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1. Superintendent of Instruction for the California schools, Jack O'Connell, started an audit more than a year back into the fiscal concerns of the Options for Youth and Opportunities for Knowing (OYO) schools. The OYO is a chain of independent study charter schools within the California schools system, which are privately run but moneyed by the state. The OYO California schools serve trainees who have dropped out of the standard high schools. They currently have about 15,000 students in 40 shop places across the state. These California schools trainees do most of their work at home, conference with instructors twice a week. According to state records, student achievement test and high school exit test ratings are above average, as compared to other alternative high schools within the California schools system. According to a Los Angeles Times post of August 10th, only 11 percent of OYO students graduated throughout the 2003-2004 school year. The rest of trainees that left school that year either left, were expelled, or moved to other schools. The California car donation ottawa schools' audit was carried out by the Fiscal Crisis and Management Assistance Group, who concluded their analysis and presented their findings in a report that was launched in August 2006. The audit points out accounting defects, overpayments by the state, disputes of interest, nepotism, excessive settlement, and mixing private service issues with public schools. The OYO was established and still operated by John and Joan Hall, former instructors from Hollywood High School. They have actually totally cooperated with the California schools' audit, but conflict most 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 spokesperson, Stevan Allen, mentioned that this is a typical 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 believes teachers ought to be counted just as one full-time position each. The auditors disagreed, pointing out that standard California schools instructors invest much less time working each year than those at OYO. Nevertheless, the auditors believed the 1.92 amount is inflated. This example, alone, represent over half of the $57 million overpayment. Furthermore, the report noted several questionable expenditures. One example of unrestrained costs, given by the Times was an $18,000 staff celebration held at Disneyland. Allen protected that event as an effort at relationship structure between team member, who are spread throughout the state. He kept in mind that the costs was less than $50 per employee. • Conflicts of Interest and Mixing Private Company with Public Schools. Besides the charter schools, the Halls own and run numerous private organisations that sell products and services to schools. The Times kept in mind that the Alternatives in OYO was the nonprofit part of the setup, with the Opportunities part being for-profit. The audit calls this practice and setup into concern. • Excessive Settlement. The audit likewise questions the combined incomes for the Halls, which is $600,000 each year. The report mentions that it may be extreme for the quantity of time the couple actually works. • Nepotism. The Halls produced a different charity with $10.8 million of the California schools' funding, called Pathways in Education. The charity is run by their child, Jamie Hall. Little loan has actually been spent towards education so far. The Halls compete that they previously had actually asked for assistance on their operation from the California schools often times, but never ever got any reaction. Therefore, they attempted to follow California schools requirements as finest they could with their understanding of the policies. Even O'Connell conceded that none of

2. the mentioned practices are prohibited. The audit recommends the California schools need to try to recuperate the $57 million in overpayment from the OYO. O'Connell has sent out the report to the state's attorney general of the United States's workplace for evaluation and any essential action.