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Taylor: Final Audit Shows Urban Youth Academy Failed to Document More Than $241,000 in Spending

Now-defunct Springfield Charter School Plagued by Poor or Missing Financial Records

Thursday, February 11, 2010

Clark County - Auditor of State Mary Taylor today released the final financial audit of Urban Youth Academy, a Springfield-based charter school that closed in May 2008. The report indicates that the school was plagued by poor recordkeeping and missing records that resulted in findings for recovery of more than $241,000 in undocumented spending of public funds.

“The lack of proper financial oversight at this school allowed for the misspending of tax dollars intended to educate area children,” Taylor said. “We are committed to ensuring that those who spend public dollars in Ohio are held accountable for their decisions and actions with regard to that public money. ”

The audit report indicates that Urban Youth Academy officials failed to:

  • Maintain required accounting records, including payroll records, bank reconciliations and listings of capital assets
  • Maintain adequate documentation of accounts payable or of loans to the school, making it impossible to determine the school’s debt
  • Follow required school-closing procedures or file required financial statements for the closeout period
The audit also finds that during the period of the audit, the sole proprietor of the school’s management company, Urban Management and Development, was the spouse of the school superintendent – a potential conflict of interest. This issue was referred to the Ohio Ethics Commission.

Numerous individuals and business entities are identified in the audit as being responsible for repayment of their shares of the undocumented spending. Information in the audit was provided to the Clark County Prosecutor’s Office for consideration concerning possible criminal charges.

A copy of the complete audit is available online.

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The Ohio Auditor of State’s office is a leader in the accounting and auditing field, earning prestigious national honors from the Government Finance Officers Association, the National White Collar Crime Center and the National State Auditor’s Association.

Contact
Chris Abbruzzese
Director of Public Affairs
(614) 644-1111