Current through Reg. 49, No. 38; September 20, 2024
(a) Fiscal year. A charter holder shall adopt
a fiscal year consistent with Texas Education Code (TEC),
§44.0011.
(b) Financial
accounting. A charter holder shall comply fully with:
(1) Generally Accepted Accounting Principles
(GAAP);
(2) the Financial
Accountability System Resource Guide, as adopted by reference in §
109.41
of this title (relating to Financial Accountability System Resource
Guide);
(3) the federal standards
for financial management systems, 34 Code of Federal Regulations §80.20,
Office of Management and Budget Circular A-87, and/or other applicable federal
standards; and
(4) the financial
accountability rating system (School FIRST for Charter Schools) specified in
Chapter 109, Subchapter AA, of this title (relating to Commissioner's Rules
Concerning Financial Accountability).
(c) Annual audit. A charter holder shall at
its own expense have the financial and programmatic operations of the charter
school audited annually by a certified public accountant licensed by the Texas
State Board of Public Accountancy and registered as a provider of public
accounting services.
(1) The charter holder
shall file a copy of the annual audit report, approved by a charter holder,
with the Texas Education Agency (TEA) division responsible for school financial
audits not later than the deadline specified by TEC, §44.008.
(2) The audit must comply with Generally
Accepted Auditing Standards and must include an audit of the accuracy of the
fiscal information provided by the charter school through the Public Education
Information Management System (PEIMS).
(3) Financial statements in the audit must
comply with Government Auditing Standards and the Office of Management and
Budget Circular A-133 or its successor.
(d) Attendance accounting. A charter holder
shall comply with the Student Attendance Accounting Handbook, as adopted by
reference in §
129.1025
of this title (relating to Adoption by Reference: Student Attendance Accounting
Handbook); TEC, §25.002; and Chapter 129 of this title (relating to
Student Attendance), except that a charter school shall report its actual
student attendance data to the TEA at six-week intervals, or as directed by the
TEA.
(e) Non-charter activities. A
charter holder shall keep separate and distinct accounting, auditing,
budgeting, reporting, and recordkeeping systems for the management and
operation of the charter school.
(1) Any
business activities of a charter holder not directly related to the management
and operation of the program described in the open-enrollment charter shall be
kept in separate and distinct accounting, auditing, budgeting, reporting, and
recordkeeping systems from those recording the business activities of the
charter school.
(2) Any commingling
of charter and non-charter business in the accounting, auditing, budgeting,
reporting, and recordkeeping systems of the charter school shall be a material
charter violation.
(f)
Interested transactions. A charter holder shall comply with Local Government
Code, Chapter 171, in the manner provided by the conflict of interest
provisions described in §§
100.1131-100.1135
of this title. In addition, the following shall be discretely and clearly
recorded in the accounting, auditing, budgeting, reporting, and recordkeeping
systems for the management and operation of the charter school:
(1) financial transactions between the
charter school and the non-charter activities of the charter holder;
(2) financial transactions between the
charter school and an officer or employee of the charter holder or the charter
school;
(3) financial transactions
between the charter school and a member of the governing body of the charter
holder or the charter school;
(4)
financial transactions between the charter school and a management company
charged with managing the finances of a charter school; and
(5) financial transactions between the
charter school and any other person or entity in a position of influence over
the charter holder or the charter school.
(g) Position of influence. A person or entity
is in a position of influence over the charter holder or the charter school,
within the meaning of subsection (f)(5) of this section, if:
(1) the charter holder or charter school is a
subsidiary of, or shares governing body members, officers, or employees with,
another organization, and:
(A) the person or
entity is a shareholder, partner, administrator, official, or employee of the
other organization; or
(B) the
person or entity by any other means participates in the business decisions of
the affiliate or parent organization; or
(2) a relative of the person is in a position
of influence over the charter holder or the charter school under this section,
within the third degree by consanguinity or affinity, as determined under Texas
Government Code, §§
573.021-573.025,
and §
100.1113
of this title (relating to Relationships By Consanguinity or By
Affinity).
