... The Gaddie family reflects how family ties can run deep at charter schools.Happy Valley School in Peoria has a three-member non-profit board made up entirely of Gaddie family members, according to the most recent federal tax return. Ernest Gaddie is president. His wife, Delite Gaddie, is secretary, and their son, Glen Gaddie, is a board member...For several years, the school has contracted with Gaddie Curriculum & Education Consulting, a business owned by Ernest and Delite Gaddie. The company provides business consulting, maintenance and operations services and licenses curriculum to the school, according to tax returns and audits...
In 2010, the school’s auditor in the annual audit began questioning the contracted services with the Gaddies’ company, and said the value of the agreements “were not supported by documentation that provides the method and/or rationale for how such fees for services were determined to be at fair value.”...The 2011 audit expressed the same concerns...Nothing prohibits a school’s board from being all family members.The state doesn’t set limits on the number of family members. The Internal Revenue Service doesn’t restrict board membership, but in recent years it has required non-profits to disclose more information about their boards...Charter officials say it’s common for family to be involved in the same charter school...
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“Insiders benefiting in charter deals, Board members, school officials did more than $70mil in business.” The Arizona Republic, 11/17/2012