Texas Education Code 12.1163 – Audit by Commissioner
Current as of: 2024 | Check for updates
|
Other versions
(a) To the extent consistent with this section, the commissioner may audit the records of:
(1) an open-enrollment charter school;
(2) a charter holder; and
(3) a management company.
(b) An audit under Subsection (a) must be limited to matters directly related to the management or operation of an open-enrollment charter school, including any financial and administrative records.
Terms Used In Texas Education Code 12.1163
- Fair market value: The price at which an asset would change hands in a transaction between a willing, informed buyer and a willing, informed seller.
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
- Rule: includes regulation. See Texas Government Code 311.005
(c) Unless the commissioner has specific cause to conduct an additional audit, the commissioner may not conduct more than one on-site audit during any fiscal year, including any financial and administrative records. For purposes of this subsection, an audit of a charter holder or management company associated with an open-enrollment charter school is not considered an audit of the school.
(d) If the aggregate amount of all transactions between a charter holder and a related party, as defined by commissioner rule adopted under § 12.1166, exceeds $5,000, an audit under Subsection (a) may include the review of any real property transactions between the charter holder and the related party. If the commissioner determines that a transaction with a related party using funds received under § 12.106 was structured in a manner that did not benefit the open-enrollment charter school or that the transaction was in excess of fair market value, the commissioner may order that the transaction be reclassified or that other action be taken as necessary to protect the school’s interests. Failure to comply with the commissioner’s order is a material violation of the charter.