1Amend Bill, page 11, by inserting between lines 12 and 13

2Section 4.2. Section 1714-A(5) of the act, amended July 4,
32004 (P.L.536, No.70), is amended to read:

4Section 1714-A. Powers of Charter Schools.--(a) A charter
5school established under this act is a body corporate and shall
6have all powers necessary or desirable for carrying out its
7charter, including, but not limited to, the power to:

8* * *

9(5) Make contracts and leases for the procurement of
10services, equipment and supplies[.], subject to the following:

11(i) No contract or lease entered into by a charter school
12for an amount greater than one hundred dollars ($100) may
13provide for a payment in excess of the fair market value of the
14services, equipment, supplies or other property being acquired
15or leased.

16(ii) A charter school may not enter into or continue
17operating under a contract for management, operations or
18educational services that involves the charter school providing
19a percentage of the charter school's revenues to the educational
20service provider.

21(iii) No contract entered into by a charter school shall
22have a term that extends beyond the charter school's existing
23charter agreement with a local school board or the department.

24* * *

25Amend Bill, page 45, line 7, by inserting after "school"

26 and any educational management service provider of the charter 
27school that provides management, operations or educational 
28services to the charter school

29Amend Bill, page 45, line 11, by striking out "or" and 
30inserting a comma

31Amend Bill, page 45, line 12, by inserting after "school's "

32or educational management service provider's

33Amend Bill, page 45, line 29, by inserting after "secretary."

1 Within ten (10) days of receipt of the charter school's annual 
2report, the local board of school directors and the secretary 
3shall each certify to the charter school that the annual report 
4has been received with an indication of the date of receipt. 
5Within thirty (30) days of the date of receipt, the local board 
6of school directors and the secretary shall each certify to the 
7charter school that the annual report has been reviewed and is 
8complete, or alternatively, has been reviewed and is missing 
9specific information referenced in the certification. This 
10review does not constitute a review for the accuracy of the 
11contents of the charter school's annual report.

12Amend Bill, page 46, by inserting between lines 10 and 11

13(c.1) Each charter school shall form an independent audit
14committee of its board members which shall review at the close
15of each fiscal year a complete certified audit of the operations
16of the charter school. The audit shall be conducted by a
17qualified independent certified public accountant as selected
18from a list of approved providers established by the department.
19The audit shall be conducted under generally accepted audit
20standards of the Governmental Accounting Standards Board (GASB)
21and shall include, but not be limited to, the following tests:

22(1) An enrollment test to verify the accuracy of student
23enrollment and reporting to the Commonwealth.

24(2) Full review of expense reimbursements for board members
25and administrators, including sampling of all reimbursements.

26(3) Review of internal controls, including review of
27receipts and disbursements.

28(4) Review of annual Federal and State tax filings,
29including the Internal Revenue Service Code Form 990, Return of
30Organization Exempt from Income Tax and all related schedules
31and appendices for the charter school and charter school
32foundation, if applicable and including any educational
33management service providers of the charter school.

34(5) Review of the financials of any charter school
35foundation, including any educational management service
36providers of the charter school.

37(6) Review of all contracts over five thousand dollars
38($5,000) regarding the selection and acceptance process.

39(7) Review of potential conflicts of interest among board
40members and senior level administrators with employes or
41educational service providers of the charter school.

42(8) Review of employe files for compliance purposes but in
43accordance with Federal and State regulations governing
44confidentiality protection for employes.

45(9) Any other test the department deems appropriate.

46(c.2) The certified audit as required by subsection (c.1) is
47a public document and shall be made available on the
48department's Internet website and the charter school's Internet
49website, if applicable.

1(d) Charter schools may be subject to an annual audit by the
2department its local school board or the Auditor General, in
3addition to any other audits required by Federal law or this
4act. Charter schools located within a school district of the
5first class may be subject to an annual audit by the controller
6of the city of the first class.

7(e) The department shall publish an annual report that does
8all of the following:

9(1) Identifies charter schools whose students are
10academically out-performing comparable students enrolled in the
11chartering school district.

12(2) Describes best practices used in the charter school
13identified under clause (1) that should be disseminated to all
14school districts and charter schools.

15(3) Makes any necessary recommendations to the General
16Assembly to further the dissemination and implementation of the
17best practices identified under clause (2).

18(f) Charter schools shall annually provide a copy of the
19annual budget for the operation of the school that identifies
20the following:

21(1) The source of funding for all expenditures as part of
22its reporting under subsection (a).

23(2) Where funding is provided by a charter school
24foundation, including any educational management service
25providers of the charter school, the amount of funds and a
26description of the use of such funds.

27(3) The salaries of all administrators of the charter
28school.

29(g) Notwithstanding any other provisions of law, the charter
30school and any affiliated charter school foundation and
31educational management service providers of the charter school
32shall make copies of annual Federal and State tax filings
33available upon request and on the foundation's Internet website,
34including Internal Revenue Service Code Form 990, Return of
35Organization Exempt from Income Tax and all related schedules
36and appendices. The charter school foundation, including any
37educational management service providers of the charter school,
38shall also make copies of its annual budget available upon
39request and on the foundation's Internet website, the
40educational management service provider's Internet website or
41the charter school's Internet website within thirty (30) days of
42the close of the foundation's or educational management service
43provider's fiscal year. The annual budget must include the
44salaries of all employes of the charter school foundation or of
45the educational management service providers of the charter
46school.

47(h) All operations of an educational management service
48provider for a charter school pursuant to a contract or
49agreement with the charter school which relate to the charter
50school shall be subject to public audit requirements under
51section 2553. In addition, funds provided by a charter school to

1an educational service management provider for a charter school
2pursuant to a contract or agreement with the charter school and
3the use of such funds by such educational management service
4provider shall be subject to the audit provisions of section 403
5of the act of April 9, 1929 (P.L.343, No.176), known as "The
6Fiscal Code."

7(i) The charter school records produced, obtained or
8maintained by an educational management service provider for a
9charter school pursuant to a contract or agreement with the
10charter school shall be subject to disclosure under the act of
11February 14, 2008 (P.L.6, No.3), known as the "Right-to-Know
12Law."

13Amend Bill, page 62, line 14, by inserting a bracket before 
14"and"

15Amend Bill, page 62, line 14, by inserting after "and"

16],

17Amend Bill, page 62, line 14, by inserting after "facility "

18and to any educational management service provider of the cyber 
19charter school that provide management, operations or 
20educational services to the cyber charter school 

21Amend Bill, page 62, line 16, by inserting after 
22"subdivision."

23Ongoing reasonable access to a cyber charter school's records
24shall mean that the department shall have access to records,
25including, but not limited to, financial records, financial
26audits, standardized test scores, teacher certification and
27personnel records. Cyber charter schools and the department
28shall comply fully with the requirements of the Family
29Education Rights and Privacy Act of 1974 (Public Law 90-247,
3020 U.S.C. § 1232g) and its implementing regulations.

31(3.1) Every cyber charter school shall also comply with
32the requirements of section 1728-A(c.1), (c.2), (d), (e),
33(f), (g) and (h).

34(4) Under section 1743-A(f) and within ten days of
35receipt of the cyber charter school's annual report, the
36secretary shall certify to the cyber charter school that the
37annual report has been received with an indication of the
38date of receipt. Within 45 days of the date of receipt, the
39secretary shall certify to the cyber charter school that the
40annual report has been reviewed and is complete or,
41alternatively, has been reviewed and is missing specific
42information referenced in the certification. This review does
43not constitute a review for the accuracy of the contents of
44the cyber charter school's annual report.

1Amend Bill, page 68, by inserting between lines 23 and 24

2Section 20.1. Section 2421 of the act is amended to read:

3Section 2421. Duties of Controller.--The school controller,
4herein provided in each school district of the first class,
5shall properly audit the finances of the school district,
6including the accounts of the receiver of school taxes, school
7treasurer, or other proper authority collecting school taxes,
8school depositories, and all other funds under the control of
9the board of public education[.] and all funds provided by the 
10school district of the first class to a charter school, 
11including, but not limited to, those funds provided by a charter 
12school to an educational service provider contractor or 
13subcontractor that provides management, operations or education 
14services to the charter school.

15The school controller shall, at the end of each school year,
16certify to the board of public education that he has audited the
17several accounts above stated, and shall report to it the result
18of such audit.