Arizona Administrative Code
Title 7 - EDUCATION
Chapter 5 - STATE BOARD FOR CHARTER SCHOOLS
Article 5 - CHARTER SUPERVISION
Section R7-5-511 - Financial Intervention Submissions - On Probation
Current through Register Vol. 30, No. 38, September 20, 2024
A. In accordance with R7-5-402(I) through (K), the Board shall require a charter holder identified under R7-5-402(G) as "On Probation" to submit quarterly financial reports and a June 30 quarterly financial report. The charter holder shall be required to submit quarterly financial reports, including a June 30 quarterly financial report, to the Board until the Board receives the charter holder's next audit conducted under R7-5-504.
B. After being notified of its probation risk level assigned under R7-5-402(H)(3), the charter holder shall be required to submit its quarterly financial reports, including the June 30 quarterly financial report, to the Board by the deadlines identified in subsections (B)(1) through (B)(5).
C. Within 30 calendar days after receiving the first quarterly financial report submitted in response to the written notice provided under R7-5-402(L), Board staff shall provide the charter holder with written notice that includes the following:
1. The submission deadline for the next quarterly financial report; and
2. Any differences identified between the calculations completed by the charter holder and those completed by Board staff.
1. The going concern measure received a rating of "below standard" on the most recent audit conducted under R7-5-504.
2. The measure or measures rated "below standard" based on the most recent audit conducted under R7-5-504 will likely improve to at least an "approaches standard" rating or remain rated "below standard" when calculations are completed using the charter holder's next audit conducted under R7-5-504.
3. One or more of the Financial Performance Framework's other measures will likely be rated "below standard" when calculations are completed using the charter holder's next audit conducted under R7-5-504.
4. The charter holder was required to submit a corrective action plan under R7-5-504(H)(1) based on the most recent audit conducted under R7-5-504 for failure to pay taxes or contributions due to the Internal Revenue Service, Arizona Department of Revenue, Arizona Department of Economic Security or Arizona State Retirement System, failure to have sufficient cash at June 30 to cover the charter holder's unspent Classroom Site Fund balance, or failure to maintain worker's compensation insurance or liability insurance.
5. The Board has substantiated in the audited fiscal year, subsequent fiscal year or both any complaint involving late payroll checks to employees, health insurance or liability insurance cancellation due to nonpayment or failure to make required retirement plan contributions, or the Board has received in the audited fiscal year, subsequent fiscal year or both notification from the Arizona State Retirement System of delinquent retirement contributions.
6. The charter holder has been required to make at least one submission under R7-5-501(C) in the audited fiscal year, subsequent fiscal year or both.
7. Within the most recent five-year period the charter holder has been assigned three summative financial performance ratings of "Intervention."
1. The determinations made by Board staff under subsection (E);
2. The submission deadline for the next quarterly financial report required under subsection (A); and
3. Any differences identified between the calculations completed by the charter holder and those completed by Board staff.
G. The charter holder's attestation required under R7-5-402(I)-(K), quarterly financial reports and June 30 quarterly financial report shall be made publicly available through the charter holder's financial performance dashboard.
H. If a charter holder fails to submit or fails to timely submit a quarterly financial report or June 30 quarterly financial report required under subsection (A), Board staff shall note the failure on the charter holder's operational performance dashboard. The charter holder may be subject to charter oversight as specified in Article 6.
I. If a charter holder fails to submit by the specified deadline a complete quarterly financial report or June 30 quarterly financial report required under subsection (A), Board staff shall:
