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Press Release Ohio Auditor of State

Shye's List of Debt Grows

Thursday, May 31, 2012

Columbus – Carl Shye’s list of debts to taxpayer grows by more than $52,000 with today’s release of the closeout audit of the New City Community School (Montgomery County) by Auditor of State Dave Yost.

“Though the numbers are still rolling in, Carl Shye’s free rein with taxpayer dollars is over,” Auditor Yost said, referring to the recent federal charge of embezzlement filed against Shye.

The New City Community School made nine expenditures via check totaling $52,370 that lacked proper documentation to support the expenditures and did not have school board approval.  Findings for recovery were issued in the following amounts:

  • $2,000 against Yolanda Knox
  • $14,320 against H. Marie Congo
  • $12,000 against the George Washington Carver Preparatory Academy
  • $23,350 against Carl Shye

Because Carl Shye was treasurer at the school during a portion of the fiscal year, he is held jointly and severally liable for the findings for recovery against Knox, Congo and George Washington Carver Preparatory Academy in the amount of $28,320.

A referral is being made to the Ohio Bureau of Workers’ Compensation because the school paid $8,645 to substitute teachers and other school employees as vendors rather than employees.  The school did not include these individuals as part of its calculation of premiums to be paid to the Ohio BWC.  Related referrals were also made to STRS and SERS.

Another matter is being referred to the Ohio Department of Education because the school did not provide the agency with reports that help to calculate state aid to community schools.  The school also failed to perform close-out procedures.

Carl Shye was charged with embezzling more than $470,000 in taxpayer dollars on May 17, 2012 by U.S. Attorney Carter M. Stewart.  Arraignment for Shye will take place on June 21, 2012 at 10:00 a.m.

A full copy of this audit report may be accessed online.

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The Auditor of State is one of five independently elected statewide offices under the Ohio Constitution. Auditor Yost’s office is responsible for auditing over 5,600 state and local government agencies. Staff also works in partnership with state and local governments to deal effectively with financial, accounting and budgetary issues.

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