1. Monitor and review the charter school in its progress toward the goals established in the charter. Monitor the revenues and expenditures of the charter school. Ensure that the charter is innovative and consistent with state education goals. Ensure that the charter school participates in the state’s education accountability system. The Sponsor shall: Fla. Stat. § 1002.33(7)(a) 9

2. During the application process, “in order to ensure fiscal responsibility, an application for a charter school shall include a full accounting of expected assets, a projection of expected sources and amounts of income, including income derived from projected student enrollments and from community support, and an expense projection that includes full accounting of the costs of operation, including startup costs”. Fla. Stat. § 1002.33(6)(b) 3

3. Fla. Stat. § 1002.33(7)(a) 9 A charter must include “a reasonable demonstration of the professional experience or competence of those individuals or organizations applying to operate the school”. A description of internal audit procedures and establishment of controls to ensure that financial resources are properly managed must be included.

4. Fla. Stat. § 1002.33(8)(a), (b) 2 A charter school shall organize as, or be operated by, a nonprofit organization. Fla. Stat. § 1002.33(9)(1) 2 The charter school must annually report to the sponsor its financial status “which must include revenues and expenditures at a level of detail that allows for analysis of the ability to meet financial obligations and timely repayment of debt.” Fla. Stat. § 1002.33(12)(i) A charter may be non-renewed or terminated for failure to meet “generally accepted standards of fiscal management.”

5. Current Standard Contract Governing Board shall provide to sponsor an updated annual budget by August 20. School shall provide quarterly financial statements to sponsor. If the statements reveal a deficit position, the sponsor shall require the school to submit a detailed financial recovery plan to address the deficit, including bank reconciliation statements and monthly detailed general ledger reports. Failure to submit the reports constitutes a material breach of the contract and may result in withholding of payments to school. A. Financial Monitoring

6. Sponsor, with reasonable notice, may request at any time and up to 4 times a year, reports on school operations and the school shall provide them in a timely manner, at least within 30 days of receipt of the request. Sponsor reserves the right to require the school and the school agrees to adhere to any additional financial requirements mandated by the State Department of Education. School must provide annual financial report including management letter for inclusion in sponsor’s financial statements: unaudited due by August 1 and audited by September 1. Sponsor reserves the right to perform additional audits at its expense as part of its monitoring responsibilities as it deems necessary.

7. School’s governing board shall be solely responsible for the operation of the school and exercise continuing oversight over the school’s operations. No employee of the school may be a member of the governing body. No member of the school’s governing board will receive compensation, directly or indirectly, from the school’s operations, including but not limited to grant funds. Violation of this provision constitutes a material breach of the contract. Notices of all governing board meetings must be posted at the school, at the location of the meeting and at the M-DCPS Citizen Information Center. The school’s governing board members shall participate in charter school governing training. B. Governance

8. Management Companies Neither employers of the management company nor the management company’s employee’s family shall sit on the school’s governing board, be hired as school employees, or serve as officers of the corporation Neither employers of the management company nor the management company’s employee’s family shall sit on the school’s governing board, be hired as school employees, or serve as officers of the corporation.

10. provides that the sponsor’s policies do not apply to charter schools. Current Law Adds: that the sponsor’s policies may apply to a charter school if mutually agreed to by the sponsor and the charter school. § 1002.33(5)(b)4 that the sponsor’s policies may apply to a charter school if mutually agreed to by the sponsor and the charter school. § 1002.33(5)(b)4.

11. that the Department of Education shall offer or arrange for training and technical assistance to charter school applicants in developing business plans and estimating costs and income. The assistance shall address estimating startup costs, projecting enrollment, and identifying the types and amounts of state and federal financial assistance the charter school will be able to receive. § 1002.33(6)(f). that if an annual financial audit of the charter school reveals a “state of financial emergency as defined in § 218.503,” (see below) the auditor is required to notify the charter school governing board, the sponsor, and the Department of Education. Also adds that “[w]hen a charter school is in a state of financial emergency, the charter school shall file a detailed financial recovery plan with the sponsor. The department, with the involvement of both sponsors and charter schools, shall establish guidelines for developing such plans.” §1002.33(7)(a)10

12. Changes: Charters’ eligibility for long-term contracts from 10 years to 15 years. § 1002.33(7)(a)12 that the 15 year charter renewal shall be granted to a charter school that has received a school grade of A or B pursuant to §1008.34 in 3 of the past 4 years and is not in a state of emergency or deficit position. Such long-term charter is subject to annual review and may be terminated during the term of the charter pursuant to this statute. §1002.33(7)(b)2 that the 15 year charter renewal shall be granted to a charter school that has received a school grade of A or B pursuant to § 1008.34 in 3 of the past 4 years and is not in a state of emergency or deficit position. Such long-term charter is subject to annual review and may be terminated during the term of the charter pursuant to this statute. § 1002.33(7)(b)2 Adds:

13. that if a charter is not renewed or is terminated pursuant to this statute, the sponsor shall, within 10 calendar days, articulate in writing the specific reasons for its nonrenewal or termination of the charter and must provide the letter and supporting documentation to the charter school governing body, the charter school principal and the Department of Education. The school’s governing body may, within 30 calendar days after receiving the sponsor’s letter, appeal the decision pursuant to the procedures established in this statute. §1002.33(8)(c). When the charter is being immediately terminated because the sponsor determines that good cause has been shown or if the health, safety or welfare of the students is threatened, adds that the sponsor shall notify in writing the charter school’s governing body and principal and the Department of Education. “The principal shall clearly identify the specific issues that resulted in the immediate termination and provide evidence of prior notification of issues resulting in the immediate termination when appropriate.” § 1002.33(8)(d).

14. that if a charter is not renewed or is terminated, federal charter school program grant funds that are unencumbered shall revert to the Department of Education to be redistributed among eligible charter schools. § 1002.33(8)(e). that when a charter school is found to be in a state of financial emergency by a certified public accountant or auditor, the charter school must file a detailed financial recovery plan with the sponsor within 30 days after receipt of the audit. §1002.33(9)(g). that when a charter school is found to be in a state of financial emergency by a certified public accountant or auditor, the charter school must file a detailed financial recovery plan with the sponsor within 30 days after receipt of the audit. § 1002.33(9)(g). that the governing body of the charter school shall be responsible for (1) ensuring that the school has retained a certified public accountant or auditor pursuant to (g) above, who shall submit the report to the governing body; (2) reviewing and approving the audit report, including audit findings and recommendations for the financial recovery plan; (3) monitoring a financial recovery plan to ensure compliance. § 1002.33(9)(k)1,2,3

15. the statute requires charter schools to submit an annual report to the sponsor, which forwards the report to the Department of Education. This legislation adds that the Department of Education shall develop a uniform, on-line annual accountability report that will be easy to use and contain demographic information, student performance data, and financial accountability information. Also, “[a] charter school shall not be required to provide information and data that is duplicative and already in the possession of the department.” § 1002.33(9)(k)1 Changes:

16. that the director and representative of the governing body of a charter school that has received a school grade of “D” shall appear before the sponsor’s staff at least once a year “to present information concerning each contract component having noted deficiencies.” The sponsor shall communicate at this meeting, and in writing to the director, the services provided to the school to help address its deficiencies. § 1002.33(9)(o) that upon notification that a charter school receives a school grade of “D” for 2 consecutive years or a school grade of “F,” the sponsor shall require the director and a representative of the charter school to submit to the sponsor for approval a school improvement plan to raise student achievement and to implement the plan. The sponsor has the authority to approve a school improvement plan that the charter school will implement in the following school year. The Department of Education “shall offer technical assistance and training to the charter school and its governing body and establish guidelines for developing, submitting and approving such plans.” Adds:

17. If the charter school fails to improve its student performance from the year immediately prior to the implementation of the school improvement plan, the sponsor shall place the charter school on probation and shall require the charter school to take one of the following corrective actions: Contract for the educational services of the charter school; Reorganize the school at the end of the school year under a new director or principal who is authorized to hire new staff and implement a plan that addresses the causes of inadequate progress; or Reconstitute the charter school. A charter school that is placed on probation shall continue the corrective actions required under the above paragraph until the charter school improves its student performance from the year prior to the implementation of the school improvement plan. Notwithstanding any provision of this paragraph, the sponsor may terminate the charter at any time pursuant to the procedures provided under this statute. § 1002.33(9)(p)

18. that the director and representative of the governing body of a graded charter school that has submitted a school improvement plan or has been placed on probation under paragraph (p) above shall appear before the sponsor or the sponsor’s staff at least once a year to present information regarding the corrective strategies that are being implemented by the school pursuant to the school improvement plan. Also, the sponsor shall communicate at the meeting, and in writing to the director, the services provided to the school to help the school address its deficiencies. §1002.33(9)(q) school district must provide student performance data for each student in a charter school, including FCAT sores, standardized test scores, previous public school report cards, and student performance measures in the same manner as provided to other public schools in the district. §1002.33(20)(a) Adds:

19. Fla. Stat. § 218.39(5) to require auditors to notify charter schools for which deteriorating financial conditions exist that may cause a “financial emergency” (see below) to occur if actions are not taken to address such conditions. Amended to require auditors to notify charter schools for which deteriorating financial conditions exist that may cause a “financial emergency” (see below) to occur if actions are not taken to address such conditions.

20. Fla. Stat. § 218.503(1) Amended to add charter schools to the determination of “financial emergency.” It states that charter schools shall be subject to review and oversight by the Governor, charter school sponsor, or the Commissioner of Education, as appropriate, when any of the following conditions occurs: Failure within the same fiscal year in which due to pay short-term loans or failure to make bond debt service or other long-term debt payments when due, as a result of a lack of funds. Failure to pay uncontested claims from creditors within 90 days after the claim is presented, as a result of a lack of funds.

21. Failure to transfer at the appropriate time, due to lack of funds: Wages and salaries owed to employees; or Retirement benefits owed to former employees. Federal Social Security; or Any pension, retirement, or benefit plan of an employee. Failure for one pay period to pay, due to lack of funds: Taxes withheld on the income of employees; or Employer and employee contributions for : An unreserved or total fund balance or retained earnings deficit, or unrestricted or total net assets deficit, as reported on the balance sheet or statement of net assets on the general purpose or fund financial statements, for which sufficient resources are not available to cover the deficit. Resources available to cover reported deficits include net assets that are not otherwise restricted by federal, state, or local laws, bond covenants, contractual agreements, or other legal constraints. § 218.503(1)(a)-(e).

22. Requires that the charter school notify the charter school sponsor and the Legislative Auditing Committee, and in turn the district school board shall notify the Commissioner of Education and the Legislative Auditing Committee when one or more of the conditions listed above have occurred or will occur if action is not taken to assist the charter school. Upon notification that one or more of the conditions in subsection (1) exist, the charter school sponsor or the sponsor’s designee shall contact the charter school governing body to determine what actions have been taken by the governing body to resolve the condition. The charter school sponsor has the authority to require and approve a financial recovery plan, to be prepared by the charter school governing body, prescribing actions that will cause the charter school to no longer be subject to this section. The Department of Education shall establish guidelines for developing such plans. § 218.503(4) Fla. Stat. § 218.503(2)

23. House Bill 135 Florida Schools of Excellence Commission Creation of

24. Florida Schools of Excellence Commission to sponsor and support charter schools and authorizes municipalities, state universities, community colleges, and regional consortia to act as co-sponsors of charter schools throughout the state. The members of the Commission would be appointed by the State Board of Education through recommendations by the Governor, the President of the Florida Senate and the Speaker of the Florida House of Representatives. The legislation provides that the intent is to establish a state-level commission whose primary focus is the development and support of charter schools in order to better meet the growing and diverse needs of some of the increasing number and array of charter schools. The bill states that the first meeting should take place no later than October 1, 2006. Establishes:

25. a list of powers and duties, which currently belong exclusively to local school boards, to the commission, including: sponsor charter schools authorize municipalities, state universities, community colleges, and regional educational consortia to act as co-sponsors of charter schools; approve or deny charter school applications; and non-renew and terminate charter schools. Grants -

26. A district school board, however, may seek to retain exclusive authority to authorize charter schools within its jurisdiction by March 1 of each fiscal year prior to the year for which the exclusive authority is to apply, by presenting a written resolution adopted by the school board indicating its intent to retain exclusive authority to authorize charter schools. The resolution must be presented no later than 60 days after establishment of the commission. The resolution must be accompanied by a written description addressing the following issues: Compliance with the charter school statute, § 1002.33; Compliance with full and accurate accounting practices and charges for central administrative overhead costs; Compliance with requirements allowing charter schools to purchase certain services at actual cost to district; The absence of a school board moratorium regarding charter schools or the absence of any charter school enrollment limits; Compliance with valid orders of the state board;

27. The provision of assistance to charter schools to meet their facilities’ needs by including those needs in local bond issues or otherwise providing available land and facilities that are comparable to those provided to other public school students in the same grade levels with the school district; The distribution to charter schools authorized by the school board of a pro rata share of federal and state grants received by the school board, except for any grant received for a particular purpose which, by its express terms, is intended to benefit a student population not able to be served by, or a program not able to be offered at, a charter school that did not receive a proportionate share of such grant proceeds; The provision of adequate staff and other resources to serve charter schools, which services are provided by the district school board at a cost to the charter schools, that does not exceed their actual cost to the school board;

28. The lack of a policy or practice of imposing individual charter school enrollment limits, except as otherwise provided by law; The provision of an adequate number of educational choice programs to serve students exercising their rights to transfer pursuant to the “No Child Left Behind Act”, and a history of charter school approval that encourages chartering. The School Board must provide the resolution and description to each charter school in its jurisdiction prior to the time it submits it to the State Board. A public hearing is conducted and charter schools may provide input. Then, the State Board of Education “shall grant to a district school board exclusive authority to authorize charter schools within the geographic boundaries of the school district if the state board determines that...the district school board has provided fair and equitable treatment to its charter schools during the 4 years prior to the district school board’s submission of the resolution.”

29. A party may challenge the grant of exclusive authority to the school district by filing a notice of challenge within 30 days after the state board grants exclusive authority. The school board will be given the opportunity to appear and respond in writing. The State Board of Education shall make a determination upon the challenge within 60 days after receiving the notice of challenge. Other Items to Note - Sponsors of charter schools “shall not be liable for civil damages under state law for personal injury, property damage or death resulting from an act or omission of an officer, employee, agent or governing body of the charter school.”

30. The sponsor shall not be liable for civil damages under state law for any employment actions taken by an officer, employee, agent, or governing body of the charter school.” Further - The sponsor’s duties to monitor the charter school shall not constitute the basis for a private cause of action. Finally -