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1. Superintendent of Guideline for the California schools, Jack O'Connell, initiated an audit more than a year ago into the fiscal issues of the Choices 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 students who have actually left of the conventional high schools. They currently have about 15,000 students in 40 store locations throughout the state. These California schools trainees do the majority of their work at house, meeting with teachers two times a week. According to state records, trainee achievement test and high school exit exam ratings 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 throughout 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 performed by the Financial Crisis and Management Assistance Team, who concluded their analysis and provided their findings in a report that was launched in August 2006. The audit cites accounting problems, overpayments by the state, disputes of interest, nepotism, extreme payment, and blending personal service concerns with car donation brooklyn ny public schools. The OYO was established and still run by John and Joan Hall, previous instructors from Hollywood High School. They have completely worked together with the California schools' audit, however disagreement many of the findings. Some examples from the audit report are: • Accounting Defects 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 approach for compensating school staff for longer days and year-round schedules. California schools superintendent O'Connell thinks instructors ought to be counted only as one full-time position each. The auditors disagreed, mentioning that conventional California schools instructors spend much less time working each year than those at OYO. Nevertheless, the auditors believed the 1.92 amount is inflated. This example, alone, accounts for more than half of the $57 million overpayment. In addition, the report kept in mind numerous questionable costs. One example of unrestrained costs, given by the Times was an $18,000 staff celebration held at Disneyland. Allen protected that occasion as an effort at relationship structure between team member, who are scattered throughout the state. He noted that the costs was less than $50 per personnel member. • Disputes of Interest and Mixing Private Company with Public Schools. Besides the charter schools, the Halls own and operate several personal businesses that offer materials and services to schools. The Times noted that the Choices 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 also questions the combined wages for the Halls, which is $600,000 annually. The report mentions that it may be extreme for the quantity of time the couple in fact works. • Nepotism. The Halls developed a different charity with $10.8 countless the California schools' financing, called Pathways in Education. The charity is run by their child, Jamie Hall. Little cash has actually been invested towards education hence far. The Halls compete that they previously had actually requested guidance on their operation from the California schools sometimes, but never got any action. Hence, they tried to follow California schools requirements as best

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