Rameses School of San Antonio, Texas - Page 24




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                    12. No documentation exists to support                            
               expenditures of $7,252.00 in fourteen counter checks by                
               Ms. Fennell.  Some checks drawn on the school’s account                
               by Ms. Fennell paid for personal services such as                      
               dental work.  Ms. Fennell paid Bandera Dental $224.00                  
               for a dental cleaning using Rameses School check #409                  
               on October 2, 1998.  No documentation exists to                        
               demonstrate that checks such as these were payment for                 
               school-related services.  The payments were not                        
               approved by the board of directors pursuant to an                      
               amended budget.                                                        
                    13. In addition to the counter checks described                   
               in Finding of Fact No. 12, Ms. Fennell made unexplained                
               cash withdrawals on the school’s account.  No                          
               documentation exists establishing that the withdrawals                 
               are directly connected to school-related expenditures,                 
               although Ms. Fennell informed agency staff that the                    
               withdrawals reimbursed her for the expenditure of her                  
               personal funds for school purposes.  The payments were                 
               not approved by the board of directors.                                
               Real Estate Transactions and Lease Payments                            
                    14. Ms. Fennell, as “president and CEO of Rameses                 
               School, Inc. [sic], Founder, Owner” received a cash                    
               warranty deed from Vera Williams-Young, grantor, for                   
               property located at 309 North Hackberry Street, 527                    
               North Center Street and 531 North Center Street.                       
               Ms. Fennell leased the properties located at 309 North                 
               Hackberry Street and 527 North Center Street to the                    
               Rameses School.  The school occupied these properties.                 
               The rental agreement provided that the monthly rents                   
               for the Hackberry property and the North Center                        
               property were $1,500.00 a month and $1,000.00 a month,                 
               respectively.  The agreement was unique and did not                    
               resemble traditional lease agreements.  It contained                   
               only one signature, that of Ms. Fennell, and did not                   
               contain a specific term of years.  No board minutes                    
               exist demonstrating notice, acceptance or ratification                 
               of the lease.  No lease payments were documented by the                
               school.  Further, if in fact the school owned the                      
               property, the school was leasing the property from                     
               itself under the owner rental agreement.                               
                    15. There is evidence of other lease payments in                  
               the latter part of 1998:  $720 to Chase Manhattan Bank                 
               for a “mortgage lease payment”; $6,500 to Alfredo                      






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