenditures were for the benefit of the school.
4. The charter school must conduct a comprehensive review of all internal control
policies and procedures to make the necessary modifications to address the
findings contained in this report.
The board of managers, in its response to the report on behalf of the charter school, agreed with
the auditors' findings and provided actions undertaken by the charter school to address the
required actions contained in the report as noted below.
Laura Taylor
February 11, 2011
Page 12 of 13
The board of managers, on behalf of the charter school, stated that a copy of the report was
filed with the White Collar Crime Division for Bexar County on January 27, 2011, and further
stated that it will work with TEA to repay federal program funds for which it has insufficient
documentation to support expenditures.
The board of managers, on behalf of the charter school, responded with actions that the board
of managers and school have taken to address weaknesses in internal controls. The school
has canceled all credit cards, with the exception of two gas cards and a store card that are kept
in a secure location in the business office. The business manager requires preauthorization
before he approves use of the cards. Additionally, all checks issued by the charter school now
require two signatures, one each from the superintendent and the president of the board of
managers. The board of managers also reviews all invoices at its monthly board meeting. The
board of managers is taking a more active role in school administration by reviewing all vendor
payments, and the board has approved three budget amendments to the 2010-2011 budget.
The charter school has contracted with the Texas Association of School Business Officials
(TASBO) to perform a management review during spring 2011. Moreover, the board of
managers has reviewed all existing vendor contracts and continues to review and authorize, as
appropriate, any new vendor contracts before implementation. The board of managers and
superintendent also consult legal counsel if there are no policies or procedures currently in
place that dictate a specific course of action.
Analysis of responses from Mr. Raul Garcia and Mr. Roi Garcia:
The agency also received responses from Mr. Roi Garcia and Mr. Raul Garcia; however, the
responses do not adequately address the findings reflected in the preliminary report. Specifically,
the response from Mr. Raul Garcia generally includes only short notations related to certain
checks issued by the charter school and provides no additional documentation that would support
a change to the agency's preliminary findings. One invoice dated August 3, 2006, and a bus
lease agreement dated August 5, 2009, which already had been reviewed by agency audit staff
during the audit, also were included, without any additional explanation provided. As a result of
Mr. Garcia's failure to provide sufficient explanations and supporting materials to refute the
agency's original findings, the final report reflects no changes to the agency's conclusions.
In regard to the response to the preliminary report submitted by Mr. Roi Garcia, the agency has
determined that the response is, at best, insufficient and, at worst, additional evidence of Mr.
Garcia's improprieties. Specifically, the response includes, but is not limited to, the following:
• Three unnotarized statements attempting to explain why certain checks were deposited into
the Pathway Educational Ministry account, which, as noted in the preliminary audit report,
appears to function as the personal account for Mr. Roi Garcia. The statements, by way of
explanation, reference deposits into church accounts; however, the Pathway Educational
Ministry account is not a church account. In specific regard to the statement submitted on
behalf of Universal Cleaning of San Antonio, the agency notes that the signature on the
statement is not from a recognized individual with an ownership interest in the entity.
• Two invoices, dated August 12, 2006, and August 17, 2006, the authenticity of which is
unclear. The invoices, which have corresponding checks in the amounts of $4,000 and
$3,800, respectively, made out to Pathway Educational Ministry, contain no
documentation or notation of the date received, date of payment, or source of payment.
Laura Taylor
February 11,2011
Page 13 of 13
• Notations made, presumably by Mr. Roi Garcia, on a printout of a business organization

inquiry from the Secretary of State's website for Planet Playgrounds, which states, "DBA:
Planet Playgrounds of South Texas" on one line and "Playground World" on another line.
In a related search by agency auditors, it was determined that no official state records
exist for an entity named Planet Playgrounds of South Texas. It was further noted that
Playground World has been out of existence since 2003.
• Submission of an invoice to Planet Playground (invoice #3523), not previously seen by
auditors, that does not resemble in appearance or amount other Planet Playground
invoices reviewed by auditors and referenced in the preliminary audit report. This
invoice has the same invoice number as an invoice included and questioned as part of
the agency's preliminary findings.
• Pictures, which it is assumed purport to document the existence of a toilet facility
adjacent to the playground, have been identified by school staff as pictures of a
bathroom that is located in the existing school building and which was in place prior to
the purported construction of a playground bathroom facility.
• Pictures, which recently were made by Mr. Roi Garcia at the site of the Sendero
Academy campus, which, it appears, purport to document the purchase of a large
number of desks and chairs for the benefit of the school. However, as referenced on
page 4 of the audit report, one school staff member previously stated that the large
number of desks and chairs referenced in school documents was not received by the
school, and another staff member stated that the Sendero Academy campus received no
desks or chairs.
Therefore, the agency has concluded that the response from Mr. Roi Garcia provides no
additional documentation that would support a change to the agency's preliminary findings and,
in fact, raises additional questions regarding Mr. Garcia's actions. As a result of Mr. Garcia's
failure to provide sufficient explanations and supporting materials to refute the agency's original
findings, the final report reflects no changes to the agency's conclusions.
Inurement/Private Benefit - Charitable Organizations Page 1 of 1
Inurement/Private B*n«flt - Charitable Organizations
A section 501 (c)(3) organization must not be organized or operated (or the benefit of private interests, such as the
creator or the creator's family, shareholder) of the organization, other designated individual*, or persons controlled
directly or indrectty by such private interests. No part of tha net earnings of a section 501(c)(3) organization may inure
to the benefit of any private shareholder or individual A private shareholder or individual is a person having a personal
and private interest In tha activities of tha organization.
Return to Life Cycle of a Public Charity
Page Last Reviewed or Updated: August 13, 2010
Appendix A, page 1 or 1
http://\vww.irs.gov/charities/charitable/article/0,,id=l23297,00.html 9/15/2010
PENAL CODE CHAPTER 39. ABUSE OF OFFICE Page 1 of 2
Sec. 39.02. ABUSE OF OFFICIAL CAPACITY. (a) A public servant

commits an offense if, with intent to obtain a benefit or with intent
to harm or defraud another, he intentionally or knowingly:
(1) violates a law relating to the public servant's office
or employment; or
(2) misuses government property, services, personnel, or
any other thing of value belonging to the government that has come
into the public servant's custody or possession by virtue of the
public servant's office or employment.
(b) An offense under Subsection (a)(1) is a Class A
misdemeanor.
(c) An offense under Subsection (a)(2) is:
(1) a Class C misdemeanor if the value of the use of the
thing misused is less than $20;
(2) a Class B misdemeanor if the value of the use of the
thing misused is $20 or more but less than $500;
(3) a Class A misdemeanor if the value of the use of the
thing misused is $500 or more but less than $1,500;
(4) a state jail felony if the value of the use of the
thing misused is $1,500 or more but less than $20,000;
(5) a felony of the third degree if the value of the use
of the thing misused is $20,000 or more but less than $100,000;
(6) a felony of the second degree if the value of the use
of the thing misused is $100,000 or more but less than $200,000; or
(7} a felony of the first degree if the value of the use
of the thing misused is $200,000 or more.
(d) A discount or award given for travel, such as frequent
flyer miles, rental car or hotel discounts, or food coupons, are not
things of value belonging to the government for purposes of this
section due to the administrative difficulty and cost involved in
recapturing the discount or award for a governmental entity.
(e) If separate transactions that violate Subsection (a)(2) are
conducted pursuant to one scheme or continuing course of conduct, the
conduct may be considered as one offense and the value of the use of
the things misused in the transactions may be aggregated in
determining the classification of the offense.
(f) The value of the use of a thing of value misused under
Subsection (a)(2) may not exceed:
Appendix B, page 1 of 2
http://www.statutes.legis.state.tx.us/Docs/PE/htm/PE.39.htm 9/14/2010
PENAL CODE CHAPTER 39. ABUSE OF OFFICE Page 2 of 2
(1) the fair market value of the thing at the time of the
offense; or
(2) if the fair market value of the thing cannot be
ascertained, the cost of replacing the thing within a reasonable time
after the offense.
Acts 1973, 63rd Leg., p. 883, ch. 399, Sec. 1, eff. Jan. 1, 1974.
Amended by Acts 1983, 68th Leg., p. 3241, ch. 558, Sec. 7, eff. Sept.
1, 1983. Renumbered from Penal Code Sec. 39.01 and amended by Acts
1993, 73rd Leg., ch. 900, Sec. 1.01, eff. Sept. 1, 1994.
Amended by:
Acts 2009, 81st Leg., R.S., Ch. 82, Sec. 1, eff. September 1,
2009.
Appendix B, page 2 of 2
PENAL CODE CHAPTER 32. FRAUD Page 1 of 2
Sec. 32.45. MISAPPLICATION OF FIDUCIARY PROPERTY OR PROPERTY OF

FINANCIAL INSTITUTION. (a) For purposes of this section:
(1)
"Fiduciary" includes:
(A) a trustee, guardian, administrator, executor,
conservator, and receiver;
(B) an attorney in fact or agent appointed under a
durable power of attorney as provided by Chapter XII, Texas Probate
Code;
(C) any other person acting in a fiduciary capacity,
but not a commercial bailee unless the commercial bailee is a party
in a motor fuel sales agreement with a distributor or supplier, as
those terms are defined by Section 153.001, Tax Code; and
(D) an officer, manager, employee, or agent carrying
on fiduciary functions on behalf of a fiduciary.
(2) "Misapply" means deal with property contrary to:
(A) an agreement under which the fiduciary holds the.
property; or
(B) a law prescribing the custody or disposition of
the property.
(b) A person commits an offense if he intentionally, knowingly,
or recklessly misapplies property he holds as a fiduciary or property
of a financial institution in a manner that involves substantial risk
of loss to the owner of the property or to a person for whose benefit
the property is held.
(c) An offense under this section is:
(1) a Class C misdemeanor if the value of the property
misapplied is less than $20;
(2) a Class B misdemeanor if the value of the property
misapplied is $20 or more but less than $500;
(3) a Class A misdemeanor if the value of the property
misapplied is $500 or more but less than $1,500;
(4} a state jail felony if the value of the property
misapplied is $1,500 or more but less than $20,000;
(5) a felony of the third degree if the value of the
property misapplied is $20,000 or more but less than $100,000;
(6) a felony of the second degree if the value of the
property misapplied is $100,000 or more but less than $200,000; or
(7) a felony of the first degree if the value of the
Appendix C, page 1 of 2
PENAL CODE CHAPTER 32. FRAUD Page 2 of 2
property misapplied is $200,000 or more.

(d) An offense described for purposes of punishment by
Subsections (c)(l)-(6) is increased to the next higher category of
offense if it is shown on the trial of the offense that the offense
was committed against an elderly individual as defined by Section
22.04.
(e) With the consent of the appropriate local county or
district attorney, the attorney general has concurrent jurisdiction
with that consenting local prosecutor to prosecute an offense under
this section that involves the state Medicaid program.
Amended by Acts 1991, 72nd Leg., ch. 565, Sec. 2, eff. Sept. 1, 1991;
Acts 1993, 73rd Leg., ch. 900, Sec. 1.01, eff. Sept. 1, 1994; Acts
1997, 75th Leg., ch. 1036, Sec. 14, eff. Sept. 1, 1997; Acts 2001,
77th Leg., ch. 1047, Sec. 1, eff. Sept. 1, 2001; Acts 2003, 78th
Leg., ch. 198, Sec. 2.137, eff. Sept. 1, 2003; Acts 2003, 78th Leg.,
ch. 257, Sec. 14, eff. Sept. 1, 2003; Acts 2003, 78th Leg., ch. 432,
Sec. 3, eff. Sept. 1, 2003.
Amended by:
Acts 2005, 79th Leg., Ch. 728, Sec. 23.001(77), eff. September
1, 2005.
Appendix C. page 2 of 2
PENAL CODE CHAPTER 37. PERJURY AND OTHER FALSIFICATION Page 1 of 4
Sec. 37.10. TAMPERING WITH GOVERNMENTAL RECORD. (a) A person

commits an offense if he:
(1) knowingly makes a false entry in, or false alteration
of, a governmental record;
(2) makes, presents, or uses any record, document, or
thing with knowledge of its falsity and with intent that it be taken
as a genuine governmental record;
(3) intentionally destroys, conceals, removes, or
otherwise impairs the verity, legibility, or availability of a
governmental record;
(4) possesses, sells, or offers to sell a governmental
record or a blank governmental record form with intent that it be
used unlawfully;
(5) makes, presents, or uses a governmental record with
knowledge of its falsity; or
(6) possesses, sells, or offers to sell a governmental
record or a blank governmental record form with knowledge that it was
obtained unlawfully.
(b) It is an exception to the application of Subsection (a)(3)
that the governmental record is destroyed pursuant to legal
authorization or transferred under Section 441.204, Government Code.
With regard to the destruction of a local government record, legal
authorization includes compliance with the provisions of Subtitle C,
Title 6, Local Government Code.
(c)(l) Except as provided by Subdivisions (2), (3), and (4) and
by Subsection (d), an offense under this section is a Class A
misdemeanor unless the actor's intent is to defraud or harm another,
in which event the offense is a state jail felony.
(2) An offense under this section is a felony of the third
degree if it is shown on the trial of the offense that the
governmental record was:
(A) a public school record, report, or assessment
instrument required under Chapter 39, Education £ode, or was a
license, certificate, permit, seal, title, letter of patent, or
similar document issued by government, by another state, or by the
United States, unless the actor's intent is to defraud or harm
another, in which event the offense is a felony of the second degree;
(B) a written report of a medical, chemical,
Appendix D, page 1 of 4
toxicological, ballistic, or other expert examination

or test performed on physical evidence for the purpose of determining
the connection or relevance of the evidence to a criminal action; or
(C) a written report of the certification,
inspection, or maintenance record of an instrument, apparatus,
implement, machine, or other similar device used in the course of an
examination or test performed on physical evidence for the purpose of
determining the connection or relevance of the evidence to a criminal
action.
(3} An offense under this section is a Class C misdemeanor
if it is shown on the trial of the offense that the governmental
record is a governmental record that is required for enrollment of a
student in a school district and was used by the actor to establish
the residency of the student.
(4) An offense under this section is a Class B misdemeanor
if it is shown on the trial of the offense that the governmental
record is a written appraisal filed with an appraisal review board
under Section 41.43(a-l), Tax Code, that was performed by a person
who had a contingency interest in the outcome of the appraisal review
board hearing.
(d) An offense under this section, if it is shown on the trial
of the offense that the governmental record is described by Section
37.01(2) (D), is:
(1) a Class B misdemeanor if the offense is committed
under Subsection (a)(2) or Subsection (a)(5) and the defendant is
convicted of presenting or using the record;
(2) a felony of the third degree if the offense is
committed under:
(A) Subsection (a)(l), (3), (4), or (6); or
(B) Subsection (a)(2) or (5) and the defendant is
convicted of making the record; and
(3) a felony of the second degree, notwithstanding
Subdivisions (1) and (2), if the actor's intent in committing the
offense was to defraud or harm another.
(e) It is an affirmative defense to prosecution for possession
under Subsection (a)(6) that the possession occurred in the actual
discharge of official duties as a public servant.
(f) It is a defense to prosecution under Subsection (a) (1), (a)
Appendix 0, page 2 of 4
(2), or (a)(5) that the false entry or false information could

have no effect on the government's purpose for requiring the
governmental record.
(g) A person is presumed to intend to defraud or harm another
if the person acts with respect to two or more of the same type of
governmental records or blank governmental record forms and if each
governmental record or blank governmental record form is a license,
certificate, permit, seal, title, or similar document issued by
government.
(h) If conduct that constitutes an offense under this section
also constitutes an offense under Section 32.48 or 37.13, the actor
may be prosecuted under any of those sections.
(i) With the consent of the appropriate local county or
district attorney, the attorney general has concurrent jurisdiction
with that consenting local prosecutor to prosecute an offense under
this section that involves the state Medicaid program.
(j) It is not a defense to prosecution under Subsection (a)(2)
that the record, document, or thing made, presented, or used displays
or contains the statement "NOT A GOVERNMENT DOCUMENT" or another
substantially similar statement intended to alert a person to the
falsity of the record, document, or thing, unless the record,
document, or thing displays the statement diagonally printed clearly
and indelibly on both the front and back of the record, document, or
thing in solid red capital letters at least one-fourth inch in
height.
Amended by Acts 1989, 71st Leg., ch. 1248, Sec. 66, eff. Sept. 1,
1989; Acts 1991, 72nd Leg., ch. 113, Sec. 4, eff. Sept. 1, 1991; Acts
1991, 72nd Leg., ch. 565, Sec. 5, eff. Sept. 1, 1991; Acts 1993, 73rd
Leg., ch. 900, Sec. 1.01, eff. Sept. 1, 1994; Acts 1997, 75th Leg.,
ch. 189, Sec. 6, eff. May 21, 1997; Acts 1997, 75th Leg., ch. 823,
Sec. 4, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 659, Sec. 2,
* ->
eff. Sept. 1, 1999; Acts 1999, 76th Leg., ch. 718, Sec. 1, eff. Sept.
1, 1999; Acts 2001, 77th Leg., ch. 771, Sec. 3, eff. June 13, 2001;
Acts 2003, 78th Leg., ch. 198, Sec. 2.139, eff. Sept. 1, 2003; Acts
2003, 78th Leg., ch. 257, Sec. 16, eff. Sept. 1, 2003.
Amended by:
Acts 2005, 79th Leg., Ch. 1364, Sec. 1, eff. June 18, 2005.
Acts 2007, 80th Leg., R.S., Ch. 1085, Sec. 2, eff. September 1,
2007.
2009.
2009.
EDUCATION CODE CHAPTER 12. CHARTERS Page 1 of 1
Sec. 12.120. RESTRICTIONS ON SERVING AS MEMBER OF GOVERNING

BODY OF CHARTER HOLDER OR OPEN-ENROLLMENT CHARTER SCHOOL OR AS
OFFICER OR EMPLOYEE. (a) A person may not serve as a member of the
governing body of a charter holder, as a member of the governing body
of an open-enrollment charter school, or as an officer or employee of
an open-enrollment charter school if the person:
(1) has been convicted of a felony or a misdemeanor
involving moral turpitude;
(2) has been convicted of an offense listed in Section
37.007 (a);
(3) has been convicted of an offense listed in Article
62.001 (5), Code of Criminal Procedure; or
(4) has a substantial interest in a management company,
(b) For purposes of Subsection (a)(4), a person has a
substantial interest in a management company if the person:
(1) has a controlling interest in the company;
(2) owns more than 10 percent of the voting interest in
the company;
(3} owns more than $25,000 of the fair market value of the
company;
(4) has a direct or indirect participating interest by
shares, stock, or otherwise, regardless of whether voting rights are
included, in more than 10 percent of the profits, proceeds, or
capital gains of the company;
(5) is a member of the board of directors or other
governing body of the company;
(6) serves as an elected officer of the company; or
(7) is an employee of the company.
Added by Acts 1999, 76th Leg., ch. 1335, Sec. 3, eff. June 19, 1999.
Amended by Acts 2001, 77th Leg., ch. 1504, Sec. 17, eff. Sept. 1,
2001.
Amended by:
Acts 2005, 79th Leg., Ch. 100.8, Sec. 2.04, eff. September 1,
2005.
Appendix E, page 1 of 1
http://www.statutes.legis.state.tx.us/Docs/ED/htm/ED. 12.htm 12/20/2010

Office of the Secretary, Education §74.21
with ED. Annual certifications and rep- (3) Effective control over and ac-
resentations shall be signed by respon- countability for all funds, property,
sible officials with the authority to en- and other assets. Recipients shall ade-
sure recipients' compliance with the quately safeguard all assets and assure
pertinent requirements. they are used solely for authorized pur-
(Authority: 20 U.S.C. 122le-3, 3474; OMB Cir- poses.
cular A-110) (4) Comparison of outlays with budg-
et amounts for each award. Whenever
Subpart C—Post-Award appropriate, financial information
Requirements should be related to performance and
unit cost data.
FINANCIAL AND PROGRAM MANAGEMENT (5) Written procedures to minimize
the time elapsing between the transfer
§74.20 Purpose of financial and pro- of funds to the recipient from the U.S.
gram management.
Treasury and the issuance or redemp-
Sections 74.21 through 74.28 prescribe tion of checks, warrants or payments
standards for financial management by other means for program purposes
systems, methods for making pay- by the recipient. To the extent that the
ments and rules for—
(a) Satisfying cost sharing and provisions of the Cash Management Im-
matching requirements; provement Act (CMIA) (Pub. L. 101-453)
(b) Accounting for program income; govern, payment methods of State
(c) Approving budget revisions; agencies, instrumentalities, and fiscal
(d) Making audits; agents shall be consistent with CMIA
(e) Determining allowability of cost; Treasury-State Agreements or the
and CMIA default procedures codified at 31
(f) Establishing fund availability. CFR Part 205—Withdrawal of Cash
(Authority: 20 U.S.C. 122le-3, 3474; OMB Cir-
from the Treasury for Advances under
cular A-110) Federal Grant and Other Programs.
(6) Written procedures for deter-
8 74.21 Standards for financial man- mining the reasonableness,
agement systems. allocability, and allowability of costs
(a) Recipients shall relate financial in accordance with the provisions of
data to performance data and develop the applicable Federal cost principles
unit cost information whenever prac- and the terms and conditions of the
tical. award.
(b) Recipients' financial management (7) Accounting records including cost
systems snail provide for the following: accounting records that are supported
(1) Accurate, current, and complete by source documentation.
disclosure of the financial results of (c) Where the Federal Government
each federally-sponsored project in ac- guarantees or insures the repayment of
cordance with the reporting require- money borrowed by the recipient, the
ments established in §74.52. If the Sec- Secretary may require adequate bond-
retary requires reporting on an accrual ing and insurance if the bonding and
basis from a recipient that maintains insurance requirements of the recipi-
its records on other than an accrual ent are not deemed adequate to protect
basis, the recipient shall not be re- the interest of the Federal Govern-
quired to establish an accrual account- ment.
ing aystem. These recipients may de-
velop accrual data for its reports on (d) The Secretary may require ade-
the basis of an analysis of the docu- quate fidelity bond coverage where the
mentation on hand. recipient lacks sufficient coverage to
(2) Records that identify adequately protect the Federal Government's in-
the source and application of funds for terest.
federally-sponsored activities. These (e) Where bonds are required under
records shall contain information per- paragraphs (a) and (b) of this section,
taining to awards, authorizations, obli- the bonds shall be obtained from com-
gations, unobligated balances, assets, panies holding certificates of authority
outlays, income, and interest. as acceptable sureties, as prescribed in
115
Appendix F, page 1 of 2
§74.22 34 CFR Subtitle A (7-1-10 Edition)
31 CFE Part 223—Surety Companies bursements at least monthly when
Doing Business with the United States. electronic fund transfers are not used.
(d) Requests for Treasury check ad-
(Approved by the Office of Management and vance payment shall be submitted on
Budget under control number 1880-0513)
SF-270—Request for Advance or Reim-
(Authority: 20 U.S.C. 1221e-3, 3474; OMB Cir- bursement—or other forms as may be
cular A-110) authorized by OMB. This form Is not to
[59 FR 34724, July 6, 1994, as amended at 60 be used when Treasury check advance
FR 6660, Feb. 3,1995] payments are made to the recipient
automatically through the use of a pre-
§ 74.22 Payment. determined payment schedule or if pre-
(a) Payment methods shall minimize cluded by ED instructions for elec-
the time elapsing1 between the transfer tronic funds transfer.
of funds from the United States Treas- (e) Reimbursement is the preferred
ury and the issuance or redemption of method when the requirements in para-
checks, warrants, or payment by other graph (b) of this section cannot be met.
means by the recipients. Payment The Secretary may also use this meth-
methods of State agencies or instru- od on any construction agreement, or
mentalities shall be consistent with if the major portion of the construc-
Treasury-State CMIA agreements or tion project is accomplished through
default procedures codified at 31 CFR private market financing or Federal
part 205. loans, and the Federal assistance con-
(b)(l) Recipients are paid in advance, stitutes a minor portion of the project.
provided they maintain or demonstrate (1) When the reimbursement method
the willingness to maintain— is used, the Secretary makes payment
(1) Written procedures that minimize within 30 days after receipt of the bill-
the time elapsing: between the transfer ing, unless the billing is improper.
of funds and disbursement by the re- (2) Recipients are authorized to sub-
cipient; and mit request for reimbursement at least
monthly when electronic funds trans-
(11) Financial management systems fers are not used.
that meet the standards for fund con- (f) If a recipient cannot meet the cri-
trol and accountability as established teria for advance payments and the
in §74.21. Secretary has determined that reim-
(2) Cash advances to a recipient orga- bursement Is not feasible because the
nization are limited to the minimum recipient lacks sufficient working cap-
amounts needed and be timed to be in ital, the Secretary may provide cash on
accordance with the actual, Immediate a working capital advance basis. Under
cash requirements of the recipient or- this procedure, the Secretary advances
ganization in carrying out the purpose cash to the recipient to cover its esti-
of the approved program or project. mated disbursement needs for an ini-
(3) The timing and amount of cash tial period generally geared to the
advances are as close as is administra- awardee's disbursing cycle. Thereafter,
tively feasible to the actual disburse- the Secretary reimburses the recipient
ments by the recipient organization for for its actual cash disbursements. The
direct program or project costs and the working capital advance method of
proportionate share of any allowable payment is not used for recipients un-
indirect costs. willing or unable to provide timely ad-
(c) Whenever possible, advances are vances to their subreciplent to meet
consolidated to cover anticipated cash the subrecipient's actual cash disburse-
needs for all awards made by the Sec- ments.
retary. (g) To the extent available, recipi-
(1) Advance payment mechanisms in- ents shall disburse funds available from
clude, but are not limited to. Treasury repayments to and interest earned on a
check, and electronic funds transfer. revolving fund, program income, re-
(2) Advance payment mechanisms are bates, refunds, contract settlements,
subject to 31 CFR part 205. audit recoveries, and interest earned
(3) Recipients are authorized to sub- on these funds before requesting addi-
mit requests for advances and reim- tional cash payments.
116
Appendix F, page 2 of 2
TEXAS PENAL CODE 39.02
Sec. 39.02.
ABUSE OF OFFICIAL CAPACITY.
(a) A public servant commits an offense if, with intent to obtain a benefit or with intent to harm
or defraud another, he intentionally or knowingly:
(1) violates a law relating to the public servant's office or employment; or
(2) misuses government property, services, personnel, or any other thing of value belonging
to the government that has come into the public servant's custody or possession by virtue of
the public servant's office or employment.
(b) An offense under Subsection (a)(1) is a Class A misdemeanor.
(c) An offense under Subsection (a)(2) is:
(1) a Class C misdemeanor if the value of the use of the thing misused is less than $20;
(2) a Class B misdemeanor if the value of the use of the thing misused is $20 or more but
less than $500;
(3) a Class A misdemeanor if the value of the use of the thing misused is $500 or more but
less than $1,500;
(4) a state jail felony if the value of the use of the thing misused is $1,500 or more but less
than $20,000;
(5) a felony of the third degree if the value of the use of the thing misused is $20,000 or
more but less than $100,000;
(6) a felony of the second degree if the value of the use of the thing misused is $100,000 or
more but less than $200,000; or
(7) a felony of the first degree if the value of the use of the thing misused is $200,000 or
more.
(d) A discount or award given for travel, such as frequent flyer miles, rental car or hotel
discounts, or food coupons, are not things of value belonging to the government for
purposes of this section due to the administrative difficulty and cost involved in recapturing
the discount or award for a governmental entity.
(e) If separate transactions that violate Subsection (a)(2) are conducted pursuant to one
scheme or continuing course of conduct, the conduct may be considered as one offense
and the value of the use of the things misused in the transactions may be aggregated in
determining the classification of the offense.
(f) The value of the use of a thing of value misused under Subsection (a)(2) may not exceed:
(1) the fair market value of the thing at the time of the offense; or
(2) if the fair market value of the thing cannot be ascertained, the cost of replacing the thing
within a reasonable time after the offense.
Appendix G, page 1 of 2
TEXAS PENAL CODE 39.02
Acts 1973, 63rd Leg., p. 883, ch. 399, Sec. 1, eff. Jan. 1, 1974. Amended by Acts 1983, 68th
Leg., p. 3241, ch. 558, Sec. 7, eff. Sept. 1, 1983. Renumbered from Penal Code Sec. 39.01 and
amended by Acts 1993, 73rd Leg., ch. 900, Sec. 1.01, eff. Sept. 1, 1994.
Amended by: Acts 2009, 81st Leg., R.S., Ch. 82, Sec. 1, eff. September 1, 2009.
Appendix G. page 2 of 2
Financial Accounting and Reporting • 555
93. Requiring grantees to evidence correction of previously detected deficiencies before

approval of an extension or renewal of a grant
94. Entitlement procedures ensuring that statistics or data used to allocate funds are
accurately accumulated (for example, census bureau forms)
95. Requiring statements of recipient compliance with entitlement conditions (for example,
statement of assurances) to be filed and having a responsible official review them
96. Review of audited financial statements or other compliance requirements of entitlement

recipients on a timely basis and investigation of unusual items
1.5.4.7 Employee Compensation
Segregation of Duties
1. Segregation of responsibilities for supervision and time-keeping functions from

personnel, payroll processing, disbursement and general ledger functions
2. Segregation of responsibilities for the payroll processing function from the general
ledger function
3. Supervision of payroll distribution by employees:
- Who are not responsible for hiring or firing employees

Who do not approve time reports
Who take no part in payroll preparation
4. Segregation of responsibilities for initiating payments under employee benefit plans

from accounting and general ledger functions
5. Reconciliation of the payroll bank account regularly by employees independent of all

other payroll transaction processing activities
6. If EDP is used, maintaining the principle of segregation of duties in processing

activities
January 2010 Texas Education Agency - Resource Guide

Appendix H. page 1 of 5
556 Financial Accounting and Reporting
Procedural Controls
Personnel
1. Properly authorizing, approving and documenting all changes in employment (additions

and terminations), salary and wage rates, and payroll deductions
8. Promptly reporting notices of additions, separations and changes in salaries, wages and
deductions to the payroll-processing function
9. Maintaining appropriate payroll records for accumulated employee benefits (vacation,

pension data, etc.)
10. Interviewing terminating employees as a check on departure and as a final review of

any termination settlement by the personnel department
11. Written personnel policies
12. Establishing controls to ensure that payroll costs charged to grants are in compliance
with grant agreements
13. Payroll and personnel policies governing compensation that are in accordance with the
requirements of grant agreements
14. Determining that wages are at or above the federal minimum wage
Supervision/Time-keeping
15. Review and approval of hours worked, overtime hours and other special benefits by the
employee's supervisor
16. Time-keeping and attendance records and procedures
17. Review for completeness and approval of timecards or other time reports by the
employee's supervisor
Texas Education Agency - Resource Guide January 2010

Appendix H, page 2 of 5
Financial Accounting and Reporting - 557
18. Punching of timecards, if used, only by the employees to whom they are issued
19. Placing the time clock in a position where it can be observed by a supervisor
20. Procedures for authorizing, approving and recording vacations, holidays and sick leave,
and approving and controlling compensatory time
Payroll Processing
21. Controls over payroll preparation
22. Approval and documentation of changes to the EDP master payroll file
23. Limiting access to the EDP master payroll file to employees who are authorized to
make changes
24. Review and approval of completed payroll registers before disbursements are made
25. Review of documents supporting employee benefit payments (such as accumulated

vacation or sick leave) before disbursements are made
26. Review for reasonableness of comparisons (reconciliations) of gross pay of current to

prior-period payrolls by a knowledgeable person not otherwise involved in payroll
processing
27. Review of the payroll (examination of authorizations for changes noted on

reconciliations) by an employee not involved in its preparation
28. Balancing the distribution of dollars and hours of gross pay with payroll registers, and
review by someone independent but knowledgeable of this area
29. Including in the review a comparison to amounts appropriated and budgeted
30. Prohibiting payroll advances to officials and employees or subjecting them to

appropriate review
3anuary 2010 Texas Education Agency - Resource Guide

558 - Financial Accounting and Reporting
Disbursement
31. Keeping the signature plates and use of the payroll check signing machines under
control of the official whose name appears on the signature plate or an employee to
whom he has delegated that responsibility
32. Maintaining a lot that reconciles the counter on the check signing machine with the
number of checks issued in each payroll
33. Maintaining a separate, imprest-basis, payroll bank account
34. Regularly reconciling the payroll bank account
35. Comparing payroll check endorsements, on a test basis, with signatures on file by
someone independent of the payroll department
36. If payment is made in cash, requiring signed receipts, having someone independent of
the payroll department compare them, on a test basis, with signatures on file
37. Controlling the supply of unused payroll checks
38. Requiring employees to provide identification before being given checks or pay
envelopes
39. Prohibiting employees from accepting another employee's pay
40. Returning unclaimed wages to a custodian independent of the payroll department
41. Having employees who distributed checks or pay envelopes make a report of unclaimed
wages directly to the accounting department
42. Making payments of unclaimed wages at a later date only upon presentation of
appropriate evidence of employment and approval by an officer or employee who is not
responsible for payroll preparation or time reporting
43. Comparing W-2 forms to payroll records and mailing by employees not otherwise
involved in the payroll process
Texas Education Agency - Resource Guide January 2010

Financial Accounting and Reporting • 559
44. Procedures for investigating returned W-2s
45. Periodic distribution of payroll checks by the internal auditors to ascertain that
employees exist for all checks prepared
General Ledger
46. Adequate account coding procedures for classification of employee compensation and
benefit costs so that such costs are recorded in the proper general ledger account
47. Proper recording or disclosure of accrued liabilities for unpaid employee compensation
and benefit costs
1.5.4.8 Information Technology
Segregation of Duties
1. Independence of the EDP department from the accounting and operating departments
for which it processes data
2. Appropriate segregation of duties within the data processing function for (a) systems
development (design and programming), (b) technical support (maintenance of systems
software) and (c) operations
3. In smaller and minicomputer installations with limited opportunities for segregation of

duties, procedures for user departments to:
Utilize batch or other input controls

- Control master file changes
Balance master files between processing cycles
4. Having the personnel policies of the EDP function include such procedures as reference
checks, security statements, rotation of duties and terminated employee security
measures that enhance segregation of duties and otherwise improve controls
January 2010 Texas Education Agency - Resource Guide

EDUCATION CODE CHAPTER 12. CHARTERS Page 1 of 1
Sec. 12.107. STATUS AND USE OF FUNDS. (a) Funds received

under Section 12.106 after September 1, 2001, by a charter holder:
(1) are considered to be public funds for all purposes
under state law;
(2) are held in trust by the charter holder for the
benefit of the students of the open-enrollment charter school;
(3) may be used only for a purpose for which a school may
use local funds under Section 45.105(c); and
(4) pending their use, must be deposited into a bank, as
defined by Section 45.201, with which the charter holder has entered
into a depository contract.
(b) A charter holder shall deliver to the agency a copy of the
depository contract between the charter holder and any bank into
which state funds are deposited.
Added by Acts 1995, 74th Leg., ch. 260, Sec. 1, eff. May 30, 1995.
Amended by Acts 2001, 77th Leg., ch. 1504, Sec. 7, eff. Sept. 1,
2001.
Appendix I, page 1 of 1
http://www.statutes.legis.state.tx.us/Docs/ED/htm/ED.12.htm 12/21/2010
BUSINESS ORGANIZATIONS CODE CHAPTER 22. NONPROFIT CORPORATIONS Page 1 of 49
BUSINESS ORGANIZATIONS CODE
TITLE 2. CORPORATIONS
CHAPTER 22. NONPROFIT CORPORATIONS
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 22.001. DEFINITIONS. In this chapter:

(1) "Board of directors" means the group of persons vested
with the management of the affairs of the corporation, regardless of
the name used to designate the group.
(2) "Bylaws" means the rules adopted to regulate or manage
the corporation, regardless of the name used to designate the rules.
(3) "Corporation" or "domestic corporation" means a
domestic nonprofit corporation subject to this chapter.
(4) "Foreign corporation" means a foreign nonprofit
corporation.
(5) "Nonprofit corporation" means a corporation no part of
the income of which is distributable to a member, director, or
officer of the corporation.
(6) "Ordinary care" means the care that an ordinarily
prudent person in a similar position would exercise under similar
circumstances.
Acts 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.
Sec. 22.002. MEETINGS BY REMOTE COMMUNICATIONS

TECHNOLOGY. Subject to the provisions of this code and the
certificate of formation and bylaws of a corporation, a meeting of
the members of a corporation, the board of directors of a
corporation, or any committee designated by the board of directors of
a corporation may be held by means of a remote electronic^
communications system, including videoconferencing technology or the
Internet, only if:
(1) each person entitled to participate in the meeting
consents to the meeting being held by means of that system; and
(2) the system provides access to the meeting in a manner
Appendix J. page 1 of 2
http://www.statutes.legis.state.tx.us/Docs/BO/htm/BO.22.htm 9/15/2010
BUSINESS ORGANIZATIONS CODE CHAPTER 22. NONPROFIT CORPORATE. Page 24 of 49
consent in writing to the action.
Amended by:
Acts 2007, 80th Leg., R.S., Ch. 688, Sec. 90, eff. September 1,
2007.
Sec. 22.221. GENERAL STANDARDS FOR DIRECTORS. (a) A director

shall discharge the director's duties, including duties as a
committee member, in good faith, with ordinary care, and in a manner
the director reasonably believes to be in the best interest of the
corporation.
(b) A director is not liable to the corporation, a member, or
another person for an action taken or not taken as a director if the
director acted in compliance with this section. A person seeking to
establish liability of a director must prove that the director did
not act:
(1) in good faith;
(2) with ordinary care; and
(3) in a manner the director reasonably believed to be in
the best interest of the corporation.
Sec. 22.222. RELIGIOUS CORPORATION DIRECTOR'S GOOD FAITH

RELIANCE ON CERTAIN INFORMATION. A director of a religious
corporation, in the discharge of a duty imposed or power conferred on
the director, including a duty imposed or power conferred as a
committee member, may rely in good faith on information or on an
opinion, report, or statement, including a financial statement or
other financial data, concerning the corporation or another person
that was prepared or presented by:
(1) a religious authority; or
(2) a minister, priest, rabbi, or other person whose
position or duties in the religious organization the director
believes justify reliance and confidence and whom the director
believes to be reliable and competent in the matters presented.
Appendix J, page 2 of 2
http://www.statutes.legis.state.tx.us/Docs/BO/htm/BO.22.htm 9/15/2010
in the Rules and Regulations of the Charter School, I do not see where Charter Academy
can have two school boards.
Just this last month, March 2009, f found out that a second board was formed about seven
months ago.
This second board was formed in secret because a second campus of same school district
never saw any announcement to their meetings or to accept new board members. These
school meetings are supposed to be announced to the public.
I have just discovered that this school board was formed seven months ago. I found out by
mistake. The principle of the first campus told our principal of the second campus that
they had a new board.
Once the new board found out 1 knew, they came to post a notice on the second campus
for their next meeting.
When 1 found out about their school board meeting 1 went to see what they were doing.
One of the items on their agenda was to make some revisions to the charter rules and
regulations I received in May 2001, when I received the license for our Charter School. 1
was told then that this were the only rules and regulations to this Charter School, and it
was not permitted for us to change the rules and regulations they have given me.
Why this school board was kept a total secret from me, the president when articles for
committees of the board, says on Page 78, Section 5-6, that the President shall be the Chief
Executive of the corporation and shall have the full authority.
With the authority given to me by the corporation that holds the Charter School license
(given to me in May 2001). To remove and suspend any employee, or agent; in general to
exercise ail power usually pertaining to the office of President of a corporation.
I delcare null and void and suspend and remove the new president and board members
and declare all their board minutes null and void.
Raul C. Garcia
President of the Corporation and Chief Executive Officer of this Charter School
Exhibit 1, page 1 of 4 „
Board Meeting Minutes
Sendero Preparatory Academy District
August 11,2008
Present: Raul Garcia, Carmen Lira, Rachelle DeFreest, Daniela Rendon
Proceedings: First point of business was approval of the budget. The budget
was reviewed and approved.
The playground was oearlng completion for the beginning of school, August
20*.
A complete file was to be kept for all expenses to be reimbursed when the first
check was to be received in September.
Signed;
Exhibit 1, page 2 of 4
8308 Fredericksburg Road
San Antonio, TX 78229
ADMINISTRATIVE BOARD MINUTES
3uly 25, 2008
PRESENT: Mr. Roi Garcia, Superintendent and Mrs. Diana Metz,

Business Manager, San Antonio Preparatory Academy and Dr.
Jonathan Almirudis. Proper notice was posted on the front doors as
well as the main corridor July 2, 2008.
A meeting took place on July 25, 2008, 3:15 PM, where it was
discussed that the previous board members: Carmen Lira, Rachelle
DeFreest and Daniela Rendon were not eligible to be board members
any longer as the two campuses had merged and they are paid
employees of that facility that is under the direction of Mr. Raul
Garcia.
Recommendations were discussed to appoint professional members

of integrity to replace these previous members. It was decided to
appoint:
Mr. Marcus Arizola, R.N., B.S.N., Audle Murphy Veteran's Hospital

Mr. Richard Medina, Fire Fighter, E.M.T. Intermediate, San Antonio
Fire Department.
Dr, Jonathan Almirudis, D,C.f Chiropractor
Minutes were taken by Mrs. Metz. The meeting was closed at 4:58
PM.
Exhibitl, page 3 of 4
Board Meeting Mintues
Sendero Preparatory Academy District
March 31,2009
Present: Raul Garcia, Carmen Lira, Daniela Renton, Rachelle DeFreest
On Tuesday, March 3 Ist, at 9:30 a.m. the Sendero Board met with the permission of the
President of the corporation, Raul C. Garcia, at 5408 Daughtry.
The School Board voted for the following new board members for the Seiidero Academy
District:
Steve Bonnell
JoeOzuna
Joe Vaughn
They voted to dissolve the Board put together in the summer of 2008, without the
knowledge and permission of the President of the Corporation and Charter School (Mr.
Raul C. Garcia) who was having heart surgery at that time.
Therefore the vote is to dissolve the board and their minutes of the Board as well
Rachelle DeFreest
Daniela Rendon
Exhibit 1, page 4 of 4 -
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USE AGREEMENT
BETWEEN
SENDERO ACADEMY
dba SAN ANTONIO PREPARATORY ACADEMY
AND
PATHWAY EDUCATIONAL MINISTRY
THIS USE AGREEMENT, hereinafter referred to as "AGREEMENT" is made and

entered into on this 1st day of August, 2009, between Sendero Academy dbp San
Antonio Preparatory Academy a Texas tax-exempt religious organizationniereinafter
referred to as "USER", AND PATHWAY EDUCATIONAL MINISTRY, a Texas tax-
exempt religious organization, hereinafter referred to as "OWNER" for the use of the
facility as described in the AGREEMENT under paragraph entitled "Dedicated Space"
and located at 8308 Fredericksburg Road, San Antonio, Bexar County, Texas.
SECTION I
RECITALS
WHEREAS, OWNER has a facility located at 8308 Fredericksburg Road, San Antonio,
Bexar County, Texas and desires to make the facility available to USER at specified
times stated herein this AGREEMENT.
WHEREAS, USER desires to use facility as defined herein, and use of for educational
purposes.
NOW THEREFORE, OWNER and USER enter into this AGREEMENT for the use of
the facility as expressed in this AGREEMENT.
SECTION II
DUTIES OF USER
A. Use of Premises: User may use their designated space on Monday through
Friday from 6:00 AM to 6:00 PM. Any additional usage must be requested in
writing by submitting a "Building Request Form" and approved by OWNER.
B. Parking: USER shall be entitled to use the designated parking spaces on the
grounds as agreed upon.
C. Furnishings: The AGREEMENT includes the furnishings available from OWNER
at the commencement of this AGREEMENT or that shall from time to time be added,
modified or removed by OWNER. USER shall return all such items at the end of the
AGREEMENT in a condition as good as the condition at the beginning of the
AGREEMENT, except for such deterioration that might result from normal use of
furnishings. USER shall be required to replace any furnishings of OWNER, which
are damaged as a result of USER'S use. Additionally, USER and OWNER agree that
furnishings owned by USER may be utilized in the facility for mutual use of OWNER
and USER. USER will supply a detailed inventory to OWNER of furnishings
supplied by USER for use in the facility. Should in the course of USER'S furnishings
and/or equipment sustain damage while in use of OWNER, the above guidelines shall
be applied in the same manner. No signs can be placed on the premises without prior
I/
Exhibit 4. page"! of 4
consent of OWNER. All remodeling or modification of building must be approved
by OWNER in writing.
D. Maintenance: USER agrees to be responsible for maintenance, equipment
(including air conditioning/heating) and cleaning of that portion of the facility being
used by USER. " f\"\<<tM QU K
E. Storage: USER shall be entitled to store items of personal property if Space is
available and pre-approved by OWNER during the term of AGREEMENT.
F. Dedicated Space: If OWNER is not using that certain space, USER requests the
following space become designated for use only by USER. Large auditorium and
small chapel when available.
Any changes to the need for additional or less dedicated space shall have to be
reviewed by and approved by OWNER.
G. Use Payments: User agrees to pay the amount of $2&QQQ-iK)..Per month ten days
before thefT*1 day of eachpionth during the term of this AGREEMENT. This is for
usage of the 'facility as described irt Section II, Paragraph F above.
H. Mechanics Liens: Neither the USER nor anyone claiming through the USER shall
have the right to file mechanics liens or any other kind of lien on the facility and the
filing of this AGREEMENT constitutes notice that such liens are invalid.
I. Conflicting Times of Facility Use: USER acknowledges that there might be

times when the use the facility as designated conflicts between USER and
OWNER. USER and OWNER agree to cooperate to make the best arrangement
to satisfy the use of the facility by both parties when such conflict occurs. If an
agreement cannot be successfully reached, the OWNER will make the final
decision on usage.
J. Utilities; USER shall be responsible for their own utilities. Any additional use of
the facility will result in the following surcharges:
Additional usage will be monitored and invoiced at the above rate.
\ SECTION III
INDEMNIFICATION AND INSURANCE
Indemnification
1. OWNER agrees to defend, indemnify, and hold harmless the USER, its
officers, agents and members thereof, from any and all claims, expenses,
losses, lawsuits or other liability to any third party, arising out of OWNER'S
failure to perform any of its obligations or duties hereunder or in connection
with the negligent performance o its duties or obligations hereunder or respect
to any act or omission of any OWNER member rendering services under this
AGREEMENT.
2. USER agrees to defend, indemnify, and hold harmless the OWNER, its -
officers, agents, and members thereof from any and all claims, expenses,
losses, lawsuits or other liability to any third party arising out of USER'S
with the negligent performance of its duties or obligations hereunder or with
respect to any act of omission of any USER member rendering services under
this AGREEMENT.
B. Insurance: USER, at its sole cost and expense, shall procure and
maintain such policies of comprehensive general liability insurance, professional
liability and other insurance as shall be necessary, but at a minimum of $1,000,000 to
insure USER, its associates, agents and Associates against any claim or claims for
damages arising by reason of personal injury or death occasioned directly in
connection with the provision of any services hereunder by USER, the use of USER
property or facilities of the activities or USER, its officers, agents or associates in
connection with the performance of this AGREEMENT or otherwise. In the
performance of this requirement, USER shall provide from their insurance company a
Certificate of Insurance to the OWNER naming the OWNER (Pathway Educational
Ministry) as Additional insured,
SIGNED AND AGREED TO:
PATHWAYTOUCATIONAL MINISTRY
SUPERINTENDENT
SENDERO ACADEMY dba SAN ANTONIO PREPARATORY ACADEMY
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Emmanuel Worship Center
8308 Fredricksburg Rd
Phone: 210-2754855
Invoice
BUI To: Ship To: Invoice No.: 1239 j
San Antonio Preparatory San Antonio Preparatory Academy
Academy
Customer ID:
Date Order No. Sales Rep. FOB Ship Via Terms Tax ID ~1
—I
6/30/09
Quantity Item Description Discount Taxable Unit Price Total

-H
220 Desks $10.00 2,200.00
100 Chairs $5,00 """suolocT
.1
Subtotal: $2,700.00
Tax:
Shipping: $100.00
Miscellaneous:
Due: I
JUN 30 2009
Wells Fargo View Check Copy Page 1 of 1
View Check Copy

eh Number Datt P«Ud Chsck Amount Account Numtjer
07/15/09 $2,800.00 NCHKl
»»»im« "' - SAB *NTONtQ PRtMjWOmr ACAOEMV

: •11282 -
CEHtrat' ••' ~ T J1 *"' »i"

"~A go •"•"•:• •f-'''
V. TX - 7833B ' ' "
(Sr Equal Houalng Lender

01995 - 2010 Weil* Fargo. All rights reserved.
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i
o
San Antonio Preparatory Academy Purchase Order
8308 Fredericksburg Road Date P. 0. No.
SAP281-09
/^ JflV* A
Vendor Ship To
8308 Fredericksburg Road
* San Antonio, Texas 78229
Description Quantity Rate/ Unit Amount
ito
[ Freight
f Total
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Emmanual Center
6401 Bandera Road
(210) 884-2687 Fax (210) 521-4387
San Antonio Prep Academy

8308 Fredricksburg Road
(210)593-0111
18 June 2009
220 each of Student Desks- 12.50 $2,750.00

Slightly used Poly Student Combo Sled Base Chair Desks $96.80
110 each of Hertz Hard Plastic Chair 5.00 550.00

Slightly used 500 Series Hard Plastic Chair $43.90
55 office chairs (donation) 0
22 pre-K chairs (donation) 0
275 Folding chairs (donation) 0
Shipping 110.00
Total Due $3,410.00
Terms net 10 days
Wells Fargo View Check Copy Pagel ofl
View Check Copy

Chech Number Check Amount Account Number
$3,410.00 •NCHH
t*.
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& Equal HouKng Lander

O 19S5 - 2010 Wells Faryo. All rigtits reserved,
Exhibits, page9 of 9
https://image.wellsfargo.coni/imagemai^display.do?SAMLart=AAE3WoFDyJmYH%2F... 11/30/2010
rurtW lJ/t«/10S:Jl A»
From: Fettpe Bores (fTpainting®hotmai>.com)

To: roWara98@yahoo,eom;
Date: Thu, December 16, 2010 8:08:25 AM
Cc:
Subject: [ No Subject ]
To whom Is may
concern, 12-16-
10
I Felipe flores of F. F, Painting did not cash or deposit a check of $3,000 in the month of December 2010.
-Felipe f lores
210-422-314*

Wells Fargo View Check Copy Page 1 of
Wrtls Fargo Business Online*
Vi*w Chech Copy

13,00000 •CHOICE iv cowMl*Ci*t cmeiwreioonowowf
V * *
a tquM Howiinv LvtMW

- 2010 ¥W« C»Tjn. All rtBMi '
https://image. weHsfargo.com/imagcman/di5play.do ?scssionld=bb6a8c9447c38ccee551ce... 12/13/2010
Page ! of I
From: Edwin Morales (accts.payable@hotniail.com)

Tot roblara98@yahoo.com;
Date: Wed, December 15, 20NM 1:09:13 PM
Cc;
Subject: Fw: question
Mr. Lara
I just got home 111:08 pm
This is the e-mail
From:
Sent; Wednesday, December 01, 2010 2:n PM •--
Tor Efhyln,Mgra(c5
Subject: Re; question
Mr. Morales,
The two checks you have indicated* betotfhave never cleared the bank.
Thank you,
Daniel
From: Edwin MojsteS

Sent: Wednesday, December 01, 2010 1:07 PM
To; Danie.UKO.fcta
Subject; question
Good Afternoon Mr. Escorcia,

Can you please let me know if this check already cleared on bank
Check f 3533 Check amount: $1,775.92 Date: 7/15/2009
check #11380 check amount: $ 3,000.00 Dat«: 8/11/2009
Thank you
Edwin Morales
Accounts Payable
Sendero Academy DBA
5408 Daughtry Or
San Antonio, TX, 78238
Tel- (210)543-7218
Fax: (210)5684366
EmaH: accts,payabte@hoTrnail com
http://ua.mg4.mail yahoo.com/dc/launch?.gx:=!&.raDd="33k376atiogd8 12/16/2010

SUtut Ort|tn»l Ch*c*s Replacement Checks
Number Amount Date Number Amount Date
Still outstanding 3113 |_ 1,775.92 4/30/2009 -->
Stilt outstandinc 3373 1,775.92 6/15/2009 --> Four
12090 7,103.68 2/19/2010
Still outstanding 3458 1,775.92 6/30/2009 -> checks
Posted to bank. •!&*!$&& *S$i&S$$lB 'J'/ifyZ$& -->
Still outstanding 3778 2,098.67 8/31/2009 12703 2,098.67 8/31/2010
—>
TOTAL = $ 9,202.35 TOTAl = S 9,102.35
Date Run. 04-28-2010 3:59 PM Detail General Ledger Program: FIN1400
Cnty Disl: 015-824 San Antonto Preparatory Academy Page: 99 of 268
Fund 256 / 0 TITLE XIV SFSF As erf: May File ID: C
Report Type: A/A YeaMo-Date
Fnc-Obt.So-Orfl-Prog Description Appropriation Encumbrance Expenditure Balance

u INSTRUCTION
11-6000 EXPENDITURES
11-6300 SUPPLIES AND MATERIALS
11-6390 SUPPLIES a MATERIALS-GEN
CK-012037 02 02-05-2010 PA-002574 CEASAR CASTILLO 5,300.00
CK-012060 02 02-05-2010 PA-002575 SMART ELECTRIC CO 4.950.00-
CK-012076 02 02-12-2010 PA-002590 PLANET PLAYGROUNDS OF TEXA; 1,295.00
CK-012076 02 02-12-2010 PA-002590 PLANET PLAYGROUNDS OF TEXA: 4.750.00
CK-012076 02 02-12-2010 PA-002590 PLANET PLAYGROUNDS OF TEXA: 3,750.00
'11-6395.00-001-024000 CAPITAL OUTLAY -12,000.00 .00 21.045.00 9,045 00*
•11-6395.00-002-024000 CAPIAL OUTLAY .00 .00 .00 00"

GJ-BUD012 12 12-18-2009 TITLE XIV SFSF -18,000.00 .00
-11 -6395.00-002-024000 CAPIAL OUTLAY -18,000.00 .00 .00 -18,00000-
11-6395.XX-XXX-XXXXXX -30,000.00 ,00 21.045.00 -8,955 00
•11-6399.00-001-024000 GENERAL SUPPLIES .00 .00 .00 00-

GJ-BUD012 12 12-18-2009 TITLE XIV SFSF -4,882.00 .00
M1-6399.QO-QQ1-024QQO GENERAL SUPPLIES -4,882.00 .00 ,00 -4.BB2 QfT
' 11-6399.00-002-024000 GENERAL SUPPLIES .00 ,00 ,00 oo-

GJ-BUD012 12 12-18-2009 TITLE XIV SFSF -7,324,00 .00
• 11-6399.00-002-024000 GENERAL SUPPLIES -7,324.00 .00 .00 -7,324.00*
11-6399.XX-XXX-XXXXXX -12,206-00 .00 .00 -12,206.00
11 -63XX.XX-XXX-XXXXXX -42,206.00 .00 21,045.00 -21,161,00
11-XXXX.XX-XXX-XXXXXX -112,206.00 50.00 22,245.00 -89,911 00
1K-XXXX.XX-XXX-XXXXXX -112,206.00 50.00 22,245.00 -89,911 00
Auction Bids Won - By Lot
Auction Number: Northside LSD. (Online) (02-05-10) - 507 Richalijd Hills Dr..
JgnttM&EJfttf ^Sîfe-;^'*:^" "" ^WHHnDgfjd
Lot*
I ""
V"'~* /'' "•'• fl
(L) BALL RETURN (DISASSEMBLED
' J !..
,:. «»-, , 1 '^îife
&,.;^fa**r,- IN97
Jfflp^H
SSEiiaî-.r.^:-'
Jensen, Jennifer (JcjsajXBidder #: 170,00
•"ftwo&e
&
No
PLAYGROUND EUTPMENT) 1)
2 i I ) TOTS CHOICE (DISASSEMBLED 97 Kmen, Albert CAihll72)(Bitider 412.00 No
i , 1 PLAYGROUND EQUIPMENT #;2)
|— r-i CLOT) ASSTO- DISASSEMBLED 97 Bealy, William (WebeatyXBidder 280.00 t~l«o~
PLAYGROUND EQUIPMENT t #:3)
4 [LOT) ASSTD. DISASSEMBLED 97 Lciva, Antonio (Tels tar) (Bidder fr: 280,00 No
PLAYGROUND EQUIPMENT 4)
I 5 (1) JACK'N-JILL (DISASSEMBLED 97 Torres, Monica (Jcls)(Bidder #: 5) 260.00 No
PLAYGROUND EQUIPMENT)
! 6 CO JACK-N-JTLL (DISASSEMBLED 97 Brewer, Don (RawhideXBidder #-. 3)0.00 No
PLAYGROUND EQUIPMENT) 6)
7 (1) TOTS CHOICE (DISASSEMBLED 97
PLAYGROUND EQUIPMENT
Garcia. Roi (Rotgarcia)(Bidderff: 9) 1,850.00 No
K
i 8 Cl) JACK-N-JILL (DISASSEMBLED 97 Brewer, Don (RawhjdeX Bidder f : 725.00 Mo
PLAYGROUND EQUIPMENT) 6)
9 (LOT) ASSTD. DISASSEMBLED 97 Herrera, Alben (Arhl272)CBidder 450.00 No
PLAYGROUND EQUIPMENT »:2)
10
H
fl) TOTS CHOICE (DISASSEMBLED
PLAY(3ROUND EQUIPMENT
97 Garcia, Red (Roigarcia)(Bidder #: 9) 1,850.00 No
^
i 12
fl) TOTS CHOICE (DISASSEMBLED
PLAYGROUND EQUIPMENT
Cl) JACK-NJILL (DISASSEMBLED
91
97
Herrera, Albert <Arh 1 272)(Bidder
*:2)
Koehn. Chris (1966LemansKBtdder
1,450.00
191.00
No
No
PLAYGROUND EQUIPMENT) *;7)
13 ( I) TOTS CHOICE (DISASSEMBLED 97 Herrera, Albert (Arhl272)CBidder 2,620-00 No
< M PLAYGROUND EQUIPMENT *:1)
r (1) JACK-N-IILL (DISASSEMBLED
i
;
91 Berliger, YoJanda (Saleml)(Bidder
»;8)
725-00 No
'
15
J6
( 1) JACK-N-JILL (DISASSEMBLED
(1) JACK-N-JILL (DISASSEMBLED
97
97
Garcia, Roi (Roigarcia)<Bidder#: 9)
Koehn, Chris ( ! 966LemansXBidder

410.00 """"NtT"^
1 60.00 No
^
PLAYGROUND EQUIPMENT) *7) i
(LOT) ASSTD. DISASSEMBLED 97 Beaty, William (Webeary)(Bidder 485.00 "~No
i IS" PLAYGROUND EQUIPMENT
f
*: 3J
: CLOT) ASSTD. DISASSEMBLED 97 Jensen, Jennifer (JcjsajXBidder #: i ! ,050 00 No
PLAYGROUND EQUIPMENT 1) . . .
19 (1) JACK-N-JJLL (DISASSEMBLED i 97 Luff, Lawrence (Tatshirt)(Bidder #: 195.00 No
PLAYGROUND EQUIPMENT) JOJ
20 CLOT) ASSTD. DISASSEMBLED r 97 Herrera, Albert (Arh (272XBidder 390,00 No
PLAYGROUND EQUIPMENT #:2J_
21 (LOT) PRE-K FURNITURE 97 Puente, Carme! (OlW)(Bidder fr 185.00 No
J2)
22 ( 1) ONAN GENSET Q AS GENERATOR 97 Beaty, William (WeheatyKBiddec ;
725.00 ""NO
#:3)
-~2f~ (LOT) PRE-K FURNiniRE 97 Oviedo, Sonia (Clm5799XBiddcr #: 98.00 \ No
H) !
' 24 (LOT) PRE-K FURNrrUKE ; 97 Bakait, (bironke 280.00! No
:
(GraceiimeXBidderW. 13) '
7.5 (LOT) PRE-K FURNITURE 9T Puemc.CarmehoihdXBidiler*. 1 80.00 1 Mn '
12)
Lemons Page I
Page 1 of 1
U/ELUt )>4ffV> MMCYEK4* .PLRÂftATORVACADEMV 12075

• (ZH»693-0111
PAY
...-
PLACET PLatG#CK}SfcS OT TEXAS
10919 KfiHLftC tARK." ^•.^•-''"
rcj '4^9.1.^. .. -", . Bi.
AMTCHTO, '^TX .78229 • '
Or
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Exhibit?, page 3 of 18
Page 1 of 1
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Exhibit/, page 4 of 18
S^T^f-'ra jMWafolfliiNl;.?!!»'iP ')!'?!" " ' " ! '
Pt:;|*i;;ffrT"^' :*.•"' ' •
^j^^r'^ri^î^ f.jv:.;..^ -:::<!,:;;,:; j.i?i!i
PLANET PLAYGROUNDS OF TE! 012076 20100212 $3,750,00
PLANET PLAYGROUNDS OF TEi 012076 20100212 $4,750.00
PLANET PLAYGROUNDS OF TE 012076 20100212 $1,295.00
$9,795.00
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FEB, 112010 1 1 : 2 3 A M S A F A NO. 2 6 1 " P. 5
SmAntooio.TX 78229
Planet Playgrounds of Texas Fbonct <2IO) 912 4855 F« (210) 56! 244$
Invoice
BillTo: Ship
8308 ftwteodobwg Bead 3308
$m tattoo, TX 78229 Bio, TX 78229
Customer ID; 4291
Date Order No.

. .._._
Sales Rqp. FOB Toms Tax ID
2-8-10 C.Jonaa destination Fxeigjhc 31-17441^6
included
Quantity Item De«rip(iOtt Twable Unit Price

PM 100027 2( ft tower, metal sSde, 50% Non-ttMHe " "T $3,750.00
ra sdwy ban, ucad, pirn
Subtotal:
Shipping;
Balance Due ; 13,750.00
F E B . ' 1 . 2 0 1 0 11:23AM ' 3 A P A 'N0.261""F. 4
7*78229
Planet Playgrounds of Texas Phone: (210] 9124855 Fa* pao) 5682445
Invoice
Bill TO; Invoice No,: 3522
$308 FwKnctabwg Ro«4
Customer ID: 4291
OrferNo. Sato Rep. FOB StapVu T«ntu

2-8-10 8S6 Clones destination Freight Upon receipt 31-1744166
Included
Quantity Item Description Discount Turtle Uric Price

i Ppg 100089 1 & tower, slide, bridge 50% Non-taxable S2,590.oo
51,295.00
Tax
Shipping:
FEB. 112010 \};1W S APA HO, 261 " 'P. 3
10919 HuntanPark
StnAaKnto,Tx 7Q224
Planet Playgrounds of Texas Phone: plO) 912 4*55 Fax: [210] 566 2445
Invoice
BUI To: Snip Invoice No.: 3523
8306
San jWfljwio, 137029
Customer IP: 4291
Date Order Mo. Salts Rep. FOB Ship "Via __ Tenns TwID
2-8-10 857 C Jones destination Preigtic Upon rtcdpt 31-1744166
included
Quantity Itam Dbcorot Tinbfe Unit Price Total

f 20 ft tower, SUde, fire Non-taxable $4,750.'00
pole, slide bar,
monkey bars, tunnel,
plus installation
H750.00
Tax
Shipping:
S4.7SO.OO
BUSINESS ORGANIZATIONS INQUIRY Page 1 of
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FIND ASSUMED NAME SEARCH
This search was performed on with the following search parameter:
ENTITY NAME : Planet Playgrounds
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. Return
instructions.
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* To place an order for additional information about a filing select the radial button listed under 'Mark' that is associated with the
entity and press the 'Order1 button,
Exhibit/, page 10of 18

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This search was performed on with the following search parameter:
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There are no records which match your inquiry.
Return taOi&r
Instructions:
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4 To place an order for additional information about a filing select the radial button listed under 'Mark' that is associated with the
entity and press the 'Order1 button.
https://direct.sos.state.tx.us/corp_inquiry/corpjnquiry-find.asp 10/7/2010
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C&C CONSTRUCTION
Cesar Castillo
9638 Wicklow
Ph# (210) 643-5671
INOVICE NUMBER 745

INVOICE DATE: 1/31/10
BILLTOi
8308 FREDERICKSBUJRG RD
i
Playground Improvements
1 Playground Recjreation Center Foundation $3,950.00

i
2. Installation of PJayground Toilet Labor/Materials ( 1,400.00
_j .
TOTAL: $ 5,300.00
FOLDER 5
• SMART ELECTRICAL REIMBURSEMENT CHECK

• VOUCHER CHECK
• INVOICE 2-4-2010
• CHECK ROSTER
. ^ .__.
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Smart Electric TECL #18390 INVOICE

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Phom: 2KKB6-3108 Cell 210-887-tQ75
Reûtarted ty Texai Degt. of Licensing :& Raguttiion

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Work Description AMOUNT
Install outside security tigfrts on playground at above address and bring

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SMART ELECTRIC CO 012060 20100205 $4,950.00
School Bus
Lease Agreement
August 5, 2009
Sendero Assembly of God is leasing three Thomas School Buses to Sendero

Academy. Each bus seats 72 school students.
\
The upkeep and repair will be the responsibility of Sendero Assembly of God
(Leasee). The diesei fuel, bus drivers salaries, bus insurance, bus inspections,
license-plates, flat tires, and tire replacements will all be the responsibility of
Sendero Academy (Leasor).
The cost of this lease for Sendero Academy {Leasee) will be $6,875.00 per
month for 36 months.
Sendero Assembly of God Representative

Date: <? - / <? ~ 0*°*.^
Sendero~Ackdemy Representative
Date: __g~ l O~ V* "I.
Commencement Date: September 1, 2009
Termination Date: August 31, 2012

H/NOV.20.7M9: S A P A CHARTER SCMGOLS "NO. 739 °. in
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CSP-001R02
RECEIPT OF ON-SITE INVESTIGATION REPORT
Texas Education Agency
School Financial Audit*
Ttis local education agency (LEA) must complete this form by selecting only one of the two options as its
response to the findings as detailed In the enclosed On-site investigation Pepo/t
V^ 1. The LEA agreed with the contents of the report, including the agency's findings and
required actions.
2. Th« LEA is in receipt of and disagrees with the contents of the report and/or the agency's
required actions and is submitting those objections in writing. Any disagreement must be
accompanied by all LEA data and/or documentation available and necessary for the
Texas Education Agency's (TEA'S) reconsideration of the preliminary findings under 19
Texas Administrative Code (TAG) §97.1033(c).
Failure by the LEA to respond by the date specified below wiH be Interpreted as agreement with the
report.
Date
San Antonio Preparatory Academy 015-82-4
This Receipt of Report form and any documentation submitted by the LEA Is due to the Texas
Education Agency on or before February 7. 2011.
Return this form and supporting documentation to:
Michael RtohmowJ
Director of Investigations
1701 North Congress Avenue
Austin, Texas 78701
Fax:(512)463-0443
February 1st, 2011
Michael Richmond
Director of Investigations
1701 North Congress Avenue
Austin, Texas 78701
''-•'iv/^/j^
Subject: Preliminary Investigative Report " "50/10,
Complaint Number: 2010-06-103
Dear Mr. Richmond:
I have reviewed the preliminary investigative report and have taken the following actions to date:
I contacted the Assistant Criminal District Attorney, Chief, White Collar Crime Division for Bexar
County, Texas on January 27th, 2011 and forwarded to her office a copy of the Preliminary
Investigative Report.
The charter school conducted a preliminary review of all internal control policies and procedures
after the assignment of the BOM and State Appointed Superintendent on August 2nd, 2010. As a
result of that preliminary review the following actions were taken and are on going:
A review of the Credit Card use procedures was conducted and all credit cards were
collected. The cards currently available for use are the Exxon and Shell cards which are
used for fueling of the buses and the Best Buy card. All cards are kept in a secure
location in the business office. The Business Manager for the Charter authorizes use of
the cards after request are received and upon his approval-
All checks now have to have two signatories, the Superintendent and the President of
the Board of Managers.
The Charter continues to contract with ESC Region 20 for Budget/Payroll Services. The
Charter has expanded if s use of ESC 20 services to include working with their Federal
Programs personnel to address concerns with Federal Program operations and with
Child Food Nutrition personnel to address concerns with the operations of the Federal
Lunch Program operation of the Charter.
The Charter contracted with Padgett Stratemann & Co. LLP to conduct the external audit
for the 2009/20104scheol year, They will also" be providing additional recommendations
on internal controls regarding the daily operations of the Charter. In addition, the
BOM has authorized the Superintendent to contract with TASBO to perform a
Management Review of the Charter which will be conducted during the spring of 2011.
Recommendations will be implemented as to the operations of the Charter.
The BOM reviews and approves all payment of bills at it's monthly BOM meetings. In
addition the administration has recommended and the BOM has approved three budget
amendments to the 2010-2011 Charter budget.
The BOM and Superintendent have reviewed all existing vendor contracts in an effort to
insure their compliance with existing statutes. In addition, any proposed new contracts
are presented to the BOM for approval prior to implementation.
The BOM and Superintendent work closely with legal counsel to advise in the absence of
District policies.
The Charter will work with the TEA during the Spring of 2011 to coordinate the reimbursement
of all questionable cost for which there is insufficient evidence that the expenditures were for
the benefit of the school.
Should you have any further questions please contact me.
Sincerely,
Richard J. Cliffor<
State Appointed Superintendent
Sendero Charter School dba San Antonio Preparatory School
1701 North Congress Ave. • Austin, Texas 78701-1494 • 512463-9734 • 512 463-9838 FAX * www.tea.state.tx.us
PRELIMINARY
INVESTIGATIVE
REPORT
CERTIFIED MAIL
015-824
2010-2011
January 24, 2011
Mr. Raul Garcia Mr, Raul Garcia

San Antonio Preparatory Academy 6614 Fontana Point
P.O. Box 29690 San Antonio, Texas 78240
Subject: Preliminary Investigative Report

Complaint Number 2010-06-103
Dear Mr. Garcia:
Attached is a preliminary investigative report from Rita Chase, Director of Financial Audits,
detailing the findings resulting from an on-site investigation of the San Antonio Preparatory
Academy. The auditors' findings are issued initially as a preliminary report for your review and
comment under Texas Education Code §39.058(b).
Please review the report carefully and file within 10 business days from the date of this letter a
written response that addresses all findings to which you wish to respond.
Should you have any questions, please contact Mike Richmond in the Division of Financial
Audits at (512) 463-9095.
Sincerely,
Laura Taylor
LT:rc
Enclosure
RECEIVED
FEB 0 7 ZOil
Manual Gaitan Lawn Care INVOKE
6205 Village Point DEPARTMENT OF
San Antonio, TX 78250 ACCREDITATION
Number: 101
(210)683-7870
Data: Augu*t 03, 2000
BUI Toi Ship Tat
Saa Auunfi rrtnnion Academy
PO Number T«nn» Cu*iom*r * Svrvfc* Rap. Project
i — i
Da«cripl}on Quanti ty)Hour« Amount
Lawn care (tree Wmmlpg intf rtmoviO 900.00
Toiaf J90081
; 0 - 3 Q day* 3 1 - 6 0 day« 61 • 90 day* > 90 daya Total

(—
5100 50.00 $0.00 S90000 59QO.QQ ;
i .._! -
RECEIVED WELLS
Check Images FARGO
Statement period: SST , I f... F E 8 0 7 20)1
Account number:
Image page: 1 of »"• I | APARTMENT OF
* riiAiH.*-**—r-»nrATlîkl
ACCREDITATION
Rent for Academy
Lawn Services
Rent for Academy
Rent for Academy u- * o 000

FELIPE FLORES HAS NOT BEEN PAID THE $
I I—i-n i- ' «-^ Exhibrt3. p a g o 3 o f l 2
AND NEEDA TO GET PAID.

RECEIVED
FEB07 2011
DEPARTMENT OF
ACCREDITATION
ar 'flM'inara-.f»raBaa

&408 DAUGHTRY DR.
SAN ANTONIO, TX 7B238
DOLLARS 5SC
Lawn Services
1332
M0» DAUQKTRY OR,
SAN ANTONIO, TX. 7B23fl 37-65,
PAY
TO THE
ORDER Of:
Security Camera Installation
Exhibi! 3, page 4 of 12
( SAN ANTONIO PREPARATORY ACADEMY
&*08 DAUGHTRY OR
SAN ANTONIO, TX 7B23B
37-£5
K*
PAY
°ATE_/l^£^r_ U19
TO THE
;
H ORDER Of.=^s
$'?6?«; ^
DOLLARS S Si.~
6^00 Binden Rd
y Sin Antonio, TTC 78238
wcUjfornoxom
Lawn Services
NVOICE TURN IN TO BOOK KEEPER
1332
5WB DAUGHTHY OR.
SANAf/TONIO, TX. 7823H
PAY
TO THE
ORDER OF
WelB Fiirgo
Rd
San Antonio, 1X78238
Security Camera Installation

RECEIVED NVOIGE TURN IN TO BOOK KEEPE.R
FEB 0 7 2011
DEPARTMENT OF
ACCREDITATION
Exhtbit 3, page 4 at 12
Check Images RECEIVED
Statement period: Jan. 27-Feb 24, 2006 FARGO
Account number:
FEB 0 7 201!
Image page: 1 of 32
DEPARTMENT OF
ACCREDITATION
BM JMTTOMO WtUAMTOW ACADOrT
Light Bulbs for Classroms
Lawn Services
"!
H:
JL
is;
Labor
S4SS
Payroll Check
422
Exhibi! 3. page 5 o( 12
Check linages
RECEIVED
FEB 0 7 2011
Account number;
Image page: I of 32 DEPARTMENT OF
ACCREDITATION
1J4J
•MMtfOHOMtr'MM'tWtJktt&an >
MBMVmW
I I rvt
Light Bulbs for Classroms /"
Iff
11
[1
Lawn Services
Labor
5405
I
Payroll Check
422
3, page Sol 12
deck Images
Statement period: J;m 27-Feb 24, 2006
RECEIVED FARGO
Account number: FEB 0 7 201!
Image page: 1 of 32
DEPARTMENT OF
ACCREDITATION!
Light Bulbs for Classroms
1
in
Lawn Services
Labor
,
I
JÛ^ÛUT
I
Payroll Check
422
3, page 5 of 12
Check Images WELLS
Statement period: Mar 24-Apr 25. 2006 EARGO
Account number:
luuge page: 1 of 29
Groceries for School Cafeteria

1310
•M AMTCMO HVMMTCMT ACWCtfT
«•«''"•»*_
•i.i iinn a r^
REFIOZ67Z78ZZS CKI 1550 U14.U
MUk for School Cafeteria
Commodities Storage for School Cafeteria
Lawn Services
738
Check Images
RECEIVED WELLS
Statement period: Mar 24-Apr 25, 2006 FARGO
Account number:
FEB 0 7 ZOIl
Image page: 1 of 29 DEPARTMENTOF
ACCREDITATION
CK* 1340 3399.20
Groceries for School Cafeteria

1310
a** utTwaa wgAffnmr tejggtr
•EMSSSf «^
&L.
REF«OZfi7Z702Z5 CK§ 1S5Q 1214.84
Milk for School Cafeteria
Commodities Storage for School Cafeteria
L;
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^j f^ff*
t»!J*^
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4&L
I:?*!1
M! :;i f
Lawn Services
738
NVOtCE TURN IN TO BOOK KEEPER
Check Images
Statement period: Jul 27-Aug 23, 2006
RECEIVED WELLS
FARGO
Account number; FEB07 201!
Image page: 1 of 19
DEPARTMENT OF
ACCRFDITATION
21
o
3
Payroll Check NVQICE TURN IN TO BOOK KEEPER
f
Lawn ServicesNVOICE TURN .IN TO BOOK KEEPER
•MI AMTDMW pwrwwtnn WMfirr

•JSSJBTf t»
Payroll Replacement Check
Check Images
Suiemcm period: Jul 27-Aug 23, 2006
RECEIVED WELLS
FARGO
Account number: o 7 2011
Image page; 1 of 19
DEPARTMENT OF
ACCREDITATION
Payroll Check
|ffljg«%
Lawn Services
Ve5
WEU.S
Check Images FARGO
Statement period; Aug 24-Sep 26^ 21)06
Account number
Image page: 1 of 30
EPrtwta; aMU*t*£v ' •' iC't'^'ifTtfflV"*^ w

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vf-.'
RECEIVED
602
F E B O ? 2011
3 page9ol
DEPARTMENT Of
ACCREDITATION
Check Images
RECEIVED WELLS
Statement period: Ckt 26-Nuv 24. 2U06 FARGO
Account number; FEB 01
page: I of 35
Lawn Services
Bus Driver Compensation - Field Trip
( !M-i
!.* a i
fc'F i'f
i: J
Payroll Check
556
Check Images
Statement period: Get 26-Nuv 24, 2U06
RECEIVED
Account number: FEB07 2011 -
Inugc page: 1 of 35
DEPARTMENT OF
ACCREDITATION
Lawn Services
MM AMRMO nWJgWW ACMUfT

•A5S?M ••
Bus Driver Compensation - Field Trip
f v
MM MTTIM0 MHMMTVT AUnUKT
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(LI ;i: i
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Payroll Check
556
Check Images WELtS
Statement period: Jun 26-Fcb 26, 2007 FARGO
Account number: 07
Image page: 1 of 42
DEPARTMENT OF
, ri
Lawn Services
Fieldtrip - Bus Driver Compensation and Bus Gas Money
1*18

402
, fjagc 11 oM2
RECEIVED
Check Images FEB07 2011 WELLS
Aucouni number; DEPARTMENT OF
Image page: 1 of 42 ACCREDITATION
Lawn Services
__, *- — rtB*_gy
_^ Z JL^^J *"&'&
im
J r-L»;î
1'S'Srl-

402
3, page 11 oM2
us,
SAM ANTONIO, I* '0233
DATE
AY
. OOLLAH3 Q HtZT
Well* Fa<go Bunk, N.A.
Antonio. TX 78238
FOR.
School Report Preparation r;
.- o*y-fffcjmi«^>-!>j^*.itt*>-T^
1323
5408 OAUGHTHY PR.
OATE
// "=*^^^ r% —
PAY
JM //-* 1^7
/(^tLs£^&&t«su CP^-. £^<y>U ^
^-€^^ZXx«-e-^^
(^-CX
W*»» Fargo B»n\ NA

6100 Bandcro M.
San Antonta.'nt 7«3«
^
Lawn Services
1328
5*58 DAUQWJW 0«.
SAN ANTONIO, TX 7823B 37,M
PAY
FOR
Reimbursement for 941 Taxes

FOR TAXAS PAID FOR SAN ANTONIO PREPARATORY ACADEMY
RECEIVED
FEB 0 7 20!!
DEPARTMENT OF E,h,M 3 page ^^ of .2
ACCREDITATION
School Bus
Lease Agreement
August 5, 2009
Sendero Assembly of God is leasing three Thomas School Buses to Sendero

Academy. Each bus seats 72 school students.
•>
The upkeep and repair will be the responsibility of Sendero Assembly of God
(Leases). The diesel fuet, bus drivers salaries, bus insurance, bus inspections,
license -plates, flat tires, and tire replacements will all be the responsibility of
Sendero Academy (Leaser).
The cost of this lease for Sendero Academy (Leases) wiit be $6,875.00 per
month for 36 months.
Sendero Assembly of God Representative

Date: # ' '' ° ~ < ? £ ^ L
RECEIVED Seadero Acdemy Representative

Date $* l O-
FEB07.ZOH
DEPARTMENT OF
ACCREDITATION
Commencement Date: September 1, 2009
Termination Date: August 31, 2012

1701 Worth Congress Ave. • Austfn.Texas 78701-1494 • 512463-9734 • 5T2463-9838FAX -rwww.tea.state.tx.us
Robert Scott
Commissioner
PRELIMINARY
INVESTIGATIVE
REPORT
CERTIFIED MAIL
015-824
2010-2011
January 24, 2011
RECEIVED
Mr. Roi Garcia Mr. Roi Garcia
San Antonio Preparatory Academy 3134 Quakertown FEB 0 7 2011
P.O. Box 29690 San Antonio, Texas 78230 DEPARTMENT OF
ACCREDITATION
Subject: Preliminary investigative Report
Complaint Number 2010-06-103
Dear Mr, Garcia:
Attached is a preliminary investigative report from Rita Chase, Director of Financial Audits,
detailing the findings resulting from an on-site investigation of the San Antonio Preparatory
Academy. The auditors' findings are issued initially as a preliminary report for your review and
comment under Texas Education Code §39.058(b).
Please review the report carefully and file within 10 business days from the date of this letter a
written response that addresses al! findings to which you wish to respond.
Should you have any questions, please contact Mike Richmond in the Division of Financial
Audits at (512) 463-9095.
Sincerely,
Laura Taylor
LT-.rc
Enclosure
consent of OWNER. All remodeling or modification of building must be approved
by OWNER in writing.
A 1). Maintenance: USER agrees to be responsible for maintenance, equipment
™ (including air conditioning/heating) and cleaning of that portion of the facility being
used by USER. - ; A ' ^ ^ M QO K"
E. Storage: USER shall be entitled to store items of personal property if Space is
available and pre-approvcd by OWNER during the term of AGREEMENT.
K. Dedicated Space: If OWNER is not using that certain space, USER requests the
following space become designated for use only by USER, Large auditorium and
small chapel when available.
Any changes to the need for additional or less dedicated space shall have to be
reviewed by and approved by OWNER,
^ G. Use Payments: User agrees to pay the amount of $28,000,00 per month (en days
** before thtifr* day of each [month during the term of this AGREEMENT. This is for
usage of theTacility as described in Section II, Paragraph F above.
H. Mechanics Liens: Neither the USER nor anyone claiming through the USER shall
have the right to file mechanics liens or any other kind of lien on the facility and the
filing of tliis AGREEMENT constitutes notice that such liens arc invalid.
I. Conflicting Times of Facility Use: USER acknowledges that there might be

times when the use the facility as designated conflicts between USER and
OWNER. USER and OWNER agree to cooperate to make the best arrangement
to satisfy the use of the facility by both parties when such conflict occurs. If an
agreement cannot be successfully reached, the OWNER will make the final
decision on usage.
A .). Utilities: USER shall be responsible for their own utilities. Any additional use of
the facility will result in the following surcharges:
[
^
L-U't-
f O
r>t> J x'
-
Additional usage will be monitored and invoiced at the above rate.
^•>^
\ ••Y /
s V\x -A SECTION III
^T A- ^> -x
V. ?-
v. J .*
\ V\t*
* i.U'
INDEMNIFICATION AND INSURANCE
X >K ,.
*sK '$
A. Indemnification
OWNER agrees to defend, indemnify, and hold harmless the \ 'SHR, its
officers, agents and members thereof, from any and all claims, expenses,
losses, lawsuits or other liability to any third party, arising out of OWNER'S
with the negligent performance o its duties or obligations hereunder or respect
to any act or omission of any OWNER member rendering services under this
AGREEMENT.
USEJR agrees to defend, indemnify, and hold harmless the OWNER, its
officers, agents, and members thereof from any and all claims, expenses,
losses, lawsuits or other liability to any third party arising out of USER'S
with the negligent performance of its duties or obligations hereunder or with
RECEIVED
FEB 0 7 2011
Lxhibil 4 page 2 of 4
DEPARTMENT OF
ACCREDITATION
respect to any act of omission of any USER member rendering services under
this AGREEMENT.
B- Insurance: USER, irt its sole cost and expense, shall procure and
maintain such policies of comprehensive general liability insurance, professional
liability and other insurance as shall be necessary, hut at a minimum of $1,000,000 to
insure USER, its associates, agents and Associates against any claim or claims for
damages arising by reason of personal injury or death occasioned directly in
connection with the provision of any services hereunder by USER, the use of USER
property or facilities of the activities or USER, its officers, agents or associates in
connection with the performance of this AGREEMENT or otherwise. In the
performance of this requirement, USER shall provide from their insurance company a
Certificate of Insurance to the OWNER naming the OWNER (Pathway Educational
Ministry") as Additional insured.
SIGNED AND AGREED TO:
.^.^
PATHWAT&bUCATIONAL MINISTRY
*A, '
SU PERINTENDENT
SFNDERO ACADEMY dba SAN ANTONIO PREPARATORY ACADEMY
RECEIVED
FEB 07 2011
DEPARTMENT OF
ACCREDITATION ****>* *. page 3 of 4
RE: Energy Audii Report 2/2/11 5:00 HM
From: Swope, Richard D <RDSwope@CPSEnergy.com>

To: Roi Garcia <roigar@aol.com>
Subject: RE. Energy Audit Report
Date: Wed, Feb2, 2011 7:53 am
Roi,
In order to come up with a percentage assignment I have to make some assumptions about how the power is
used. If I make assumption more favorable to the school, then the church would owe about 8% of the bill. If I
favor the church then the percentage drops to about 2%. The thing is that I cannot be sure how accurate any
particular assumption is without some actual data. I do believe that your current 20% share is too high for the
church. I am hoping that the ePower Toolz will be available early next year so that we can have actual data to
back up any allocations.
Rich Swope
CPS Energy
(210)353-4824
(210) 667-7774 Cell
From: Roi Garcia [mailto:roiaar@aol.com1

Sent: Tuesday, February 01, 2011 5:24 PM
To: Swope, Richard D
Subject: Re: Energy Audit Report
Rich
Greetings!
In you study of the square footage and hours of usage what percentage is an equitable percentage for the school and
the church. Yes, I do want take up the EPowerToolz.
In your letter you stated.

"In looking at your facility I believe that the school will be responsible for both the majority of
the consumption as well as setting the peak demand. Based on the hours of operation and
square footage used by the school and the church I believe the electricity division would be
more in the range of 2% to 8% for the school depending on the assumptions used."
I dont understand the 2% and 8%. Can you explain a bit more.
Thanks
Roi Garcia
Original Message
From: Swope, Richard D <RDSwope@CPSEnerav.com>
To: roiaar@aot.com <roiQar@aol.com> RECEIVED
Sent: Tue, Feb 1, 2011 3:46 pm
Subject: Energy Audit Report FEB 07 20!)
DEPARTMENT OF
ACCREDITATION
http://mail.aol.com/33189-lll/aot-l/en-us/mail/PrintMessage.4spx Page 1 of 2
,W. 2.2010 3:^9AM S A P A W.090
1 ««J,754.00
Miiotonmt* A Rqmlt 3-13/4-01-03
RECEIVED
FEB012W
To Whom It May Concern:
January 27,2011
1 submitted an invoice on electric work done at San Antonio Academy. Our terms are to paid upon
work completion. I received a check for the amount of the invoice. When the check came from the
school, I gave the church permission to deposit the check they had given me.
RECEIVED
FEB 0 1
OF
ACCREDITATION
Universal Cleaning of SA gave permission for the Pathway Ministries to deposit checks in Universal
Cleaning name to pay advancements in funds. The school did not give advancements on paychecks
and the church provided the funds for an employee that requested advancements for emergencies.
In August IS, of 2010, a request was made to the district business office, Daniel Escorcia, not to use
our name, registration, social security, for future transactions. Our business was to concentrate
only on domestic and not commercial cleaning.
i
i *•">
RECEIVED
FEB 0 7 2011
DEPARTMENT OF
ACCREDITATION
Wells Fargo View Check ('upy
Well* Fargo Business Online*
View Check Copy

p'licfc Niuntwr Check Airwunr Account Hum tun
.
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O 1905 - 2010 W.I. Firgo, /W ifllin i«iHv*d.
RECEIVED
FEB 0 7 .2011
DEPARTMENT OF
ACCREDITATION
1
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Exhibi12, page5 ol 25
Wells Fargo View Check Copy i'agc 1 ot
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RECEIVED
FEB 0 1 ZQit
DEPARTMtN't OF
ACCREDITATION
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SMI Antonio P»p«ati*Y «J*demy 3652:
3in Anton*, TX 782S nni
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RECEIVED
FEB 0 7 2011
DEPARTMENT OF
ACCREDITATION
Ftxh.bit 2 page 16
To Whom It May Concern:
January 27, 2011
My name is Edgar Ibarra. I worked for San Antonio Prep Academy in fall and spring of 2004. !
borrowed some funds from the church. When my check came in from the school, I paid the loan
with the payroll check and gave permission for the church to deposit in the account
RECEIVED
FEB07 2011
DEPARTMENT OF
ACCRED/TATION
WELLS
Check Images FARGO
Statement period:
Account number:
Image page: 1 of
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LAWN SERVICES
F E B 0 7 2011
7.54
DEPARTMfeNT OF
Pathway Educational Ministry
(210)593-0113 Fax 210-521-4387
Invoice # 2779
January 20, 2006

8308 Fredrickburg Road
[210)593-0111
Rent for Month of February 2006 $20, 000.00
RECEIVED
FEB07 2011
DEPARTMENT OF
ACCREDITATION
Pathway Educational Ministry
(210)593-0113 Fax 210-521-4387
Invoice # 2774
December 20, 2005

8308 Fredrickburg Road
(210)593-0111
Rent for Month of January 2006 $20, 000.00
RECEIVED
FEB 0 7 ZG1I
DEPARTMbNTOF
ACCREDITATION
C&C CONSTRUCTION
Cesar Castillo
ndccon struct! on. us.
9638 Wicklow
Ph# (210) 643-5671
INOVICE NUMBER: 745

INVOICE DATE: 1/31/10
BILL TO:
8308 FREDERICKSBU|RG RD
SAN ANTONIO, TX7S229
i
Playground Improvements
I. Playground Reqreation Center Foundation 33,900.00

J
2- Installation of P1 ayground Toilet Labor/Materials 1,400-00 1
r
TOTAL: $ 5,300.00 |
RECE'
FEBOT
7. page fj of
TOILET LABOR MATERIALS ADJ PLAYGROUND
RECREATION CENTER FOUNDATION
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Receipt
Merchant Rhino Sports

15029 N 74th St
Scottsdale, AZ 85260
US
Description:
Submission Dale: 24-NOV-2009 19:04:33
Transaction ID:
Transaction Status: Captured/Pending Settlement
Authorization Code:
Card Number:
Payment Method: Visa
Amount: USD 1.838.38
Invoice: 0005427
Customer ID: San Antonio
BILLING INFORMATION SHIPPING INFORMATION

Roy Garcia Roy Garcia
8308 Fredericksburg Rd 8308 Fredericksburg Rd
San Antonio, TX 78229 San Antonio, TX 78229
RECEIX
FEB07 ZO.l
DEPARTMENT Of
ACCREDITATION
https://accoimt.authorize.net/UI/themes/anel/popup.aspx?page=hislo!y&sub=printtrandct... 11/24/2009
Authorize.NK Tagc 1 ot I
Receipt
Merchant Rhino Sports

15029 N 74th St
Scottsdale, AZ 85260
US
Description:
Submission Date: 21-AU9-2009 10:25:19
Transaction ID:
Transaction Status: Captured/Pending Settlement
Authorization Code:
Card Number:
Payment Method: Visa
Amount: USD 4,999.00
Invoice: Garde
Customer ID: San Antonio
BILLING INFORMATION SHIPPING INFORMATION

Roy Garcia Joshua Garcia
8308 Fredericksburg Rd 8308 Fredericksburg Rd
San Antonio, TX 78229 San Antonio, TX 78229
RECEIVED
FEB 0 7 Zflll
DEPARTMbM OF
ACCREDITATION
https://account-authorize.nct/UI/themes/anet/popup.aspx?pafie-historv&sub^rinttrandetai... 8/21/2009
Huge 1 oC [
COST ID: "42,91.!-' :.""

SAN AHTCMIO;'TX 7B229
RECEIVED
.. FEB'07 201
DEPARTMENT Of
ACCREDITATION
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7 page 3 of 18
E3. 1 1 . 2 0 1 0 S A F A P, 5
Sia Aatario, TX 74229

Planet Pkygrouads of Texas K (210)912 4155 F;uc(110) 561 M«
Invoice
BUI To: Ship To: Invoice No.: 3521
8301 Fwtekkibui Said
S» AiKOfflO, TX 71229 5u AiKWO, TX 78229
Customer ID: 4291
Order Nu. SiksRep. FOB Slop Via Terms Tux ID

2-8-JO C. JOXLU dotaiitian UpoortCdpt 31-1744166
iocluded
Item Unit Flies Tool

Ppft 100027 2C ft tower, moo! slide, 50% Kon-tuable 17,300,00 X3.750.00
m roiay ban, nnmel, pita
Subtotal: $3,750.00
Tw;
Ji,750,CO
RECEIVED
FEB o 7 ze:t
DEPARTMEiv? ;;t
ACCREDITATiOiM
r
t xlnbi! 7. payc 7 of 18
FLS. ' I - i O l O M : 2 3 A a 2* '10 261
SlOArtOrtOi IX 73229
PhoM! (210} 9124055 Fas (219) SffBttS
Invoice
Bill To: Ship' Invoice No.; 3522
H JOI PtBderidshnj K»d OOt P Rdcndoburi Read
S3B Aafiato, TX 71239 Su AcOTHJ.TX78229
Customer ID: 4291
Pate OnfciNo. SakjRep. FOB Tenm Tec 12

2 BIO CJones destination Freight U poo receipt 31-1744166
laduded
Quantity Iteza Description TutblB Unit Price Tool

100089 14 ft tower, slide, bridge 50% Non-taxable S2,590.oo $1,295.00'
Softool: SI ,295.00
Tax.
Shipping!
Balance LJur.
RECEIVED
FEB07 201!
DEPARTMENT OF
ACCREDITATION
SAM NO, 261 F.
1OTW Hamtoa?ark
Stn Antonio, Tx7»2»
Planet Playgrouads of Texas Phaw: (210) 9i2 4*55 Fax [710] S682WS
Invoice
Bill To; Invoice No.; 3523
8308 FiK
Sxa Amaoio. T3t 7E29 Soft Aatouo, TX 78229
Customer ID; 4291
Date Order Nf). 3 ales Rap, FOB Tons turn

2-fr-lO 8S7 C foots destination Upon receipt 31-1744166
ifldwded
Quantity Itam Ducomt Taiibls Unit Price Total

I 20ftrow»r,SUcle,flre 50% Non-taxable 59,500.00 54,750!00
p( 10, slide bar.
nnnknybaj-s; tunnel,
pi as installation
H 730,00
Tax
Shipping
RECEIVED 54,750.00
FEB 0 7 2011
DEPARTMENT OF
ACCREDITATION
t Ktvhit 7, pagu 9 ol 18
Planet Playgrounds of Texas
10919 Hamlen Park
Phone 210-239-9023 Fax 210-5682445
Inv:3523
Customer ID 4291
2-10-2010
Bill To:
8308 Fredricksburg Rd,
San Antonio, Texas 78229 (210) 593-0111
70 bags of Rubber Mulch for Playground 8.97 $627.90

labor. Pick up, place on playground 200.00
1 each Red monkey iron playset 300.00
1 each Red dome iron playset 150.00
2 each 25 x 40 Wood plank playground 350.00
1 each 18 x 28 wood plank playground 150.00
1 Installation and labor of 20 Ft tower, playground 750.00
renovation/ painting 450.00
1 Installation and labor of 20 Ft Tower playground 750.00
renovation, painting 450.00
1 installation and labor of 14ft tower, playground 750.00
renovation, painting 450.00
$5,347.90
RECEIVED
Price included with sale of Playground Equipment -0-
FEB07 2011
DEPARTMENT Or
ACCREDITATION
-o LU. t-t.Premium Rubber Mulch, Red - 713924 at The Home Depot 2/2/11 6:03 PM
r.inrc s.ivmq Mora doing: Welcome, (Sign In >-••! Registeri f-
Share -r Email t Print
Vigoro ,8 Cu. Ft.Premium Rubber Mulch,

Red
Mndnl ff 7n'*; 4 ;5tore
* + •*•*•• 4 ;;'/5 - Kt' 15) Wfito 3 fiovifsw
SHOPPERS WHO
$8.97/EA-Each VIEWED THIS ITEM
ALSO VIEWED
S4Q2.30/Each
Description
This mulch do«s not atiract ants I! is cu;;t t?ttective ;ind environmentally triprid'y This
product carries a !2 year Warranty Inis product incurs Less cost and lt!S:> Inhor in
curnpanson to other mulches that are not made oi a rucye^d Rubber
Preserves ground moisture without absorption

Eliminates annual mulching
Easy lo maintain S539.10/Each
Inhibits growth of mold, fungi, and reducing allergen risk
MFG Biand Name Vigoro
MF-'G Model # . 7139?4
MFG Part tt 713924
Specifications
Assembled Depth (in.) 10 0 m
Assembled Height (in.) 100 in
Assembled Width (in.) U) 0 in
0aa Caoacitv/Drv Volume feu. ft.l 'fl ft- 1
S339.00/Each
E-MAIL EXCLUSIVES AOOUT THfe HOME DEPOT STRESS FREE CUSTOMER SERVICE CREDIT CENTER
SHOPPING
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Enter Emait Address
i oLLOW THE HOME DEPOT
http;//www.homedcpol.com/h^dl/N-5yciv/R-100664068/h_d2/ProductDisplay?langld»-I&stofeld= 100514catalog(d= 10053 Page 1 of 2

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Ill I S I N H S S ORGANIZATIONS INQUIRY
UCC | Husincss Organisations j Trademarks] Notary | Account) Help/Fees | Uricfca.se Luguul

N A M E AVAILABILITY SKAKCH
This search was performed on wilh the following scurch parameter
ENTITY N A M E : Planet Playgrounds
There nre no records which match your inquiry.
Return to.Order I New Search
Instructions:
4 To view additional information pertaining to a particular filing select the number associated with the name.
* To placo an order for additional information about a filing select the radial button listed under 'Mark' that is associated with the
entity and press the 'Order' button.
RECEIVED
FEB07 2011
DEPARTMENT Of
ACCREDITATION
/. page U o t i i l
Hips ://dirtxt. sos.slate,tx.Li.s/corpiiu]uiry/corp_intjuiry-find.u.sp
10:37 AM
From: Joshua.Vasquez@wellsfargo.com
To: roigar@aol.com
Subject: Request Follow up
Date: Thu, Feb3, 201110:21 am
Good Morning Mr. Garcia,
! wanted to give you an update on the progress of gathering the documents together.
It is taking me a little longer than expected since some items were back dated back to 2005.
Our, operations team is working on this and I am anticipating receiving them early next week.
I apologize for the delay.
Have a great day.
Joshua Vasquez
Business Banking Specialist I Wells Fargo Bank NA
4351 Medical Or San Antonio TX 78229
Office: (210) 856-3316 I Cell: (210) 319-0498 I Fax: (210) 614-4286
This message may contain confidential and/or privileged information. If you are not the addressee or authorized to receive this for
the addressee, you must not use, copy, disclose, or take any action based on this message or any information herein. If you have
received this message in error, please advise the sender immediately by reply e-mail and delete this message. Thank you for your
cooperation.
RECEIVED
FEB 0 7
http://mall. aol.com/3il89-lll/aol-l/en-us/mail/PnntMessage.aspx Page 1 of 1

JIOV 9: 30AM 3 A P A HO,
VEUO^MNO ÂMCTCttk • 4363
$-1,102 J3
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Sn wionrt WmrSyvteni
P O.B«3911
S» Antonio, TIC 7099-7911
' >£B07
DEPARTMEM Of
Exhibit 2, page IS of 25
HOtO HOAM ' 3 A PA NO. 090 P. 12
$"2/75$.* 1
Two '**"*** DOU>pS
C.P.S,
P.O. BOX 2671
78219-0001
MEMO.
RECEIVED
FEB07 2011
DEPARTMENT OF
ACCREDITATION
, page 20 of 25
, NOV. ?. ?OiO 9 : 0 0 A M S A PA ). 090 f. ID
dtoMterti'
$ "1.4W.11
Om -nxmtttd PonrHaDdroJ-Nlnttyand 1^109—•"**••- DOLLAHS
C.P.S.
P.O. B«267I
S« Amoaio, TX
MEMO,
RECEIVED
FEB 0 7 2C 1 •
DEPARTMEisi: OF
ACCREDITATION
. ,W. 2.20111 HOAM SAM 3.090 f.
' • ' ' ' ' ''''
PAY TO "me
««• •»•»•»• ***** »*••»-« *•»*•«•»
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Wells Fargo View Check Copy Page 1 of
Wells Fargo Business Online4
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FEB01!«»
https://image.vÛsfargoxom/imagemar^display.do?SAMLart=AAFiumdwUuRXixiihgN...
BSSSS5 11/29/2010

1701 North Congress Ave. - Austin, Texas 78701-1494 - 512463-9734 - 512 463-9838 FAX - WWW - Tea.state - Tx.us

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1701 North Congress Ave. • Austin,Texas 78701-1494 • 512463-9734 • 512 463-9838 FAX • www.tea.state.tx.

CERTIFIED MAIL & EMAIL

Dr. Richard Clifford, Superintendent

Subject: Preliminary Investigative Report

TO: Laura Taylor, Associate Commissioner for Accreditation

DATE: February 11,2011

SUBJECT: Special Investigation of San Antonio Preparatory Academy #015-824

In August 2010, a TEA-appointed board of managers and superintendent were assigned to

Analysis of the charter school's response:

Analysis of the charter school's response:

Additional questionable expenditures include an invoice from a contractor for $5,300,

Analysis of the charter school's response:

Analysis of the charter school's response:

Finding: The Pathway Educational Ministry, which is controlled by the former

Analysis of the charter school's response:

The charter school is required by 19 TAC §100.101 to disclose all compensation,

Analysis of the charter school's response:

a. The charter school's hiring practices contain a material weakness in

to members of the charter holder's and superintendent's family and

Analysis of the charter school's response:

• Notations made, presumably by Mr. Roi Garcia, on a printout of a business organization

Inurement/Private B*n«flt - Charitable Organizations

Return to Life Cycle of a Public Charity

Page Last Reviewed or Updated: August 13, 2010

Sec. 39.02. ABUSE OF OFFICIAL CAPACITY. (a) A public servant

Sec. 32.45. MISAPPLICATION OF FIDUCIARY PROPERTY OR PROPERTY OF

property misapplied is $200,000 or more.

Sec. 37.10. TAMPERING WITH GOVERNMENTAL RECORD. (a) A person

toxicological, ballistic, or other expert examination

(2), or (a)(5) that the false entry or false information could

Sec. 12.120. RESTRICTIONS ON SERVING AS MEMBER OF GOVERNING

http://www.statutes.legis.state.tx.us/Docs/ED/htm/ED. 12.htm 12/20/2010

93. Requiring grantees to evidence correction of previously detected deficiencies before

96. Review of audited financial statements or other compliance requirements of entitlement

1.5.4.7 Employee Compensation

1. Segregation of responsibilities for supervision and time-keeping functions from

3. Supervision of payroll distribution by employees:

- Who are not responsible for hiring or firing employees

4. Segregation of responsibilities for initiating payments under employee benefit plans

5. Reconciliation of the payroll bank account regularly by employees independent of all

6. If EDP is used, maintaining the principle of segregation of duties in processing

January 2010 Texas Education Agency - Resource Guide

1. Properly authorizing, approving and documenting all changes in employment (additions

9. Maintaining appropriate payroll records for accumulated employee benefits (vacation,

10. Interviewing terminating employees as a check on departure and as a final review of

11. Written personnel policies

16. Time-keeping and attendance records and procedures

Texas Education Agency - Resource Guide January 2010

21. Controls over payroll preparation

25. Review of documents supporting employee benefit payments (such as accumulated

26. Review for reasonableness of comparisons (reconciliations) of gross pay of current to

27. Review of the payroll (examination of authorizations for changes noted on

29. Including in the review a comparison to amounts appropriated and budgeted

30. Prohibiting payroll advances to officials and employees or subjecting them to

3anuary 2010 Texas Education Agency - Resource Guide

33. Maintaining a separate, imprest-basis, payroll bank account

34. Regularly reconciling the payroll bank account

37. Controlling the supply of unused payroll checks

39. Prohibiting employees from accepting another employee's pay

40. Returning unclaimed wages to a custodian independent of the payroll department

Texas Education Agency - Resource Guide January 2010

44. Procedures for investigating returned W-2s

a Equal HtXMMig Lndr

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