Monday, February 4, 2008
California Schools Audit Shows Excessive Spending and Overpayments to Chain of Charter Schools
Superintendent of Instruction for the California schools, Jack OConnell, initiated an audit more than a year ago into the fiscal concerns of the Options for Youth and Opportunities for Learning (OYO) schools. The OYO is a chain of independent study charter schools within the California schools system, which are privately run but funded by the state.
The OYO California schools serve students who have dropped out of the traditional high schools. They currently have about 15,000 students in 40 storefront locations across the state. These California schools students do most of their work at home, meeting with teachers twice a week. According to state records, student achievement test and high school exit exam scores are above average, as compared to other alternative high schools within the California schools system. According to a Los Angeles Times article of August 10th, only 11 percent of OYO students graduated during the 2003-2004 school year. The remainder of students that left school that year either dropped out, were expelled, or transferred to other schools.
The California schools audit was conducted by the Fiscal Crisis and Management Assistance Team, who concluded their analysis and presented their findings in a report that was released in August 2006. The audit cites accounting defects, overpayments by the state, conflicts of interest, nepotism, excessive compensation, and mixing private business concerns with public schools.
The OYO was founded and still operated by John and Joan Hall, former teachers from Hollywood High School. They have fully cooperated with the California schools audit, but dispute most of the findings.
Some examples from the audit report are:
Accounting Defects and Overpayments. The Halls count each of their teachers as 1.92 full-time positions. Their spokesperson, Stevan Allen, stated that this is a common practice for charter schools in the California schools system and is a legitimate method for compensating school staff for longer days and year-round schedules. California schools superintendent OConnell believes teachers should be counted only as one full-time position each. The auditors disagreed, citing that traditional California schools teachers spend much less time working each year than those at OYO. However, the auditors believed the 1.92 amount is inflated. This example, alone, accounts for more than half of the $57 million overpayment.
Additionally, the report noted several questionable expenses. One example of unrestrained spending, given by the Times was an $18,000 staff party held at Disneyland. Allen defended that event as an attempt at relationship building between staff members, who are scattered across the state. He noted that the costs was less than $50 per staff member.
Conflicts of Interest and Mixing Private Business with Public Schools. Besides the charter schools, the Halls own and operate several private businesses that sell materials and services to schools. The Times noted that the Options in OYO was the nonprofit part of the setup, with the Opportunities part being for-profit. The audit calls this practice and setup into question.
Excessive Compensation. The audit also questions the combined salaries for the Halls, which is $600,000 annually. The report states that it may be excessive for the amount of time the couple actually works.
Nepotism. The Halls created a separate charity with $10.8 million of the California schools funding, called Pathways in Education. The charity is run by their daughter, Jamie Hall. Little money has been spent toward education thus far.
The Halls contend that they previously had requested guidance on their operation from the California schools many times, but never received any response. Thus, they tried to follow California schools requirements as best they could with their understanding of the policies. Even OConnell conceded that none of the cited practices are illegal.
The audit recommends the California schools should attempt to recover the $57 million in overpayment from the OYO. OConnell has sent the report to the states attorney generals office for review and any necessary action.
Patricia Hawke is a staff writer for Schools K-12, Which provides free, in-depth reports on all U.S. public and private K-12 schools. Patricia has a nose for research and writes stimulating news and views on school issues.Stock Chart Graph
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The OYO California schools serve students who have dropped out of the traditional high schools. They currently have about 15,000 students in 40 storefront locations across the state. These California schools students do most of their work at home, meeting with teachers twice a week. According to state records, student achievement test and high school exit exam scores are above average, as compared to other alternative high schools within the California schools system. According to a Los Angeles Times article of August 10th, only 11 percent of OYO students graduated during the 2003-2004 school year. The remainder of students that left school that year either dropped out, were expelled, or transferred to other schools.
The California schools audit was conducted by the Fiscal Crisis and Management Assistance Team, who concluded their analysis and presented their findings in a report that was released in August 2006. The audit cites accounting defects, overpayments by the state, conflicts of interest, nepotism, excessive compensation, and mixing private business concerns with public schools.
The OYO was founded and still operated by John and Joan Hall, former teachers from Hollywood High School. They have fully cooperated with the California schools audit, but dispute most of the findings.
Some examples from the audit report are:
Accounting Defects and Overpayments. The Halls count each of their teachers as 1.92 full-time positions. Their spokesperson, Stevan Allen, stated that this is a common practice for charter schools in the California schools system and is a legitimate method for compensating school staff for longer days and year-round schedules. California schools superintendent OConnell believes teachers should be counted only as one full-time position each. The auditors disagreed, citing that traditional California schools teachers spend much less time working each year than those at OYO. However, the auditors believed the 1.92 amount is inflated. This example, alone, accounts for more than half of the $57 million overpayment.
Additionally, the report noted several questionable expenses. One example of unrestrained spending, given by the Times was an $18,000 staff party held at Disneyland. Allen defended that event as an attempt at relationship building between staff members, who are scattered across the state. He noted that the costs was less than $50 per staff member.
Conflicts of Interest and Mixing Private Business with Public Schools. Besides the charter schools, the Halls own and operate several private businesses that sell materials and services to schools. The Times noted that the Options in OYO was the nonprofit part of the setup, with the Opportunities part being for-profit. The audit calls this practice and setup into question.
Excessive Compensation. The audit also questions the combined salaries for the Halls, which is $600,000 annually. The report states that it may be excessive for the amount of time the couple actually works.
Nepotism. The Halls created a separate charity with $10.8 million of the California schools funding, called Pathways in Education. The charity is run by their daughter, Jamie Hall. Little money has been spent toward education thus far.
The Halls contend that they previously had requested guidance on their operation from the California schools many times, but never received any response. Thus, they tried to follow California schools requirements as best they could with their understanding of the policies. Even OConnell conceded that none of the cited practices are illegal.
The audit recommends the California schools should attempt to recover the $57 million in overpayment from the OYO. OConnell has sent the report to the states attorney generals office for review and any necessary action.
Patricia Hawke is a staff writer for Schools K-12, Which provides free, in-depth reports on all U.S. public and private K-12 schools. Patricia has a nose for research and writes stimulating news and views on school issues.Stock Chart Graph
05 Calendar And Us Holidays
0 Interest Mortgag
Food Vending Machine
Approval Card Credit Instant Number
Burner Gas Oil
2 Cheat Play Scarface Station Through Walk
Costume Free Halloween
C Programs In
Hipaa Privacy Act
1 Book Living Project Rowan Thirty
Maricopa County District Attorney
Minneapolis Housing
Free Psychic Readings Online For Free
Discount Website Hosting
Global Warming Cartoon
Steps To Singing For Voice Class
Santa Teresa De Jesus
Murder In Coweta County
Uhl Hockey
Kt116
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Cartridge Filter Pentair Pool
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0 12 Free Insurance Life Quote
Kt7
Nikon 25214
Defect Metrics
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Sleep Inn Matthew Nc
Beach House Myrtle North Rental
Kt16
Long Term Disability Insurance Lawyer
11th Club Copacabana Night Nyc
Discount Mover
Bmw Gas Tank
Kt161
Richell Pet Gates
Barbie Lunch Bag
Bike Toddler Trailer
Spa In Hamilton Ontario
Pine Tree Mortage Inc
On Line Marketing Service
Custom Chaise
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Kyles Quest
Suzuki Auto Part Accessory
Pacific Pulmonary
American Airline Reservations
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Holiday Inn Mount Pleasant Mi
Year 3 Science
Wuhan Airlines
Mini Disney Snow Globe
Kt179
Christian Karaoke Music
Dating Portland Oregon
Kt115
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Dye Hair Permanent Pink
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Pattaya Bars For Sale
Avid Newscutter
Cheap Flight To Phoenix Arizona
Garden Home Jacksonville
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2006 Accessory Ford Truck
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Mtv News Online
1 4 Mat Yoga
Aquatemp Spa Heater
Association Convenience Illinois Store
Forex Hedge Strategy Trading
Dance Daughter Father Idea
2008 Challenger Convertible
Pet Food Storage Container
Advance Amp Cash Idaho Idaho Payday
Insurance Attorney Idaho
Concord White Pages
Whiskey Irish
Textron Fastening Systems
Girl Fur Coat
Good Life Fitness Center
100 Angeles Gabriels Hike In San Trail
Anti Depression Medicine
Long Hair Care Forum
1 800 Adopt Pet
Class Toronto Yoga
10 Card Dish Network Rom
Free Snow Screensavers
Sports Soccer Uefa Turkey
1 5 Adjustable Gym In Little Tikes
05 Mustang Parts
Beach Event Long Party
Ethnic Baby Doll
Rent A Villa In The Caribbean
6k Hockey Reebok Stick
Chantel Tea Kettle
Intel Share Price
Account Demo Forex Mini
1 Boot Boy Page Timberland
Map Metro Montreal
Kt67
Ah230 Battery Cell Ericsson Phone
Caption This
Orthopedic Office Chair
Boot Cowboy Girl Red
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Toile Shopping Cart Cover
