Superintendent of Instruction for the California schools, Jack O'Connell, initiated an audit more than a year earlier into the financial concerns of the Choices for Youth and Opportunities for Knowing (OYO) schools. The OYO is a chain of independent research study charter schools within the California schools system, which are privately run but moneyed by the state.

1. Superintendent of Guideline for the California schools, Jack O'Connell, started an audit more than a year back into
the fiscal concerns of the Choices 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
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 trainees in 40 store locations throughout the state. These California schools students do many
of their work at home, conference with teachers twice a week. According to state records, student achievement
test and high school exit examination 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, just 11 percent of
OYO students finished during the 2003-2004 school year. The rest of students that left school that year either left,
were expelled, or transferred to other schools.
The California schools' audit was performed by the Financial Crisis and Management Help Group, who concluded
their analysis and provided their findings in a report that was released in August 2006. The audit cites accounting
problems, overpayments by the state, conflicts of interest, nepotism, extreme settlement, and blending private
company concerns with public schools.
The OYO was founded and still run by John and Joan Hall, previous teachers from Hollywood High School. They
have completely cooperated with the California schools' audit, but disagreement 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 car donation
concord ca 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 personnel 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, citing that standard California schools teachers invest much
less time working each year than those at OYO. However, the auditors thought the 1.92 quantity is inflated. This
example, alone, accounts for over half of the $57 million overpayment.
Furthermore, the report kept in mind a number of doubtful expenses. One example of unrestrained spending,
provided by the Times was an $18,000 personnel celebration held at Disneyland. Allen safeguarded that event as
an attempt at relationship building between personnel members, who are scattered across the state. He noted
that the expenses 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 run several private services that offer materials and services to schools. The Times noted 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.
• Excessive Compensation. The audit likewise questions the combined salaries for the Halls, which is $600,000
every year. The report states that it may be excessive for the quantity of time the couple really 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 money has actually been spent
towards education so far.
The Halls contend that they previously had requested assistance on their operation from the California schools
sometimes, but never got any reaction. Hence, they attempted to follow California schools requirements as finest
they could with their understanding of the policies. Even O'Connell conceded that none of the cited practices are

2. unlawful.
The audit recommends the California schools must try to recover 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 required action.