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(A) maintained in accordance with gen-
erally accepted accounting principles for non-
profit corporations; and
(B) audited annually by independent cer-
tified public accountants.
(2) REPORT.—The report for each such audit
shall be included in the annual report to Congress
required by section 210(c).
(f) ADMINISTRATIVE RESPONSIBILITIES.—
(1) SCHOLARSHIP APPLICATION SCHEDULE AND
PROCEDURES.—Not later than 30 days after the ini-
tial Board is appointed and the first Executive Di-
rector of the Corporation is hired under this title,
the Corporation shall implement a schedule and pro-
cedures for processing applications for, and award-
ing, student scholarships under this title. The sched-
ule and procedures shall include establishing a list of
certified eligible institutions, distributing scholarship
information to parents and the general public (in-
cluding through a newspaper of general circulation),
and establishing deadlines for steps in the scholar-
ship application and award process.
(2) INSTITUTIONAL APPLICATIONS AND ELIGI-
BILITY.—
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(A) IN GENERAL.—An eligible institution
that desires to participate in the scholarship
program under this title shall file an application
with the Corporation for certification for par-
ticipation in the scholarship program under this
that title shall—
(i) demonstrate that the eligible insti-
tution has operated with not less than 25
students during the 3 years preceding the
year for which the determination is made
unless the eligible institution is applying
for certification as a new eligible institu-
tion under subparagraph (C);
(ii) contain an assurance that the eli-
gible institution will comply with all appli-
cable requirements of this title;
(iii) contain an annual statement of
the eligible institution’s budget; and
(iv) describe the eligible institution’s
proposed program, including personnel
qualifications and fees.
(B) CERTIFICATION.—
(i) IN GENERAL.—Except as provided
in subparagraph (C), not later than 60
days after receipt of an application in ac-
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cordance with subparagraph (A), the Cor-
poration shall certify an eligible institution
to participate in the scholarship program
under this title.
(ii) CONTINUATION.—An eligible insti-
tution’s certification to participate in the
scholarship program shall continue unless
such eligible institution’s certification is re-
voked in accordance with subparagraph
(D).
(C) NEW ELIGIBLE INSTITUTION.—
(i) IN GENERAL.—An eligible institu-
tion that did not operate with at least 25
students in the 3 years preceding the year
for which the determination is made may
apply for a 1-year provisional certification
to participate in the scholarship program
under this title for a single year by provid-
ing to the Corporation not later than July
1 of the year preceding the year for which
the determination is made—
(I) a list of the eligible institu-
tion’s board of directors;
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(II) letters of support from not
less than 10 members of the commu-
nity served by such eligible institution;
(III) a business plan;
(IV) an intended course of study;
(V) assurances that the eligible
institution will begin operations with
not less than 25 students;
(VI) assurances that the eligible
institution will comply with all appli-
cable requirements of this title; and
(VII) a statement that satisfies
the requirements of clauses (ii) and
(iv) of subparagraph (A).
(ii) CERTIFICATION.—Not later than
60 days after the date of receipt of an ap-
plication described in clause (i), the Cor-
poration shall certify in writing the eligible
institution’s provisional certification to
participate in the scholarship program
under this title unless the Corporation de-
termines that good cause exists to deny
certification.
(iii) RENEWAL OF PROVISIONAL CER-
TIFICATION.—After receipt of an applica-
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tion under clause (i) from an eligible insti-
tution that includes a statement of the eli-
gible institution’s budget completed not
earlier than 12 months before the date
such application is filed, the Corporation
shall renew an eligible institution’s provi-
sional certification for the second and third
years of the school’s participation in the
scholarship program under this title unless
the Corporation finds—
(I) good cause to deny the re-
newal, including a finding of a pattern
of violation of requirements described
in paragraph (3)(A); or
(II) consistent failure of 25 per-
cent or more of the students receiving
scholarships under this title and at-
tending such school to make appro-
priate progress (as determined by the
Corporation) in academic achieve-
ment.
(iv) DENIAL
OF
CERTIFICATION.—If
provisional certification or renewal of pro-
visional certification under this subsection
is denied, then the Corporation shall pro-