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Urban Youth Academy founder Michael Ward is not concerned with state Auditor Mary Taylor saying his charter school might not survive despite evidence that it is not monitoring its finances properly.

Ward says the audit was not all bad.

"The most beautiful thing about that audit is that it never said we embezzled or mismanaged or misappropriated funds," Michael Ward said. "For us, that means a great deal. There's no embezzling or misappropriations of funds here."

Other documentation shows the school's financial troubles were felt by employees last fall.

Letters to a former UYA employee, Toya Clark, dated Nov. 13 and Dec. 15, 2006 from UYA's insurance company, American Community, say the school did not pay its premiums for employee medical coverage in October and November despite UYA deducting insurance from employees' checks.

In a letter by UYA's human resources director Franklin M. Carter to employees on Dec. 7, 2006, UYA says it began to "experience a decline in its monthly foundation payments, which has negatively impacted its monthly operational expenses."

In the letter, Carter wrote UYA was going to cut employee salaries by 15 percent across the board.

Board member: We've got to slow down, focus

UYA board members said they understand the school is suffering financially, but that it's too early to pack it in.

Board chairperson Wendy Humphrey said she read the audit, but that Auditor Mary Taylor is wrong in thinking the school won't survive.

"What the audit reveals is that we don't have a reserve," Humphrey said. "If we missed a foundation payment we would be in huge trouble. If most schools missed a foundation payment they would be in trouble. Our focus, because we built so much so quickly, is the cosmetology and the barber schools. We've got to slow down and focus on generating revenue from what we've already put out there."

The academy opened in October of 2004 as a charter school with a mission to educate dropouts, expelled students and those who have trouble fitting into a traditional educational environment.

It set out to teach those kids life skills and prepare them to work, founder Michael Ward said then. The school had about 70 students in its first year and Ward said it would have 200 "in a couple years."

Principal Clarence Gage said it was a school that was "outside the box."

"We want kids that will support Springfield," Michael Ward said. "Not another city, not another state. We are from Springfield and want to stay in Springfield."

Ward said he and his wife, Joanna started the school after being "downsized" by their employers. Ward said they started with no financial help and emptied their 401-Ks to fund the school.

A graduate of South High School in 1979, Ward, 47, got an associate's degree in criminal justice from Clark State Community College and a bachelor's degree in psychology from Wright State University.

He was 27 and a Springfield City police officer when he tried to sell cocaine to an undercover agent in December of 1986, according to press accounts from the time. Ward was immediately fired from the force and sentenced to at least five years in prison and fined $7,500 for drug trafficking and permitting drug abuse.

One board member unaware of arrangement

UYA is governed by a board, whose members include Humphrey, Cynthia Hagans-Tunstall, the Rev. Samuel Wollum, Kay Vance — a relative of Joanna Ward — and Shane Floyd.

Humphrey said the board holds regular meetings, with the last being in June before a summer break and the next is scheduled for Sept. 13.

Wollum said he retired as pastor of The Clifton Ave. Church of God at the end of last year and has not been in contact with other school board members or Michael Ward in "some time." Wollum said he had not seen the state audit, but knows the school is in financial trouble.

When asked if she knew what the school pays Michael Ward for, Humphrey said she was "not sure." Ward said he serves the board and puts his efforts toward helping build programs and maintaining classrooms.

Despite what the audit called a lack of routine monitoring of the school's financial activity, Humphrey is sure Urban Youth Academy will continue to serve students in Springfield.

UYA has six non-certified and eight certified full-time teachers for 120 students, according to the audit.

In UYA's response to the audit, officials said they have been focused on reducing debt rather than coming up with ways of generating revenue.

The school plans to advertise through radio, television and newspapers and spend money on things that will "greatly enhance its ability to service its growing population of students."

Another change is UYA has moved its accounting operations from the Lucas County Educational Service Center near Toledo to a treasurer here in Clark County, Michael Ward said.

Moreover, the academy is banking on getting more students, as many as 70, when South High School closes its doors after this school year.

Mattie White, director of school services for Springfield City Schools, said that is "highly unlikely."

"We do not anticipate any of our students leaving the city schools and heading to charter schools due to the consolidation of the high school," White said.

A school in academic emergency

As students returned to class last Tuesday, the state released its annual report card and ranked UYA in academic emergency for the second straight year.

The school met none of the nine indicators the state mandates for test scores in reading, writing, math and social studies.

The school reported an attendance rate of 92.9 percent with a graduation rate of 35 percent.

State Rep. Ross McGregor, R-Springfield, said UYA represents what is wrong with the charter school system in Ohio.

He said he is "very concerned" about things he sees in the audit and says Michael Ward needs to get the academy in order.

"Charter schools are basically businesses," McGregor said. "And looking at this from a business aspect, their product is producing good students. But the arrangement has gone bad. If charter schools are going to exist they have to produce results in educating our children."

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