In order to hold charter schools accountable, there must be a means of assessing their performance and terminating their contracts when they do not meet expectations. Although charter school closures have made headlines in Arizona, California and Minnesota, so many charter schools are just beginning their operations that it is difficult to speculate on the number of contracts that will typically be renewed. The terms for initial and renewed charters vary by state, but tend to be 3 to 5 years with Arizona issuing the longest contract at 15 years.
All states retain the authority to close a charter school before the completion of the contract.
Most state statutes require charter schools to report progress to the sponsor, the district and the state legislature. Many require a yearly fiscal audit. Most states allow the charter school to conduct the audit, but Minnesota, for example, gives audit authority to the state board of education. Some states also require charter schools to submit an annual report on their progress toward achieving the goals identified in its charter. Yearly reports do not allow the charter school time to establish itself before being evaluated.