BAKER - A legislative audit found operators of the Impact Charter School, d.b.a. Education Explosion, may have mismanaged nearly $2.5 million in funds intended for education, the WBRZ Investigative Unit uncovered.

The audit alleges 93 percent of those funds were diverted from Education Explosion via excessive lease payments, a PPP loan and contract services with another charter school.

Ron Haley, who represents Education Explosion, says the money is still there.

"I've seen the records. The funds that were used for those lease payments and the PPP loan are still in the account, accounted for, so this was not used to fund anyone's lifestyle or any individual's lifestyle," he said.

The audit says potentially millions were diverted from the school to pay for cars, home improvement, luxury goods and travel.

"I do not believe the monies used for the school were used for personal gain. If you look at any payment that was made from Education Explosion to Impact Charter School, were only for the lease payments to pay for the building. That's it."

One thing Haley does not dispute is the school money spent on travel.

The audit says CEO Chakesha Scoot spent $130,000 on trips for herself, her husband, and her daughter, including long vacations overseas. Haley says it was all for legitimate educational conferences.

"What we're talking about is continuing education classes, which most professional professions do."

The school's travel budget is $16,000. Haley argues it's money well spent.

"Who's to say that the things that employees from Education Explosion have learned on these trips weren't use to help Impact Charter School grow? Because the data is there. This school has grown tremendously. You can ask anyone at Department of Education. You can ask anybody at BESE. The growth this school has had from conception to right now is absolutely phenomenal."

On Monday, a judge sided with Haley, granting a restraining order against the audit being released, because Haley says the judge agreed there could be factual errors.

However, the ruling came too late. There is a hearing set for Tuesday on the matter.