ODESSA, Texas (KOSA) - Third Future Schools, in charge of Ector College Prep, Lamar, and Sam Houston Elementary, has been accused of diverting funds from Texas schools to Colorado schools.
Third Future Schools released the following statement about the accusation.
In light of recent media coverage about Third Future Schools, we want to take the opportunity to set the record straight.
No Texas funds have ever been diverted to subsidize schools in Colorado. Such an action would be in direct violation of our strict financial protocols. Each of our state networks oversees the funds for that state, and they do not cross from one state to the other.
Since our central office is located in Colorado, most paper checks and bills are sent to this location and then deposited into separate bank accounts. Each school has its own bank account. A check meant for a Texas school may arrive in Colorado, but it is promptly deposited into that school’s Texas bank account.
Some of the confusion in the media coverage stems from the fact that the network organization applies administrative fees to all schools in order to provide centralized support services, such as payroll, accounting, human resources, and school leadership. This is standard practice for such partnerships.
Third Future Schools conducts annual independent audits to ensure financial accountability and transparency. All of our audits have been clean – the highest standard that can be met in public accounting.
We take our commitment to financial transparency very seriously. All of our budgets, audits, and board documents can be found HERE.
We have three schools in Texas that over the course of our partnerships have risen from a F rating to a B rating. We are proud of the work by our students and staff on these campuses.
Regarding Mike Miles’ relationship with Third Future Schools, Mr. Miles has not served as the CEO of the organization for nearly a year. He has served as a consultant in a manner that does not violate his employment contract with Houston ISD.
We welcome the scrutiny that comes from running successful schools, and we strive to always operate with the highest standards of governance, transparency, and accountability.
Third Future’s statement clarifies that the central office is in Colorado and that checks meant for Texas schools may arrive in Colorado but are deposited into the intended Texas school’s bank account.
Third Future further clarified confusion about administrative fees, that all schools must pay for centralized support services like payroll, HR, and school leadership.
Midland ISD also released a statement about the confusion.
Third Future Schools has operated Sam Houston Collegiate Preparatory Elementary since the 2020-21 school year and began operating Lamar Elementary during the 2023-24 school year in Midland Independent School District. Agreements are in place to continue the partnership through June 2025 and June 2026 at both campuses respectively. Per its contract with TFS, MISD is obligated to provide oversight both financially and academically. The District also meets its financial obligations that are outlined in the contract. Annual independent audits are provided by TFS to the District as per the partnership agreement.
MISD upholds financial integrity and has earned numerous awards including receiving Texas State Comptroller Transparency Stars since 2019 and the Association of School Business Officials International Certificate of Excellence in Financial Reporting in 2021-22. The District was recently awarded the 2024 Texas Association of School Business Officials Award of Merit for Purchasing Operations, the Certificate of Achievement for Excellence in Financial Reporting (GFOA) and the Certificate of Excellence in Financial Reporting (ASBO). These awards are given as the highest forms of recognition in the areas of governmental accounting and financial reporting and reflect a commitment to financial transparency and high-quality financial reporting.
The District has received clean audit findings for the last five years dating back to 2019.
Should TEA elect to conduct an investigation, MISD will provide the requested information and documentation and cooperate fully. MISD has been in communication with TFS and has been assured that funds for students served in Texas have not been used for schools in other states where they operate.
Midland Independent School District values its partnership with Third Future Schools and the work they are doing at Lamar Elementary and Sam Houston Collegiate Preparatory Elementary in Midland. In the upcoming years, as contracts with Third Future Schools in Midland ISD expire, as with any other partnership agreement, the District will evaluate the renewal of these based on the effectiveness of the school along with the track record of successful student outcomes and the state accountability system.
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