Columbus – Embattled charter school treasurer Carl Shye is jointly responsible for nearly $55,000 in findings for recovery in the closeout audit of the Peterson Entrepreneurial Training Enterprise (PETE) (Montgomery County) released today by Auditor of State Dave Yost.  The findings include more than $15,000 in cash withdrawals by a school administrator.

“Cash withdrawals totaling more than $15,000…flabbergasting,” Auditor Yost said.  “What possible rationale could there be for a school administrator to continuously pull out cash, compliments of taxpayers?  We’ll never know -- there are no records.”

Shye has come under fire for his questionable practices as treasurer at various charter schools throughout the state.  Since the latter half of 2011, Shye has been issued findings for recovery in five audits, including PETE.  All told, Shye has more than $650,000 in findings for recovery to his name.
From October 10, 2008 through December 1, 2009, PETE CEO Shane K. Floyd made 13 cash withdrawals from the academy’s general operating account totaling $15,652.  The withdrawals did not include any supporting documentation, which made it impossible to determine if the withdrawals were for proper public purposes.  A finding for recovery in the amount of $15,652 was issued against Floyd.  The academy’s treasurer, Carl Shye, Jr., is held jointly and severally liable for the total amount.

The academy also was unable to provide documentation to support the public purpose of eight checks, totaling $38,949, written to numerous individuals and organizations.  Findings for recovery were issued against the following:

• Gregory Johnson -- $10,000
• Impact Enterprises -- $1,900
• Kerry Ivy -- $2,100
• The Perry Foundation -- $23,949
• Wendy Wiggins -- $1,000

Shye, as the academy’s treasurer, is also held jointly and severally liable in the amount of $38,949.

On May 21, 2009, PETE’s sponsor, Educational Resource Consultants of Ohio, issued a notice that their sponsorship of the school would be terminated, effective August 19, 2009.  On September 25, 2009, the board of directors voted to suspend operations, and operations ceased on October 1, 2009.

A full copy of this audit 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) 728-7198