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(2) FORMULA
CALCULATION.—Except as pro-
vided in paragraph (3), the amount of the annual
payment under paragraph (1) shall be calculated by
multiplying a uniform dollar amount used in the for-
mula established under such paragraph by—
(A) the number of students calculated under
section 2502 that are enrolled at District of Co-
lumbia public schools, in the case of the payment
under paragraph (1)(A); or
(B) the number of students calculated under
section 2502 that are enrolled at each public
charter school, in the case of a payment under
paragraph (1)(B).
(3) EXCEPTIONS.—
(A) 
FORMULA.—Notwithstanding 
para-
graph (2), the Mayor and the District of Colum-
bia Council, in consultation with the Board of
Education and the Superintendent, may adjust
the formula to increase or decrease the amount
of the annual payment to the District of Colum-
bia public schools or each public charter school
based on a calculation of—
(i) the number of students served by
such schools in certain grade levels; and
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(ii) the cost of educating students at
such certain grade levels.
(B) 
PAYMENT.—Notwithstanding 
para-
graph (2), the Mayor and the District of Colum-
bia Council, in consultation with the Board of
Education and the Superintendent, may adjust
the amount of the annual payment under para-
graph (1) to increase the amount of such pay-
ment if a District of Columbia public school or
a public charter school serves a high number of
students—
(i) with special needs; or
(ii) who do not meet minimum literacy
standards.
SEC. 2502. CALCULATION OF NUMBER OF STUDENTS.
(a) SCHOOL REPORTING REQUIREMENT.—
(1) IN GENERAL.—Not later than September 15,
1996, and not later than September 15 of each year
thereafter, each District of Columbia public school
and public charter school shall submit a report to the
Mayor and the Board of Education containing the in-
formation described in subsection (b) that is applica-
ble to such school.
(2) SPECIAL
RULE.—Not later than April 1,
1997, and not later than April 1 of each year there-
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after, each public charter school shall submit a report
in the same form and manner as described in para-
graph (1) to ensure accurate payment under section
2503(a)(2)(B)(ii).
(b) CALCULATION OF NUMBER OF STUDENTS.—Not
later than 30 days after the date of the enactment of this
Act, and not later than October 15 of each year thereafter,
the Board of Education shall calculate the following:
(1) The number of students, including non-
resident students and students with special needs, en-
rolled in each grade from kindergarten through grade
12 of the District of Columbia public schools and in
public charter schools, and the number of students
whose tuition for enrollment in other schools is paid
for with funds available to the District of Columbia
public schools.
(2) The amount of fees and tuition assessed and
collected from the nonresident students described in
paragraph (1).
(3) The number of students, including non-
resident students, enrolled in preschool and prekinder-
garten in the District of Columbia public schools and
in public charter schools.
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(4) The amount of fees and tuition assessed and
collected from the nonresident students described in
paragraph (3).
(5) The number of full time equivalent adult stu-
dents enrolled in adult, community, continuing, and
vocational education programs in the District of Co-
lumbia public schools and in public charter schools.
(6) The amount of fees and tuition assessed and
collected from resident and nonresident adult students
described in paragraph (5).
(7) The number of students, including non-
resident students, enrolled in nongrade level programs
in District of Columbia public schools and in public
charter schools.
(8) The amount of fees and tuition assessed and
collected from nonresident students described in para-
graph (7).
(c) ANNUAL REPORTS.—Not later than 30 days after
the date of the enactment of this Act, and not later than
October 15 of each year thereafter, the Board of Education
shall prepare and submit to the Authority, the Mayor, the
District of Columbia Council, the Consensus Commission,
the Comptroller General of the United States, and the ap-
propriate congressional committees a report containing a
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summary of the most recent calculations made under sub-
section (b).
(d) AUDIT OF INITIAL CALCULATIONS.—
(1) IN GENERAL.—The Board of Education shall
arrange with the Authority to provide for the conduct
of an independent audit of the initial calculations de-
scribed in subsection (b).
(2) CONDUCT
OF
AUDIT.—In conducting the
audit, the independent auditor—
(A) shall provide an opinion as to the accu-
racy of the information contained in the report
described in subsection (c); and
(B) shall identify any material weaknesses
in the systems, procedures, or methodology used
by the Board of Education—
(i) in determining the number of stu-
dents, including nonresident students, en-
rolled in the District of Columbia public
schools and in public charter schools, and
the number of students whose tuition for en-
rollment in other school systems is paid for
by funds available to the District of Colum-
bia public schools; and
(ii) in assessing and collecting fees and
tuition from nonresident students.