toledoblade.com --

The director of a now-closed West Toledo charter school and her husband owe the state nearly $120,000 for unaccounted taxpayer money, according to a special audit released yesterday by the Ohio Auditor's Office.

Kari DiCianni was fired in January as executive director of the Performing Arts School of Metropolitan Toledo, and the state auditor's office was asked to investigate financial management by her and her husband, Bill DiCianni.

The audit, which covers activities from July 1, 2006, to Feb. 9, 2007, revealed that Mr. DiCianni - whose role and authority at the school was never made clear to the auditor or The Blade in past interviews - distributed paychecks to students for work at the school.

But the paychecks were larger than the amount justified by time sheets.

Students told the auditor's office that they would receive their paychecks, cash the checks, and then return the money to Mr. DiCianni.

He would then give the children a portion of the cash for their work. It is unknown what the remaining money was used for and Mr. DiCianni could not account for $48,250, the audit said.

Emily Frazee, spokesman for state Auditor Mary Taylor, said the Lucas County Prosecutor's Office is investigating.

"We would certainly hope that every penny could be repaid," Ms. Frazee said. "It will be up to the county prosecutor whether to move forward with charges and pursue the collection of that money."

The couple owes a combined total of $119,393, she said.

Chief Assistant Prosecutor John Weglian did not return a phone call seeking comment.

The DiCiannis now live in Parma, Ohio, where they apparently moved after the charter school was shut down by its authorizing agency, the Toledo-based Ohio Council of Community Schools.

They could not be reached for comment.

Allison Perz, executive director of the of the council, said she was relieved her staff was able to identify the problems at the school soon after taking over its sponsorship before the start of the 2006-07 academic year.

"Had we not had the right safeguards in place, this would have gone on for a full school year," Ms. Perz said.

Additionally, the audit showed that Ms. DiCianni and Mr. DiCianni could not provide documents to support more than $42,057 in reimbursements from the school's bank account.

Among the several findings for recovery lodged against the couple either together or separately was an order for $20,611 against Ms. DiCianni for failure to remit federal, state, local, Medicare, and school district taxes, School Employees Retirement System contributions; and contributions withheld from employees' compensation.

The performing arts school had a series of problems involving operating deficits and it was relocated several times. It was at 425 Jefferson Ave. in downtown Toledo from July 1, 2006, to Oct. 25, 2006, then moved to 2740 West Central Ave. through the end of the school year.

The school owed $54,744 in combined unpaid rent to both property owners as of February, the audit said.

Two of the three governing board members of the school resigned after Ms. DiCianni was fired, leaving only its president, Jim Copley. He was removed in February by Ms. Perz and at the time she said she assumed control of the school.

The state auditor started the investigation in February.

The last audit of the school - for fiscal year 2004 - reported a deficit of $355,127 and a lack of proper internal financial controls to ensure the integrity of tax dollars provided to fund the school's operation, the auditor's office said.

Contact Ignazio Messina at:
imessina@theblade.com
or 419-724-6171.

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