TAILIEUCHUNG - Extraordinary Audit of the California Charter Academy

The consolidated income statement and consolidated statement of cash flows include the revenues and expenses and cash flows of companies that are no longer in the Group up to the date on which the related holding was sold or the company was liquidated, and those of the new companies included in the Group from the date on which the holding was acquired or the company was incorporated through year end. Revenue and expenses associated with discontinued operations are presented in a separate line on the consolidated income operations are those with identifiable operations and cash flows (for both. | Fiscal CJprisis Management Assistance Team MGT of America Extraordinary Audit of the California Charter Academy Administrative Agent Larry E. Reider Office of Kern County Superintendent of Schools Chief Executive Officer Thomas E. Henry Commissioned by the Superintendent of Public Instruction in Cooperation with the Orange and San Bernardino County Offices of Education April 14 2005 i Table of Contents Executive Chapter 1 Charter Schools in The California Charter Academy and the Educational Administrative Services The American Public Agency CCA Closures . 11 Investigative Scope and Chapter 2 Related Party Conflicts of Steven Cox and EASC Violated Prohibitions Against Conflicts of EASC Directed Contracts and Expenditures to Its Subsidiary Everything for Schools .17 Steven Cox Employed Members of His Family Using CCA Chapter 3 EASC Obtained Millions of Dollars from the CCA Charter Administrative Unauthorized Transfer of EASC Shifted Some of its Costs to the CCA Charter Schools Through Additional Chapter 4 EASC Control of CCA Finances Led to Questionable Expenditures . 29 Questionable Contracts and Vendor Services . 29 Maniaque Management High Desert Youth and Family Resource Community Information Services Occidental Communications Group. 33 One Highly Paid Staff Member Provided Few Measurable EASC Transferred Employees to the CCA Charter CCA Cannot Account for All of the Grant Funds It Chapter 5 California Charter Academy Schools Received at Least 23 Million More in Charter School Funding Than They Were Charter School School Sites Outside of the Chartering Districts Private School Independent Study Attendance Chapter 6 EASC s Excessive Spending of Unauthorized Funds Contributed to the .

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