I 

111TH CONGRESS 

2D SESSION H. R. 6204 

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. 

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 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Charter School Good 

5 Governance and Transparency Act’’. 

6 SEC. 2. CHARTER SCHOOL AUDITS. 

7 Not later than 1 year after the date of the enactment 

8 of this Act, each State educational agency receiving funds 


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1 under the Elementary and Secondary Education Act of 

2 1965 (20 U.S.C. 6301 et seq.) shall— 

3 (1) disseminate to each charter school in the 

4 State receiving funds under such Act (20 U.S.C. 

5 6301 et seq.) a list of licensed, independent auditors 

6 that perform governmental audits; 

7 (2) develop and implement a policy requiring 

8 each such charter school to— 

9 (A) maintain its financial records in ac10 cordance with generally accepted accounting 

11 principles, and applicable State and Federal re12 quirements; 

13 (B) be subject to an annual audit by a li14 censed, independent auditor the results of which 

15 are public and filed with— 

16 (i) the authorized public chartering 

17 agency that authorized or approved the 

18 school; and 

19 (ii) the office within the State edu20 cational agency that oversees education fi21 nance; and 

22 (C) adopt policies and implement practices 

23 to— 

24 (i) address all audit findings; and 


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1 (ii) report to the authorized public 

2 chartering agency that authorized or ap3 proved the school the actions taken by the 

4 school to address the audit findings; 

5 (3) develop and implement a policy requiring 

6 each authorized public chartering agency that au7 thorizes or approves schools described in paragraph 

8 (1) to report to the State educational agency— 

9 (A) instances of significant audit findings 

10 for each such school; and 

11 (B) the corresponding actions reported by 

12 each such school to address such findings; and 

13 (4) not later than 9 months after an audit is 

14 completed pursuant to paragraph (2)(B), and annu15 ally thereafter, prepare and submit to the Secretary 

16 of Education an overall summary analysis of the 

17 audit results received under such paragraph. 

18 SEC. 3. DEFINITIONS. 

19 In this Act— 

20 (1) the term ‘‘authorized public chartering 

21 agency’’ has the meaning given the term in section 

22 5210 of the Elementary and Secondary Education 

23 Act of 1965 (20 U.S.C. 7721i); 

24 (2) the term ‘‘charter school’’ has the meaning 

25 given the term in section 5210 of the Elementary 


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1 and Secondary Education Act of 1965 (20 U.S.C. 

2 7721i), except that meaning shall be applied by sub3 stituting ‘‘except as otherwise provided pursuant to 

4 section 2, or other State or Federal law’’ for ‘‘unless 

5 such requirements are specifically waived for the 

6 purpose of this program’’; and 

7 (3) the term ‘‘State educational agency’’ has 

8 the meaning given such term in section 9101 of the 

9 Elementary and Secondary Education Act of 1965 

10 (20 U.S.C. 7801). 

Æ 


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