§ 10156. Ongoing Monitoring of Applicant's Financial Soundness.

(a) As a condition of the Authority's determination that an applicant is financially sound, the Authority may require that all applicants provide regular updates to the Authority on key aspects of their financial condition and operating results. Such updates, may include, but not be limited to the following:

(1) semi-annual unaudited financial statements;

(2) audited financial statements as they are completed and filed with the California Department of Education and the chartering authority;

(3) adopted budgets and interim budget reports filed with the charter school's chartering authority;

(4) academic performance results;

(5) financial projections;

(6) completed legal status questionnaire;

(7) updated enrollment and attendance; and

(8) notice of any material change to the enrollment, student performance, charter status, or financial condition within 30 days of such material change;

(b) As a condition for release of funds for Advance or Final Apportionment, the Authority shall require each applicant to provide the Authority with:

(1) semi-annual updates regarding payment records on the matching share lease obligation; and

(2) notice of any material changes to the applicant's enrollment, student performance, charter status, or financial condition within 30 days of such material change.

(c) Where a charter school has a guarantor or co-borrower, the same or similar information to that described in subsections (a) and (b) also may be required to ensure the continuing financial stability of the guarantor or co-borrower.

(d) Upon an applicant's submission of updated information pursuant to this section, the Authority may conduct a review to determine whether an applicant continues to maintain a condition of financial soundness. In the event that the Authority's review finds that an applicant is no longer financially sound, the Authority shall immediately notify the Board of its specific finding. At any time, the Authority may require an applicant to submit a remedial action plan or request information from the chartering authority regarding changes to the condition of the charter.

HISTORY

1. New section filed 2-13-2003 as an emergency; operative 2-13-2003 (Register 2003, No. 7). A Certificate of Compliance must be transmitted to OAL by 6-13-2003 or emergency language will be repealed by operation of law on the following day.

2. Certificate of Compliance as to 2-13-2003 order transmitted to OAL 6-12-2003 and filed 7-14-2003 (Register 2003, No. 29).

3. Amendment of section filed 3-29-2004 as an emergency pursuant to Education Code section 17078.57(b); operative 3-29-2004 (Register 2004, No. 14). A Certificate of Compliance must be transmitted to OAL by 7-27-2004 or emergency language will be repealed by operation of law on the following day.

4. Amendment of section refiled 7-19-2004 as an emergency pursuant to Education Code section 17078.57(b); operative 7-27-2004 (Register 2004, No. 30). A Certificate of Compliance must be transmitted to OAL by 11-24-2004 or emergency language will be repealed by operation of law on the following day.

5. Certificate of Compliance as to 7-19-2004 order transmitted to OAL 11-8-2004 filed 12-23-2004 (Register 2004, No. 52).

6. Amendment of first paragraph and subsection (a) filed 11-3-2006 as an emergency; operative 11-3-2006 (Register 2006, No. 44). A Certificate of Compliance must be transmitted to OAL by 3-5-2007 or emergency language will be repealed by operation of law on the following day.

7. Reinstatement of section as it existed prior to 11-3-2006 emergency amendments pursuant to Government Code section 11346.1(f) (Register 2007, No. 39).

8. Amendment of introductory paragraph and subsections (c)-(d), (g) and (l) filed 9-9-2010 as an emergency; operative 9-9-2010 (Register 2010, No. 37). A Certificate of Compliance must be transmitted to OAL by 3-8-2011 or emergency language will be repealed by operation of law on the following day.

9. Certificate of Compliance as to 9-9-2010 order transmitted to OAL 1-19-2011 and filed 2-16-2011 (Register 2011, No. 7).

10. Repealer of former section 10156 and renumbering and amendment of former section 10157 to section 10156 filed 11-3-2011 as an emergency; operative 11-3-2011 (Register 2011, No. 44). A Certificate of Compliance must be transmitted to OAL by 5-1-2012 or emergency language will be repealed by operation of law on the following day.

11. Certificate of Compliance as to 11-3-2011 order transmitted to OAL 2-7-2012 and filed 3-5-2012 (Register 2012, No. 10).

Note

Note: Authority cited: Section 17078.57, Education Code. Reference: Sections 17078.52, 17078.53 and 17078.57, Education Code.