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1. Superintendent of Direction for the California schools, Jack O'Connell, initiated an audit more than a year earlier into the fiscal concerns of the Options 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 privately run however moneyed by the state. The OYO California schools serve students who have actually left of the conventional high schools. They presently have about 15,000 trainees in 40 storefront locations throughout the state. These California schools trainees do the majority of their work at house, conference with instructors twice 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 post of August 10th, only 11 percent of OYO trainees graduated during 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 Fiscal Crisis and Management Support Team, who concluded their analysis and provided their findings in a report that was launched in August 2006. The audit mentions accounting problems, overpayments by the state, disputes of interest, nepotism, extreme settlement, and blending personal service issues with public schools. The OYO was founded and still run by John and Joan Hall, former instructors from Hollywood High School. They have actually totally worked together with the California schools' audit, however disagreement the majority of the findings. Some examples from the audit report are: • Accounting Flaws and Overpayments. The Halls count each of their teachers as 1.92 full-time positions. Their spokesperson, Stevan Allen, stated that this is st vincent car donation eugene a typical practice for charter schools in the California schools system and is a genuine approach for compensating school personnel for longer days and year-round schedules. California schools superintendent O'Connell thinks teachers must be counted only as one full-time position each. The auditors disagreed, citing that standard 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, represent more than half of the $57 million overpayment. Furthermore, the report noted a number of doubtful expenditures. One example of unrestrained costs, given by the Times was an $18,000 staff celebration held at Disneyland. Allen safeguarded that event as an effort at relationship building between staff members, who are spread throughout the state. He kept in mind that the costs was less than $50 per team member. • Conflicts of Interest and Mixing Private Service with Public Schools. Besides the charter schools, the Halls own and run numerous personal companies that sell products and services to schools. The Times noted 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 question. • Extreme Compensation. The audit likewise questions the combined wages for the Halls, which is $600,000 annually. The report specifies that it might be excessive for the amount of time the couple in fact works. • Nepotism. The Halls created a separate charity with $10.8 countless the California schools' financing, called Pathways in Education. The charity is run by their daughter, Jamie Hall. Little loan has actually been spent toward education therefore far.

2. The Halls compete that they formerly had actually asked for assistance on their operation from the California schools sometimes, however never ever received any reaction. Therefore, they attempted to follow California schools requirements as best they could with their understanding of the policies. Even O'Connell conceded that none of the pointed out practices are prohibited. The audit recommends the California schools must attempt to recover the $57 million in overpayment from the OYO. O'Connell has actually sent out the report to the state's lawyer general's office for evaluation and any required action.