I 111th CONGRESS 2d Session H. R. 6204 IN THE HOUSE OF REPRESENTATIVES September 23, 2010 Ms. Chu introduced the following bill; which was referred to the Committee on Education and Labor A BILL To require States receiving funds under the Elementary and Secondary Education Act of 1965 to establish policies with respect to the auditing of charter schools.

1.

Short title

This Act may be cited as the Charter School Good Governance and Transparency Act.

2.

Charter school audits

Not later than 1 year after the date of the enactment of this Act, each State educational agency receiving funds under the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.) shall— (1)disseminate to each charter school in the State receiving funds under such Act (20 U.S.C. 6301 et seq.) a list of licensed, independent auditors that perform governmental audits; (2)develop and implement a policy requiring each such charter school to— (A)maintain its financial records in accordance with generally accepted accounting principles, and applicable State and Federal requirements; (B)be subject to an annual audit by a licensed, independent auditor the results of which are public and filed with— (i)the authorized public chartering agency that authorized or approved the school; and (ii)the office within the State educational agency that oversees education finance; and (C)adopt policies and implement practices to— (i)address all audit findings; and (ii)report to the authorized public chartering agency that authorized or approved the school the actions taken by the school to address the audit findings; (3)develop and implement a policy requiring each authorized public chartering agency that authorizes or approves schools described in paragraph (1) to report to the State educational agency— (A)instances of significant audit findings for each such school; and (B)the corresponding actions reported by each such school to address such findings; and (4)not later than 9 months after an audit is completed pursuant to paragraph (2)(B), and annually thereafter, prepare and submit to the Secretary of Education an overall summary analysis of the audit results received under such paragraph.

3.

Definitions

In this Act— (1)the term authorized public chartering agency has the meaning given the term in section 5210 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7721i); (2)the term charter school has the meaning given the term in section 5210 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7721i), except that meaning shall be applied by substituting except as otherwise provided pursuant to section 2, or other State or Federal law for unless such requirements are specifically waived for the purpose of this program; and (3)the term State educational agency has the meaning given such term in section 9101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801).