Just a little 'ol audit on a little 'ol Ohio charter school

Audit: Charter school hirings may have violated ethics laws

Thursday, October 4, 2007
By Bill Bush
THE COLUMBUS DISPATCH

A Columbus charter school might have violated Ohio’s ethics laws when the director hired her niece as an employee and a board member was hired as a contractor, a state audit released today says.

The school, Chase Academy for Communication Arts, at 1533 Cleveland Ave., also was not a nonprofit corporation, as required by law, meaning its state education aid could go to pay state and federal taxes, according to the audit of the school year that ended in June 2006.

The audit says school Director Celia Jones paid her niece $2,250 to be an administrative assistant and paid a board member $15,000 for pupil transportation and food services.

School officials, including Jones, have reimbursed the school $9,839 as a result of the audit.

The audit says Chase Academy violated other state requirements by:

Reimbursing Jones and other school officials $3,441 without any documentation as to why.

Allowing Jones to solely approve reimbursing herself $18,688 for gasoline, a van rental, classroom supplies and other items.

Presenting auditors with altered or “created” invoices for $23,640 of payments, “fraudulent actions which could lead to inaccurate reports.”

Paying employees, including Jones, amounts not in accordance with their approved rates of pay. Auditors found that 17 percent of the payroll transactions tested were paid in error.

Not keeping accurate personnel files: 32 percent of employees didn’t have current employment contracts, 82 percent had not completed state retirement forms, and 4 percent had not compled tax-withholding forms.

Borrowing $18,000 without authorization or review from the board. Only Jones agreed to the loan, and she wrote checks and used a debit card on the school’s account with no board review or approval.

Failing to ensure that its treasurer was bonded.

Failing to submit a five-year financial forecast.

Not having documentation on how $2,774 was spent.

Purchasing a $51 YMCA membership for a teacher and three students related to that teacher.

Jones could not immediately be reached for comment. In the audit, the school generally responded to the findings by saying it has made changes and tightened its procedures.

bbush@dispatch.com