Postscript: Treasurer Cincinnati College Prepatory Academy

A follow up on the aftermath of  of the scandal at Cincinnati College Prepatory Academy.  Stephanie Millard, the treasurer of that school and of Ohio Connections Academy has plead guilty to two counts of unauthorized use of property.  Two years probation.  Not sure what other schools she served as treasurer, but I suspect that many charter schools were looking for a part-time accountant to bless their dealings.  I do know that this indictment and conviction did generate a taxpayer paid audit of Cincinnati College Prepatory Academy and Ohio Connections Academy and perhaps others.  Both audits found issues.

This is why reform is needed as to the finances of charter schools and their for profit management companies.  The loosie goosie fiefdoms paid by the taxpayers, with unelected weak school boards, are a tempting target for abuse.

From the court records:

SENTENCED COUNT 4: UNAUTHORIZED USE OF PROPERTY CONFINEMENT: 180 DAYS, SUSPENDED 180 DAYS HAMILTON COUNTY JUSTICE CENTER PROBATION: 2 YRS

SENTENCED COUNT 16: UNAUTHORIZED USE OF PROPERTY CONFINEMENT: 180 DAYS, SUSPENDED 180 DAYS HAMILTON COUNTY JUSTICE CENTER PROBATION: 2 YRS

A personal fiefdom that ended badly.

Five years probation, repayment of $75,000 and four months in lockdown.  Fair? Probably.  The loss of her license will keep her out this business.  The treasurer has also apparently pled guilty.

Another hand picked school board,not doing their job.

"Power tends to corrupt, and absolute power corrupts absolutely. Great men are almost always bad men."

Hamm founded the school in 1999 and worked to get $7 million in state and federal money per year for the charter school. Charter schools are independently operated public schools that can receive state and federal public money to operate.

Much of that money was used to educate the students, but hundreds of thousands of it was spent by Hamm taking 22 taxpayer-funded trips and attending concerts, often with her friends and co-workers, also paid for with tax dollars. Hamm "treated the CCPA treasury as a personal slush fund in order to enhance her personal lifestyle," Assistant Prosecutor Bill Anderson said.

While her intentions initially may have been benevolent, Anderson said, Hamm created the school and made sure everyone knew she was going to run it as she wanted. "Miss Hamm came down with a case of 'founder-itis,' " Anderson said. 

"Miss Hamm ruled CCPA with an iron fist," he said. "She founded the school. She ran the school, and she was going to do whatever the hell she wanted with this money."

Another hand picked board,not doing their job.  A comment from the board.  Too little, too late.

"Gore admitted the CCPA board wasn't as diligent as it should have been in monitoring Hamm's spending. "The school has lost in excess of half a million dollars," he said."

In exchange for Hamm's plea, prosecutors dropped 23 other charges against her. She will report Jan. 7 to West to begin serving her 120-day time behind bars.

Stephanie Millard also has agreed to plead guilty in the case, court documents note.

http://www.cincinnati.com/story/news/2014/11/24/lisa-hamm-convicted-charter-school-crimes/19483309/

A .375 GPA

Some insights from a recent auditor’s report.  I think  I am reading this correctly. 

Imagine Schools Inc. has been justifiably  criticized for paying a subsidiary more money in rent than it does for its teaching staff and producing poor results.  The national benchmark for rent is 15% according to an article in the Columbus Dispatch. 

A recent audit of Ohio Connections Academy shows that teaching and administration total $5,268,575.  Overhead totals $6,003,793.   113% more than the money for teaching salary and benefits.  Overhead is undefined.  This money flows out of the state to a Maryland management company, Connections Learning,  who does with it as they wish.  There is little in bricks and mortar expense.  Compare that to 15% rent benchmark.

The management company can recycle the same software year after year.  They can sell essentially the same software to multiple states.  The transfer and accounting of the overhead expense insures that the non-profit altruistic E-school never will show a profit.  Useful to show why they cannot pay teachers more or to elicit sympathy from parents or politicians.  They are the underdog. 

Yet it is a very profitable business for the management company. Connections Learning, K-12 and others are aggressively expanding in every state possible.  Underdog status also justifies the need for more money and more students.  See page 20 on the attached link. 

What are the latest state report card results for this E-school?  1 C, 2 D’s and 5 F’s.  A .375 GPA.  It would be nice if they could move the decimal point.

To help manage the multimillion dollar budget they hired a part-time treasurer  who is under indictment for her role as treasurer with Cincinnati College Preparatory Academy.  I guess there is no need for an on-site full time treasurer. 

The audit also shows unresolved title money issues totaling $668,642 (see page 46).  When will this be resolved?  To paraphrase a politician, pretty soon we are talking real money.  At best it shows that they are sloppy with their record keeping.  At worst is suggests that they are playing with the allocations to put more of scarce title money in their pockets at the expense of taxpayers. 

https://ohioauditor.gov/auditsearch/Reports/2013/Ohio_Connections_Academy_11-Hamilton.pdf

There is an obvious problem.  Look at the proliferation of E-schools in Ohio.  Who benefits?

What is needed?  Transparency, strong boards (which are not lead around by the nose by the management company), and oversight.  These characteristics exist in the vast majority of our public school districts.  Oh by the way, results  would be good too.

Another Charter Administrator Convicted. A personal Fiefdom

A personal fiefdom.  It is good to be queen until it isn't.

Where was the oversight, a weak handpicked board and part time treasurer to rubber stamp.

I suspect that getting involved in these charter schools was a very bad career move.  Leaves  Stephanie Millard in a pretty bad position.  Not sure how many other charters she was acting treasurer for but I suspect any and know for sure that one of them was Ohio Connections Academy.

http://www.cincinnati.com/story/news/politics/2014/10/17/former-charter-school-leader-gets-plea-deal/17438269/

A former superintendent accused of using her charter school as her "personal feifdom" is now a convicted felon, marking the latest blemish for charter schools in this region and statewide.

Lisa Hamm, who ran the Cincinnati College Preparatory Academy, the region's largest charter school, cut a deal with prosecutors last week. She pleaded guilty Oct. 8 to three of 26 felony counts against her. The remaining charges, including multiple counts of theft in office and tampering with evidence, were dismissed.

Hamm, who court documents claim ran the school as her "personal fiefdom," could get up to 18 months in prison on the charges of unauthorized use of property. Probation is also an option. She agreed to repay $75,000 to the school. She's scheduled to be sentenced Nov. 24 by Hamilton County Common Pleas Judge John West.

Hamm of Fairfield, and former treasurer Stephanie Millard, of Walnut Hills, were accused of stealing or misusing $148,000 in taxpayer money that should have gone to educating the 950 students at Cincinnati College Preparatory Academy. The court documents allege Hamm instead used the money to pay for extravagant trips, plays, concerts, luggage, spa visits, jewelry veterinary care and other personal uses.

The charges in the Oct. 8 plea agreement involved a trip to San Diego that ended up costing more than $20,000, and trips to Orlando and to see Oprah Winfrey. Hamm had said the trips were school-related.

Charter schools are public schools that are independently run. There are about three dozen in Southwest Ohio. Some are high-performing and well-run. But as a group they're often criticized for lax accountability and mediocre academics. Several local charter schools have closed over the years due to financial problems and academic issues. Some cases resulted in criminal charges.

The state has been cracking down on charter schools via stringent audits and increased scrutiny of their sponsoring organizations. Charter school accountability has become a political issue, as Democrats accuse Republican leadership of not doing enough to improve it.

In the most recent example the Concept chain of charter schools, which includes the Horizon Science Academy in Bond Hill, came under investigation by the FBI and the Ohio Department of Education after a string of allegations including improper use of technology money and testing irregularities.

Charter School Treasurer

This is the same treasurer that is/was used by Ohio Connections Academy.  I wonder how many other charter schools she served as the acting treasurer.

Trial is coming up soon.

CINCINNATI, OH (FOX19) -

A warrant that was briefly issued for the two women who were indicted for stealing from an Over-the-Rhine school has been recalled.

Lisa Hamm and Stephanie Millard are both facing 26 counts of theft in office, tampering with records, tampering with evidence and unauthorized use of property for taking property from the Ohio Department of Education and/or the Cincinnati College Preparatory Academy.

The indictment comes after an investigation by the state auditor's office.

The pair were scheduled to appear in Hamilton County court on Friday morning. Neither showed up so the judge issued a warrant for their arrests.

Attorney Mike Allen tells FOX19 that his clients didn't receive any notice that they were due in court.

The defense and prosecution came to an agreement to withdraw the warrant and their case has been moved to Friday, April 22.

According to the indictment that was filed in Hamilton County, the incidents took place from October 2006 until February of this year. Hamm is accused of taking more than 20 trips with staff and family members, some for training purposes but most for "best practice visits," and spending way over the allotted fund amounts approved by the board. Millard, the school's contracted treasurer, paid each month's credit card bills without the knowledge of board members.

The alleged misspent money totals more than $148,000.

Court documents state that among Hamm's trips was a $20,000, 10-day tour through California which covered expenses such as a rental car with a hired drivers, expensive meals and hotel stays above and beyond what was required for her training in San Diego. On other occasion, Hamm was supposed to make visits to Chicago charter schools but attended a Tina Turner concert instead. Hamm also coordinated a trip to Boston to see Oprah Winfrey and took a sight seeing tour of Europe when the purpose of her trip was to fulfill residency requirements for her doctorate program.

According to the school's website, Hamm is the superintendent, founder and developer of the school, which opened in 1999. The school has an enrollment of 700 students in grades K-12.

Hamm has been suspended without pay.

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