Current through Reg. 50, No. 187; September 24, 2024
The following provisions have been established to prescribe
the format for a charter school or charter technical career center's monthly or
quarterly financial statement required by Sections
1002.33(9)(g)
and 1002.34(11)(f),
F.S., respectively, and to administer the requirements of Section
1002.345(4),
F.S.
(1) Monthly or quarterly
financial statement.
(a) A charter school or
charter technical career center shall provide a financial statement to the
school or center's sponsor in accordance with Sections
1002.33(9)(g)
and 1002.34(11)(f),
F.S., respectively, on form IEPC-F1, Governmental Accounting Standards Board
(GASB) Monthly Financial Form (
http://www.flrules.org/Gateway/reference.asp?No=Ref-03235)
or IEPC-F2, Non-Profit Monthly Financial Form (
http://www.flrules.org/Gateway/reference.asp?No=Ref-03236),
hereby incorporated by reference to become effective November 2013. Forms
IEPC-F1 and IEPC-F2 may be obtain by contacting the Office of Independent
Education and Parental Choice, 325 West Gaines Street, Tallahassee, Florida
32399-0400. The school shall provide notes to the financial statement, if
applicable, to include other information material to the financial statement.
Material is defined as when the magnitude of an omission or misstatement of
accounting information that, in the light of surrounding circumstances, makes
it probable that the judgment of a reasonable person relying on the information
would have been changed or influenced by the omission or
misstatement.
(b) The sponsor shall
determine whether the financial statement must be prepared on a cash or accrual
basis and the selected format shall apply to all schools and centers in the
district.
(c) Financial statements
shall be formatted in accordance with the accounts and codes prescribed in the
publication titled, "Financial and Program Cost Accounting and Reporting for
Florida Schools, " which is adopted in Rule
6A-1.001, F.A.C.
(d) Charter schools and centers and sponsors
shall agree in writing to the date by which the financial statements are to be
submitted, with the due date being no more than thirty (30) days after the last
day of the reporting period.
(e)
Sponsors shall not require that monthly or quarterly financial statements be
prepared by an independent certified public accountant, unless otherwise agreed
to in the charter or a financial recovery plan.
(f) The reporting requirements of this
subsection are supplemental to any financial reporting requirements already
established in the school or center's charter.
(2) Deteriorating financial condition. A
deteriorating financial condition is defined as a circumstance that
significantly impairs the ability of a charter school or charter technical
career center to generate enough revenues to meet its expenditures without
causing the occurrence of a condition described in Section
218.503(1),
F.S., or a circumstance that has resulted or will result in the occurrence of a
condition described in Section
218.503(1),
F.S., if action is not taken to assist the school or center.
(a) A deteriorating financial condition may
be identified in one of the following ways:
1.
The sponsor may determine that a deteriorating financial condition exists
through review of a charter school or charter technical career center's monthly
or quarterly financial statement. A deteriorating financial condition may
include, but is not limited to, the existence of one or more of the following
circumstances:
a. The school or center's
actual enrollment is seventy (70%) percent or less of the projected enrollment
for which the budget is based, or the enrollment is insufficient to generate
enough revenues to meet expenditures;
b. The school or center's actual expenses
exceed budgeted expenses for a period of at least three (3) consecutive months
in an amount that the school does not have sufficient reserves to compensate;
or
c. The school or center
experiences an unbudgeted financial event for which the charter school has
insufficient reserves to compensate.
2. An auditor may determine that a
deteriorating financial condition as defined by Section 1002.345(1)(a)3., F.S.,
exists based on an annual audit performed pursuant to Section
218.39, F.S. If such a condition
is identified, the auditor shall notify each member of the charter school or
charter technical career center's governing board in accordance with Section
218.39(5), F.S.
Upon receipt of notification, the governing board shall notify the sponsor of
the deteriorating financial condition in writing within seven (7) business
days.
(b) Upon
determination under subparagraph (2)(a)1., of this rule or receipt of
notification under subparagraph (2)(a)2. of this rule that a deteriorating
financial condition exists, the sponsor shall initiate an expedited review and
notify the governing board of the charter school and the Department of
Education within seven (7) business days. The charter school and sponsor shall
develop a corrective action plan pursuant to Section
1002.345(1)(c),
F.S.
(3) Developing
corrective action plans.
(a) If a corrective
action plan is required due to the charter school or charter technical career
center's failure to provide for an audit or failure to comply with statutory
reporting requirements, the Commissioner shall maintain a record of the
corrective action plan.
(b) If the
corrective action plan is required due to the identification of a deteriorating
financial condition or a condition specified in Section
218.503(1),
F.S., the Commissioner shall review the corrective action plan within thirty
(30) days of receipt to determine whether the strategies identified in the plan
adequately address the financial challenges facing the charter school or
charter technical career center.
1. If the
Commissioner determines that the corrective action plan is sufficient, the
Commissioner shall maintain a record of the corrective action plan and the
charter school or charter technical career center's governing board shall
implement and monitor the corrective action plan in accordance with Sections
1002.33(9)(j)3. and 1002.34(13),
F.S., respectively.
2. If the
Commissioner determines that the corrective action plan is insufficient and a
financial recovery plan is needed to resolve the condition, the charter school
or charter technical career center shall be considered in a state of financial
emergency pursuant to Section
218.503(4)(c),
F.S.
(c) The corrective
action plan shall include the following components:
1. A statement of the condition in Section
1002.345(1),
F.S., that initiated the development of a corrective action plan. If the
corrective action plan is required due to a deteriorating financial condition,
the plan must include the three (3) most recent financial statements submitted
to the sponsor pursuant to subsection (1) of this rule and the most recent
annual financial audit.
2. A
description of actions that will be taken to resolve the condition, including a
timeline.
3. A summary of the
governing board's procedures for monitoring implementation of the
plan.
4. A schedule for the
governing board to provide progress reports to the sponsor.
5. Any additional components deemed necessary
and agreed upon by the charter school governing board and the
sponsor.
(d) If the
governing board and the sponsor are unable to agree on a corrective action
plan, a letter signed by both parties shall be sent to the Office of
Independent Education and Parental Choice requesting the involvement of the
Commissioner pursuant to Section
1002.345(1)(c),
F.S. The letter shall include:
1. A statement
of the condition in Section
1002.345(1),
F.S., that initiated the development of a corrective action plan.
2. A summary of the proposed corrective
action for each party.
Within thirty (30) days of receipt of the request, the
Commissioner shall determine the components of the corrective action plan,
including the reporting requirements for the governing board and monitoring
requirements for the sponsor.
(4) Determining a state of financial
emergency.
(a) If the Commissioner is notified
pursuant to Section 1002.345(2)(a)1., F.S., that a charter school or charter
technical career center's financial audit reveals one or more of the conditions
specified in Section 218.503(1),
F.S., the governing board and the sponsor shall develop a corrective action
plan for submission and review pursuant to paragraph (3)(b) of this
rule.
(b) If the Commissioner is
notified pursuant to Section
218.503(2),
F.S., that one or more of the conditions specified in Section
218.503(1),
F.S., have occurred or will occur if action is not taken to assist, the
governing board and the sponsor shall develop a corrective action plan for
submission and review pursuant to paragraph (3)(b) of this
rule.
(5) Developing
financial recovery plans.
(a) If the
Commissioner determines that a charter school or charter technical career
center is in a state of financial emergency, the financial recovery plan
prepared and filed in accordance with Section 1002.345(2)(a)2., F.S., by the
school or center's governing board shall replace any existing corrective action
plan created pursuant to paragraph (3)(b) of this rule.
(b) The financial recovery plan shall include
the following components:
1. A statement of
the condition identified in Section
218.503(1),
F.S., that resulted in the determination of a state of financial
emergency.
2. A description of the
actions that will resolve or prevent the condition, including a
timeline.
3. A summary of the
governing board's procedures for monitoring the implementation of the
plan.
4. A schedule for the
governing board to provide progress reports to the Commissioner and the
sponsor.
5. Any additional
components deemed necessary by the school or center's governing
board.
(c) The
Commissioner shall review and approve or reject financial recovery plans
pursuant to Section 218.503(4),
F.S., within thirty (30) days of receipt.
(6) Correspondence. All correspondence to the
Commissioner of Education related to the financial condition of a charter
school or charter technical career center shall be addressed to the Office of
Independent Education and Parental Choice, 325 W. Gaines Street, Suite 1044,
Tallahassee, Florida 32399-0400. In addition, electronic correspondence related
to the school or center's financial condition shall be sent to
charterschools@fldoe.org. This includes notifications that a financial
condition identified in Section
218.503(1),
F.S., has occurred or will occur, requests for the involvement of the
Commissioner in creating a corrective action plan, completed corrective action
plans, and completed financial recovery plans.
Rulemaking Authority
1002.33(28),
1002.345 FS. Law Implemented
218.39,
1002.33(9)(g),
1002.34(11)(f),
1002.345
FS.
New 5-3-10, Amended
11-19-13.
