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1. Superintendent of Instruction for the California schools, Jack O'Connell, started an audit more than a year ago into the fiscal issues of the Alternatives 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 but 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 places throughout the state. These California schools students do the majority 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 article of August 10th, only 11 percent of OYO students finished during the 2003-2004 academic year. The rest of trainees that left school that year either dropped out, were expelled, or moved to other schools. The California schools' audit was carried out by the Fiscal Crisis and Management Help Team, who concluded their analysis and presented their findings in a report that was launched in August 2006. The audit mentions accounting defects, overpayments by the state, conflicts of interest, nepotism, excessive payment, and blending personal business issues with public schools. The OYO was founded and still run by John and Joan Hall, previous instructors from Hollywood High School. They have actually completely complied with the California schools' audit, but dispute the majority 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, specified that this is a common 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 thinks instructors need to be counted only as one full-time position each. The auditors disagreed, mentioning that traditional California schools instructors invest much less time working each year than those at OYO. However, the auditors thought the 1.92 amount is pumped up. This example, alone, accounts for more than half of the $57 million overpayment. Additionally, the report noted several questionable costs. One example of unrestrained spending, provided by the Times was an $18,000 personnel celebration held at Disneyland. Allen protected that occasion as an attempt at relationship building in between employee, who are spread across the state. He noted that the costs was less than $50 per staff member. • Conflicts of Interest and Mixing Private Service with Public Schools. Besides the charter schools, the Halls own and run numerous private services that offer products and services to schools. The Times kept in mind that the Options 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. • Extreme Payment. The audit also questions the combined salaries for the Halls, which is $600,000 every year. how to receive car donation The report mentions that it may be extreme for the quantity of time the couple really works. • Nepotism. The Halls produced a separate charity with $10.8 countless the California schools' financing, called Pathways in Education. The charity is run by their child, Jamie Hall. Little loan has actually been invested toward education so far. The Halls contend that they previously had actually requested assistance on their operation from the California schools sometimes, but never got any reaction. Hence, they attempted to follow California schools requirements

2. as best they might 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 should try to recuperate the $57 million in overpayment from the OYO. O'Connell has actually sent the report to the state's attorney general of the United States's office for review and any essential action.