For Immediate Release:                                                      

June 30, 2020                                                             

                                                                                               

Richard Allen Academy Community Schools Overpay $863,343

 

Columbus – Auditor of State Keith Faber’s office today released the FY 2017 audits for Richard Allen Academy Community School (Montgomery County), Richard Allen Academy II Community School (Montgomery County), Richard Allen Academy III Community School (Butler County), and Richard Allen Preparatory Academy Community (Montgomery County) which included two findings for recovery totaling $863,343.

 

“The law is straightforward – Richard Allen Schools chose to ignore their legal obligations and instead improperly spend hundreds of thousands of dollars intended for the education of our children,”  said Auditor Faber. “We will continue to audit to the law and call out those that choose to manipulate for personal gain.”

 

In addition to multiple non-compliance and material weakness findings – many that have been identified in prior audits as well – auditors issued two findings for recovery for the misspending of tax dollars.

 

In a management agreement between Richard Allen Schools and the Institute of Management Resources, Inc. (IMR), School agreed to pay IMR 94% of the total state aid and all pass-through federal and state grant funding as well as all school lunch revenues. IMR agreed to pay each school funds to cover its expenses up to $57,000 if the state aid retained by School was less than $57,000. The schools did not make payments to IMR in accordance with the agreement and by the time the school cancelled its contract effective July 31, 2017, they had overpaid management fees by the following amounts:

 

Richard Allen Academy Community School                         $139,277

Richard Allen Academy II Community School                     $613,870

Richard Allen Academy III Community School                    $15,686

Richard Allen Preparatory Academy Community School     $83,785

 

That brought their total overpayment to IMR to $852,618.

 

There is no indication that the schools collected on any of these overpayments to IMR.

 

Because they supervised the accounts from which the improper payments were made, a finding for recovery was jointly and severally issued against Brian Adams, Treasurer and board members Alphonse Allen, Michael Brown, Gerald Cooper, Laquetta Cortner, Wanda Mills, Lonnie Norwood, Rhonda Ragland and Kelli Vaughn in the amount of $852,618 and in favor of the Richard Allen Academy Community Schools’ General Fund. Brian Adam’s bonding company is the Western Surety Company.

 

A second finding was related to the overpayment of board members.

 

The governing board was shared by all four Richard Allen Schools during fiscal year 2017. One board meeting was held to discuss all four schools and the board kept one set of minutes. The board of a community school may compensate its members attending a meeting. However, no individual shall be compensated more than $125 per meeting or $5,000 per year.

 

Despite the one meeting for all four schools and the shared governance structure, the board members were paid by each school for their attendance of a single board meeting creating an overpayment of $10,725.

 

A finding for recovery for public money illegally expended in the following amounts was issued against the following individuals in favor of Richard Allen Academy Community School, Richard Allen Academy II Community School, Richard Allen Academy III Community School, and Richard Allen Preparatory Academy Community:

 

Alphonse Allen           $1,375

Michael Brown           $1,100

Gerald Cooper            $1,375

Laquetta Cortner         $1,375

Wanda Mills               $1,375

Lonnie Norwood         $1,375

Rhonda Ragland         $1,375

Kelli Vaughn              $1,375

Total Overpayment $10,725

 

 

Brian Adams, Treasurer, supervised the accounts from which the improper payments were made making the finding jointly and severally against Brian Adams in the amount of $10,725.

 

The school objected to both findings.  

 

The reports are available 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 6,000 state and local government agencies. Under the direction of Auditor Keith Faber, the office also provides financial services to local governments, investigates and prevents fraud in public agencies, and promotes transparency in government.