SIOUX FALLS, S.D. (Dakota News Now) - Apple Tree Children's Center, a popular childcare facility in Sioux Falls, has recently come under scrutiny after announcing the closure of three out of its four locations. While the center's decision to keep one location open under new management has provided some relief to parents, questions still linger about the sudden change in the center's fortunes.

Apple Tree, previously a vibrant childcare center, made the transition to a nonprofit organization over two decades ago. In light of recent developments, Dakota News Now sought the insights of Michael Wyland, a nonprofit consultant, to review the center's public tax returns.

Wyland's examination of the tax returns raised notable concerns about the center's operations. It was revealed that Randall Stewart, who serves as both the board chair and executive director, is also one of the landlords of Apple Tree. In addition to his executive director salary of $62,000 in 2022, Stewart receives rental income from several Apple Tree facilities, with a total income of approximately $526,000. The tax returns also showed that Stewart's wife and son draw salaries from Apple Tree.

The financial records indicate that the center generated a profit over the past four years, with its net revenue after expenses reaching $1.2 million in 2022. However, Wyland speculated that significant events must have occurred in 2023 that led to the drastic decision to close three locations.

Further investigations revealed that there have been no recent audits by the Department of Labor on Apple Tree or its associated company, WL Incorporated. However, court records indicate ongoing litigation related to an incident where a child suffered a serious injury under Apple Tree's care, resulting in a partial amputation of a finger.

As the public awaits responses from Randall Stewart and other board members, Wyland emphasized the importance of financial transparency and accountability within the nonprofit sector. He advised other nonprofits to carefully review their tax returns and ensure that their operations align with ethical standards.

Dakota News Now's First Alert Investigators will continue to monitor the situation and provide updates as more information becomes available.