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1. Superintendent of Direction for the California schools, Jack O'Connell, initiated an audit more than a year ago into the fiscal issues of the Alternatives for Youth and Opportunities for Learning (OYO) schools. The OYO is a chain of independent research study charter schools within the California schools system, which are independently run however moneyed by the state. The OYO California schools serve trainees who have left of the traditional high schools. They presently have about 15,000 students in 40 shop areas across the state. These California schools students do the majority of their work at home, meeting with instructors two times a week. According to state records, student accomplishment test and high school exit examination 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, just 11 percent of OYO trainees graduated during the 2003-2004 school year. The rest of trainees that left school that year either left, were expelled, or transferred to other schools. The California schools' audit was performed by the Fiscal Crisis and Management Support Group, who concluded their analysis and provided their findings in a report that was launched in August 2006. The audit cites accounting defects, overpayments by the state, conflicts of interest, nepotism, extreme compensation, and blending private company concerns with public schools. The OYO was founded and still run by John and Joan Hall, former instructors from Hollywood High School. They have totally cooperated with the California schools' audit, but conflict the majority of the findings. Some examples from the audit report are: • Accounting Problems and Overpayments. The Halls count each of their instructors as 1.92 full-time positions. Their representative, Stevan Allen, mentioned that this is a common practice for charter schools in the California schools system and is a genuine method for compensating school staff for longer days and year-round schedules. California schools superintendent O'Connell thinks instructors ought to be counted just as one full-time position each. The auditors disagreed, mentioning that traditional California schools instructors invest much less time working each year than those at OYO. However, the auditors thought the 1.92 amount is inflated. This example, alone, accounts for over half of the $57 million overpayment. In addition, the report kept in mind several doubtful expenditures. One example of unrestrained costs, provided by the Times was an $18,000 personnel party held at Disneyland. Allen defended that event as an effort at relationship building in between employee, who are scattered across the state. He kept in mind that the costs was less than $50 per employee. • Disputes of Interest and Mixing Private Business with Public Schools. Besides the charter schools, the Halls own and run numerous private organisations st vincent car donation eugene that offer materials and services to schools. The Times noted that the Options in OYO was the not-for-profit part of the setup, with the Opportunities part being for-profit. The audit calls this practice and setup into question. • Extreme Compensation. The audit likewise questions the combined wages for the Halls, which is $600,000 each year. The report specifies that it might be excessive for the quantity of time the couple really works. • Nepotism. The Halls produced a separate charity with $10.8 countless the California schools' funding, called Pathways in Education. The charity is run by their child, Jamie Hall. Little loan has been invested toward education so far. The Halls contend that they formerly had asked for guidance on their operation from the California schools often times, however never ever got any response. Thus, they tried to follow California schools requirements as finest

2. they could with their understanding of the policies. Even O'Connell yielded that none of the mentioned practices are unlawful. The audit recommends the California schools ought to try to recuperate the $57 million in overpayment from the OYO. O'Connell has actually sent out the report to the state's attorney general's office for review and any necessary action.