I 
111TH CONGRESS 
2D SESSION 
H. R. 6204 
To require States receiving funds under the Elementary and Secondary Edu-
cation 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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Charter School Good 
Governance and Transparency Act’’. 
SEC. 2. CHARTER SCHOOL AUDITS. 
Not later than 1 year after the date of the enactment 
of this Act, each State educational agency receiving funds 
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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 ac-
cordance with generally accepted accounting 
principles, and applicable State and Federal re-
quirements; 
(B) be subject to an annual audit by a li-
censed, 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 edu-
cational agency that oversees education fi-
nance; and 
(C) adopt policies and implement practices 
to— 
(i) address all audit findings; and 
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(ii) report to the authorized public 
chartering agency that authorized or ap-
proved 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 au-
thorizes 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 annu-
ally thereafter, prepare and submit to the Secretary 
of Education an overall summary analysis of the 
audit results received under such paragraph. 
SEC. 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 
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and Secondary Education Act of 1965 (20 U.S.C. 
7721i), except that meaning shall be applied by sub-
stituting ‘‘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). 
Æ 
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