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Friday, May 24, 2002

Charter school in audit debacle




By Jennifer Mrozowski, jmrozowski@enquirer.com
The Cincinnati Enquirer

        The management company of Sabis International School, a Mount Auburn charter school, said Thursday it has cooperated fully with the state auditor's office.

        The announcement came a day after the auditor's office ruled the 2-year-old, 650-student elementary school “unauditable.”

        Kim Norris, spokeswoman for the auditor's office, said the state office tried repeatedly but could not obtain necessary financial documents to conduct an audit for the fiscal year of July 1, 2000, to June 30, 2001.

        The school has 90 days to produce the documentation. If not, the state attorney general will issue a subpoena for the school board and its management company to appear in the auditor's office to explain the failure to provide the reports. The attorney general can also file suit.

        Every public school in Ohio, including charter schools, are audited annually by the state auditor's office, Ms. Norris said, adding that it's highly unusual for a school to be considered unauditable.

        “We have responded to all the requests we are aware of,” said Joy Maria N'Daou, development director for the school's management company. “It's not true that we've not been cooperating.”

        Cincinnati Education Management LLC, an affiliate of Minnesota-based Sabis Educational Systems Inc., is the management company that was hired to run the operations of the school. The charter's school board terminated the contract with the management company last year. The contract runs out in June.

        Ms. N'Daou said the board has interfered with correspondence to the management company in the past by changing a post office address, and has not cooperated with the company on other important matters.

        Both sides are embroiled in lawsuits, calling into question the continued operation of the school.

        The school's board in April sued the Ohio Department of Education, state auditor and attorney general. It claimed the state, which funds the school, failed to properly account for school revenues, and audit and assist the school as required by state law. The board dropped suit against the auditor this week.

        The management company sued the board this month for breach of contract and breach of fiduciary duty.

       



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