| (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).
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| Source Note: The provisions of this §100.1047 adopted to be effective April 18, 2002, 27 TexReg 3110; amended to be effective June 22, 2009, 34 TexReg 4119; amended to be effective August 26, 2010, 35 TexReg 7213; amended to be effective September 18, 2014, 39 TexReg 7295 |
