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Charter school official owes $84K, auditor says

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By Margo Rutledge Kissell, Staff Writer Updated 12:11 PM Friday, December 30, 2011

The treasurer for the now-closed Dayton charter school Nu Bethel Center of Excellence overpaid himself $84,814, more than four times his authorized salary, according to a state audit released Thursday.

“A school board exists for a reason,” Ohio Auditor Dave Yost said. “When officials disregard it or do not get proper approval, public dollars are put at risk. Closed or not, this money must be returned to Ohio’s taxpayers.”

Treasurer Carl Shye Jr. was paid $108,814 with checks dated July 8, 2009, through Nov. 3, 2010, the auditor’s office said.

Because the board-approved compensation was set at $24,000, Shye was overpaid by $84,814 and was issued a finding for recovery in that amount, the auditor’s office said in the close-out audit conducted since the elementary school at 3560 W. Siebenthaler Ave. closed on June 20, 2010.

“Typically the findings are issued against the responsible person,” said Mike Maurer, public information officer for the auditor’s office.

Shye could not be reached for comment. Officials at the Educational Resource Consultants of Ohio, which had sponsored the school, also could not be reached.

The school had been the subject of earlier critical state audits. Its financial troubles and poor academic performance led Educational Resource Consultants of Ohio to not renew its sponsorship.

The auditor’s office said the school board had approved a 2010 budget on June 22, 2009, that included $24,000 for treasurer services. A few days later, on July 1, Shye and board President James Willis entered into a contract for fiscal services at the amount of $60,000 annually for the 2010 fiscal year, plus $40,000 for services provided in prior years.

“The contract was never formally ratified by the members of the board and therefore is not considered legal,” the auditor’s office said in the news release.

The school received citations noting errors in financial reporting that required adjustments to correctly report the school’s financial activity.

The Internal Revenue Service is being notified that the school owes $15,899 for Medicare taxes and $44,071 for federal income taxes.

A referral is being made to the Ohio Department of Taxation that the school failed to remit $4,459 in withholdings. The school also withheld city of Dayton taxes for employees who were not subject to those taxes.

Contact this reporter at (937) 225-2094 or mkissell@DaytonDailyNews.com.

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