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JUNE 1, 2012
TABLE OF CONTENTS
1.
2.
3.
4.
3.1
3.2
3.3
3.4
3.5
3.6
3.7
Vendor Relationships........................................................................................... 17
RESTRICTION ............................................................................................................ 26
1.
accounting and auditing consultant to Fulton County Schools (FCS) Internal Audit Department
(Internal Audit). Laurie Dyke (IAG Managing Partner), Karen Fortune (IAG Partner), Pat
Salem (IAG Forensic Accountant) and Caroline Chang (IAG Forensic Manager) served as the
engagement services team, along with support staff providing administrative assistance. Ms.
Salem and Ms. Chang performed the fieldwork at Fulton County School Boards offices and
FSAMS.
In connection with this engagement, IAG was asked to assist Jim Yerich, Director of
Internal Audit for FCS and his department (including staff member Angela Huston, Manager of
Internal Audit).
Hereafter, Mr. Yerich, Ms Huston, Ms. Salem and Ms. Chang (and any
combination of these individuals) are collectively referred to as the Auditors. Our directive
was to audit various areas of school operations, including, but not limited to financial
management, governance and compliance with federal, state, local and school charter laws, rules,
guidelines and guidance. In this report, we are not expressing any opinion on such compliance;
rather, we are providing facts and findings from our audit procedures and will rely upon counsel
and FCS to make any legal or compliance determinations.
We were not engaged to perform an audit in accordance with Generally Accepted
Auditing Standards (GAAS) or to express an opinion on whether the financial statements were
reasonably stated in accordance with Generally Accepted Accounting Principles (GAAP). The
services provided in this matter were performed in accordance with the Standards for Consulting
Services established by the American Institute of Certified Public Accountants and opinions, if
any, are expressed to a reasonable degree of accounting certainty.
We concluded our fieldwork on May 7, 2012 and based our analysis on the records as of
that date. Our report does not contemplate any changes that may have been made since then.
We reserve the right to revise and/or supplement our analyses, opinions, and report to the extent
additional relevant information is provided.
1
Exhibit 43, Page 3 of 71
2.
our engagement:
3.
FSAMS Cooperation with FCS and IAG in the course of the engagement
Security Issues
Immigration Issues
Construction Bond
Vendor Relationships
Detailed Findings
The following represent our findings and observations from this engagement:
3.1
Email from James Yerich to Ali Ozer, dated February 6, 2012, 4:14PM Audit and Records Request with attached
letter
2
Email from Ali Ozer to James Yerich, dated February 8, 2012, 3:18PM Re: Audit and Records Request with
attached Peachtree Backup file
2
Exhibit 43, Page 4 of 71
audit process would have been more time-intensive, and we would have had to use more
stringent procedures to complete our audit. We would have been able to capture data using only
QB report-generating procedures.
Mr. Yerich requested that FSAMS download the QB files to a file for use on a desktop,
but FSAMS was unable to do this. As of February 13, 2012, FSAMS Principal Sener was
working on this request.3 IAG was able to download the data and convert it to a desktop version
which then permitted us to navigate all the transactions and drill-down to the lowest unit of
information. This conversion process took us a considerable amount of effort and time. Thus, it
is conceivable that this was beyond the technical capabilities at FSAMS.
Bond Documents
In the meantime, Internal Audit requested all accounting records and documentation
related to the construction project and the related bond, bond proceeds and sources and uses of
funds.4
We analyzed the activity per the trust account statements and agreed them to the
requisitions submitted to the trustee. Refer to Section 3.6 below for our findings.
Fieldwork
On March 15, 2012, Internal Audit sent a document request list to Mr. Sener for all
documents that were to be provided for review upon Mr. Yerichs and Ms. Salems arrival at
9:00AM on March 21, 2012.5
Mr. Yerich and Ms. Salem met with Mr. Ozer (Executive Director of FSAMS), Mr. Sener
(Principal of FSAMS) and Mr. Yilmaz (Business Manager of FSAMS) on Wednesday, March
21, to discuss the audit. Mr. Ozer recorded the meeting on a hand-held recording device. At that
time, the Auditors were told that they could only conduct the on-site audit based on the
availability of Mr. Yilmaz. Additionally, Mr. Ozer stated that Mr. Yilmaz would only be made
available every third day, because he splits his time between the elementary school, the middle
school, and the high school. Mr. Yerich asked if there was anyone else who could be available
Email from Kenan Sener to James Yerich, dated February 13, 2012, 4:19PM Re: This Might Help
Email from James Yerich to Ali Ozer, dated February 8, 2012, 12:37PM Additional Requested Information with
attached letter
5
Email from James Yerich to Kenan Sener, dated March 15, 2012, 9:12AM Audit Documents Request with
attached letter
4
3
Exhibit 43, Page 5 of 71
to pull and copy the files so that work could continue every day rather than only every third day.
Mr. Yerich was told that Mr. Yilmaz was the only person who could pull these records.
The Auditors conducted the review of the FSA records in a conference room. There was
at least one monitor selected by FSAMS in the conference room throughout the day. When the
Auditors first arrived, the bookkeeper was in the room; he remained for the entire day. Later, a
teacher arrived, and she stayed for the remainder of the day. During the day, while Mr. Yerich
was away at lunch, Ms. Salem was questioned by Ms. Angela Lassetter, a member of the
FSAMS governing board, regarding who she worked for. In the course of the conversation, Ms.
Salem told Ms. Lassetter that she was working with Mr. Yerich as a contractor and was
employed by IAG Forensics. Prior to leaving that day, the Auditors met with Mr. Ozer, Mr.
Sener and Mr. Yilmaz, once again trying to find a way to continue the on-site audit without
interruption. The auditors asked if the bookkeeper, or anyone else, could pull the records in Mr.
Yilmazs absence. Once again, the auditors were told that Mr. Yilmaz was the only person who
could pull the requested records.
Ms. Salem returned to FSA Middle School on Monday, March 26, at 9AM (the earliest
date that Mr. Yilmaz was available); Ms. Angela Huston joined her at about 10AM. Ms. Salem
briefly spoke with Mr. Ozer, upon her arrival, and then went directly to the conference room to
get started. The bookkeeper was in the conference room when she arrived; he remained in the
room until the Auditors departure. Shortly after arriving, the Auditors were told that Mr.
Yilmaz would only be available until 1PM, because he had to prepare the payroll for all three
schools. Once again, no one else would be made available to pull the records in Mr. Yilmazs
absence. The Auditors were given the option of coming back to the school for half days for the
remainder of the week, or returning for full days on Thursday (March 29th) and Friday (March
30th). On March 27, Mr. Yerich communicated to Mr. Ozer that the Auditors would return on
Thursday and Friday of that week and that he expected the complete list of original documents,
including original vendor invoices, which I gave you nearly two weeks ago to be made available
in advance of the auditors arrival.6
Email from James Yerich to Ali Ozer; dated March 27, 2012, 2:22PM
4
Exhibit 43, Page 6 of 71
On Wednesday, March 28, Mr. Ozer sent Mr. Yerich an email7 stating:
You are welcome to bring additional auditors. However, due to the confidential
information to be reviewed, anyone without a current Fulton County Schools ID needs to
have a signed contract with Fulton County Schools. Prior to continuing the audit on
Thursday, March 29, please ensure that any audit team members that this provision may
apply to makes the relevant contracts available for me to review and copy for our
records.
In the afternoon of March 28, Mr. Yerich made arrangements for Ms. Chang and Ms.
Salem to obtain FCS credentials. Ms. Chang and Ms. Salem subsequently traveled to the FCS
office to complete all required processes, including consenting to criminal background checks, in
order to obtain these credentials (badges).
On Thursday, March 29, 2012, Ms. Chang and Ms. Salem arrived at FSAMS at 8AM to
continue their work. When they arrived, Mr. Ozer told them that they could not begin work until
Angela Huston arrived because he needed to see a copy of a contract. Ms. Salem replied that she
thought the FCS badges were sufficient for them to continue their work. Both Ms. Chang and
Ms. Salem presented their badges; FSAMS later requested the badges and said they were going
to make copies of these badges.
None of the previously requested documents had been pulled or copied in advance of the
Auditors arrival. Instead, the Auditors had to work with Mr. Yilmaz, going through one folder
at a time, pulling the documents that needed to be copied. Each folder contained a month's worth
of data. This is the same way the Auditors were forced to work on prior visits. In the previous
visit, Ms. Salem and Mr. Yerich got through the expense folders for the months of November
2011 through March 2012. On March 29, 2012, prior to departing, Ms. Chang and Ms. Salem
reviewed the expense folders for the months of July 2011 through November 2011.
About 11:30AM, two governing board members (one of whom was Ms. Lassetter) came
into the conference room and began asking questions. The governing board members told Ms.
Chang, Ms. Salem and Ms. Huston that they were going to record the conversation with a handheld recording device. They asked the Auditors if they were full-time employees of Fulton
County Schools. When Ms. Chang and Ms. Salem said that they were not, the governing board
members asked who they worked for, to which they responded IAG Forensics. After this
7
Email from Ali Ozer to James Yerich dated March 28, 2012, 12:08 PM
5
Exhibit 43, Page 7 of 71
conversation, the governing board members returned to Mr. Sener's office for a conference.
Shortly after, Mr. Ozer returned to the conference room and told Ms. Salem and Ms. Chang that
they would have to leave until he received a note from Jim Yerich stating that they were
authorized to work at FSAMS. Mr. Ozer said that Ms. Salem and Ms. Chang could return to
FSAMS after lunch, or whenever he received this correspondence from Jim Yerich. The
Auditors subsequently packed up their bags and left.
In the afternoon of March 29, 2012, staff at IAG Forensics received two phone calls from
unidentified individuals inquiring about Ms. Chang and Ms. Salem. One caller asked to speak
with Ms. Chang. When told that Ms. Chang was not available, the caller asked to speak with
Ms. Salem, but hung up immediately after the call was transferred. George Dyke, Director of
Operations for IAG Forensics, fielded a second call in which the caller asked whether or not Ms.
Chang and Ms. Salem were employed by IAG Forensics.8 That evening, Mr. Dyke was copied
on an on-going email stream, originated by Susan Muly.9 In this email, Ms. Muly inquired about
Ms. Salems role in the audit of FSAMS. In addition, Ms. Muly asked about the FCS badges that
had been issued to non-contractual employees. Mr. Dyke had had no prior contact with Ms.
Muly, nor had he been involved in the audit of FSAMS.
Mr.Yerich sent an email to Mr. Ozer later that afternoon stating the following:
From: Yerich, James
Sent: Thu 3/29/2012 5:38 PM
To: Ozer, Ali
Cc: Brock, Glenn; Schultz, Linda; Avossa, Robert
Subject: RE: Auditor Identity Issue
Mr Ozer:
Pat Salem and Caroline Chang will return to Fulton Science Academy Middle School at
8:00 a.m. on Friday, March 30, 2012.
The fact that IAG Forensics is assisting me with your audit is not new information that
you only became privy to today. You have known this since March 21. Their authority to
assist with the audit comes from me, for any reason I deem necessary, and my authority
8
9
It is firm policy not to comment on personnel, clients or cases in which the firm is involved
Email from Susan Muly to Julie T. Baldwin, cc George Dyke and others; dated March 29, 2012, 4:37PM; Re:
Open records request per Mr. Davis
6
Exhibit 43, Page 8 of 71
to conduct audits at any of our schools or charter schools comes from the Fulton County
Board of Education. "Auditor Identity" is not an issue.
Accordingly, Ms. Salem and Ms. Chang will be at your office at the date and time noted
above and I expect you and your staff will give them your full cooperation.
James Yerich, CPA
Director of Internal Audits
Fulton County Board of Education
In the evening of March 29, 2012, Mr. Brock sent a letter to Mr. Ozer to inform Mr. Ozer
of his current and ongoing breach of the Fulton Science Academy Middle School (FSAMS)
charter contract.10 Mr. Brock cited the on-going obstructionist behavior that the Auditors were
encountering, hampering their ability to conduct the audit. In addition, with a copy of the same
letter, Mr. Brock notified the State Department of Education of this communication.
Ms. Salem, Ms. Chang and Ms. Huston returned on March 30, 2012 to continue their
work. From that day forward, the FSAMS staff cooperated fully with the Auditors. FSAMS did,
however, maintain its policy of only allowing the audit to be conducted every third day, when
Mr. Yilmaz was available. In addition, the process of pulling records, one month at a time
continued; and documents were not pulled in advance of the auditors arrival.
On the morning of that same day, March 30, 2012, FCS board members received an
email from Mark Lassetter regarding the FSAMS audit.11 In his note, Mr. Lassetter accused the
Lead Auditor of Fulton County School System of a serious breach of ethics and safety for
issuing fraudulent identifications to employees of IAG. The FCS badges issued to Ms. Chang
and Ms. Salem, however, were not fraudulent; Ms. Chang and Ms. Salem followed the
procedures, as set forth by FCS, to legally obtain these badges.
Mr. Lassetters email also stated, Thursday morning three individuals arrived at FSA
Middle school (sic) and presented FCSS identifications. Later it was discovered (and recorded)
that two of them were in fact NOT FCSS employees, but employees of IAG. Mr. Lassetter was
10
Email from Donna Durrett (on behalf of Glenn Brock) to Ali Ozer; dated March 29, 2012, 6:22PM; Fulton
Science Academy Middle School (FSAMS)
11
Email from Mark Lassetter to Fulton County School Board members; dated March 30, 2012, 8:24AM; Urgent
Fulton County School System Issued Fraudulent Identification Cards To 2 Individuals ; Mr. Lassetter resides at
the same address as that of Ms. Lassetter
7
Exhibit 43, Page 9 of 71
not present on the previous day when Ms. Lassetter questioned Ms. Chang, Ms Huston and Ms.
Salem, nor was he present on March 21, the first time Ms. Lassetter questioned Ms. Salem, so it
is not clear from where he obtained his facts. At no time during this audit have Ms. Chang or
Ms. Salem represented themselves as FCS employees. As stated above, on March 21, when Ms.
Lassetter asked Ms. Salem for whom she worked, Ms. Salem clearly stated that she worked for
IAG Forensics. Ms. Salem provided the same answer on March 29, when Ms. Lassetter asked
her the same question. It was not, therefore, a new discovery on March 29, as Mr. Lassetter
describes it, that Ms. Salem was not an FCS employee.
In this same email, Mr. Lassetter also states that the FCS badges allowed Ms. Chang and
Ms. Salem access to parent personal financial information and more importantly put all the
students at risk. Mr. Lassetter later states in his note, I feel that this may even be criminal as it
involves child endangerment. Ms. Chang and Ms. Salem are not aware of ever having been in
the same proximity as Mr. Lassetter. Mr. Lassetter provided no substantive proof that the IAG
auditors had, at any time, taken any action to endanger the children at FSAMS. In fact, the
Auditors had no interaction with any child while on FSAMS premises other than passing the
students in the hall or at the front of the school at dismissal time. It is, therefore, unclear what
actions may have been perpetrated to warrant an accusation of child endangerment.
As detailed above, the Auditors experienced an environment of resistance and
obstructionism. Concerns about FSAMS management and their lack of compliance with state
guidelines were raised by Fitch Ratings and referenced in Mr. Louis J. Erstes April 30, 2012
letter to Mr. Ozer. Fitch stated that FSAs management is either unable or unwilling to
operate effectively in a highly regulated charter school environment.12
This unwillingness to cooperate with the Auditors and comply with regulations may
provide explanations for some of the other audit findings discussed below.
3.2
continued failure to gather and organize the documents requested in advance of the site visits, the
12
Business Wire, Fitch Downgrades Fulton Science Academy, GAs Revs to B; Rating Watch Negative, March
13, 2012; Louis J. Erste Letter to Mr. Ali Ozer, dated April 30, 2012, re: Fulton Science Academy Middle School
state chartered special school petition
8
Exhibit 43, Page 10 of 71
QB records and physical accounting records seemed to be well-maintained and organized. Each
time Mr. Yilmaz was requested to locate a specific check and related invoice, he was able to
retrieve it. We did note that the method by which the school maintained its invoices did make it
more time-consuming to locate specifically selected invoices;13 however, per Mr. Yerich, this
filing system is not uncommon among some of the FCS schools.
Mr. Yerich and Ms. Huston provided IAG with copies of various mapping schedules
that Mr. Yilmaz purportedly prepared to assist Internal Audit and the FCS Board of Education
(FCSBOE) in their efforts to match the QB financial accounting records at FSAMS to the
monthly reports provided to the FCSBOE (Exhibit 1).14 We have not performed any procedures
on these mapping schedules (either to compare them with the QB files or to the monthly
financial reports provided to the FCSBOE); however, we did note that they are very difficult to
follow (particularly for non-accountants) and do not simplify the desired matching process. We
recommend that FSAMS consider a different format (i.e. grouping schedules by account number)
that can be easily replicated by Internal Audit or the FCSBOE each month to enhance the
transparency of the monthly reporting to all interested parties.
We refer you to Mr. Yerichs report on this issue.
3.3
Security Issues
In the typical course of our engagements, we perform various Internet searches of
interested parties. Such searches were performed in this engagement to determine whether there
existed any inter-relationships or potential conflicts of interest which would violate the terms of
FSAMS charter. In the course of these searches, we encountered a relevant finding of a criminal
nature involving an individual in a position of authority. As a result, we requested copies of the
background checks for a number of individuals.
It was noted that the individual discovered to have a criminal background did sign a
consent form for a criminal background check to be performed by FCS. We are not aware of
13
FSAMS files each invoice with the check with which it was paid. Each check is filed in order by check number.
Thus, locating invoices by vendor is very time consuming and difficult since they are not filed in a vendor file.
Instead of pulling the vendor file, one first has to determine all the check numbers associated with all the vendor
invoices desired, and then search for the month in which that check cleared in order to locate the selected invoice
for vouching.
14
Mapping Schedules prepared by Mr. Yilmaz to assist the FCSBOE in matching FSAMS financial records to the
monthly reports to the FCSBOE
9
Exhibit 43, Page 11 of 71
whether the criminal background check was, in fact, performed. Nor are we aware of whether
the criminal record was sealed on the Georgia Crime Information Center (GCIC) database as a
first time offender and thus, may not have appeared on a GCIC criminal background check.
We also inquired about the security measures taken with regard to FSAMS field trips to
Turkey that ranged in length from one to two weeks each. Specifically, Ms. Salem asked
Principal Sener whether background checks were performed on the adults who traveled with the
students and teachers. According to Principal Sener, the adults were considered participants, not
chaperones, and as a result, the school did not require any background checks to be performed.
As discussed below in Section 3.5, there were a large number of adults traveling with the
students on each of the three trips examined. FCS, in its role of charter schools oversight, and
FSAMS, in its role of the trip sponsor, might want to consider the security issues this might raise.
3.4
Immigration Issues
We were requested to examine the immigration practices of FSAMS and noted that the
school engaged the services of the Law Offices of Cherie E. Cookorinis and incurred costs with
the U.S. Department of Homeland Security (DHS). During the period between May 2009 and
present, FSAMS incurred $74,846 in fees to the attorney and DHS. The following summarize
our findings in this area:
Legal Costs Incurred for Family Members
We noted that FSAMS incurred legal costs for immigration services on behalf of not only
their employees, but also their family members. We noted the following legal services for which
FSAMS paid:
Advance parole travel permit renewal for Yucel Aktas and spouse totaling $1,235
(See Exhibit 2). Mr. Aktas spouse is an employee of Fulton Science Academy
Elementary School (FSAES); we are not aware of any reimbursement from FSAES
to FSAMS for the cost of the immigration services related to Mr. Aktas spouse.
Advance parole travel permit renewal for Yucel Aktass spouse and two children
totaling $520 (See Exhibit 3)
Preparation and filing of I-140 and I-485 on behalf of Sehnaz Dogu Ekicikol and
spouse totaling $7,090 (See Exhibit 5). Ms. Ekicikols spouse was an employee of
FSAMS from 8/2/2007 to 1/31/2010, and became an employee of Fulton Science
Academy High School (FSAHS) as of the 2011-2012 school year. We are not
aware of any reimbursement from FSAHS to FSAMS for the cost of the immigration
services related to Ms. Ekicikols spouse.
Preparation and filing of H-4 status extension on behalf of the spouse of Mr. Ismail
Okumus totaling $490 (See Exhibit 6)
Doguscu Mehmet Aksoy last immigration services invoice dated November 10,
2010, terminated July 31, 2011
Ridvan Ay last immigration services invoice dated March 17, 2011,15 terminated
July 31, 2011
Zafer Demir last immigration services invoice dated November 5, 2010, terminated
July 31, 2011
Aziz Genc last immigration services payment dated July 20, 2009, terminated July
31, 2010
15
The check for this invoice was voided because Mr. Ridvan had received his green card. Prior invoice is dated
12/20/2010
11
Exhibit 43, Page 13 of 71
Ergul Generhan last immigration services payment dated July 23, 2009, terminated
July 31, 2010
Sule Kuyucu last immigration invoice services payment dated October 14, 2009,
terminated July 31, 2010
Ibrahim Yeter last immigration invoice services payment dated October 14, 2009,
terminated July 31, 2010
Demir, Zafer Science Teacher, Science Olympiad Teacher, Academic Team Coach
12
Exhibit 43, Page 14 of 71
3.5
Spring 2011 Turkey Trip, (2) Summer 2011 Turkey Trip and (3) Spring 2012 Turkey Trip.
Spring 2011 Turkey Trip (Schedule 1)
With regard to the Spring 2011 Turkey Trip, we noted that there was evidence of 47
potential participants; however, we were unable to determine the identity of five (5) of them.
The following chart provides the number of participants (whose identities were known) by
classification (i.e., employee, parent, student and other):
Classification
Employee
Parent
Student
Other
GrandTotal
Total
2
13
26
1
42
as
a participant on the trip. We have been unable to determine the nature of the relationship
between FSAMS and Ms. C
have classified her in the other category. In addition, we did not find any indication that Ms.
C
received an invoice from FSAMS requesting payment for her expenses related to this
trip.
13
Exhibit 43, Page 15 of 71
Excluding Ms. C
, received
Total
2
8
7
15
1
33
. We have
been unable to determine the nature of the relationship between FSAMS and Ms. A
therefore, listed Ms. A
; we,
FSAMS made all of the travel arrangements and paid for the participants airfare. Seven
(7) of the 33 participants were FSAMS employees and there is no evidence that these employees
reimbursed FSAMS for their airfare.
16
On May 7,2012, Mr. Sener stated that parents that participate in field trips are not chaperones. Only FSAMS
employees are chaperones.
14
Exhibit 43, Page 16 of 71
(reimbursement requests) were issued to eight (8) other participants (labeled as other 1,
student 4, customer 1 and adult 2) to cover expenses related to this trip. Thus, of the
33 total participants, 45% did not appear to pay for their own airfare. Total income for the trip
was $25,200.00 and total expenses were $37,535.51. It is unknown how the $12,535.51 deficit
was funded.
No food or lodging expenses were listed as costs related to the trip. Mr. Yilmaz did
submit expenses for reimbursement totaling $1,718.98, but these expenses were likely not
enough to provide food and lodging for 33 people. It is unknown where the trip participants
stayed, where they ate while they were traveling, and how these expenses were paid for.
Of the seven (7) employees who chaperoned this trip, four (4) did not make the return
flight with the students. One (1) of these four (4) remained in Turkey an additional two weeks.
The other three (3) of these four (4) stayed in Turkey for an additional month. It is unknown as
to the purpose of sending seven (7) school chaperones on the trip, since four (4) of the seven (7)
were apparently not needed to insure the safe travel of the students on the return trip; and it is
further unknown as to the purpose of providing free airfare for those who apparently stayed
longer, possibly on vacation.
Spring 2012 Turkey Trip (Schedule 3)
Mr. Yilmaz provided a participant roster, dated 04/13/2012, listing the parents and
students who were potential participants in the Spring 2012 Turkey trip. Mr. Yilmaz, however,
stated that the participant roster may not be accurate. The participant roster lists 35 parents and
students. In addition, there is evidence that airline tickets were purchased for five additional
people, not included on the participant roster, comprised of three employees; Tahir Duzyol, an
employee of FSAES; and S
exists between Ms. D
trip; however, there is evidence of only 34 airline tickets having been purchased by FSAMS (27
from American International Travel, and 7 from Expedia). We could not specifically identify the
six (6) individuals who did not participate on this trip.
The following chart provides the number of (unadjusted) potential participants by
classification (i.e., employee, parent, student and other):
15
Exhibit 43, Page 17 of 71
Classification
Employee
Parent
Student
Other
GrandTotal
Total
3
15
20
2
40
Including the other category (since we were able to determine these individuals, Mr.
and Ms. Duzyol, were adults), the adult to student ratio was 20:20, or 100%.
FSAMS made all of the travel arrangements and paid for the participants airfare. Three
(3) of the participants were FSAMS employees and there is no evidence that these employees
reimbursed FSAMS for any airfare. Total income for the trip was $50,700.00 (collected from
trip participants) and total expenses were $42,853.96.
No food or lodging expenses were listed as costs related to the trip. The three employees
did submit expenses for reimbursement totaling $5,000.00, but these expenses were likely not
enough to provide food and lodging for all participants.
reimbursable expenses were for. It is also unknown where the trip participants stayed, where
they ate while they were traveling and how these expenses were paid for.
3.6
Construction Bond
On May 9, 2011, Mr. Ozer signed a completed Development Authority of Alpharetta,
Georgia Application for Revenue Bond Inducement Letter. On this application, the information
entered in the Name of Property Owner field was Mr. Ali Ozer, Grace Institute. After FCS
raised concerns about Graces [refer to Section 3.7 for further detail on the Grace Institute]
involvement with the bond, Merchant Capital issued a letter, dated October 17, 2011, stating that
the inclusion of Grace Institute on the application was an error. A memo from Stacy Edelstein
Hyken and Sarina Russotto of Arnall Golden Gregory, dated October 17, 2011, states, in item 5,
about the application, This document was completed by a bank representative, who was not
fully aware of the relationships between the schools and Grace.
contained factual errors.
17
17
Although, this error has been corrected, we are unclear why and how
Exhibit 2-E Memorandum to Nina Gupta and Laura Lashley from Stacy Hyken and Sarina Russotto dated October
17, 2011
16
Exhibit 43, Page 18 of 71
the bank representative knew about Grace Institute to even consider including it on the
application.
In the course of our examination of vendor relationships (discussed in detail below), we
noted that FSAMS submitted an invoice on April 4, 2012 to Merchant Capital (Underwriter of
Construction Bond) which included a request for reimbursement of a $10,000 legal invoice. This
invoice was received from Sutherland, Asbill & Brennan (Sutherland) and was for a retainer to
provide services in connection with the FSAMS charter renewal with the FCBOE. FSAMS paid
this retainer on March 23, 2012, which was subsequent to the denial FSAMS received on its
charter application in late 2011. (See Exhibit 7). It is unclear on why FSAMS engaged
Sutherland related to the charter with the FCBOE during the time it was applying for a charter
with the State of Georgia. It is also unclear why FSAMS is seeking reimbursement from the
construction bond for these legal expenses.
We also noted in FSAMS May 4, 2012 letter to the Charter Schools Division Director of
the Georgia Department of Education that FSAMS did not include this invoice (and others that
appeared to be construction-related) in its list of bond proceed requisitions and withdrawals.18
3.7
Vendor Relationships
We were asked to gather information regarding FSAMS contracts and vendor
relationships to determine if conflicts of interest existed. We noted the following items for
consideration.
Grace Institute for Educational Research & Resources, Inc. (Refer to Schedule 4)
The first agreement between FSAMS and Grace Institute for Educational Research &
Resources, Inc. (Grace) was dated November 15, 2008. This agreement was signed on behalf
of Grace by Mr. Selim Ozdemir. At that time, Mr. Ozdemir was both a Board Member for Grace
and the Executive Director for both FSAMS and FSAHS. Mr. Ayhan Korucu (Board Member
and current Governing Board President of FSAMS) signed the agreement on behalf of FSAMS.
In addition, FSAMS Principal Sener also served as a Board Member for Grace; and Mr. Ozer
served as both President of Grace and Curriculum Director for FSAMS.
18
FSAMS Letter to Mr. Louis J. Erste, dated May 4, 2012,[face of document states May 4, 2011] re: Supplemental
Information for the FSAMS State Chartered Special School Petition, section 9
17
Exhibit 43, Page 19 of 71
On its fiscal 2008-2009 tax return, Grace reported a loan of $10,018 from Mr. Ozdemir.
During the 2009-2010 school year, Messrs. Yucel Aktas (FSAMS teacher), Sener (FSAMS
Principal and Bookkeeper) and Ozer (FSAMS Executive Director) served as Grace Board
Member, Board Member and President, respectively. Refer to Schedule 4 for our analysis of
individuals with affiliations with both Grace and the FSA schools.
FSAMS financial transactions with Grace total the following amounts per year:
Period
01/01/1006/30/10
07/01/1006/30/11
07/01/11Present
Total
Expenses
$80,580.00
$72,564.00
$86,222.00
$239,366.00
19
Email from David Amarante (Pearson), dated September 15, 2011, 12:13PM (Included in FSAMS April 18, 2012
State DOE Clarification Letter Item 2)
18
Exhibit 43, Page 20 of 71
On September 17, 2011 (two days after receiving Pearsons prices in an email), FSAMS
Governing Board voted to contract with Grace20 for $70,000 for Professional Services:
Customize School Software solution and Professional Services: Professional Development.21
Within the Governing Board September 17, 2011 meeting minutes, the Governing Board states:
County advised us that the State is going through a review of Contracts policies for all
charter schools, however FSA currently has a waiver from this due to the full flexibility
we have. The State will be changing this policy and asked us to follow the County
Contracts guidance until the State policy is complete. Purchases require approval as
follows:
Purchases Over $100,000 Require Board Approval
Purchases $50,000-$100,000 Require a public bid process
Purchases $10,000-$50,000 Require 3 Quotes [Emphasis added]22
We noted that the Governing Board unanimously voted to approve the Grace contract
totaling $70,000, yet did not put this contract out for a public bid process. The amount of the
contract falls within the range stated above as the Contracts guidance. In these Governing Board
meeting minutes, the Grace contract is divided into two separate services of $32,500 and
$37,500, which in form (but not in substance) falls below the stated $50,000 threshold requiring
a public bid process. It should be noted that the Grace contract was a single contract with two
service offering line items.
On September 19, 2011 (two days following this vote), FSAMS signed the new contract
with Grace.23
In addition, we noted that FSAMS has paid $86,222 by Grace during the 2011-2012
school year. This is comprised of the $70,00024 contracted amount and two additional invoices
for benchmarking services in the amounts of $12,500 and $3,720 (a total of $16,220) (See
Exhibit 8). Of this $16,220, at the time of the writing of this report, all of it had been paid.
20
19
Exhibit 43, Page 21 of 71
In the November 15, 2008 meeting of the FSAMS Governing Board, the board
approved an affiliation agreement with Grace Institute. In the meeting minutes,
Mrs. Saylam asked, Does Fulton County have any issues with this idea? Mr.
Ozdemir responded, No issues. It is looked at as another vendor relationship.25
We have seen no evidence of Fulton County stating that it had no issues relating
to the Grace/FSAMS relationship prior to this meeting.
In a memo from Ms. Hyken of Arnall Golden Gregory, dated October 17, 2011,
Ms. Hyken states, in item 7, FSA MS followed the Districts regular
procurement procedure to obtain bids for the two (2) discrete services that FSA
MS discussed with Ms. Stowell.26 In discussing (2) discrete services, Ms. Hyken
was referring to (1) the customization of school software solutions; and (2)
professional development services. In Response 2 of the FSA MS State Petition
Clarification Response 4-23-11 document issued by FSAMS, however, FSAMS
states about Grace, As for the professional development services, they are
contracted on a sole source basis. The Math (Connected Mathematics II, College
Preparatory Mathematics), Science (Foundational Approaches in Science
Teaching), and Turkish as a World Language programs are all unique programs
and the Grace Institute is the only local provider with the required expertise in
these programs. [Emphasis added].27 On May 7, 2012, when questioned by Ms.
Salem, Mr. Ozer reiterated that no RFP had been issued nor were bids received
for these professional development services.
In Item 8 of the same memo from Stacy Edelstein Hyken, Ms. Hyken states that
FSA MS is willing to go through the RFP process Furthermore, Ms.
Hyken states that FSAMS followed the Districts procurement policy and
25
Exhibit 2-C Abbreviated Transcript of Agenda Item from November 15, 2008 FSA MS Governing Board meeting
Exhibit 2-E Memorandum to Nina Gupta and Laura Lashley from Stacy Hyken and Sarina Russotto dated October
17, 2011
27
April 18, 2012 State DOE Clarification Letter Item 2, FSA MS Response to Item 2
26
20
Exhibit 43, Page 22 of 71
requested multiple bids before choosing Grace...28 FSAMS did not, in fact, issue
a formal RFP for the services now provided by Grace. Instead, FSAMS simply
requested a quote from one vendor, Pearson, for two of its products. Such quotes
were received two days prior to FSAMS decision to engage Grace again.
In Form 1023, Part IX, Financial Data, and the related description, Grace states
that, for the year ending 06/2009, it plans to pay salaries and wages for only two
staff members, a receptionist and an information technology person.31
It is
unclear what services Grace can provide to its member schools with only two paid
staff members, neither experienced in many of the service areas Grace contracted
to provide to FSAMS.
Potential Reliance on FSA Schools
A material amount of Graces revenue and student participation is reliant upon FSAMS,
FSAHS and FSAES. FSAHS financial transactions with Grace total the following amounts per
year:
Period
01/01/1006/30/10
07/01/1006/30/11
07/01/11Present
Total
Expenses
$64,060.00
$32,072.50
$46,462.00
$142,594.50
28
Exhibit 2-E Memorandum to Nina Gupta and Laura Lashley from Stacy Hyken and Sarina Russotto dated October
17, 2011
29
Exhibit 2-F Grace Institution 501c (3) application, Form 1023
30
Grace Institute for Educational Research & Resources, Inc. Form 990-EZ
31
Exhibit 2-F Grace Institution 501c (3) application, Form 1023
21
Exhibit 43, Page 23 of 71
FSAES financial transactions with Grace total the following amounts per year:
Period
01/01/1006/30/10
07/01/1006/30/11
07/01/11Present
Total
Expenses
$0.00
$60,400.50
$87,587.88
$147,988.38
In the 2009-2010 fiscal year, 49.6% of Graces income came from FSAMS and FSAHS:
FSAMS
FSAHS
Others
Total
Income
$80,580.00
$64,060.00
$146,834.00
$291,474.00
#ofStudents
512
235
553
1300
In the 2010-2011 fiscal year, 35.4% of Graces projected student population came from
FSAMS, FSAHS and FSAES:
FSAES
FSAMS
FSAHS
Others
Total
#ofStudents
413
508
231
2098
3250
Date
04/14/10
01/01/1006/30/10
8/3/2010
07/01/1006/30/11
07/25/11
07/01/11Present
07/01/11Present
DescriptionofTransaction
FSAMSpurchased1500shirts
FSAMSsoldshirts
FSAMSpurchased1128shirts
FSAMSsoldshirts
FSAMSpurchased900shirts
FSAMSsoldshirts
AcademyApparelsold261shirts
Est.Valueof
FSAMS
Inventory
Expense/
(basedon
(Income)
cost)
$20,316.00
$20,316.00
($2,571.00)
$17,745.00
$16,259.00
$34,004.00
($19,164.00)
$14,840.00
$13,725.00
$28,565.00
($7,281.00)
$21,284.00
($4,805.00)
$16,479.00
Average
Purchase
Price
$13.54
$14.41
$15.25
32
According to Mr. Sener, polo shirts are sold for a couple of dollars above cost. For purposes of estimating ending
inventory, we assumed sales of polos at cost.
23
Exhibit 43, Page 25 of 71
Vendor Pricing
Performing a cursory web search, we compared various vendors pricing to the average
prices paid by FSAMS to Core and noted that there were cheaper prices to be obtained,33
particularly if one ordered in bulk, even considering the cost of adding a school logo.
According to Principal Sener, FSAMS has recently decided to issue bids for uniforms,
but has not done so yet. FSAMS is in the process of generating an RFP.
Atlantic Wind Group
FSAMS contracted with Atlantic Wind Group, LLC (AWG, also known as Atlantic
Wind Production) for video production, advertising, printing, website design and other related
services. AWGs registered agent and President is Mr. Baybars Bakay; and according to the
Georgia Secretary of State website, AWG was created on June 1, 2010.
Relationship Between AWG and FSAMS
In the course of our work, Mr. Bakay was identified as a former teacher at FSAMS.
When Ms. Salem inquired of Principal Sener who owned AWG, he responded that he did not
know. When Ms. Salem asked about Mr. Bakays relationship to FSAMS, Principal Sener told
her that Mr. Bakay had been a computer science teacher at FSAMS several maybe five years
ago.
FSAMS payroll records indicate that Mr. Bakay was last employed by FSAMS from
January 1, 2010 to July 31, 2010.
Selection Process
According to Principal Sener, AWG provided the best estimate for a video production
project. He also stated that due to its competitive prices and their good working relationship,
FSAMS decided to give subsequent business to AWG. The first payment we noted from
FSAMS to Mr. Bakay was in December 2010.
33
24
Exhibit 43, Page 26 of 71
Expenses
$0.00
$14,085.00
$12,633.00
$26,718.00
Vendor Inter-relationships
While examining the FSAMS vendors, we noted numerous inter-relationships between
FSAMS, its vendors and other interested parties. Please refer to Schedule 5 for details. We
found these relationships to be of interest in light of the fact that there are alternative
goods/services vendors who are better established and more economical. Based on the links
between these various parties, there is a potential for bias in FSAMS vendor selection process.
25
Exhibit 43, Page 27 of 71
4.
Restriction
This report summarizes our analysis, observations, conclusions and opinions based upon
the work we have performed to date. We reserve the right to amend or supplement our report
and / or findings, should additional relevant information be provided. The attached exhibits,
schedules and accompanying notes to the schedules are an integral part of this report.
The procedures were performed solely for the information of counsel and assistance with
respect to this matter. This report is not to be reproduced, distributed, disclosed or used for any
other purpose without prior written consent of IAG Forensics. This report is not intended for
general circulation or publication.
__________________________________
26
Exhibit 43, Page 28 of 71
Exhibit 1
Exhibit 1
Exhibit 1
Exhibit 1
Exhibit 1
Exhibit 1
Exhibit 1
Exhibit 1
Exhibit 1
Exhibit 1
Exhibit 1
Exhibit 1
Exhibit 1
Exhibit 2
Exhibit 3
Exhibit 4
Exhibit 5
Exhibit 6
Exhibit 7
Exhibit 7
Exhibit 9
Exhibit 9
FultonScienceAcademyMiddleSchool
AuditFindings
Spring2011TurkeyTrip
Participantsper3/8/2011MEDEX
InvoiceandQBOIncome
Oncul,Ebru
Sener,Kenan
6/17/2011Deposit
Classification
Parent
Student
Student
Student
Student
Parent
Other
Student
Parent
Student
Student
Parent
Student
Parent
Student
Student
Student
Parent
Student
Student
Student
Student
Parent
Parent
Student
Parent
Student
Parent
Student
Student
Employee
Parent
Student
Parent
Employee
Student
Student
Parent
Student
Student
Student
Student
Other
TotalIncome
Invoice
Departure
Return
Amount
Date
Date
$ 1,800.00
$ 1,200.00
$ 1,200.00
$ 1,500.00
$ 1,200.00
4/2/2011 4/11/2011
$ 1,800.00
4/2/2011 4/11/2011
$ 1,200.00
$ 1,800.00
$ 1,200.00
$ 1,800.00
$ 1,800.00
$ 1,200.00
$ 1,800.00
$ 1,200.00
$ 1,200.00
$ 1,200.00
$ 1,800.00
$ 1,200.00
$ 1,200.00
$ 1,200.00
$ 1,600.00
$ 1,800.00
$ 1,800.00
$ 1,200.00
$ 1,800.00
$ 1,500.00
$ 2,250.00
$ 1,500.00
$ 1,200.00
$ 1,800.00
$ 1,200.00
$ 1,800.00
$1,085.10
$1,085.10
4/2/2011 4/11/2011
$1,085.10
4/2/2011 4/11/2011
4/2/2011 4/11/2011
$1,085.10
$1,085.10
4/2/2011 4/11/2011
4/2/2011 4/11/2011
$1,085.10
$1,085.10
4/2/2011 4/11/2011
$1,085.10
4/2/2011 4/11/2011
4/2/2011 4/11/2011
$ 1,200.00
$ 1,200.00
$ 1,800.00
$ 1,200.00
$ 1,500.00
$ 1,200.00
$ 1,200.00
$ 1,200.00 AssumedtobeMs.C
$58,450.00
Schedule1
Airline
Ticket
$1,085.10
$1,085.10
Travel
Insurance
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
spayment
$10,851.00
Page1of2
Exhibit 43, Page 59 of 71
FultonScienceAcademyMiddleSchool
AuditFindings
Spring2011TurkeyTrip
AirlineTickets(Delta)
TravelInsurance(MEDEX)
TripRefund
Miscellaneous
ReimbursedExpenses
TotalExpenses
Classification
Employee
Parent
Student
Other
GrandTotal
$ 47,602.70
$ 936.28
$ 750.00
$ 134.36
$ 1,582.66
$ 51,006.00
TotalIncome $ 58,450.00
TotalExpense $ (51,006.00)
Profit/(Deficit) $ 7,444.00
Total
2
13
26
1
42
Schedule1
Page2of2
Exhibit 43, Page 60 of 71
FultonScienceAcademyMiddleSchool
AuditFindings
Summer2011TurkeyTrip
Participantsper5/23/2011
MEDEXInvoiceandAtlanta
InternationalTravel
Reservations
Ay,Ridvan
Dilek,Elif
Ersoy,Sabiha
Karaslan,Ahmet
Seker,Davut
Tuzen,Salih
Yilmaz,Ahmet
Classification
Other
Student
Employee
Student
Student
Customer
Employee
Student
Employee
Customer
Student
Customer
Student
Student
Student
Employee
Student
Student
Customer
Student
Student
Employee
Customer
Customer
Student
Adult
Customer
Student
Employee
Adult
Student
Customer
Refund
Employee
TotalIncome
Invoice
Amount
$ 1,250.00
$ 1,150.00
$ 1,500.00
$ 1,150.00
$ 1,250.00
$ 1,800.00
$ 1,250.00
$ 1,250.00
$ 1,250.00
$ 1,150.00
$ 1,250.00
$ 2,500.00
$ 1,400.00
$ 1,250.00
$ 1,150.00
$ 1,500.00
$ 1,500.00
$ 1,250.00
$ 400.00
Departure
Return Airline
Date
Date
Ticket
5/29/2011 6/16/2011
9
5/29/2011 6/16/2011
9
5/30/2011 7/15/2011
9
5/29/2011 6/16/2011
9
5/30/2011 6/17/2011
9
5/30/2011 6/17/2011
9
5/29/2011 7/15/2011
9
5/29/2011 6/16/2011
9
5/29/2011 6/16/2011
9
5/30/2011 6/17/2011
9
5/29/2011 6/16/2011
9
9
5/30/2011 6/17/2011
5/30/2011 6/17/2011
9
5/29/2011 6/16/2011
9
5/29/2011 6/16/2011
9
5/30/2011 6/17/2011
9
5/30/2011 6/17/2011
9
5/29/2011 6/16/2011
9
5/30/2011 6/17/2011
9
5/29/2011 6/16/2011
9
5/30/2011 6/17/2011
9
5/30/2011 7/1/2011
9
5/30/2011 6/17/2011
9
5/29/2011 6/16/2011
9
5/30/2011 6/17/2011
9
5/30/2011 7/1/2011
9
5/30/2011 6/17/2011
9
5/30/2011 6/17/2011
9
5/30/2011 7/15/2011
9
5/30/2011 7/1/2011
9
5/30/2011 6/17/2011
9
5/29/2011 6/16/2011
9
Assumednonrefundabledeposit
5/29/2011 6/16/2011
9
Travel
Insurance
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
$25,200.00
Schedule2
Page1of2
Exhibit 43, Page 61 of 71
FultonScienceAcademyMiddleSchool
AuditFindings
Summer2011TurkeyTrip
AirlineTickets(AtlantaIntlTravel)
AirlineTickets(Expedia)
TravelInsurance(MEDEX)
ReimbursedExpenses
TotalExpenses
Classification
Adult
Customer
Employee
Student
Other
GrandTotal
$ 30,429.00
$ 4,545.90
$ 841.63
$ 1,718.98
$ 37,535.51
TotalIncome $ 25,200.00
TotalExpense $ (37,535.51)
Profit/(Deficit) $ (12,335.51)
Total
2
8
7
15
1
33
Schedule2
Page2of2
Exhibit 43, Page 62 of 71
FultonScienceAcademyMiddleSchool
AuditFindings
Spring2012TurkeyTrip
ParticipantsperFSAMSroster
andAtlantaInternational
TravelInvoice
Dilek,Elif
Ersoy,Sabiha
Karakoyun,Erdogan
Classification
Parent
Student
Student
Employee
Other
Other
Parent
Parent
Student
Parent
Employee
Student
Student
Student
Student
Parent
Student
Student
Parent
Parent
Student
Employee
Student
Parent
Student
Student
Student
Parent
Parent
Parent
Parent
Student
Parent
Student
Student
Parent
Student
Parent
Student
Student
TotalIncome
Invoice
Amount
$1,725.00
$1,225.00
$1,150.00
$1,800.00
$1,800.00
$1,400.00
$1,800.00
$1,400.00
$1,400.00
$1,500.00
$1,400.00
$1,800.00
Departure
Date
5/31/2012
5/31/2012
5/31/2012
5/31/2012
5/31/2012
5/31/2012
5/31/2012
5/31/2012
5/31/2012
5/31/2012
5/31/2012
Return Airline
Date
Ticket
4/9/2012
9
4/9/2012
9
4/9/2012
9
4/9/2012
9
4/9/2012
9
4/9/2012
9
4/9/2012
9
4/9/2012
9
4/9/2012
9
4/9/2012
9
4/9/2012
9
5/31/2012
5/31/2012
4/9/2012
4/9/2012
9
9
5/31/2012
4/9/2012
5/31/2012
5/31/2012
5/31/2012
4/9/2012
4/9/2012
4/9/2012
9
9
9
5/31/2012
5/31/2012
5/31/2012
5/31/2012
5/31/2012
5/31/2012
5/31/2012
5/31/2012
4/9/2012
4/9/2012
4/9/2012
4/9/2012
4/9/2012
4/9/2012
4/9/2012
4/9/2012
9
9
9
9
9
9
9
9
5/31/2012
5/31/2012
5/31/2012
5/31/2012
5/31/2012
4/9/2012
4/9/2012
4/9/2012
4/9/2012
4/9/2012
9
9
9
9
9
$1,900.00
$1,400.00
$1,400.00
$1,800.00
$1,600.00
$1,400.00
$1,600.00
$1,800.00
$1,800.00
$1,800.00
$1,800.00
$1,600.00
$1,800.00
$1,400.00
$1,400.00
$1,800.00
$1,400.00
$1,800.00
$1,400.00
$1,400.00
$50,700.00
Schedule3
Roster
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
9
Page1of2
Exhibit 43, Page 63 of 71
FultonScienceAcademyMiddleSchool
AuditFindings
Spring2012TurkeyTrip
AirlineTickets(AtlantaIntlTravel)
AirlineTickets(Expedia)
TravelInsurance(MEDEX)
ReimbursedExpenses
TotalExpenses
Classification
Employee
Parent
Student
Other
GrandTotal
$ 30,375.00
$6,677.30
$ 801.66
$5,000.00
$ 42,853.96
TotalIncome $ 50,700.00
TotalExpense $ (42,853.96)
Profit/(Deficit) $ 7,846.04
Total
3
15
20
2
40
Schedule3
Page2of2
Exhibit 43, Page 64 of 71
FultonCountySchools
FultonScienceAcademyMiddleSchool
AuditFindings
GraceFSARelationships
20072008
Grace
Akcin,Haci
Akcin,Simona
Akgul,Aladdin
Aktas,Selma
Aktas,Yucel
Allenson,Rhonda
FSAES
FSAHS
Grace
Secretary
FSAES
Secretary
BoardMember
BoardMember
CFO
BoardMember
Basgun,Mustafa
BeugDeeb,Maria
Brown,Rodney
Budak,Ilbey
Bulut,Levent
Cahparala,Ramesh
20082009
FSAMS
FSAMS
FSAHS
Teacher
Teacher
CFO
BoardMember
BoardMember
BoardMember
BoardMember
Bookkeeper
CFO
BoardMember
BoardMember
BoardMember
BoardMember
Cetin,Murat
Cokavci,Avni
Gokkaya,Mert
Goktepe,Fethi
Greene,Steven
Hamki,Mohammad
Kazanci,Caner
Kececi,Mustafa
RegisteredAgent
Bookkeeper
Principal
$61,916
AssistantPrincipal
Bookkeeper
$60,000
CFO
CFO
Assistant
Administrator
$58,000
AssistantPrincipal
$63,000
AssistantPrincipal
AssistantPrincipal
BoardMember
BoardMember
BoardMember
BoardMember
Schedule4
Page1of6
Exhibit 43, Page 65 of 71
FultonCountySchools
FultonScienceAcademyMiddleSchool
AuditFindings
GraceFSARelationships
20092010
Grace
Akcin,Haci
Akcin,Simona
Akgul,Aladdin
Aktas,Selma
Aktas,Yucel
Allenson,Rhonda
Basgun,Mustafa
BeugDeeb,Maria
Brown,Rodney
Budak,Ilbey
FSAHS
Grace
FSAES
Employee
$47,000
BoardMember
20102011
FSAMS
FSAHS
Employee
$23,000
VicePresident
BoardMember
BoardMember
BoardMember
BoardMember
BoardMember
Principal
Bookkeeper
Employee
$58,000
BudgetSpecialist
Cetin,Murat
Gokkaya,Mert
FSAMS
Secretary
Bulut,Levent
Cahparala,Ramesh
Cokavci,Avni
FSAES
CFO
CFO
RegisteredAgent
Principal
$70,000
RegisteredAgent
Principal
$64,405/$72,000
CFO
Employee
$33,000
Bookkeeper
CFO
CEO
CFO
Secretary
Goktepe,Fethi
Greene,Steven
Hamki,Mohammad
Kazanci,Caner
Kececi,Mustafa
Employee
64,000
BoardMember
BoardMember
Schedule4
Page2of6
Exhibit 43, Page 66 of 71
FultonCountySchools
FultonScienceAcademyMiddleSchool
AuditFindings
GraceFSARelationships
Grace
Akcin,Haci
Akcin,Simona
Akgul,Aladdin
Aktas,Selma
FSAES
FSAHS
BoardMember
BoardMember
Secretary
HRManager
$20,000
Aktas,Yucel
Allenson,Rhonda
Basgun,Mustafa
BeugDeeb,Maria
Brown,Rodney
Budak,Ilbey
Teacher/HR
$20,000(33%)
VicePresident
BoardMember
Bulut,Levent
Cahparala,Ramesh
CFO
VicePresident
Cetin,Murat
RegisteredAgent
Principal
Cokavci,Avni
20112012
FSAMS
CFO
VicePresident
CFO
Secretary
CEO
CFO
Secretary
CollegeCounselor
$39,000
Gokkaya,Mert
Goktepe,Fethi
Greene,Steven
Hamki,Mohammad
Kazanci,Caner
Kececi,Mustafa
BoardMember
BoardMember
BoardMember
Schedule4
Page3of6
Exhibit 43, Page 67 of 71
FultonCountySchools
FultonScienceAcademyMiddleSchool
AuditFindings
GraceFSARelationships
20072008
Grace
FSAES
CEO
President
Korucu,Ayhan
Kucuktas,Tuncay
Lassetter,Angela
Lucas,Cynthia
Murphy,Wendi
Ozdemir,Selim
20082009
FSAMS
RegisteredAgent
CEO
CFO
President
Bookkeeper
Ozer,Ali
Ozerslan,Ahmet
Saylam,Sherry
VicePresident
Sener,Kenan
BoardMember
Sercan,Namik
Tascan,Mevlut
Webb,James
Wichser,Edith
Secretary
RegisteredAgent
CEO
FSAHS
Grace
FSAES
RegisteredAgent
CEO
President
FSAMS
CFO
CEO
President
CFO
Treasurer
VicePresident
VicePresident
RegisteredAgent
ExecutiveDirector
Bookkeeper
Principle(sic?)
$125,000
ExecutiveDirector
BoardMember
RegisteredAgent
ExecutiveDirector
Bookkeeper
$114,520
President
CurriculumDirector
Secretary
Principal
$90,000
BoardMember
Secretary
Secretary
Principal
$102,000
BoardMember
Employee
Secretary
Schedule4
FSAHS
CEO
President
ExecutiveDirector
BoardMembr
Secretary
Principal
$92,960
RegisteredAgent
CEO
Teacher
Page4of6
Exhibit 43, Page 68 of 71
FultonCountySchools
FultonScienceAcademyMiddleSchool
AuditFindings
GraceFSARelationships
20092010
Grace
FSAES
BoardMember
Korucu,Ayhan
FSAMS
CEO
President
CFO
Treasurer
FSAHS
CEO
President
Ozdemir,Selim
RegisteredAgent
ExecutiveDirector
$116,321/$126,000 ExecutiveDirector
Sercan,Namik
Tascan,Mevlut
Webb,James
Wichser,Edith
20102011
FSAMS
CEO
FSAHS
CEO
CFO
VicePresident
Sener,Kenan
FSAES
CEO
Kucuktas,Tuncay
Lassetter,Angela
Lucas,Cynthia
Murphy,Wendi
Ozer,Ali
Ozerslan,Ahmet
Saylam,Sherry
Grace
Secretary
CEO
CFO
President
ExecutiveDirector
$65,000
BoardMember
BoardMember
Secretary
RegisteredAgent
CEO
President
Secretary
Principal
Bookkeeper
$93,863/$103,000
ExecutiveDirector
BoardMember
Secretary
RegisteredAgent
RegisteredAgent
Employee
$45,000
Secretary
Secretary
Principal
$90,000
Bookkeeper
Employee
$40,000
Schedule4
RegisteredAgent
Employee
$80,000
Page5of6
Exhibit 43, Page 69 of 71
FultonCountySchools
FultonScienceAcademyMiddleSchool
AuditFindings
GraceFSARelationships
Grace
Korucu,Ayhan
Kucuktas,Tuncay
Lassetter,Angela
Lucas,Cynthia
Murphy,Wendi
FSAES
CEO
President
20112012
FSAMS
President
FSAHS
CEO
President
BoardMember
Secretary
Ozdemir,Selim
Ozer,Ali
Ozerslan,Ahmet
Saylam,Sherry
ExecutiveDirector
ExecutiveDirector
$40,000(33%)
Principal
$90,000
Sener,Kenan
Sercan,Namik
Tascan,Mevlut
Webb,James
Wichser,Edith
ExecutiveDirector
$40,000
RegisteredAgent
Principal
$80,000
BoardMember
BoardMember
BoardMember
Schedule4
Page6of6
Exhibit 43, Page 70 of 71
FSAMSVendorRelationships
OrlandoTurkishCulturalCenter
TurkishAmericanChamberof
CommerceoftheSoutheast
NileFoundation
MustafaKececi
EbruGarden
AtlanticWindGroup
BaybarsBakay
NossConstruction
AyhanKorucu
StitchbyStitch
Hotlantic
GlobalConnections
GurkanEkicikol
PowerBeez
MustafaKaradeniz
FSAElementarySchool
FSAMiddleSchool
FSAHighSchool
GlobalSpectrumFoundation
dbaIstanbulCenter
GridTelekom
AvniCokavci
SelimOzdemir
MustafaBasgun
AliOzer
AntBookstore
(ownedby)
TughraBooks
(formerly)
TheLightInc.
CoreDesign&Production
HakanBerberoglu
BrowardMathandScienceSchools
KenanSener
NewSpringsSchool
NamikSercan
NiagaraFoundation
TheFountain
Magazine
ChicagoGulenConference
OrlandoScienceSchools
GraceInstitute
RiverCityScienceAcademy
FethullahGulen
StarsMiddleSchool
SweetwaterBranchAcademy
FethiGoktepe
MustafaBahacaci
Schedule5