ST PAUL, Minn. — According to two high-level administrators at STEP Academy who wished to remain anonymous, Mustafa Ibrahim, the charter school superintendent, board chair Abdulrazzaq Mursal, and board member Rahima Ahmed are planning to announce their resignation early next week following a financial crisis at the charter school.
Two weeks ago, KARE 11 reported that STEP Academy was $775,000 over budget due to having 117 fewer students than anticipated. In a letter to the school board and administration, school authorizer Innovative Quality Schools (IQS) wrote that since the projected enrollment has not been actualized, the school was overpaid for quarter one of the 2025 fiscal year.
IQS wrote "STEP Academy is in a financial crisis. If the Board does not take sufficient and responsible action, the school will be unable to continue operations."
But we now are learning that these financial troubles may go well beyond a lack of enrollment.
According to the academy's 2022 to 2023 annual financial report, which is located on its website, an independent auditor found that the charter school's total net position decreased, primarily because of increased expenses related to the addition of a second school in Burnsville in 2022.
The academy's general fund balance, which is the key indicator of a charter school's financial stability, went from $2.74 million in 2022 to just $54,000 in 2023. Its revenue during this time totaled $9.6 million, while expenses were $18.7 million. Those expenses were $6 million higher than the academy's board had budgeted for.
KARE 11 has reached out to Superintendent Ibrahim and every member of the board directly. but have not heard back at this time. STEP Academy’s monthly board meeting is being held this upcoming Monday at 5:30 PM at the STEP Academy St. Paul location.