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Auditor slams Richard Allen Schools
The Ohio auditor’s office on Tuesday said “booze, missing money, missing records and self-dealing” has led to $929,850 in findings for recovery in a special audit of the Dayton-based Richard Allen Academy charter schools.
About $888,411 has not yet been paid back.
“It’s a shame that well-performing community schools are being undermined by this kind of conduct,” Auditor Dave Yost said.
Last year, Richard Allen Schools was the subject of an in-depth Dayton Daily News report that examined questionable oversight of how the schools are run and how their money is spent.
Officials for the school system, which has four regional sites, responded to the audit Tuesday. They said in a statement that they are “resolute in our desire to learn from these situations and work with our sponsor and relevant governmental agencies to ensure that the operation and management of our schools is on par with the academic performance of our students.”
Richard Allen has three schools in Dayton and one in Hamilton.
During the regular financial audits of the four schools for the fiscal year ending June 30, 2009, the auditor’s office identified several issues that prompted the special audit. Many of the areas of concern were related to payments to management company President/CEO Jeanette Harris and included potential conflicts of interest with family members, overpayments to the management company, and lack of policies, procedures and documentation, according to the auditor’s office.
The audit found Harris purchased alcohol for the schools’ holiday party and was reimbursed in the full amount of $1,002. A finding for recovery of that amount was filed against Harris, who has since repaid it.
“It’s just amazing to me that anybody would think buying booze with tax money is a permiss ible thing,” Yost said in an interview.
Richard Allen Schools officials said in the statement, “The language chosen for use in the audit report attempts to create the perception that there was intent to run afoul of the laws of this state by the parties referenced therein. What the auditors were tasked with ascertaining was whether the funds expended by the schools were for a proper public purpose. As stewards of public funds, we would expect no less. However, we are dismayed by the arbitrary and capricious nature in which the auditors determined what documentation they would and would not give credence to.”
The special audit of July 1, 2008, through June 30, 2010, was conducted to determine whether certain expenditures and payments to credit card companies were supported and related to operations of the schools.
Harris has served as president/CEO of the schools’ management company, the Institute of Management and Resources (IMR). She also owned and operated a for-profit business, the Institute of Charter Schools Management and Resources that leased building space to the schools and, along with her husband, founded the schools.
Of the $929,850 in audit findings, a finding of $408,240 was issued against the I MR for overpayments and insufficient supporting documentation for expenditures. An other finding for recovery in the amount of $215,058 was issued against the Institute of Management and Resources for insufficient documentation and incorrect billing for employee payroll and benefits.
During the audit period, unsupported funds transfers were made in the amount of $238,389, the auditor’s office said.
Richard Allen Schools’ sites include Richard Allen Academy at 700 Heck Ave., Richard Allen Academy II at 184 Salem Ave., Richard Allen Academy III in Hamilton and Richard Allen Preparatory at 627 Salem Ave. Richard Allen Academy, II and III were rated as “Continuous Improvement,” the equivalent of a C letter grade, on the 2010-11 state report card. Richard Allen Preparatory was not rated.
Richard Allen Academy and Richard Allen Preparatory Inc. had lease agreements with the Institute of Charter School Management and Resources, and of the fund transfers, it was determined that $65,600 was for lease payments.
The schools did not have any other contracts with the company . A finding for recovery in the amount of $172,789 was issued against the Institute of Charter School Management and Resources for unsupported funds transfers.
The auditor’s office said the portion of the audit related to potential conflict of interest has been referred to the Ohio Ethics Commission. The incidents cited include:
• School board member Dixie Allen and her husband, Jimmie Allen, owner of Allen Painting and Decorating. IMR and the schools paid Allen Painting and Decorating $7,199 and $8,878, respectively.
• Harris’ husband, the Rev. Ed Harris, an emeritus member of the schools’ board of directors and pastor of Greater Allen AME Church. IMR and the schools contracted with and paid the church for rental of building space for teacher training and an after-school program.
The system further said, “We are unwavering in our belief that documentation fully supporting many of the expenditures and findings referenced in the audit report was provided to the auditors and are disappointed that our efforts and our commitment to student performance and operational transparency are not accurately reflected in the state’s report. …”
Permalink | Comments (4) | Post your comment | Categories: Charter Schools and School Choice
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By Au contraire, Skeptic
February 22, 2012 4:01 PM | Link to this
From the website, Schooldigger.com: 1,688 Ohio Elementatary schools ranked by 3rd and 4th grade OAA Reading-Math 2010-2011 (1)best to worst(1688) Richard Allen Academy(Dayton)#1332 Richard Allen Academy(Hamilton)#1401 Dayton Public Westwood #1678 Dayton Public Rosa Parks # 1675 Dayton Public Louise Troy#1669 Dayton Public Fairview#1647 There are many more examples of local public schools that are testing lower than Richard Allen Schools. Financial and educational malfeasance is not the monopoly of charter schools.
By DayMed Part II
February 22, 2012 2:49 PM | Link to this
I don’t know why this is such a shock, this is the same scam that Jeanette Harris nee Prear pulled when she owned and ran DayMed insurance into the ground. Her daughter was involved in that mess also - IE, questionable auto leases.
By null
February 22, 2012 12:58 PM | Link to this
al sharpton and jesse jackson will come and save the day.
By Skeptic
February 22, 2012 11:59 AM | Link to this
This is a case study in why for-profit education tends to fail. Support your local public schools!