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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 fiscal issues 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 independently run however funded by the state. The OYO California schools serve trainees who have dropped out of the conventional high schools. They presently have about 15,000 trainees in 40 store locations across the state. These California schools students do most of their work at home, meeting with instructors two times 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 post of August 10th, just 11 percent of OYO trainees finished during the 2003-2004 academic year. The remainder of trainees 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 Group, who concluded their analysis and presented their findings in a report that was launched in August 2006. The audit points out accounting problems, overpayments by the state, disputes of interest, nepotism, extreme settlement, and mixing private company concerns with public schools. The OYO was founded and charity car donation uk still operated by John and Joan Hall, former teachers from Hollywood High School. They have actually completely complied with the California schools' audit, however conflict most 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 typical practice for charter schools in the California schools system and is a legitimate approach for compensating school staff for longer days and year-round schedules. California schools superintendent O'Connell believes teachers should be counted just as one full-time position each. The auditors disagreed, pointing out that traditional California schools instructors invest much less time working each year than those at OYO. However, the auditors believed the 1.92 quantity is pumped up. This example, alone, accounts for over half of the $57 million overpayment. Furthermore, the report noted a number of questionable costs. One example of unrestrained costs, provided by the Times was an $18,000 staff celebration held at Disneyland. Allen safeguarded that event as an effort at relationship structure between personnel members, who are spread throughout the state. He noted that the costs was less than $50 per staff member. • Conflicts of Interest and Mixing Private Company with Public Schools. Besides the charter schools, the Halls own and operate numerous private organisations that sell 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 incomes for the Halls, which is $600,000 every year. The report states that it might be extreme for the quantity of time the couple actually works. • Nepotism. The Halls developed a different charity with $10.8 million of the California schools' funding, called Pathways in Education. The charity is run by their daughter, Jamie Hall. Little cash has actually been spent toward education thus far. The Halls contend that they formerly had actually asked for assistance on their operation from the California schools often times, but never ever received any response. Thus, they attempted to follow California schools

2. requirements as finest they might with their understanding of the policies. Even O'Connell yielded that none of the mentioned practices are prohibited. The audit recommends the California schools ought to attempt to recuperate the $57 million in overpayment from the OYO. O'Connell has sent out the report to the state's chief law officer's workplace for evaluation and any essential action.