A former CFO’s testimony in an Oklahoma courtroom this week provides an example of how audit disputes can influence governance, oversight and financial controls inside an organization.
Josh Brock, the former CFO of Epic Charter Schools, returned to the witness stand on Feb. 25 as a preliminary hearing resumed after nearly two years of procedural delays tied to felony charges against the organization’s co-founders, David Chaney and Ben Harris.
Brock, who faces similar charges but reached an agreement with prosecutors to cooperate in exchange for avoiding prison time, described events that followed a 2020 investigative audit that intensified scrutiny of the online school’s financial practices. The hearing is expected to determine whether prosecutors have presented enough evidence for the case to proceed to trial.
Prosecutors allege that Epic’s founders used affiliated companies, shell entities and false invoices to divert tens of millions of dollars tied to school operations, a claim the defendants have denied. The audit laid the groundwork for the criminal case and contributed to a broader restructuring that led Epic to cut ties with its founders and reorganize its financial oversight. The 2020 audit examined how public education funds were managed and raised concerns about oversight, contracting practices and the use of accounts tied to student spending.
The legal process remains ongoing, but the circumstances surrounding Epic’s finance function are becoming a case study in how audit findings intersect with governance decisions, oversight responsibilities, the structure of financial controls and the CFO’s role in all of it.
Audit disputes reshape oversight and decision-making
According to testimony in the preliminary hearing, the investigative audit created pressure on leadership as public scrutiny increased. Epic’s audit examined how the organization managed public funding and its contractual relationship with a for-profit management company connected to its founders.
“The audit did us no favors from a business standpoint,” Brock said during testimony, according to Oklahoma Voice. He also described internal discussions following the audit as efforts to get “our side of the story and retribution,” including being encouraged to run against State Auditor and Inspector Cindy Byrd, whose office conducted the 2020 audit. Court records cited by Oklahoma Voice say the co-founders later directed hundreds of thousands of dollars to a political group that supported Byrd’s opponent.
The court proceedings will determine how the allegations are resolved, but the audit prompted changes to Epic’s governance structure, including the 2021 decision to end its management arrangement with the founders. “The audit led to the breakup of the school and Epic Youth Services,” Brock said.
Oversight discussions have continued in the years since. In 2025, Oklahoma’s Charter School Board voted to hire an unnamed accounting firm to conduct an independent investigative audit after Epic disclosed potential financial stability concerns during a restructuring that included hundreds of layoffs.
State auditors said they were working with a new CFO to review records and evaluate long-term sustainability, with a focus on when financial challenges were identified and how they were communicated to oversight bodies.
Financial control gaps added complexity to the audit process
Court filings and prior investigative reporting also describe governance structures that gave finance leadership oversight across both the charter school and a related management company. Brock served as CFO for both entities, allowing the same executive team to oversee transactions between the organizations.
Prosecutors claim funds were moved through shell companies and management fees tied to enrollment growth, while earlier audits raised questions about budgeting oversight and transparency around the use of public resources. Prosecutors have pointed to those arrangements as examples of how overlapping financial roles and related entities complicated oversight during the period under investigation.
“The Legislature would bludgeon us if they knew how much money we were making,” Brock recalled one of the co-founders saying during a meeting with auditors, according to local media outlet Oklahoma Voice.
The organization’s restructuring efforts suggest a continued focus on strengthening financial oversight. During discussions surrounding the 2025 investigative audit, state officials emphasized timely reporting and clear visibility into financial performance, areas that often receive attention after significant audit findings.
The Epic case highlights the operational work that follows a high-profile audit, including reviewing control frameworks, clarifying authority across related entities and strengthening communication with oversight bodies.
