School Finance: Charter Schools

Massachusetts Charter School Audit Guide

June 2005

Dear Charter School Community:

In 1993, the Commonwealth of Massachusetts enacted Massachusetts General Laws (MGL) Chapter 71, Education Reform Act, Section 89, which authorized the establishment of charter schools within the Commonwealth. This statute stipulates various requirements for charter schools and includes a provision that requires charter schools to keep accurate accounts of all financial activities and to provide for an annual independent audit of financial statements.

In an effort to support these requirements, the Commonwealth Massachusetts Department of Elementary and Secondary Education (ESE) Charter School Office has developed and revised this Charter School Audit Guide (Guide) to provide each Charter School within the Commonwealth of Massachusetts and its independent auditor with a resource of audit requirements, including financial statement formats. The requirements contained in this Guide must be followed by the Charter School and its independent auditor beginning in FY 2006. The Guide and related appendices are provided below in two electronic formats for your convenience.

Sincerely,

David P. Driscoll
Commissioner of Education

•   Charter School Audit Guide

•    Appendix A - Standard Reporting Package (Without a Component Unit)

•   Appendix B - OMB A-133 Reporting Package (Without a Component Unit)

•   Appendix C - Standard Reporting Package (Including Component Unit)

•   Appendix D - OMB A-133 Reporting Package (Including Component Unit)

•   Appendix E - Board Acceptance Letter

•  Appendix F - Charter School End of Year Financial Report - Revised as of November 29, 2006

• Appendix G - MGL Chapter 71 Section 89 - Charter School Statute

• Appendix H - 603 CMR 1.00 - Charter Schools Regulations