New Application Review - Independent Charter Schools

Rhode Island General Law Section 16-77.3-2 requires:

Any nonprofit organization that seeks to establish an independent charter school must submit its financial records and financial plan for operating the school to the Auditor General, who shall review the records, the financial plan, and the financial integrity of the organization.

At the time of submission of a proposed charter, the financial records and financial recordkeeping system of the nonprofit organization and the proposed financial plan for the independent charter school shall be reviewed by the Auditor General.

The Auditor General shall, while the proposed charter is being considered for preliminary approval by the Council on Elementary and Secondary Education, provide an initial determination to the Council on Elementary and Secondary Education, the Commissioner, and the Speaker of the House of Representatives and the President of the Senate indicating that the Auditor General is satisfied that the nonprofit organization is financially responsible.

During the year immediately preceding the September in which the independent charter school is to begin operation, the charter applicant shall make any additional submissions to the auditor general prescribed by the auditor general in the initial determination.

Additional submissions during the year prior to the September in which the independent charter school is to begin operation shall include, but not be limited to evidence submitted to the auditor general, not later than June 1st prior to the opening of the independent charter school, of the existence of an agreement, option for lease or purchase, lease agreement, or purchase agreement, contingent upon general assembly funding, for a facility in which the independent charter school will operate in its first year of operation.

Final approval for operation of the independent charter school shall not be granted by the council on elementary and secondary education until the Auditor General has approved the financial plan and financial-record keeping system and is satisfied that the nonprofit organization is financially responsible.

The Auditor General shall notify the Council on Elementary and Secondary Education, the Commissioner, the President of the Senate, and the Speaker of the House of Representatives of the findings.

The Auditor General shall have the authority to review independent charter schools affiliated with nonprofit organizations on an annual basis or require the school to have an annual, certified audit in accordance with the same federal and state standards that are applicable to local public school districts.

If, as a result of any annual audit, the Auditor General believes there are financial irregularities, the Auditor General shall withdraw the original approval and the Council on Elementary and Secondary Education shall withdraw its approval for the independent charter school to continue operation.

The Rhode Island Department of Education (RIDE) is the lead State agency for the review of proposals for new Charter Public Schools.

RIDE coordinates with the Office of the Auditor General (OAG) for the OAG review of the financial plan and financial record keeping system for Independent Charter Schools new applications.

All documentation and correspondence between the Independent Charter School applicant and the OAG are directed through RIDE.

Office of the Auditor General