Columbus – Nearly $860,000 is owed to Ohio’s taxpayers due to uncollected money and unlawful contract changes at the Richard Allen Academy Community Schools.  Audits of the four Dayton-area community schools were released today by Auditor of State Dave Yost.

“It doesn’t appear that much has changed at the Richard Allen schools,” Auditor Yost said.  “Once again, mismanagement of public dollars was found.  Ohio’s taxpayers and our children deserve better.”

In response to findings for recovery issued in a prior special audit of the Richard Allen schools, all four schools amended their original contracts with the management company, IMR (Institute of Management and Resources, Inc.).  Per an attorney general opinion, retroactive approval of their management company contract is not permitted.  Based on the original contracts, IMR was overpaid in the following amounts:

• $82,939 by Richard Allen Academy Community School
• $282,388 by Richard Allen Academy II Community School
• $142, 997 by Richard Allen Academy III Community School
• $215,643 by Richard Allen Preparatory Academy Community School

Findings for recovery in these amounts were issued against IMR.  Felix O’Aku, who served as treasurer of all four schools during the audit period, is held jointly and severally liable.

The Richard Allen Academy, Richard Allen Academy II and Richard Allen Academy III Community Schools reported accounts receivable balances due from IMR at the end of fiscal year 2010.  In each school, IMR repaid portions of the receivable amounts, but there was no evidence that IMR repaid the remaining amounts during fiscal year 2011.  Findings for recovery were issued against IMR in the following amounts:

• $101,632 for Richard Allen Academy Community School
• $18,743 for Richard Allen Academy II Community School
• $9,365 for Richard Allen Academy III Community School

At June 30, 2010, Richard Allen Preparatory Academy Community School reported $5,320 in reconciling items that were due from IMR.  These items consisted of revenues that were deposited into the IMR bank account instead of the school’s account.  There was no evidence that IMR repaid the reconciling items, and a finding for recovery was issued against IMR in the total amount.

Full copies of these audits may be accessed online.

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The Auditor of State’s office, one of five independently elected statewide offices in Ohio, is responsible for auditing more than 5,600 state and local government agencies.  Under the direction of Auditor Dave Yost, the office also provides financial services to local governments, investigates and prevents fraud in public agencies and promotes transparency in government.

Contact:
Carrie Bartunek
Press Secretary
614-644-1111