| (a) Commissioner authority. To the extent consistent
with subsection (b) of this section, the commissioner of education
may audit the records of:
(1) a charter school;
(2) a charter holder; or
(3) a management company that has provided management
services to a charter school or a charter holder.
(b) Scope of audit.
(1) An audit under subsection (a) of this section must
be limited to matters directly related to the management or operation
of a charter school, including the allocation of costs shared between
the charter school and any non-charter business activity. The audit
may examine any financial or administrative records related to the
charter school that are in the possession of a management company
or a former management company, including records related to the allocation
of shared costs.
(2) Unless the commissioner has specific cause to conduct
an additional audit, the commissioner may not conduct more than one
on-site audit under this section during any fiscal year, including
any financial and administrative records. For purposes of this subsection,
an audit of a charter holder or management company associated with
a charter school is not considered an audit of the school.
(c) Charter holder cooperation. A charter holder and
its employees and agents shall fully cooperate with an audit under
subsection (a) of this section, and shall take all actions necessary
to secure the cooperation of a management company. Failure to comply
timely with a request for access to records or other cooperation from
the charter holder constitutes a material charter violation.
(d) Management company cooperation. A management company
and its employees and agents shall fully cooperate with an audit under
subsection (a) of this section. Failure to timely comply with a request
for access to records or other cooperation from the management company
constitutes a management company breach, which may result in the commissioner
taking action to prohibit, deny renewal of, suspend, or revoke the
management contract as provided in Texas Education Code, §12.126.
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| Source Note: The provisions of this §100.1051 adopted to be effective April 18, 2002, 27 TexReg 3110; amended to be effective April 6, 2005, 30 TexReg 1911; amended to be effective September 18, 2014, 39 TexReg 7295 |
