California Code of Regulations
Title 4 - Business Regulations
Division 15 - California School Finance Authority
Article 5 - Charter Access to Bank Loan Enhancement (Charter Able) Program
Section 10200.14 - Audits and Conflicts of Interest

(a) The State may conduct or require periodic audits to ensure Awardees are using funds consistent with the requirements and the terms of the Program, the related financing program, and this Article. Awardees shall retain all documentation and financial data necessary to substantiate the purposes for which the financing funds were spent for a period of three years after the certification of completion and repayment of the debt or three years after the Program funds are no longer held in reserve, whichever is longer.

(b) Applicants and Awardees must avoid apparent and actual conflicts of interest when participating in grants from ED. ED regulations at 34 CFR 75.525(a) prohibit a person from participating in an administrative decision regarding a project if (a) the decision is likely to benefit that person or their immediate family members; and (b) the person is a public official or has a family or business relationship with the Awardee. 34 CFR 75.525(b) provides further that an Awardee may not permit any person participating in a project to use their position for a purpose that is - or gives the appearance of being - motivated by a desire for a private or financial gain for that person or for others.

(c) When the acquisition of property or services are funded through a federal grant, a State or local entity benefiting from a grant must comply with 2 CFR 200.318 through 2 CFR 200.327. These standards require federal grant Awardees to develop written procurement procedures and to conduct all procurement transactions in a manner that provides, to the maximum extent possible, open and free competition. No employee, officer, or agent of the Awardee may participate in the selection, award, or administration of any contract supported by federal funds if a real or apparent conflict of interest exists.

(d) The Authority reserves the right to conduct site visits to any Charter School facility or project receiving Program funds pursuant to this Article.

(e) Participants will be required to routinely submit documentation in order to support continued eligibility on at least an annual basis.

(f) Awardees shall comply with all State and Federal requirements throughout the award period.