Current through Reg. 49, No. 52; December 27, 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;
(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 (Financial Integrity Rating System of Texas 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.
(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
TEA at six-week intervals or as directed by 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
§§100.1143-100.1151 of this title (relating
to Conflicts of Interest and Board Member Compensation; Exception; General
Conflict of Interest Provisions; Conflicts Requiring Affidavit and Abstention
from Voting; Conflicts Requiring Separate Vote on Budget; and Acting as Surety
and Other Conflicts; Criminal Penalties). 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 §
100.1135 of this title (relating
to Relationships By Consanguinity or By Affinity).
