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1. Superintendent of Guideline for the California schools, Jack O'Connell, started an audit more than a year back into the financial issues of the Alternatives 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 independently run however funded by the state. The OYO California schools serve trainees who have actually dropped out of the standard high schools. They currently have about 15,000 trainees in 40 storefront areas throughout the state. These California schools trainees do most of their work at house, conference with instructors twice a week. According to state records, student achievement test and high school exit examination 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, only 11 percent of OYO students finished during the 2003-2004 school year. The rest of students that left school that year either dropped out, were expelled, or transferred to other schools. The California schools' audit was carried out by the Financial Crisis and Management Support Group, who concluded their analysis and provided their findings in a report that was launched in August 2006. The audit car donation dfw points out accounting flaws, overpayments by the state, conflicts of interest, nepotism, extreme payment, and blending personal service issues with public schools. The OYO was founded and still run by John and Joan Hall, former teachers from Hollywood High School. They have actually totally cooperated with the California schools' audit, however disagreement the majority 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 representative, Stevan Allen, mentioned that this is a typical practice for charter schools in the California schools system and is a legitimate technique for compensating school personnel for longer days and year-round schedules. California schools superintendent O'Connell believes teachers must be counted just as one full-time position each. The auditors disagreed, citing that standard California schools teachers invest much less time working each year than those at OYO. Nevertheless, the auditors thought the 1.92 amount is pumped up. This example, alone, represent majority of the $57 million overpayment. In addition, the report noted a number of doubtful costs. One example of unrestrained spending, given by the Times was an $18,000 staff celebration held at Disneyland. Allen protected that occasion as an attempt at relationship building in between team member, who are scattered across the state. He noted that the expenses was less than $50 per employee. • Disputes of Interest and Mixing Private Organisation with Public Schools. Besides the charter schools, the Halls own and run a number of personal companies that offer materials and services to schools. The Times kept in mind that the Alternatives 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. • Excessive Settlement. The audit also questions the combined wages for the Halls, which is $600,000 every year. The report states that it might be excessive for the quantity of time the couple actually works. • Nepotism. The Halls created a separate charity with $10.8 million of the California schools' financing, called Pathways in Education. The charity is run by their daughter, Jamie Hall. Little loan has actually been invested toward education hence far.

2. The Halls contend that they previously had actually requested assistance on their operation from the California schools lot of times, but never got any action. Therefore, they tried to follow California schools requirements as best 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 attempt to recover the $57 million in overpayment from the OYO. O'Connell has sent out the report to the state's lawyer general's office for evaluation and any needed action.