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1. Superintendent of Direction for the California schools, Jack O'Connell, initiated an audit more than a year ago into the fiscal concerns of the Choices 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 moneyed by the state. The OYO California schools serve trainees who have dropped out of the standard high schools. They presently have about 15,000 students in 40 storefront places throughout the state. These California schools trainees do many of their work at house, conference with instructors twice a week. According to state records, student achievement 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, just 11 percent of OYO trainees 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 Assistance Team, who concluded their analysis and provided their findings in a report that was released in August 2006. The audit mentions accounting defects, overpayments by the state, conflicts of interest, nepotism, excessive compensation, and blending private company issues with public schools. The OYO was founded and still run by John and Joan Hall, previous instructors from Hollywood High School. They have fully complied 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 teachers as 1.92 full-time positions. Their representative, Stevan Allen, stated that this is a common practice for charter schools in the California schools system and is a genuine technique for compensating school staff for longer days and year-round schedules. California schools superintendent O'Connell believes teachers ought to be counted only as one full-time position each. The auditors disagreed, mentioning that conventional 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 over half of the $57 million overpayment. In addition, the report kept in mind numerous questionable costs. One example of unrestrained spending, given by the Times was an $18,000 personnel party held at Disneyland. Allen safeguarded that event as an effort at relationship building between staff members, who are scattered across the state. He noted that the expenses was less than $50 per team member. • Disputes of Interest and Mixing Private Company with Public Schools. Besides the charter schools, the Halls own and run several private businesses that offer materials and services to schools. The Times noted that the Options 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 concern. • Excessive Settlement. The audit also questions the combined wages for the Halls, which is $600,000 every year. The report states that it may be extreme for the quantity of time the couple really 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 child, Jamie Hall. Little money has actually been spent toward education therefore far. The Halls contend that they previously had requested guidance on their operation from the California schools lots of times, however never ever got any response. Hence, they tried to follow California schools requirements as best they might with their understanding of the policies. Even O'Connell yielded that none of the mentioned practices

2. are unlawful. The audit recommends the California schools need to try to recuperate the $57 million in overpayment from the car donation programs near me OYO. O'Connell has sent the report to the state's chief law officer's workplace for evaluation and any needed action.