Common use of Annual Audits Clause in Contracts

Annual Audits. GOVERNING BODY of CHARTER SCHOOL shall cause an annual audit to be made using the same audit format as used by Shelby County Schools. Said auditors employed by CHARTER SCHOOL shall be certified public accountants who audit the accounts and records, including internal school activity and cafeteria funds, of CHARTER SCHOOL, in compliance with and as required under Tenn. Code Xxx. §00-00-000. CHARTER SCHOOL shall maintain internal school activity and cafeteria funds in accordance with the laws of Tennessee and Rules and Regulations of the Tennessee Department of Education, and CHARTER SCHOOL shall handle all costs related to causing said audit to occur. Said annual audit shall be completed as soon as practical after June 30th of each fiscal year of CHARTER SCHOOL, but in any event, no later than the date set by the State’s Comptroller after such fiscal year, and a copy of such audit shall be furnished to AUTHORIZER, and to the extent required by applicable law, to the special joint oversight committee on education, the Commissioner of Education, and the Comptroller of the Treasury. All of said audits shall be subject to, be prepared in accordance with, and be approved by, the Comptroller of the Treasury in accordance with the Act. Said CHARTER SCHOOL shall comply with Governmental Accounting Standards Board (“GASB”) Statements, if and when applicable, and audit shall be in a AUTHORIZER approved format for a public school and not for a non-profit corporation. Should the audit not comply with this paragraph, AUTHORIZER reserves the right to require CHARTER SCHOOL to use the same auditors that it uses until the conclusion of this Agreement. The annual audit shall contain at least the following information: 1. The same information and format required in the reports prepared by local boards of education pursuant to state laws, rules and regulations; and 2. Financial records of CHARTER SCHOOL, including revenues and expenditures. CHARTER SCHOOL shall at all times, and shall cause its employees and representatives at all times, to cooperate with the Comptroller of the Treasury with respect to all audits, and shall permit the Comptroller of the Treasury, as provided in Tenn. Code Xxx. §00-00-000, to audit any books and records, including internal school activity and cafeteria funds, of CHARTER SCHOOL. SPONSOR, on behalf of itself and CHARTER SCHOOL, acknowledges and agrees that CHARTER SCHOOL is subject to state audit procedures and audit requirements to the extent required by the Tennessee Public Charter Schools Act of 2002, as amended.

Annual Audits. GOVERNING BODY of CHARTER SCHOOL shall cause an annual audit to be made using the same audit format as used by Shelby County Schools. Said auditors employed by CHARTER SCHOOL shall be certified public accountants who audit the accounts and records, including internal school activity and cafeteria funds, of CHARTER SCHOOL, in compliance with and as required under Tenn. Code Xxx. §00-00-000. CHARTER SCHOOL shall maintain internal school activity and cafeteria funds in accordance with the laws of Tennessee and Rules and Regulations of the Tennessee Department of Education, and CHARTER SCHOOL shall handle all costs related to causing costs arising from said audit to occur. Said annual audit shall be completed as soon as practical after June 30th of each fiscal year of CHARTER SCHOOL, but in any event, no later than the date set by the State’s Comptroller after such fiscal year, and a copy of such audit shall be furnished to AUTHORIZER, and to the extent required by applicable law, to the special joint oversight committee on education, the Commissioner of Education, and the Comptroller of the Treasury. All of said audits shall be subject to, be prepared in accordance with, and be approved by, the Comptroller of the Treasury in accordance with the Act. Said CHARTER SCHOOL shall comply with Governmental Accounting Standards Board (“GASB”) Statements, if and when applicable, and audit shall be in a AUTHORIZER approved format for a public school and not for a non-profit corporation. Should the audit not comply with this paragraph, AUTHORIZER reserves the right to require CHARTER SCHOOL to use the same auditors that it uses until the conclusion of this Agreement. The annual audit shall contain at least Agreementduring the following information: 1. The same information and format required in the reports prepared by local boards of education pursuant to state laws, rules and regulations; and 2. Financial records of CHARTER SCHOOL, including revenues and expenditures. CHARTER SCHOOL shall at all times, and shall cause its employees and representatives at all times, to cooperate with the Comptroller of the Treasury with respect to all audits, and shall permit the Comptroller of the Treasury, as provided in Tenn. Code Xxx. §00-00-000, to audit any books and records, including internal school activity and cafeteria funds, of CHARTER SCHOOL. SPONSOR, on behalf of itself and CHARTER SCHOOL, acknowledges and agrees that CHARTER SCHOOL is subject to state audit procedures and audit requirements to the extent required by the Tennessee Public Charter Schools Act of 2002, as amended.year(s)

Annual Audits. GOVERNING BODY of CHARTER SCHOOL At fiscal year end, the Charter School shall cause an prepare its annual audit to be made using the same audit format as used by Shelby County Schools. Said auditors employed by CHARTER SCHOOL shall be certified public accountants who audit the accounts and records, including internal school activity and cafeteria funds, of CHARTER SCHOOL, in compliance with and as required under Tenn. Code Xxx. §00-00-000. CHARTER SCHOOL shall maintain internal school activity and cafeteria funds financial statements in accordance with accounting principles generally accepted in the laws United States of Tennessee America for not-for-profit organizations (“GAAP”). During the fiscal year, the Charter School shall operate in accordance with GAAP, the accrual basis of accounting, or any other basis of accounting, provided that the Charter School’s accounting methods allow it to prepare reports required by the Board, the State Board, and Rules any other grantors. The Charter School shall undergo a Financial Statement Audit and Regulations Financial and Administrative Procedures Controls Review (collectively, the “Financial Audit”), to be performed annually at its expense by an outside independent auditor that must be retained by the Charter School, and such auditor must be reasonably acceptable to the Board. The auditor must test for all requirements set forth by the annual Audit Memo which is published by I&I by May 1st of each year. To qualify as independent for purposes of the Tennessee Department paragraph, such auditor must not be an employee of Educationthe Charter School or otherwise affiliated with the Charter School for non-audit purposes. The Financial Audit shall include, without limitation: i. An opinion on the financial statements (and CHARTER SCHOOL shall handle all costs related to causing said Supplementary Schedule of Expenditures of Federal Awards, if applicable); ii. A report on compliance and on internal control over financial reporting based on an audit to occurof financial statements performed in accordance with Government Auditing Standards and the Single Audit Act of 1984, as amended; and iii. Said annual A report on compliance with requirements of applicable laws and regulations, including the audit requirements contained in the Accountability Plan. The Financial Audit shall be completed as soon as practical after June 30th of each fiscal year of CHARTER SCHOOL, but in any event, submitted to the Board by the Charter School no later than November 1 of each year during the date set term of this Agreement, beginning with November 1, 2022. The Financial Audit shall be submitted to the State Board by the State’s Comptroller after Charter School no later than December 1 of each year during the term of this Agreement, beginning with December 1, 2022. In addition, a copy of the Form 990 that the Charter School filed that year with the U.S. Internal Revenue Service (the “IRS”) shall be submitted to the Board and the State Board no later than December 1 of each year during the term of this Agreement, beginning with December 1, 2020; provided, however, that in any year during the term of this Agreement that the Charter School has requested and been granted an extension by the IRS for filing the Form 990 using IRS Form 8868, then the Charter School shall submit to the Board and the State Board: (1) a copy of the filing receipt of such fiscal Form 8868 by December 1 of such year, and (2) a copy of such audit shall be furnished to AUTHORIZER, and to the extent required by applicable law, to the special joint oversight committee on education, the Commissioner Form 990 no later than February 15 of Education, and the Comptroller of the Treasury. All of said audits shall be subject to, be prepared in accordance with, and be approved by, the Comptroller of the Treasury in accordance with the Act. Said CHARTER SCHOOL shall comply with Governmental Accounting Standards Board (“GASB”) Statements, if and when applicable, and audit shall be in a AUTHORIZER approved format for a public school and not for a non-profit corporation. Should the audit not comply with this paragraph, AUTHORIZER reserves the right to require CHARTER SCHOOL to use the same auditors that it uses until the conclusion of this Agreement. The annual audit shall contain at least the following information: 1. The same information and format required in the reports prepared by local boards of education pursuant to state laws, rules and regulations; and 2. Financial records of CHARTER SCHOOL, including revenues and expenditures. CHARTER SCHOOL shall at all times, and shall cause its employees and representatives at all times, to cooperate with the Comptroller of the Treasury with respect to all audits, and shall permit the Comptroller of the Treasury, as provided in Tenn. Code Xxx. §00-00-000, to audit any books and records, including internal school activity and cafeteria funds, of CHARTER SCHOOL. SPONSOR, on behalf of itself and CHARTER SCHOOL, acknowledges and agrees that CHARTER SCHOOL is subject to state audit procedures and audit requirements to the extent required by the Tennessee Public Charter Schools Act of 2002, as amendedsuch year.