Arizona Administrative Code › Title 7 - EDUCATION › Chapter 5 - STATE BOARD FOR CHARTER SCHOOLS › Article 1 - GENERAL PROVISIONS › Section R7-5-101 - Definitions

Current through Register Vol. 30, No. 28, July 12, 2024
In this Chapter, the following definitions apply:
"Academic performance dashboard" means color-coded graphics
				  that represent a charter school's academic performance by measure for the three
				  most recent fiscal years and identifies whether the schools operated by the
				  charter holder meet the minimum academic performance expectations.
"Academic Performance Framework" means a document publicly
				  available and posted on the Board's website that sets forth the minimum
				  academic performance expectations for charter schools, measures of progress
				  towards meeting the expectations, and consequences of failing to meet the
				  expectations.
"Accounting industry regulatory body" means any state or
				  federal regulatory body that has authority to discipline a certified public
				  accountant or audit firm.
"Administrative completeness review time frame" means the
				  number of days from the Board's receipt of a submission for Board consideration
				  until the Board staff determines whether the submission contains all components
				  and is formatted as required by statute and rule.
"Annual application cycle" means the process the Board
				  conducts each year to receive and review new charter application packages and
				  grant or deny a charter.
"Applicant" means a person that applies to the Board for a
				  new charter.
"Application" means the Board-approved forms and instructions
				  used by an applicant or charter holder to apply for a new charter, transfer a
				  charter as provided under
				  R7-5-302(A)(1),
				  transfer a charter school as provided under
				  R7-5-302(A)(2),
				  or renew or replicate a charter sponsored by the Board.
"Application package" means an application form, narratives,
				  and documents, including exhibits and attachments, submitted by an applicant or
				  charter holder.
"Audit" means a charter holder's annual audit required under
				  A.R.S. §
									15-914.
"Audit contract" means an engagement letter provided by an
				  audit firm that describes the terms of a contract between a charter holder and
				  the audit firm.
"Authorized representative" means an individual with the
				  power to bind an applicant contractually according to the applicant's Articles
				  of Incorporation, operating agreement, or by-laws.
"Board" means the Arizona State Board for Charter
				  Schools.
"CAP" means corrective action plan.
"Charter" means a contract between a person and the Board to
				  operate a charter school under A.R.S. §
									15-181
				  et seq.
"Charter holder" means a person that enters into a charter
				  with the Board.
"Charter representative" means an individual with the power
				  to bind a charter holder contractually according to the charter holder's
				  Articles of Incorporation, operating agreement, or by-laws and is the point of
				  contact with the Board for the purposes of communication and accountability to
				  charter terms and conditions.
"Charter school" has the meaning specified at A.R.S. §
									15-101.
"Date of notice" means the date on which an electronic
				  notification is sent by the Board to an applicant or charter holder through the
				  authorized representative or charter representative.
"Day" means a business day.
"Demonstration of sufficient progress" means the process for
				  a charter holder to show the charter holder is making progress towards
				  achieving the minimum academic performance expectations specified in the
				  Academic Performance Framework.
"Department" means the Arizona Department of
				  Education.
"Education Service Provider" means an organization that
				  contracts with or has a governance relationship with an applicant or charter
				  holder to provide academic services, administrative services or both. These
				  organizations may also be commonly referred to as Charter Management
				  Organizations or Education Management Organizations.
"Financial performance dashboard" means a color-coded graphic
				  that represents a charter holder's financial performance by measure for the
				  most recent audited fiscal years and identifies whether the charter holder's
				  financial performance meets the minimum financial performance
				  expectations.
"Financial Performance Framework" means a document publicly
				  available and posted on the Board's website, and incorporated herein by
				  reference, that sets forth the minimum financial performance expectations for
				  charter holders, measures of performance, and consequences of failing to meet
				  the expectations.
"Fiscal year" means the 12-month period beginning July 1 and
				  ending June 30.
"June 30 quarterly financial report" means the report for the
				  quarter ending June 30 submitted to the Board by a charter holder assigned a
				  summative financial performance rating of "Intervention" under
				  R7-5-402(F)
				  or a charter holder identified as "On Probation" and, therefore, under
				  R7-5-402(G)
				   does not meet the minimum financial
				  performance expectations. In the June 30 report, the charter holder must
				  include:
An unaudited balance sheet (statement of financial position)
				  that identifies the charter holder's results at June 30 and the charter
				  holder's unrestricted and restricted cash balances. Minimally, the charter
				  holder's restricted cash balance must include the charter holder's unspent
				  Classroom Site Fund monies;
An unaudited income statement (statement of activities) that
				  identifies the charter holder's results for the year ended June 30;
The charter holder's revenue and expense budget that compares
				  year-to-date actual results for the year ended June 30 to the charter holder's
				  annual budget and, for each line item, identifies the percentage of the annual
				  budget represented by the actual results; and
The charter holder's calculation of its performance on all
				  six Financial Performance Framework measures, including all figures used in the
				  mathematical calculations, completed using the measure calculator spreadsheet
				  available on the Board's web-based interface;
If not specifically listed on the unaudited income statement
				  (statement of activities), accounting system reports or lease and debt
				  schedules identifying, as applicable, the facility lease expense and interest
				  expense paid by the charter holder for the fiscal year and used in the charter
				  holder's lease adjusted debt service coverage ratio calculation; and
Accounting system reports or debt schedules identifying, as
				  applicable, the bond, loan and capital lease principal paid by the charter
				  holder for the fiscal year and used in the charter holder's lease adjusted debt
				  service coverage ratio calculation.
"Operational performance dashboard" means a color-coded
				  graphic that represents a charter holder's operational performance by measure
				  for up to the five most recent fiscal years and identifies whether the charter
				  holder's operational performance meets the minimum operational performance
				  expectations.
"Operational Performance Framework" means a document publicly
				  available and posted on the Board's website that sets forth the minimum
				  operational performance expectations for charter holders, measures of
				  performance, and consequences of failing to meet the expectations.
"Overall time frame" means the number of days after receipt
				  of a submission for Board consideration until the Board decides whether to
				  grant or deny the request contained in the submission. The overall time frame
				  consists of both the administrative completeness review time frame and the
				  substantive review time frame.
"Peer review" means an external quality-control review,
				  required by generally accepted government auditing standards, which determines
				  whether an audit firm's internal quality-control system exists, is operating
				  effectively, and provides assurance that established policies and procedures
				  and applicable auditing standards are being followed.
"Performance expectations" means the minimum academic,
				  financial, and operational performance expectations established by the
				  Board.
"Person" means an individual, partnership, corporation,
				  association, or public or private organization of any kind.
"Principals" means the officers, directors, members,
				  partners, or board of an applicant or charter holder.
"Quarterly financial report" means the report for the
				  quarters ending September 30, December 31 and March 31 submitted to the Board
				  by a charter holder assigned a summative financial performance rating of
				  "Intervention" under
				  R7-5-402(F)
				  or a charter holder identified as "On Probation" and, therefore, under
				  R7-5-402(G)
				  does not meet the minimum financial performance expectations. In each quarterly
				  report, the charter holder must include:
An unaudited balance sheet (statement of financial position)
				  that identifies the charter holder's results at the quarter end date and the
				  charter holder's unrestricted and restricted cash balances. Minimally, the
				  charter holder's restricted cash balance must include the charter holder's
				  unspent Classroom Site Fund monies;
An unaudited income statement (statement of activities) that
				  identifies the charter holder's results year-to-date through the quarter end
				  date;
The charter holder's revenue and expense budget that compares
				  year-to-date actual results through the quarter end date to the charter
				  holder's annual budget and, for each line item, identifies the percentage of
				  the annual budget represented by the actual results; and
The charter holder's calculation of its performance on the
				  default, unrestricted days liquidity, adjusted net income and average daily
				  membership measures, including all figures used in the mathematical
				  calculations, completed using the measure calculator spreadsheet available on
				  the Board's web-based interface.
"Serious impact finding" means an issue identified by the
				  Board that the Board believes has or potentially has a detrimental impact on
				  the operation of the charter school or students, such as threat to the health
				  and safety of children, failure to meet the academic needs of children, gross
				  violation of generally accepted accounting principles that increases the
				  opportunity for fraud or theft, or repeated issues of noncompliance.
"Substantive review time frame" means the number of days
				  after a submission for Board consideration is determined to be administratively
				  complete until the Board decides whether to grant or deny the request contained
				  in the submission.
"Sufficiently qualified" means the Board's determination that
				  an applicant's knowledge, experience, qualifications, current and prior charter
				  compliance, capacity, personal and professional background, and
				  creditworthiness indicate an ability to implement a charter or operate a
				  charter school in accordance with federal and state law and the performance
				  expectations established by the Board.
"Supervising certified public accountant" means the certified
				  public accountant responsible for leading the audit of a charter school or
				  signing the final audit report.
"Technical Review Panel" means individuals approved by the
				  Executive Director of the Board who use their expertise in charter school
				  development, curriculum, and finance to assist the Executive Director by
				  conducting a preliminary evaluation of an application package.