August 9, 2006
Schools Chief Jack O'Connell Releases Audit of Options
for Youth/Opportunities for Learning Charter Schools
SACRAMENTO — State Superintendent of Public Instruction Jack O’Connell today released an audit of the Options for Youth (OFY) and Opportunities for Learning (OFL) Charter Schools. (The audit can be viewed at: Extraordinary Audit [http://wwwstatic.kern.org/gems/fcmat/OFYOFLcompletefinalreport890.pdf] (Outside Source; PDF; 8,643KB; 179pp.).)
The audit, initiated in conjunction with superintendents of county offices of education in Los Angeles, Orange, Sacramento, San Bernardino, and Siskiyou counties, found that due to noncompliance with state laws, the OFL/OFY schools over claimed more than $57 million than the schools were entitled to in state funding over a period of three years (fiscal years 2002-03, 2003-04, and 2004-05).
The audit also revealed excessive compensation for the founders of the charter schools, mixing of business that are privately owned with public schools that are controlled by the same individuals, and instances of nepotism.
"I am deeply concerned by the findings of this audit," O’Connell said. "The audit shows that the operators of these schools are reaping millions in profit from public funds intended primarily for the education of students. I have referred this report to the California Attorney General, and I will work aggressively to ensure that the state is reimbursed for the millions of dollars in overpayments taken by these schools.
"I am also concerned about the students attending the OFL/OFY schools and I am asking all of the districts that have authorized the OFL/OFY charter schools to look long and hard at the practices described in this report and to ensure that public funds are used for the educational benefit of students rather than for profiteering by charter school operators. Meanwhile, I will work with the county superintendents who partnered with CDE on this audit to make sure that students served by these schools are getting the education they deserve."
The OFL/ OFY schools are operated by husband and wife team John and Joan Hall. The Halls also own and operate a number of for-profit corporations that offer educational services to the OFL/OFY schools. The audit revealed the schools significantly over claimed state funds by overstating data regarding the number of credentialed teachers at the schools, student-to-teacher ratios, student attendance records, and other instances of incorrectly reported data. The Halls paid themselves millions to operate the charter schools and private management companies they created and operated to provide services to the schools. In 2002, the OFY schools donated $10.8 million toward the creation of an organization called Pathways in Education, a charity operated by the Hall’s daughter. Pathways subsequently spent the funds in an attempt to establish an independent study school in Chicago, Illinois.
OFL/OFY operates eight schools and more than 40 satellite sites (see attachment). All of the schools and site are non-classroom based, independent study programs, serving more than 15,000 students per year. The OFL/OFY schools principally serve at-risk youth.
"I am troubled about the excessive profits of public education dollars that this audit indicates," said Herbert Fischer, San Bernardino County Superintendent. "While charter schools can provide alternative and innovative options for students and families, we must take action to ensure they are accountable for the use of public funds and the education of students."
O'Connell, Los Angeles County Superintendent Darline Robles, San Bernardino County Superintendent Herbert Fischer, Sacramento County Superintendent Dave Gordon, Orange County Superintendent Bill Habermehl, and Siskiyou County Superintendent Barbara Dillman initiated the investigation and audit in March 2005 following a recommendation by the State Board of Education's Advisory Commission on Charter Schools.
These county offices of education involved contracted with the Fiscal Crisis and Management Assistance Team (FCMAT) to conduct the investigation.
"Charter schools are public schools that can be leaders in innovation and meet the needs of students who are not well served by a traditional school setting," O’Connell said. "But like all public schools, charter schools need strong oversight by their authorizing districts and transparency in all of their operations. We can only protect the integrity of high-quality charter schools if we insist that all are held accountable for using state funds in the best interest of the students they serve. While this audit is disturbing, our system for oversight of charter schools will continue to hold accountable those schools that fail to uphold the public trust."
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Attachment
Options For Youth
Charter School Locations
Corporate
Administration, 199 S. Los Robles Ave. #700, Pasadena, CA 91101, 626-685-9300, 888-639-6696
Operational Services, 16023 Arrow Hwy. #D-H, Irwindale, CA 91706, 626-685-9300
Burbank
Burbank 1, 1701 W. Verdugo Avenue, Burbank, CA 91506, 818-566-7525
Burbank 2, 401 S. Glen Oaks Blvd. #110, Burbank, CA 91502, 818-566-9809
Northridge, 8415 Reseda Blvd., #7, Northridge, CA 91324, 818-886-8392
Sylmar 1, 12677 Glen Oaks Blvd., Sylmar, CA 91342, 818-367-7158
Sylmar 2, 13711 Foothill Blvd., #B, Sylmar, CA 91342, 818-833-8757
Van Nuys, 7335 Van Nuys Blvd. #119, Van Nuys, CA 91405, 818-781-9059
San Gabriel
La Crescenta, 3115 N. Foothill Blvd., #J & K, La Crescenta, CA 91214, 818-236-2060
San Gabriel, 609 W. Las Tunas Dr., San Gabriel, CA 91776, 626-282-0390
Irwindale, 16023 Arrow Hwy. #C, Irwindale, CA 91706, 626-337-9352
San Juan
Carmichael, 6110 Fair Oaks Blvd. #D & E, Carmichael, CA 95608, 916-485-5155
Arden, 2627 Alta Arden Expressway, Sacramento, CA 95825, 916-971-3175
North Highlands, 5720 Watt Avenue, North Highlands, CA 95660, 916-338-2375
Rancho Cordova, 11088 Olson Drive, #C, Rancho Cordova, CA 95670, 916-631-8113
Victor Valley
Hesperia 1, 17344 Main Street, Hesperia, CA 92345, 760-948-3636
Hesperia 2, 15555 Main Street, #D7, Hesperia, CA 92345, 760-948-3355
Victorville 1, 14725 Seventh Street #400, Victorville, CA 92395, 760-955-5525
Victorville 2, 16932 Bear Valley Rd., Victorville, CA 92395, 760-955-5900
Victorville 3, 14196 Amargosa Rd. #C, Victorville, CA 92345, 760-241-6546
Victorville 4, 15048 Bear Valley Rd. #E, Victorville, CA 92395, 760-241-8300
Upland
Fontana, 16981 Foothill Blvd., #A6, Fontana, CA 92337, 909-357-3168
Chino, 12887 Mountain Ave., Chino, CA 91710, 909-465-9529
Rancho Cucamonga 2, 7965 Vineyard Ave. #F-3, Rancho Cucamonga, CA 91730, 909-941-6851
Upland, 310 N. Mountain Ave., Upland, CA 91786, 909-946-0500
Fontana 2, 17216 Slover Avenue #L102, Fontana, CA 92337, 909-429-0482
Opportunities For Learning
Charter School Locations
Main Office, 1150 Foothill Blvd. #A, La Canada, CA 91011, 818-952-1790-Phone, 818-952-1795-Fax, 818-952-1789 -HR fax
Academic Recovery/Independent Study Centers
Opportunities for Learning (North), 6608 Cherry Avenue, Long Beach, CA 90805, 562-633-7440-Phone, 562-633-7971-Fax
Opportunities for Learning (Signal Hill), 2501 Long Beach Blvd., Long Beach, CA 90806, 562-997-4205-Phone, 562-997-7285-Fax
Opportunities for Learning (Monrovia), 806 E. Huntington Drive, Monrovia, CA 91016, 626-303-2022-Phone, 626-303-2223-Fax
Opportunities for Learning (Jordan), 6596 Long Beach Blvd., Long Beach, CA 90805, 562-422-4572-Phone, 562-422-3072-Fax
Opportunities for Learning (Bellflower), 17620 Bellflower Blvd., Suite B102, Bellflower, CA 90706, 562-867-0815- Phone, 562-867-5415-Fax
Opportunities for Learning (City of Industry), 16042 Amar Road, City of Industry, CA 91744, 626-961-3044-Phone, 626-961-0344-Fax
Opportunities for Learning (Ridgecrest), 330 E. Ridgecrest Blvd., Suite C, Ridgecrest, CA 93555, 760-375-7799-Phone line 1, 760-375-9157-Fax
Opportunities for Learning (Dana Point), 33621 Del Obispo, Suite E, Dana Point, CA 92629, 949-248-1282-Phone, 949-248-2450-Fax
Opportunities for Learning (Santa Clarita), 27616 Newhall Ranch Road #A15, Valencia, CA 91355, 661-607-0153- Phone, 661-607-0172-Fax
Opportunities for Learning (Culver City), 10875 Washington Blvd., Culver City, CA 90232, 310-558-4534-Phone, 310-558-4779-Fax
Opportunities for Learning (Canyon Country), 18259 Soledad Canyon Road, Canyon Country, CA 91351, 661-424-1337-Phone, 661-424-1129-Fax
Opportunities for Learning (Palmdale), 2505 E. Palmdale Blvd. Suite H, Palmdale, CA 93550, 661-265-1957-Phone, 661-265-1962- Phone line 2, 661-265-1918–Fax
Opportunities for Learning (Palmdale II), 270 E. Palmdale Blvd., Palmdale, CA 93550, 661-265-7451-Phone, 661-265-9579–Fax
Opportunities for Learning (Lancaster), 1160 Commerce Center Drive, Lancaster, CA 93534, 661-951-3646 -Phone line 1, 661-951-7168-Phone line 2, 661-951-7189–Fax
Opportunities for Learning (Lancaster II), 2719 W. Avenue L, Lancaster, CA 93536, 661-722-2711-Phone, 661-722-2811–Fax
Opportunities for Learning (Chatsworth), 20553 Devonshire Street, Chatsworth, CA 91311, 818-727-9103-Phone, 818- 727-9189-Fax
Opportunities for Learning (Arleta), 9700 Woodman Avenue, Suite A-23, Arleta, CA 91331, 818-899-8946-Phone, 818- 899-5946-Fax
Opportunities for Learning (Studio City), 12029 Ventura Blvd., Studio City, CA 91604-2609, 818-506-5344-Phone, 818-506-5677–Fax
Opportunities for Learning (Hoover), 6100 S. Hoover, Los Angeles, CA 90044, 323-778-2166-Phone, 323-778-2956-Fax
Experiential Learning Center
Opportunities for Learning (Canyon Country Experiential Learning Center), 18269 Soledad Canyon Rd., Canyon Country, CA 91351, 661-424-1381-Phone Line 1, 661-424-1812-Line 2, 661-424-1047–Fax
