TCSA Model Board Policy Series - Rapoport Academy...Lindsey Gordon, Texas Charter Schools...

©Texas Charter Schools Association. All rights reserved.

TCSA Model Board Policy Series100.020. Annual Operating Budget

INTRODUCTION

The Model Board Policies for Charter Schools is a series of publications by the Texas Charter Schools Association (TCSA). These publications are an educational tool for charter school leaders to aid in the operation and management of open-enrollment charter schools in Texas.

Overall Policy FrameworkEach module in the Board Policy Series provides a summary of federal and state statutes, regulations, and related materials applicable to open enrollment charter schools. Citations to these materials are provided throughout the module and many contain a hyperlink so the actual statutory or regulatory provision can be accessed on the Internet. The summary is designated by the LEGAL AUTHORITY tab on the right edge of each page.

After the LEGAL AUTHORITY portion of the module you will find the model policy section designed to comply with current statutory and regulatory requirements described in the LEGAL AUTHORITY summaries. These policies are designated by the red CHARTER BOARD POLICY tab on the right edge of each page.

These are suggested policies to address the requirements set forth in this Module. Prior to adoption of the model policies by the Board of a charter school, each policy should be custom-ized by including the school’s name and by tailoring the language, if appropriate, to fit the specific needs, culture and requirements of the school. TCSA recommends that the Board of a charter school consult with and obtain the advice of the school’s legal counsel in connection with adopt-ing policies to comply with laws governing charter schools.

TCSA plans to update the Model Board Policies for Charter Schools after each Texas Legislative Session to reflect changes in applicable laws. We also will regularly and continually update the Policy Series when changes occur in state and federal case law and administration regulations that affect open enrollment charter schools. We encourage you to renew your subscription to the policy series each year to ensure that your school has the most recent laws and regulations.

Scope of Service & Copyright NoticeThis policy module prepared by the TCSA is designed and intended as a resource of information for charter schools and is not to be construed as legal advice. It should be used in connection with consulting and obtaining the advice of the school’s legal counsel to ensure compliance with applicable legal requirements.

This policy module and all updates are copyrighted publications of the TCSA. All rights are reserved and will be enforced to the fullest extent of the law. The policy modules are for the sole use of the purchaser. Duplication and distribution in whole or in part are prohibited unless otherwise specifically authorized in writing by TCSA. Inquires should be directed to TCSA, 700 Lavaca, Suite 930, Austin, TX 78701.

For questions concerning the Model Board Policies for Charter Schools contact: Lindsey Gordon, Texas Charter Schools Association [email protected] 512.584.8272

Module 100: Financial OperationsThe Financial Operations, Module 100, is the first module of the Model Board Policies. The material included in this module provides a comprehensive summary of statutes and regulations that apply to the financial operations of charter schools, as well as specific model board policies designed to comply with these legal requirements. Other policy modules in the series include:

Module 200: Charter School Governance & Organization

Module 300: General School Operations

Module 400: Students

Module 500: Open Government

Module 600: Human Resources

Legal Abbreviations Used In the TCSA Model Board Policy Series

Atty. Gen. Op. Attorney General Opinion

C.F.R Code of Federal Regulations

Tex. Admin. Code Texas Administrative Code

Tex. Educ. Code Texas Education Code

Texas Gov’t Code Texas Government Code

Tex. Labor Code Texas Labor Code

Texas Local Gov’t Code Texas Local Government Code

U.S.C.A United States Code Annotated

1©Texas Charter Schools Association. All rights reserved.

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THORITY 100.020.

100.020. ANNUAL OPERATING BUDGET A. Budget Process

1. Charter schools must adopt a budgeting process that is consistent with the requirements in the Budgeting Module of the Texas Education Agency’s Financial Accountability System Resource Guide.

2. The governing board must formally adopt the budget before the fiscal year begins and before the expenditure of funds. It must include all expenses and must be prepared in a manner consistent with the account code structure used by the charter school.

3. The adoption of the budget and any amendments must be recorded in the minutes of the governing board’s meetings. The minutes must include a description of the action taken by the board and a copy of the budget and/or amendments adopted.

4. The governing body of a charter school must formally adopt amendments to the charter school’s budget.

Texas Education Agency, Special Supplement to the Financial Accountability System ResourceGuide Charter Schools, Update 5.0 (January 2010).

B. Online Budget Posting After the budget receives final approval by the governing board the charter holder shall post it on its Internet website. The charter holder must prominently display an electronic link to the adopted budget on its Internet website and maintain the electronic link until the third anniversary of the date the budget was adopted.

Tex. Educ. Code § 12.104(L); Tex. Educ. Code §39.084.

C. Accelerated Payments of State FundingOn the request of an open-enrollment charter school, the commissioner shall compare the stu-dent enrollment of the open-enrollment charter school for the current school year to the student enrollment of the school during the preceding school year. If the number of students enrolled at the open-enrollment charter school for the current school year has increased by 10 percent or more from the number of students enrolled during the preceding school year, the open-enroll-ment charter school may request that payments from the foundation school fund to the school for the following school year and each subsequent school year, be accelerated according to the monthly schedule provided in law.

TEX. EDUC. CODE §§ 42.2591; 84TH Leg., R.S., HB 2251

http://www.tea.state.tx.us/index4.aspx?id=1222




http://www.statutes.legis.state.tx.us/Docs/ED/htm/ED.12.htm#12.104


http://www.capitol.state.tx.us/BillLookup/Text.aspx?LegSess=84R&Bill=HB2251


TCSA Model Board Policy Series

100.200. Annual Operating Budget RAPOPORT ACADEMY PUBLIC SCHOOL


INTRODUCTION The Model Board Policies for Charter Schools is a series of publications by the Texas Charter Schools Association (TCSA). These publications are an educational tool for charter school leaders to aid in the operation and management of open-enrollment charter schools in Texas.

Overall Policy Framework Each module in the Board Policy Series provides a summary of federal and state statutes, regulations, and related materials applicable to open enrollment charter schools. Citations to these materials are provided throughout the module and many contain a hyperlink so the actual statutory or regulatory provision can be accessed on the Internet. The summary is designated by the LEGAL AUTHORITY tab on the right edge of each page.


These are suggested policies to address the requirements set forth in this Module. Prior to adoption of the model policies by the Board of a charter school, each policy should be custom- ized by including the school’s name and by tailoring the language, if appropriate, to fit the specific needs, culture and requirements of the school. TCSA recommends that the Board of a charter school consult with and obtain the advice of the school’s legal counsel in connection with adopting policies to comply with laws governing charter schools.


Scope of Service & Copyright Notice This policy module prepared by the TCSA is designed and intended as a resource of information for charter schools and is not to be construed as legal advice. It should be used in connection with consulting and obtaining the advice of the school’s legal counsel to ensure compliance with applicable legal requirements.


For questions concerning the Model Board Policies for Charter Schools contact:

Lindsey Gordon, Texas Charter Schools Association [email protected] 512.584.8272

mailto:[email protected]


Module 100: Financial Operations The Financial Operations, Module 100, is the first module of the Model Board Policies. The material included in this module provides a comprehensive summary of statutes and regulations that apply to the financial operations of charter schools, as well as specific model board policies designed to comply with these legal requirements. Other policy modules in the series include:

Charter School Governance & Organization

General School Operations

Students

Open Government

Human Resources










©Texas Charter Schools Association. All rights reserved. Document adopted by the Board:08/25/2016

100.020. ANNUAL OPERATING BUDGET The governing body (“Board”) of RAPOPORT ACADEMY PUBLIC SCHOOL adopts the following policy which shall be effective on the date that the policy is adopted by the Board.

SECTION 1. Budget Process

SECTION 1.1. FA SRG. The Superintendent will ensure that RAPOPORT ACADEMY PUBLIC SCHOOL follows a budgeting process that is consistent with the requirements in the Budgeting Module of the Texas Education Agency’s (“TEA”) Financial Accountability System Resource Guide (FASRG).

SECTION 1.2. Superintendent. The Superintendent is responsible for the preparation of the annual budget.

SECTION 1.3. Campus Improvement Plan. Each year before the annual operating budget is drafted the Superintendent shall ensure that a campus improvement plan, which is based on a needs assessment of RAPOPORT ACADEMY PUBLIC SCHOOL, is drafted and finalized. The needs assessment and campus improvement plan shall be completed by December 31. The campus improvement plan shall inform the drafting of the annual budget.

SECTION 1.4. Adoption. The Board shall formally adopt the budget, in a meeting open to the public, before the fiscal year of September 1st begins and before the expenditure of any funds.

SECTION 1.5. Minutes. The Secretary of the Board will record the adoption of the budget and any amendments in the Board meeting minutes in which the adoption occurs.

SECTION 1.6. Post-Adoption. After the adoption of the budget the Superintendent and the Board shall review actual fund disbursements compared to the adopted budget and make proposed amendments as needed. This shall occur soon after actual student enrollment is determined. SECTION 1.7. Application for Accelerated Payments. The Executive Director (“ED”) will determine annually whether RAPOPORT ACADEMY PUBLIC SCHOOL may be eligible for accelerated payments from the Foundation School Program, and if so, will make a recommendation to the board concerning whether the charter school should to apply to the Commissioner for accelerated payments of state funding.

SECTION 2. Fiscal Compliance

The Superintendent shall ensure that RAPOPORT ACADEMY PUBLIC SCHOOL complies with all state and federal laws and rules concerning the budget and related processes of the school, including but not limited to, laws and rules concerning online budget posting.

CHARTER BOARD POLICY 100.020.


100.040. Use of State Funds RAPOPORT ACADEMY PUBLIC SCHOOL








This policy module and all updates are copyrighted publications of the TCSA. All rights are reserved and will be enforced to the fullest extent of the law. The policy modules are for the sole use of the purchaser. Duplication and distribution in whole or in part are prohibited unless otherwise specifically authorized in writing by TCSA. Inquiries should be directed to TCSA, 700 Lavaca, Suite 930, Austin, TX 78701.








Students

Open Government

Human Resources










©Texas Charter Schools Association. All rights reserved. Document adopted by the Board: 08/25/2016

100.40. USE OF STATE FUNDS The governing body (“Board”) of RAPOPORT ACADEMY PUBLIC SCHOOL adopts the following policy which shall be effective on the date that the policy is adopted by the Board.

SECTION 1. Use of State Funds Superintendent of RAPOPORT ACADEMY PUBLIC SCHOOL shall ensure that the school uses state funds only for lawful purposes.

SECTION 2. Prohibition Against Co-mingling of Charter & Non-Charter Business The Superintendent shall ensure that the business activities of RAPOPORT ACADEMY PUBLIC SCHOOL that are not directly related to the management and operation of RAPOPORT ACADEMY PUBLIC SCHOOL shall be kept in a separate and distinct accounting, auditing, budgeting, reporting, and record keeping systems from those recording the business activities of RAPOPORT ACADEMY PUBLIC SCHOOL.

SECTION 3. Interested Transactions

SECTION 3.1. Each member of the Board shall comply with all conflict of interest laws and rules applicable to affected board members.

SECTION 3.2. The Superintendent shall ensure that the employees of RAPOPORT ACADEMY PUBLIC SCHOOL shall comply with all conflict of interest laws and rules applicable to affected employees.

SECTION 3.3. The Superintendent shall ensure that the following shall be recorded in the accounting, auditing, budgeting, reporting, and record keeping systems for the management and operation of the school:

a. Financial transactions between the school and the non-charter activities of the

charter holder;

b. Financial transactions between the school and an officer or employee of the charter holder or the school;

c. Financial transactions between the school and a member of the governing body of

the charter holder or the school;

d. Financial transactions between the school and a management company charged with managing the finances of a school; and

e. Financial transactions between the school and any other person or entity in a

position of influence over the charter holder or the school.



TCSA Model Board Policy Series100.040. Use of State Funds

INTRODUCTION

























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THORITY 100.040.

100.040. USE OF STATE FUNDS

A. Public Funds Held in TrustState funds received by a charter holder are public funds to be used for the benefit of the students enrolled in the charter school. They may only be used for a purpose listed under the Texas Education Code §45.105:

1. Salaries for teachers and superintendents and interest on money borrowed on short time to pay those salaries that become due before the state funds for the current year become available;

2. Purchase of appliances and supplies;

3. Payment of insurance premiums;

4. Payment of janitors and other employees;

5. Purchase of school sites;

6. Buying, building, repairing, and renting of school buildings, including acquiring school buildings and sites by leasing through annual payments with an ultimate option to purchase; and

7. Other purposes necessary in the conduct of the charter school as determined by the charter school board.

The charter holder holds these funds in trust for the benefit of the students enrolled in the charter school. In using the public funds the governing body of the charter holder, as well as the governing body and officers of a charter school, are held to the standard of care and fiduciary duties that a trustee owes a beneficiary under Texas law.

The charter holder and the charter school must be able to demonstrate that public funds were used to secure goods and services for the benefit of the charter school’s students and that the use of the public funds comported to the list outlined above. Complete original records must be maintained that clearly identify the business purpose of any disbursement of public funds and how they are aligned with the legal requirements in this section.

Tex. Educ. Code §12.107; 19 Tex. Admin. Code §100.1043(a).

B. Use of State Funds for Social ActivitiesCosts of entertainment, and any costs directly associated with such costs, are prohibited unless there is a direct relation to the benefit of students. Along with having to demonstrate that such an expense had a direct benefit to students the charter holder and/or charter school must identify which student(s) benefitted from the disbursement of public funds.

Rule 1.8.2.9.1, Texas Education Agency, Special Supplement to the Financial Accountability System Resource Guide Charter Schools, Update 5.0 (January 2010).


http://info.sos.state.tx.us/pls/pub/readtac$ext.TacPage?sl=R&app=9&p_dir=&p_rloc=&p_tloc=&p_ploc=&pg=1&p_tac=&ti=19&pt=2&ch=100&rl=1043




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THORITY 100.040.

C. Depository Contract1. Depository Contract. State funds received by a charter holder must be deposited into

a bank with which the charter holder has entered into a depository contract and which deposits are insured by the Federal Deposit Insurance Corporation (FDIC).

2. Depository bank. A depository bank is:

a. a bank;

b. a savings and loan association; or

c. a savings bank organized under the laws of Texas, another state, or federal law that has its main or branch office in Texas.

d. deposits exceeding the FDIC insured amounts need not be collateralized for the institution to constitute a bank for purposes of this section.

3. Filing. The charter holder must file a copy of the depository contract with the Texas Education Agency division responsible for school financial audits no later than November 1st of each year. If there is no change since the previous year’s filing, the charter holder may file a statement to that effect instead of the copy of the depository contract.

4. Contents of a Contract. See Rule 1.8.2.3 of the Texas Education Agency, Special Supplement to the Financial Accountability System Resource Guide Charter Schools, Update 5.0 for language that must be included in the depository contract.

Tex. Educ. Code § 12.107(b); Tex. Educ. Code §45.201; 19 Tex. Admin. Code §100.1043(b).

D. Non-Charter Activities & FundsBusiness activities of a charter holder that are not directly related to the management and operation of the charter shall be kept in separate and distinct accounting, auditing, budgeting, reporting, and record keeping systems from those recording the business activities of the charter school. Co-mingling of charter and non-charter business in the accounting, auditing, budgeting, reporting, and record keeping systems of the charter school is a material charter violation.

19 Tex. Admin. Code §100.1047(e).

E. Interested TransactionsA charter holder shall comply with conflict of interest laws and rules. In addition, the following shall be discretely and clearly recorded in the accounting, auditing, budgeting, reporting, and recordkeeping systems for the management and operation of the school:

1. Financial transactions between the school and the non-charter activities of the charter holder;

2. Financial transactions between the school and an officer or employee of the charter









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THORITY 100.040.

holder or the school;

3. Financial transactions between the school and a member of the governing body of the charter holder or the school;

4. Financial transactions between the school and a management company charged with managing the finances of a school;

5. Financial transactions between the school and any other person or entity in a position of influence over the charter holder or the school. A person or entity is in a position of influence if:

a. The charter holder or the school is a subsidiary of, or shares governing body members, officers, or employees with, another organization, and

(a) The person or entity is a shareholder, partner, administrator, official, or employee of the other organization; or

(a) The person or entity by any other means participates in the business decisions of the affiliate or parent organization; or

b. A relative of the person is in a position of influence over the charter holder or the school under this section, within the third degree by consanguinity or affinity, as determined by nepotism laws and rules.

19 Tex. Admin. Code §§ 100.1047(f)–(g).



100.060. State Fiscal Compliance RAPOPORT ACADEMY PUBLIC SCHOOL
















Students

Open Government

Human Resources











100.60. STATE FISCAL COMPLIANCE (TCSA NOTE: POLICY ON THIS SUBJECT LEGALLY REQUIRED) The governing body (“Board”) of RAPOPORT ACADEMY PUBLIC SCHOOL adopts the following policy which shall be effective on the date that the policy is adopted by the Board.

SECTION 1. Fiscal Year The RAPOPORT ACADEMY PUBLIC SCHOOL Board adopts [select either July 1st or September 1st] as the fiscal year for RAPOPORT ACADEMY PUBLIC SCHOOL.

SECTION 2. Financial Accounting

SECTION 2.1. Compliance. The Superintendent shall ensure that RAPOPORT ACADEMY PUBLIC SCHOOL fully complies with: generally accepted accounting principles, Texas Education Agency’s (“TEA”) Financial Accountability System Resource Guide, TEA’s Student Attendance Accounting Handbook, Public Education Information Management System (PEIMS), and any other applicable federal or state standards for financial management systems.

SECTION 2.2. Financial Reporting. The Superintendent, or designee, shall make an accurate, current, and complete disclosure of financially assisted activities in accordance with financial reporting requirements of each grant or subgrant.

SECTION 2.3. Accounting Records. The Superintendent, or designee, shall maintain records that adequately identify the source and application of funds provided for activities assisted with state or federal funds.

SECTION 2.4. Internal Control. The Superintendent, or designee, shall maintain effective control and accountability of all federal grant and sub-grant cash, real and personal property, and other assets obtained with federal funds. The Superintendent, or designee, shall safeguard all such property and assure that it is used solely for authorized purposes.

SECTION 3. Grant Management Standards

SECTION 3.1. Compliance. If RAPOPORT ACADEMY PUBLIC SCHOOL receives a grant directly from a state or federal agency the Superintendent shall ensure that RAPOPORT ACADEMY PUBLIC SCHOOL is in compliance with the grant requirements of that state or federal agency.

SECTION 3.2. Employee Time Sheet. If an RAPOPORT ACADEMY PUBLIC SCHOOL employee’s compensation is funded by any grant, the Superintendent shall ensure that the employee maintains a time sheet on which he or she records the time spent during the work day along with a description of the service he or she performed during that time.

SECTION 3.3. Signature. The Superintendent shall ensure that the time sheets will contain the signatures of the employee that completed the time sheet, a school official, and the RAPOPORT ACADEMY PUBLIC SCHOOL’s grant manager.

SECTION 4. Annual Audit by the Charter

SECTION 4.1. Annual Audit. Annually, the President of the Board for NAME OF CHARTER SCHOOL shall ensure the engagement of a certified public accountant (“CPA”) to have



the financial and programmatic operations of RAPOPORT ACADEMY PUBLIC SCHOOL audited. RAPOPORT ACADEMY PUBLIC SCHOOL shall select and contract only with CPAs that are licensed by the Texas State Board of Public Accountancy and registered as a provider of public accounting services.

SECTION 4.2. Filing with TEA. The Superintendent shall ensure that RAPOPORT ACADEMY PUBLIC SCHOOL timely files a copy of the annual audit report with the TEA division responsible for school financial audits. The report shall include a certificate of the Board which will include the original signatures of both the presiding officer and the secretary of the Board. The certificate shall indicate if the Board approved or disapproved the contents of the report along with the date of the Board’s approval or disapproval. This approval or disapproval shall be supported in the Board’s meeting minutes. The Superintendent shall ensure that if the Board disapproved the audit, it shall still be filed with TEA along with a statement identifying the reason(s) for Board disapproval.

SECTION 4.3. Disclosure of Interest. On behalf of the RAPOPORT ACADEMY PUBLIC SCHOOL, the Superintendent shall ensure that all persons with a substantial interest in a management company are separately disclosed in the annual audit.

SECTION 5. Annual Financial Statement

SECTION 5.1. Annual Financial Statement. The Superintendent of RAPOPORT ACADEMY PUBLIC SCHOOL shall prepare, or cause to be prepared, an annual financial statement for each fund subject to the authority of the Board during the fiscal year showing:

a. the total receipts of the fund, itemized by source of revenue, including taxes, assess-

ments, service charges, grants of state money, gifts, or other general sources from which funds are derived;

b. the total disbursements of the fund, itemized by the nature of the expenditure; and

c. the balance in the fund at the close of the fiscal year.

SECTION 5.2 Posting of Annual Financial Statement. The Superintendent, or designee, of RAPOPORT ACADEMY PUBLIC SCHOOL shall ensure that the annual financial statement is posted continuously on the school’s Internet website.

SECTION 6. Annual Financial Management Report

SECTION 6.1. The Superintendent shall ensure that RAPOPORT ACADEMY PUBLIC SCHOOL complies with the reporting procedures TEA develops for charter holders to prepare and distribute the school’s annual financial management report.

SECTION 7. Audit by the Commissioner

SECTION 7.1. RAPOPORT ACADEMY PUBLIC SCHOOL and its officers, employees and agents shall fully cooperate with an audit by the commissioner of education and will take all actions necessary to secure the cooperation of a management company.



SECTION 8. Attendance Accounting SECTION 8.1. Compliance. The Superintendent shall ensure that RAPOPORT ACADEMY PUBLIC SCHOOL complies with the TEA Student Attendance Accounting Handbook and all other laws and rules concerning charter school student attending accounting, reporting, and record keeping.

SECTION 8.2. Responsibility. The Superintendent, chief campus leaders, and teachers of RAPOPORT ACADEMY PUBLIC SCHOOL will be responsible to the Board of RAPOPORT ACADEMY PUBLIC SCHOOL and to the state to maintain accurate, current student attendance records;

SECTION 8.3. When Attendance is Taken. Attendance at RAPOPORT ACADEMY PUBLIC SCHOOL will be determined by students present on instructional days at 9:30 am. RAPOPORT ACADEMY PUBLIC SCHOOL will not change the established period in which absences are recorded during the school year;

SECTION 9. PEIMS Data Standard

SECTION 9.1. PEIMS. The Superintendent shall ensure that RAPOPORT ACADEMY PUBLIC SCHOOL’s fiscal accounting system is compatible with PEIMS data standards and conforms to Generally Accepted Accounting Principles.

SECTION 9.2. Account Code Structure. The Superintendent shall ensure that, with the exception of the codes that may be used at local option, RAPOPORT ACADEMY PUBLIC SCHOOL shall use the account code structure described in TEA’s Special Supplement to the Financial Accountability System Resource Guide, Nonprofit Charter School of Accounts.



TCSA Model Board Policy Series100.060. State Fiscal Compliance

INTRODUCTION

























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THORITY 100.060.

100.060. STATE FISCAL COMPLIANCE

A. Fiscal YearA charter holder must adopt a fiscal year that begins either on July 1 or September 1 of each year.

19 Tex. Admin. Code § 100.1047(a); Tex. Educ. Code §44.0011.

B. Financial Accounting The charter holder must fully comply with:

1. Generally accepted accounting principles (GAAP);

2. Texas Education Agency’s (“TEA”) Financial Accountability System Resource Guide; and

3. Applicable federal standards for financial management systems, including the following: a. Financial reporting. Accurate, current, and complete disclosure of financially

assisted activities shall be made in accordance with the financial reporting requirements of the grant or sub-grant.

b. Accounting records. The school shall maintain records that adequately identify the source and application of funds provided for activities assisted with federal funds. These records must contain information pertaining to grant or sub-grant awards and authorizations, obligations, unobligated balances, assets, liabilities, outlays or expenditures, and income.

c. Internal control. The school shall maintain effective control and accountability of all federal grant and sub-grant cash, real and personal property, and other assets obtained with federal funds. The school shall adequately safeguard all such property and assure that it is used solely for authorized purposes.

d. Source documentation. Accounting records must be supported by such source documentation as cancelled checks, paid bills, payrolls, time and attendance records, contract and subgrant award documents, etc.

e. Budget control. The school shall compare actual expenditures or outlays of federal funds with budget amounts for each grant or subgrant. Financial information must be related to performance or productivity data, including the development of unit cost information whenever appropriate or specifically required in the grant or subgrant agreement.

f. Applicable federal cost principles, agency program regulations, and the terms of grant and subgrant agreements will be followed in determining the reasonableness, allowability, and allocability of costs.




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THORITY 100.060.

g. Cash management. Whenever advance payment procedures are used, the school shall follow applicable federal procedures.

34 C.F.R. § 80.20; 19 Tex. Admin. Code § 100.1047(b).

C. Uniform Grant Management StandardsState agencies are required to adhere to the Uniform Grant Management Standards (UGMS) Although Chapter 783 of the Texas Government excludes school districts, some state agencies have applied the UGMS standards to all of their subrecipients. If a charter holder/school receives state or federal grants directly from a state agency other than the TEA, the auditor must check the grant requirements of that agency to see if the UGMS is applicable.

Texas Education Agency, Special Supplement to the Financial Accountability System Resource Guide Charter Schools, Update 5.0 (January 2010).

D. Annual Audit by the CharterA charter holder shall, at its own expense, have the financial and programmatic operations of its charter school(s) audited annually by a certified public accountant, licensed by the Texas State Board of Public Accountancy, and registered as a provider of public accounting services.

1. The charter holder shall file a copy of the annual audit report, approved by the governing body of the charter holder, with the TEA division responsible for school financial audits not later than the 150th day after the end of the fiscal year for which the audit was made.

2. The audit must comply with Generally Accepted Auditing Standards and must include an audit of the accuracy of the fiscal information provided by the charter school through the Public Education Information Management System (PEIMS).

3. Financial statements in the audit must comply with Government Auditing Standards and the Office of Management and Budget Circular A-133 or its successor.

4. A charter holder shall separately disclose, in its annual audit report, all persons with a substantial interest in a management company.

Tex. Educ. Code § 44.008; 19 Tex. Admin. Code §§ 100.1047(c), 100.1153(c).

5. The audit must be filed with TEA along with the documents listed in Rule 1.7.2 of the Special Supplement to the Financial Accountability System Resource Guide, Charter Schools, Update 5.0 (January 2010).

6. The report must also include a certificate of the governing body which must include original signatures from the presiding officer and the secretary of the governing body of the charter holder. The certificate must indicate if the governing body approved or disapproved the contents of the financial and compliance report along with the date of its approval or disapproval. This approval or disapproval must be supported in the minutes of the board’s meeting. If the board does not approve the report it

http://www.gpoaccess.gov/CFR/










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must still file it with TEA and include a detailed statement discussing the reasons for disapproval.

7. Reports must be filed in both paper and electronic format.

Rule 1.7.2, 1.7.2.1, 1.7.4, 1.7.4.1, Special Supplement to the Financial Accountability SystemResource Guide, Charter Schools, Update 5.0 (January 2010).

E. Annual Financial Statement1. The governing body of an open-enrollment charter school shall prepare an annual

financial statement showing for each fund subject to the authority of the governing body during the fiscal year:

a. the total receipts of the fund, itemized by source of revenue, including taxes, assessments, service charges, grants of state money, gifts, or other general sources from which funds are derived;

b. the total disbursements of the fund, itemized by the nature of the expenditure; and

c. the balance in the fund at the close of the fiscal year.

2. The financial statement shall be made available in the manner provided by Chapter 552, of the Texas Government Code. The charter school may satisfy this requirement by providing a copy of the Statement of Activities.

3. The board shall take action to ensure that the charter school's financial statement is posted continuously on the school's website.

TCSA Note: A sample financial statement may be found on page 57 of the Financial Accountability Systems Resource Guide, Charter Schools, Update 5.0.

Tex. Local Gov’t Code §140.005; Tex. Local Gov’t Code §140.006; Rule 1.7.5, Texas Education Agency, Special Supplement to the Financial Accountability System Resource Guide, Charter Schools, Update 5.0 (January 2010).

F. Annual Financial Management Report The TEA will develop a reporting procedure under which each charter holder will have to prepare and distribute an annual financial management report. The charter holder’s governing body will have to hold a public hearing on the report and give notice of the hearing through the Open Meetings Act agenda posting, an advertisement in a local newspaper, and in an email to media serving the district.

Tex. Educ. Code §§39.083; 19 Tex. Admin. Code §109.1005.

G. Audit by the Commissioner 1. General Authority

The commissioner may audit the records of the charter holder, the charter school, or



http://www.tea.state.tx.us/index2.aspx%3Fid%3D1222%26menu_id%3D645

http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.140.htm#140.005







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THORITY 100.060.

a management company that has provided management services to a charter school or charter holder.

2. Scope of Audit Such an audit shall be limited to matters directly related to the management or operation of a charter school, including the allocation of costs shared between the charter school and any non-charter business activity. The audit may examine the financial or administrative records related to the charter school that are in the possession of a management company or former management company, including records related to the allocation of shared costs.

3. Charter Holder Cooperation A charter holder and its employees and agents shall cooperate fully with an audit by the commissioner and shall take all actions necessary to secure the cooperation of a manage-ment company. Failure to timely comply with a request for access to records or other coop-eration from the charter holder constitutes a material charter violation.

4. Management Company Cooperation A management company and its employees and agents shall fully cooperate with an audit by the commissioner. Failure to timely comply with a request for access to records or other cooperation from the management company constitutes a management company breach.

Tex. Educ. Code §12.1163; 19 Tex Admin. Code §100.1051.

H. Attendance Accounting 1. The charter holder shall comply with the Student Attendance Accounting Handbook, with

the Texas Education Code Chapter 25.002, and Title 19 of the Texas Administrative Code, Chapter 129; except that a charter school shall report its actual student attendance data to the TEA at six-week intervals, or as directed by TEA.

2. Attendance for all grades must be determined by the absences recorded in the second or fifth period of the day, unless permission is received from the Texas Education Agency for an alternative period, the governing body of the charter school adopts a policy for recording absences in an alternative period or hour, or unless the students for which attendance is being taken are enrolled in and participating in an alternative attendance accounting pro-gram approved by the commissioner of education.

Texas Education Agency, Student Attendance Accounting Handbook; Tex. Educ. Code §25.002; Tex. Admin. Code §129; Tex. Admin. Code §100.1047(d);

I. PEIMS Data StandardTo monitor compliance as determined by the commissioner, charter schools are subject to the PEIMS. A charter school fiscal accounting system must be compatible with PEIMS data standards. The system must also conform to Generally Accepted Accounting Principles.

Tex. Educ. .Code §12.104, §12.111.




http://info.sos.state.tx.us/pls/pub/readtac$ext.ViewTAC?tac_view=4&ti=19&pt=2&ch=129


http://www.tea.state.tx.us/index2.aspx?id=7739&menu_id=645&menu_id2=789








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THORITY 100.060.

Account Code Structure

All charter schools must use the account code structure as described in TEA’s Special Supplement to the Financial Accountability System Resource Guide, Nonprofit Charter School Chart of Accounts.

19 Tex. Admin. Code §109.41; Rule 1.8.2.8, Texas Education Agency, Special Supplement to the Financial Accountability System Resource Guide to Charter Schools, Update 5.0 (January 2010).








100.080 Federal Fiscal Compliance Charter Board Policy for

RAPOPORT ACADEMY PUBLIC SCHOOL

©Texas Charter Schools Association, 2015. All rights reserved.


Document adopted by the Board: 08/25/2016

INTRODUCTION




These are suggested policies to address the requirements set forth in this Module. Prior to adoption of the model policies by the Board of a charter school, each policy should be custom- ized by including the school’s name and by tailoring the language, if appropriate, to fit the specific needs, culture and requirements of the school. TCSA recommends that the Board of a charter school consult with and obtain the advice of the school’s legal counsel in connection with adopting policies to comply with laws governing charter schools.






CHARTER BOARD

CHARTER BOARD POLICY




Document adopted by the Board: 08/25/2016

Module 100: Financial Operations

The Financial Operations, Module 100, is the first module of the Model Board Policies. The material included in this module provides a comprehensive summary of statutes and regulations that apply to the financial operations of charter schools, as well as specific model board policies designed to comply with these legal requirements. Other policy modules in the series include:











Tex. Gov’t Code Texas Government Code


Tex. Loc. Gov’t Code Texas Local Government Code




100.080 FEDERAL FISCAL COMPLIANCE The governing body (“Board”) of RAPOPORT ACADEMY PUBLIC SCHOOL adopts the following policy which shall be effective on the date that the policy is adopted by the Board. Section 1. Commitment to Compliance Prior to expending federal grant funds, the Superintendent shall ensure that RAPOPORT ACADEMY PUBLIC SCHOOL consults the appropriate compliance standards. The Superintendent shall adopt and follow appropriate procedures to ensure that all grant funds are expended in accordance with applicable requirements, including where applicable, the Education Department General Administrative Regulations (EDGAR). Section 2. Federal Grant Time and Effort The Executive Director or designee shall develop and maintain an electronic record keeping system that can receive, store, and reproduce electronic records and signatures of electronic transactions in their original form. The records shall be retained in an accessible format for as long as legally required.

Section 2.1. Employee Time Sheet. If RAPOPORT ACADEMY PUBLIC SCHOOL employee’s compensation is funded by any federal grant, the Superintendent shall ensure that the employee maintains a time sheet on which he or she records the time spent during the work day along with a description of the service he or she performed during that time. Section 2.2. Signature. The Superintendent shall ensure that the time sheets contain the signatures of the employee who completed the time sheet, a school official, and the RAPOPORT ACADEMY PUBLIC SCHOOL’s grant manager.

TCSA NOTE: If the charter school has employees eligible to participate in the substitute system of federal time and effort reporting for a particular school year, add the following language in Section 2.3. An employee is eligible to use the substitute system of time and effort reporting if the employee i) works on more than one federal grant award (i.e. supported by more than one cost objective); ii) works on a set schedule; and iii) works on only one activity at a time.

[Section 2.3. Substitute System for Time and Effort Reporting. Each school year, the Superintendent shall submit a management certification form by the deadlines required by the Texas Education Agency to qualify as a participant under the substitute system of semi-annual time and effort reporting for employees of RAPOPORT ACADEMY PUBLIC SCHOOL. The Superintendent shall also ensure that any eligible employee participating in the substitute system of federal time and effort reporting completes a schedule and certification form at least semi-annually. The Superintendent shall ensure that the semi-annual certification form contains the signature of the employee and the employee’s supervisor. The semi-annual certifications for each employee shall be maintained as part of the records of the charter school.]

Section 3. Use of Federal Grant Funds for Procurement Section 3.1. Compliance. When expending federal grant funds, The Superintendent shall require compliance by RAPOPORT ACADEMY PUBLIC SCHOOL’s employees, officers, and



agents with all applicable federal and state procurement standards and policies. Violations of applicable laws or policies may lead to disciplinary consequences including and up to termination of employment or removal from any officer position, if applicable. Section 3.2. Shared Services. The Superintendent is encouraged to participate in group purchasing programs, shared services agreements, inter-local contracts and inter-entity agreements whenever possible to generate a cost savings for the charter school. Section 3.3 Open and Free Competition. The Superintendent shall ensure that all procurement transactions are conducted in a manner that provides open and free competition. The Superintendent shall ensure that the procurement procedures implemented by RAPOPORT ACADEMY PUBLIC SCHOOL have written selection procedures that do not contain features which unduly restrict competition. Section 3.4. Conflicts of Interest: Standards of Conduct. The Superintendent shall ensure that no employee, officer, or agent of RAPOPORT ACADEMY PUBLIC SCHOOL, who has a real or apparent conflict of interest, participates in the selection, award, or administration of a contract supported by federal funds. Employees, officers, and agents may not solicit or accept favors, gratuities, or anything of monetary value from contractors or their agents. The Superintendent shall maintain written standards of conduct governing the performance of RAPOPORT ACADEMY PUBLIC SCHOOL employees engaged in the award and administration of contracts. The written standards of conduct shall also address organizational conflicts of interest. The Superintendent shall disclose in writing any potential conflict of interest to the Board of Directors, to the Texas Education Agency, and to the federal awarding agency. Section 3.5. Disclosures of Misconduct. The Superintendent shall ensure that any evidence of fraud, bribery or a gratuity violation is promptly reported to the Board of Directors, to the Texas Education Agency, and to the federal awarding agency. The Superintendent shall also report any such evidence to local law enforcement authorities. Section 3.6. Small and Minority Firms, Women’s Businesses. The Superintendent shall ensure that RAPOPORT ACADEMY PUBLIC SCHOOL takes all necessary affirmative steps to assure that minority firms, women’s business enterprises, and labor surplus area firms are used when possible. Section 3.7. Record Documentation. The Superintendent shall maintain records sufficient to detail the history of each procurement secured with federal funds. The records must include, but not be limited to, the rationale for the procurement method, the selection of the contract type, contractor selection or rejection, and the basis of the contract price. Section 3.8. Mandated Contract Provisions. The Superintendent shall ensure that all legally mandated provisions are included in each procurement contract.



Section 4. Special Fiscal Requirements under Title I, Part A of NCLB (“Title I”) Section 4.1. Supplement not Supplant. Superintendent shall ensure that Title I funds will be used to supplement, not supplant regular non-federal funds. Section 4.2. Documentation. Documentation shall be maintained, or caused to be maintained, by the Superintendent. The documentation must clearly demonstrate the supplementary nature of federal funds. Section 4.3. Campus Improvement Plan. The Superintendent shall ensure that Title I funds used by RAPOPORT ACADEMY PUBLIC SCHOOL shall be aligned to the campus improvement plan. There shall be no costs expended that are not directly related to the campus improvement plan.

a. A comprehensive needs assessment shall be conducted that will inform the

drafting of the campus improvement plan. The campus improvement plan shall be aligned to the needs assessment and only needs that can be met with current funding levels shall be addressed in the campus improvement plan.

b. New goals shall be added as new money is identified. c. The Superintendent shall ensure that RAPOPORT ACADEMY PUBLIC SCHOOL shall

conduct the needs assessment and campus improvement plan prior to any grant application.

Section 4.4. Comparability Testing. Unless the charter school is exempt from Title I’s comparability requirements, the Superintendent or designee shall ensure that RAPOPORT ACADEMY PUBLIC SCHOOL remains in compliance with all applicable comparability requirements. To ensure proper use of the receipt of any Title I, Part A funding, RAPOPORT ACADEMY PUBLIC SCHOOL will strive to avoid diverting state and local resources away from its Title I, Part A campus(es) by:

a. Implementing a district-wide salary schedule. The Superintendent shall recommend for Board approval a salary schedule that indicates salary comparability across all Title I and non-Title I campuses and positions. The district wide salary schedule shall allow for fair and comparable compensation for each position based each employee’s job duties, special assignments, education, certifications, and experience. The Superintendent shall administer the compensation plan in a manner consistent with the annual budget adopted by the Board;

b. Ensuring equivalence among campuses in teachers, administrators, and other

staff. The ratio of students to teachers, administrators, and other staff at each Title I campus shall be equivalent to the ratio of students to teachers, administrators and other staff at non-Title I campuses. Equivalence shall be determined by various reasonable and appropriate factors;

c. Ensuring equivalence among campuses in the provision of curriculum materials



and instructional supplies. Each Title I and non-Title I campus shall receive equivalent funding for curriculum and instructional materials. Equivalence shall be determined by various reasonable and appropriate factors; and

d. Adjusting to Ensure Comparability. The Superintendent or designee shall conduct

testing to measure comparability and maintain records documenting compliance. If any instances of noncompliance are identified, the Superintendent or designee shall promptly implement adjustments as needed to ensure comparability, seeking board approval where necessary or appropriate.

Section 5. Special Fiscal Requirements under IDEA, Part B (Special Education) The Superintendent shall ensure that RAPOPORT ACADEMY PUBLIC SCHOOL complies with the specific requirements applicable to the receipt of special education funding including maintenance of effort, excess costs, supplemental use, and Coordinated Early Intervening Services. Section 6. Charter Schools Program (CSP), NCLB Title V, Part B

Section 6.1. Compliance. If RAPOPORT ACADEMY PUBLIC SCHOOL receives CSP grants, the Superintendent shall ensure that RAPOPORT ACADEMY PUBLIC SCHOOL shall comply and use the federal funds in accordance with all statutes, regulations, and approved applications. Section 6.2. Fiscal Control. The Superintendent shall directly administer or supervise the administration of any projects funding through CSP funds, and shall use fiscal control and fund accounting procedures that ensure proper disbursement of, and accounting for, federal funds. Section 6.3. Conflicts of Interest. RAPOPORT ACADEMY PUBLIC SCHOOL Board members and employees shall avoid apparent and actual conflicts of interest. An individual is prohibited from participating in an administrative decision regarding a project funded through CSP funds if the decision is likely to benefit that person or an immediate family member and the person is a public official or has a family or business relationship with RAPOPORT ACADEMY PUBLIC SCHOOL. A person is prohibited from participating in a project to use his or her position for a purpose that is, or gives the appearance of being, motivated by a desire for a private or financial gain for that person or for others. Section 6.4. Procurement. When using CSP funds to enter into a contract for equipment or services the ED, or the ED’s designee, shall comply with the applicable federal procurement standards. No Board member, employee, officer, or agent of RAPOPORT ACADEMY PUBLIC SCHOOL may participate in the selection, award, or administration of any contract supported by federal funds if a real or apparent conflict of interest exists.

Section 7. National Child Nutrition Programs

SECTION 7.1. National School Breakfast Program Participation. If at least 10 percent of enrolled students in RAPOPORT ACADEMY PUBLIC SCHOOL are eligible for free



or reduced-price breakfasts under the national school breakfast program, provided for by the Child Nutrition Act of 1966, the RAPOPORT ACADEMY PUBLIC SCHOOL shall either make the benefits of the program available to all eligible students or develop and implement a locally funded program to provide free or reduced-priced meals according to each student’s eligibility. Unless the Board has obtained a waiver from the Commissioner for the applicable school year, if at least 80 percent or more of the students in RAPOPORT ACADEMY PUBLIC SCHOOL qualify for a free or reduced-price breakfast under the National School Breakfast Program, Rapoport Academy Public School shall provide a free breakfast to every student at the school. The Superintendent shall ensure the school’s compliance with all federal and state rules governing administration of the National School Breakfast Program. SECTION 7.2. National School Lunch Program. The Superintendent or designee shall ensure compliance with all federal and state rules governing the administration of the National School Lunch Program.


TCSA Model Board Policy Series100.080. Federal Fiscal Compliance

INTRODUCTION

























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THORITY 100.080.

100.080. FEDERAL FISCAL COMPLIANCE

TCSA Note: This TCSA Legal Authority summary addresses the most popular sources of federal funding for open-enrollment charter schools, but may not address every source of federal funding received by your open-enrollment charter school. In addition to referencing this resource, each open-enrollment charter school is encouraged to refer to its Notice of Grant Award and all applicable regulations for the specific compliance standards related to each source of federal funding the charter school receives, whether directly from a federal agency or as a pass through from the Texas Education Agency. A. General Standards - Proper Use of Federal Grants awarded by the U.S. Department of Education

1. Adoption of New EDGAR. Charter holder/school grantees should consult the new Education Department General Administration Regulation (EDGAR) for the complete set of applicable federal regulations that were adopted on December 26, 2014. The new EDGAR will apply to all federal grants awarded directly to the charter school after that date and will apply to all state administered programs as of July 1, 2015. Grants awarded before the effective dates will continue to be governed by the OMB circulars that were in effect at the time the grant was awarded.

2. Regulations Comprising the New EDGAR. The new EDGAR consists of the following parts of the Code of Federal Regulations: 34 CFR 75, 34 CFR 6, 34 CFR 77, 34 CFR 81, 2 CFR 200, 2 CFR 3474, and 2 CFR 3485. See, General and Fiscal Guidelines: The New EDGAR.

3. Cost Principles. According to the new EDGAR, any expenditure of federal grant funds must be:

a. Allowable, 2 C.F.R. §200.403;

b. Reasonable and Necessary, 2 C.F.R. §200.404; and

c. Allocable, 2 C.F.R. § 200.405.

4. Costs for Professional Services. Costs of professional and consultant services rendered by persons who are not employed by the charter schools and members of a particular profession or possess a special skill are allowable when reasonable and when certain factors are considered. 2 C. F. R. § 200.459.

5. Procurement of Goods and Services.

a. General Procurement Standards.

i. Responsible Contractors. Charter schools must award contracts only to responsible contractors possessing the ability to perform successfully under the terms and conditions of a proposed procurement. Factors include

http://tea.texas.gov/Finance_and_Grants/Grants/Administering_a_Grant/General_and_Fiscal_Guidelines/

http://tea.texas.gov/Finance_and_Grants/Grants/Administering_a_Grant/General_and_Fiscal_Guidelines/

http://www.ecfr.gov/cgi-bin/retrieveECFR?gp=1&SID=e305cc3e3756a08ce6f8693aaa6b9fc0&ty=HTML&h=L&mc=true&r=SECTION&n=se2.1.200_1403

http://www.ecfr.gov/cgi-bin/retrieveECFR?gp=1&SID=e305cc3e3756a08ce6f8693aaa6b9fc0&h=L&mc=true&r=SECTION&n=se2.1.200_1404

http://www.ecfr.gov/cgi-bin/retrieveECFR?gp=1&SID=e305cc3e3756a08ce6f8693aaa6b9fc0&h=L&mc=true&r=SECTION&n=se2.1.200_1405



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THORITY 100.080.

contractor integrity, compliance with public policy, past performance, and finan-cial and technical resources. 2 C.F.R. § 200.318.

ii. Shared Services. To promote greater economy and efficiency, and in accordance with efforts to promote cost-effective use of shared services across the federal government, charter schools are encouraged to enter into state and local intergovernmental agreements or inter–entity agreements where appropriate for procurement or use of common or shared goods and services. 2 C.F.R. §200.318.

iii. Full and Open Competition. All procurement transactions must be conducted in a manner providing full and open competition. 2 C.F.R. § 220.319.

b. Specific Procurement Standards. Unless the charter school has adopted more strict procurement standards for the purchase of goods and services than the standards adopted in EDGAR, then EDGAR governs the purchase of goods and services with federal funds. Under EDGAR:

i. for expenses of $3,000 or less (i.e., micro-purchases), charter schools must distribute purchases equitably among qualified suppliers;

ii. for small purchases of less than $150,000, charter schools must get price quotes from an adequate number of qualified sources;

iii. for construction, charter schools must use procurement by sealed bids;

iv. when sealed bids are not appropriate (such as for when one or more source submits a fixed price or cost-reimbursement model), then charter schools must use procurement by competitive proposals;

v. for sole source purchasing, charter schools must use noncompetitive proposals; and

vi. for every procurement action in excess of the Simplified Acquisition Threshold (i.e., $150,000 as of December 26, 2014, but from time to time may be adjusted for inflation), the charter school must perform a cost or price analysis, which as a starting point must make independent estimates before receiving bids or proposals.

2 C.F.R. § 200.320; 2 C.F.R. § 200.323; 2 C.F.R. § 200.88

c. Historically Underutilized Businesses. The charter school must take all necessary affirmative steps to assure minority businesses, women’s business enterprises, and labor surplus area firms are used when possible. 2 C.F.R. § 200.321

d. Contract provisions. The charter school’s contracts must contain the applicable provisions described in Appendix II of 2 C.F.R. § Part 200. 2 C.F.R. § 200.326








http://www.ecfr.gov/cgi-bin/retrieveECFR?gp=1&SID=e305cc3e3756a08ce6f8693aaa6b9fc0&ty=HTML&h=L&mc=true&r=APPENDIX&n=ap2.1.200_1521.ii



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THORITY 100.080.

6. Conflicts of Interest. The charter school must establish a conflict of interest policy for federal awards. Any potential conflict of interest must be disclosed to the federal awarding agency or the Texas Education Agency.

a. An individual conflict of interest would arise when a charter school officer, employee, or agent, any member of his or her immediate family, his or her partner, or an organization which employs or is about to employ any of these parties has a financial or other interest in or a tangible personal benefit from a firm considered for a contract. Further, no officer, employee or agent of the charter school may solicit or accept gratuities, favors, or anything of monetary value from contractors or parties to subcontracts. 2 C.F.R. § 200.112

b. An organizational conflicts of interest would arise if (1) a charter school has a parent, affiliate, or subsidiary organization, and (2) because of the charter school’s relationship with the parent, affiliate, or subsidiary, the charter school is unable to be or appears unable to be impartial in conducting a procurement action involving the related organization. 2 C.F.R. § 200.318

7. Mandatory Disclosures of Misconduct. The charter school must disclose, in a timely manner, in writing to the federal awarding agency or the Texas Education Agency, all violations of federal criminal law involving fraud, bribery, or gratuity violations affecting the federal award. 2 C.F.R. § 200.113

8. Documentation for Personnel Expenses (Time-and-Effort Reporting)

a. Time and effort records must be maintained for all employees whose salaries are paid in whole or in part with federal funds. The records must:

i. be supported by a system of internal control that provides reasonable assurance that the charges are accurate, allowable, and properly allocated;

ii. be incorporated into the official records of the non-federal entity;

iii. reasonably reflect the total activity for which the employee is compensated by the non-federal entity, not to exceed 100%;

iv. encompass both federal assisted and all other activities compensated by the non-federal entity on an integrated basis;

v. comply with the established accounting policies and practices of the non-federal entity; and

vi. other factors. 2 C.F.R. § 200.430

b. The federal time-and-effort reporting requirement requires employees who work on multiple activities or cost objectives to document their time and effort in one of two ways:






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THORITY 100.080.

i. With monthly personnel activity reports (PARs), or

ii. Through an approved substitute system.

9. Audit Requirements.

a. The Single Audit Act requires non-federal entities that expend $750,000 or more in year in federal awards to have a single or program specific audit conducted for that year. This requirement applies to the charter holder as a whole and not to a single charter school. 2 CFR § 200.501

b. The form to be submitted is the Form SF-SAC, Data Collection Form for Reporting on Au-dits of States, Local Governments and Non-Profit Organizations. The form is submitted electronically through the Federal Audit Clearinghouse website.

B. Specific Standards – U.S. Department of Education, No Child Left Behind Act, Title I, Part A

1. Title I, Part A funds are purposed to be used to provide services in addition to the regular services provided by the charter holder. Therefore, the charter holder must meet three fiscal requirements related to the expenditure of regular state funds:

a. Maintain state and local effort (MOE). To meet the NCLB LEA MOE requirement in any fiscal year, a charter school is required to expend state and/or local funds at 90% of the level at which it expended funds in the preceding fiscal year. There are four calculations for determining whether a charter school has met the NCLB LEA MOE requirement. The charter school needs to meet at least one of the following four tests to be compliant:

i. Total state and local expenditures: The LEA’s total state and local expenditures must equal or exceed 90% of expenditures during the previous fiscal year.

ii. Total state and local expenditures per-pupil for refined average daily attendance (RADA): The RADA per-pupil amount the LEA expended must equal or exceed 90% of the amount it expended during the previous fiscal year.

iii. Total state and local expenditures per-pupil for membership: The membership per-pupil amount the LEA expended must equal or exceed 90% of what it expended during the previous fiscal year.

iv. Total state and local expenditures per-pupil for enrollment: The enrollment per-pupil amount the LEA expended must equal or exceed 90% of what it expended during the previous fiscal year.

b. Provide services in project areas with state and local funds that are at least comparable to services provided in areas not receiving Title I, Part A services; and

c. Use Title I, Part A funds to supplement, not supplant, regular non-federal funds. Docu-


https://harvester.census.gov/facweb/default.aspx/


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mentation must be maintained which clearly demonstrates the supplementary nature of federal funds.

2. A charter holder may use Title I, Part A funds to conduct Schoolwide Programs or Targeted Assistance Programs.

a. For Schoolwide Programs, the charter holder must use the funds that are part of the Campus Improvement Plan to improve student performance and upgrade the entire educational program. A comprehensive needs assessment must be conducted that will inform the campus improvement plan.

b. For Targeted Assistance Programs, the charter holder may only use these funds to meet the needs of children identified as being in greatest need of services.

20 U.S.C.A §§6314–6315; 20 U.S.C.A. § 9521; See also, Guidance for the Implementation of Title I, Part A, Texas Education Agency, Title I, Part A Comparability of Services Guidance Handbook, and the NCLB LEA Maintenance of Effort Handbook at 19 TAC § 109.3001(c)(2).

C. Specific Standards –U.S. Department of Education, IDEA- B Special Education Grant Funding

1. Maintenance of Effort. Unless an exception applies, funds provided to an open-enrollment charter school under Part B of the Individuals with Disabilities Education Act (IDEA) must not be used to reduce the level of expenditures for the education of children with disabilities made by the charter school from local funds below the level of those expenditures for the preceding year. The four methods that charter schools may use to meet this standard are: (1) Local funds only, (2) the combination of State and local funds, (3) local funds only on a per capita basis, or (4) the combination of State and local funds on a per capita basis. 34 C.F.R. § 300.203, IDEA-B LEA Maintenance of Effort (MOE) Guidance Handbook at 19 TAC § 109.3001(c)(1)

2. Excess Costs. The excess cost requirement mandates how much the charter school must expend in state and local funds before it may begin expending IDEA-B grant funds. IDEA-B funds must be used only to pay the excess cost of providing special education and related services to children with disabilities. “Excess costs” means those costs that are in excess of the average annual per-student expenditure in an LEA during the preceding school year for an elementary school or secondary school student. 34 C.F.R. §300.202(a)(2), 34 CFR § 300.16, IDEA-B LEA Maintenance of Effort (MOE) Guidance Handbook at 19 TAC § 109.3001(c)(1); IDEA-B Excess Cost Guidance.

3. Supplement, Not Supplant. Funds for this program must be used to supplement (increase the level of services) and not supplant (replace) funds from federal, state, and local funds for similar activities. Documentation must be maintained which clearly demonstrates the supplementary nature of federal funds.

4. Coordinated Early Intervening Services (CEIS). Under IDEA-B, grantees are permitted to expend grant funds on services (known as coordinated early intervening services, or

http://www.esc7.net/users/0037/docs/Texas_Title_I_State_Guidance-February_2010.pdf

http://www.esc7.net/users/0037/docs/Texas_Title_I_State_Guidance-February_2010.pdf

http://tea.texas.gov/Finance_and_Grants/Grants/Federal_Fiscal_Compliance_and_Reporting/NCLB_Fiscal_Compliance/Title_I,_Part_A_-_Comparability_of_Services_Requirement/

http://tea.texas.gov/Finance_and_Grants/Grants/Federal_Fiscal_Compliance_and_Reporting/NCLB_Fiscal_Compliance/Title_I,_Part_A_-_Comparability_of_Services_Requirement/

http://ritter.tea.state.tx.us/rules/tac/chapter109/ch109cc.html


http://tea.texas.gov/Finance_and_Grants/Grants/Federal_Fiscal_Compliance_and_Reporting/IDEA_Fiscal_Compliance/IDEA-B_LEA_Maintenance_of_Effort/




http://tea.texas.gov/Finance_and_Grants/Grants/Federal_Fiscal_Compliance_and_Reporting/IDEA_Fiscal_Compliance/IDEA-B_LEA_Maintenance_of_Effort/

http://tea.texas.gov/index2.aspx?id=2147499857


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CEIS) for students who do not meet the definition of students with a disability. When you set funds aside for CEIS, the amount by which you may voluntarily reduce your maintenance of effort (MOE) is affected. IDEA-B CEIS Handbook

D. Specific Standards – Direct Funding from the U.S. Department of Education for the Charter Schools Program (CSP), No Child Left Behind Act, Title V, Part B

1. Charter schools that receive CSP grants directly from the U.S. Department of Education must comply with and use federal funds in accordance with all statutes, regulations, and approved applications. 34 C.F.R §75.700.

2. Grantees must directly administer or supervise the administration of the project, and they must use fiscal control and fund accounting procedures that ensure properdisbursement of, and accounting for, federal funds. 34 C.F. R. § 75.702.

3. Charter schools that receive CSP grants must avoid apparent and actual conflicts of interest when administering grants. Regulations prohibit a person from participating in an administrative decision regarding a project if:

a. The decision is likely to benefit that person or an immediate family member; and

b. The person is a public official or has a family or business relationship with the grantee.

A person may not participate in a project to use his or her position for a purpose that is, or gives the appearance of being, motivated by a desire for a private or financial gain for that person or for others. 34 C.F.R. § 75.525

E. United States Department of Agriculture - Child Nutrition Programs

1. Charter schools that choose to participate in the federal National School Lunch Pro-gram must comply with Title 7 of the Code of Federal Regulations Parts 210, 245, and 3016 and Title 4 of the Texas Administrative Code Chapter 25 and Chapter 26. 7 C.F.R §210 et. seq., §245 et. seq., §3016 et. seq; 4 Tex. Admin. Code §25 – §26 et. seq.

2. If a charter school participates in the National School Lunch Program, the School Breakfast Program, or the Special Milk Program, the charter school must publicly an-nounce to the parents of each student in attendance the eligibility criteria for these nutrition programs near the beginning of the school year. Charter schools must also provide an application for the program(s). 20 U.S.C. § 7221i (1)(G); 7 C.F.R §245.5.

3. If at least 10 percent of enrolled students in a charter school are eligible for free or reduced-price breakfasts under the National School Breakfast Program, provided for by the Child Nutrition Act of 1966, the charter school shall either:

a. participate in the School Breakfast Program and make the benefits of the national program available to all eligible students; or

http://tea.texas.gov/index4.aspx?id=25769803812&menu_id=951




http://www.squaremeals.org/Programs.aspx



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b. develop and implement a locally funded program to provide free meals, including breakfast and lunch, to each student eligible for free meals under federal law and reduced-price meals, including breakfast and lunch, to each student eligible for reduced-price meals under federal law, provided that the reduced price may not ex-ceed the maximum allowable rate under federal law. Tex. Educ. Code §33.901(a); 84th Leg., R.S. HB 1305 and 42 U.S.C.A. 1773;

4. An open-enrollment charter school is permitted to participate in the national program at one or more campuses in the charter district and provide a locally funded program at one or more other campuses in the charter district. Tex. Educ. Code §33.901 (a-1); 84th Leg., R.S. HB 1305.

5. If an open-enrollment charter school participates in the National School Breakfast program or offers a locally funded program and at least 80 percent or more of the students in a charter school qualify under the national program for a free or reduced-price breakfast, the open-enrollment charter school shall provide a free breakfast to all students. TEX. EDUC. CODE 33.901(b); 84th Leg., R.S. HB 1305.

6. Each school year, the Board may request a waiver from the commissioner from the requirement described above, provided the board votes to request the waiver at the annual meeting of the board called to adopt the budget for the open-enrollment charter school, the board lists the waiver as a separate item for consideration on the meeting’s agenda, and the board provides an opportunity for public comment regarding the waiver at the meeting. The waiver shall not exceed one year. TEX. EDUC. CODE 33.901(c).

F. Discrimination in Non-Charter Operations

1. Federal law defines a charter school as a public school that complies with the Age Discrimination Act of 1975 [42 U.S.C. 6101 et seq.], Title VI of the Civil Rights Act of 1964 [42 U.S.C. 2000d et seq.], Title IX of the Education Amendments of 1972 [20 U.S.C. 1681 et seq.], Section 504 of the Rehabilitation Act of 1973 [29 U.S.C. 794], and Part B of the Individuals with Disabilities Education Act [20 U.S.C. 1411 et seq.]. 20 U.S. Code § 7221i(1)(G).

2. Civil Rights Restoration Act (CRRA) of 1987. Under the CRRA, the entire corporation or other legal entity that holds an open-enrollment charter is subject to broad, institution-wide coverage under the four major civil rights statutes that prohibit discrimination in federally assisted programs. Thus, the CRRA applies Title IX, Title VI, Section 504, and the Age Act – but not the IDEA – to “all of the operations of” the entire corporation or other legal entity that is “principally engaged in the business of providing education, health care, housing, social services, or parks and recreation” any part of which receives federal funds. 20 U.S.C. § 1687.

TCSA Note: For more information on prohibited discrimination in federally assisted programs, see TCSA Model Board Policy Module 400: Students, and Model Board Policy Module 600: Human Resources.




https://www.law.cornell.edu/uscode/text/42

https://www.law.cornell.edu/uscode/text/42/6101


https://www.law.cornell.edu/uscode/text/42/2000d







https://www.law.cornell.edu/uscode/text/20/7221i

http://www.gpo.gov/fdsys/granule/USCODE-2011-title20/USCODE-2011-title20-chap38-sec1687


100.100. Cash Management & Credit Card Procedures Rapoport Academy Public School
















Students

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100.100. CASH MANAGEMENT & CREDIT CARD PROCEDURES

The governing body (“Board”) of RAPOPORT ACADEMY PUBLIC SCHOOL adopts the following policy which shall be effective on the date that the policy is adopted by the Board.

School funds are public funds. Consequently, all expenditures of school funds, including cash expenditures, shall be documented and accounted for by daily receipts.

As a general rule, cash will not be used to make purchases except from petty cash, as described

below. School checks shall not be made payable to “Cash”.

The Superintendent of RAPOPORT ACADEMY PUBLIC SCHOOL shall ensure that appropriate “separation of duties” are complied with in the handling of all money transactions, including reconciliation.

SECTION 1. Accounting for Cash Transactions

SECTION 1.1. Documentation. All cash transactions shall be recorded in writing, such as by hand written receipt, which shall be signed and dated by the individual who receives the cash. Staff members who receive or collect money from parents or teachers shall document from whom the money was received and in what amount. A copy of the receipt shall be kept with the cash received. Such money shall be submitted to the campus administrative assistant on the same school day as it is received for deposit.

SECTION 1.2. Depositing Cash. The Superintendent shall be responsible for ensuring that cash received is deposited in RAPOPORT ACADEMY PUBLIC SCHOOL’s bank account. Deposits shall be made whenever cash receipts total $200, or, at a minimum, weekly. A copy of the validated deposit slip shall be returned to the school on same day the deposit is made or the next day after the deposit is made.

SECTION 1.3. Petty Cash. Petty cash shall be maintained in a locked box in the Business Office in an amount not to exceed $200. All disbursements from petty cash shall be documented in writing, indicating the date, amount disbursed, the identity of the individual receiving the funds, and the reason for the disbursement. Receipts from purchases made with petty cash shall be remitted to the campus principal’s office as soon as practicable. Petty cash funds shall not be used to cash checks. SECTION 1.3. Petty Cash Prohibited. The use of petty cash at the campus level shall not be allowed at RAPOPORT ACADEMY PUBLIC SCHOOL.

SECTION 2. Checks

SECTION 2.1. RAPOPORT ACADEMY PUBLIC SCHOOL Checks. Any authorized check drafted on Rapoport Academy Public School’s bank account over $750 shall have two authorized check signers. The following RAPOPORT ACADEMY PUBLIC SCHOOL officers are authorized to sign checks from RAPOPORT ACADEMY PUBLIC SCHOOL’s bank account on behalf of RAPOPORT ACADEMY PUBLIC SCHOOL: Superintendent, Chief Financial Officer, and Chief Academic Officer. Each check must be completed in its entirety before it is signed by either party.

SECTION 2.2. Checks Received. Checks received shall be endorsed “for deposit only” and shall either be deposited when the total amount is at least $500 or at least weekly, whichever is more frequent.

CHARTER BOARD POLICY 100.100. CHARTER BOARD POLICY 100.100.


SECTION 2.3. Check Requests. Services or products rendered or reimbursement requests with original receipts may receive payment with a check. All fields of the reimbursement request form must be completed by the requestor and approved with a signature by the supervisor. Checks made payable to “Cash” are prohibited. The reimbursement request shall then be submitted to the supervisor for processing. All reimbursement request forms shall be maintained by the business office.

SECTION 2.4. Check Acceptance Policy. Parents of students enrolled at RAPOPORT ACADEMY PUBLIC SCHOOL and employees of RAPOPORT ACADEMY PUBLIC SCHOOL must receive prior notice from RAPOPORT ACADEMY PUBLIC SCHOOL that in the event a check they have submitted to RAPOPORT ACADEMY PUBLIC SCHOOL is returned for insufficient funds, or any other reason, RAPOPORT ACADEMY PUBLIC SCHOOL shall collect from the check maker the amount originally due in addition to any fee assessed to RAPOPORT ACADEMY PUBLIC SCHOOL by the bank because of the returned check.

SECTION 3. Paying Bills with State or Federal Grant Funds

SECTION 3.1. Grant funds shall not be requested from the Texas Education Agency until RAPOPORT ACADEMY PUBLIC SCHOOL is prepared to pay any outstanding balances within three days from when the funds are deposited in RAPOPORT ACADEMY PUBLIC SCHOOL’s bank account. The Superintendent shall ensure that all bills, including payroll and related withholding taxes, shall be paid by RAPOPORT ACADEMY PUBLIC SCHOOL within three working days from when such funds are deposited in RAPOPORT ACADEMY PUBLIC SCHOOL’s bank account.

SECTION 4. Bank Reconciliations The Superintendent or Chief Financial Officer is responsible for bank reconciliations a minimum of once a month. Each RAPOPORT ACADEMY PUBLIC SCHOOL bank statement, assets, and liabilities shall be reconciled to both the checkbook and the general ledger.

SECTION 5. Credit Card Procedures Only the following are authorized to use the RAPOPORT ACADEMY PUBLIC SCHOOL credit card: Superintendent, Chief Financial Officer, Chief Academic Officer, Dean of Academics and Dean of Students for each campus.

All authorized users of the RAPOPORT ACADEMY PUBLIC SCHOOL credit card assume the responsibilities pertaining to the use and reconciliation of the credit card. The RAPOPORT ACADEMY PUBLIC SCHOOL credit card shall only be used for school business expenditures. It may not be used for personal purchases and/or cash transactions and shall be maintained by the highest level of security.


Employees issued an RAPOPORT ACADEMY PUBLIC SCHOOL credit card must receive prior, documented approval from the Superintendent or Chief Financial officer before the use of the credit card. Each credit card transaction by any user must be accompanied by appropriate documentation such as original receipts documenting each transaction.

SECTION 6. Activity Funds

SECTION 6.1. Parent/Volunteer Groups. The Superintendent, shall develop procedures for parent and school volunteer groups to follow in the collection of funds. Such procedures should distinguish between what the school is collecting and what the parent group is collecting. See Texas Education Code §12.108 for allowable fees that may be collected by RAPOPORT ACADEMY PUBLIC SCHOOL.

SECTION 6.2. Activity Expenditures. The following individual(s) is/are authorized to approve activity expenditures: Superintendent, Chief Financial Officer, Chief Academic Officer, Dean of Academics and Dean of Students for each campus.



TCSA Model Board Policy Series100.100. Cash Management & Credit Card Procedures

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100.100. CASH MANAGEMENT & CREDIT CARD PROCEDURES

Note from TCSA regarding Section 100.200 LEGAL AUTHORITY: This area of the policies does not have a direct legal counterpart. Please reference 100.200 CHARTER BOARD POLICY for the recommended policy to address the management of cash, checks, and credit cards.


100.110 Electronic Signatures Charter Board Policy for

RAPOPORT ACADEMY PUBLIC SCHOOL



INTRODUCTION




These are suggested policies to address the requirements set forth in this Module. Prior to adoption of the model policies by the Board of a charter school, each policy should be custom- ized by including the school’s name and by tailoring the language, if appropriate, to fit the specific needs, culture and requirements of the school. TCSA recommends that the Board of a charter school consult with and obtain the advice of the school’s legal counsel in connection with adopting policies to comply with laws governing charter schools.






CHARTER BOARD






The Financial Operations, Module 100, is the first module of the Model Board Policies. The material included in this module provides a comprehensive summary of statutes and regulations that apply to the financial operations of charter schools, as well as specific model board policies designed to comply with these legal requirements. Other policy modules in the series include:











Tex. Gov’t Code Texas Government Code


Tex. Loc. Gov’t Code Texas Local Government Code




100.110 ELECTRONIC SIGNATURES The governing body (“Board”) of RAPOPORT ACADEMY PUBLIC SCHOOL adopts the following policy which shall be effective on the date approved by the Board. Section 1. RAPOPORT ACADEMY PUBLIC SCHOOL wishes to promote effective and efficient use of electronic communications to conduct school business. An electronic signature shall have the full force and effect of a manual signature only if the electronic signature satisfies all of the following requirements:

Section 1.1. The individual affixing his or her electronic signature to a document, contract, data transmission, or report is otherwise authorized by the governing body to represent the RAPOPORT ACADEMY PUBLIC SCHOOL in legal transactions, to commit the resources of the charter school, or to make or affirm representations concerning operations of the charter school. Section 1.2. The electronic signature identifies the individual signing the document by his or her name and title; Section 1.3. The electronic signature and the document to which it is affixed cannot be altered once the electronic signature is affixed; and Section 1.4. The identity of the individual signing with an electronic signature is capable of being validated.

Section 2. The Superintendent or designee shall develop and maintain an electronic record keeping system that can receive, store, and reproduce electronic records and signatures of electronic transactions in their original form. The records shall be retained in an accessible format for as long as legally required. Section 3. This policy does not require electronic signatures to be created or used for any particular business transactions for the charter school.



TCSA Model Board Policy Series100.110. Electronic Signature

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100.110 ELECTRONIC SIGNATURES A. Legal Recognition of Electronic Signatures and Electronic Contracts Unless prohibited by other law, with respect to any transaction in or affecting intrastate, interstate, or foreign com-merce—

1. a signature, contract, or other record relating to such transaction may not be denied legal effect, validity, or enforceability solely because it is in electronic form; and

2. a contract relating to such transaction may not be denied legal effect, validity, or enforceability solely because an electronic signature or electronic record was used in its formation.

15 U.S.C.A § 7001; Tex. Bus. & Com. Code § 322.007.

B. Definition of Electronic Signature The term “electronic signature” means an electronic sound, symbol, or process, attached to or logically associated with a contract or other record and executed or adopted by a person with the intent to sign the record. 15 U.S.C.A. § 7006 ; Tex. Bus. & Com. Code § 322.002 (7).

C. Record Retention If a law requires that a record be retained, the requirement is satisfied by retaining an electronic record of the information in the record that (1) accurately reflects the information set forth in the record after it was first generated in its final form as an electronic record or otherwise; and (2) remains accessible for later reference. Tex. Bus. & Com. Code § 322.012.

http://www.statutes.legis.state.tx.us/Docs/ED/htm/ED.33.htm#7001


http://www.statutes.legis.state.tx.us/Docs/ED/htm/ED.33.htm#7006




100.120. Capital Assets RAPOPORT ACADEMY PUBLIC SCHOOL
















Students

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©Texas Charter Schools Association. All rights reserved. Document adopted by the Board:08/25/2016

100.120. ACCOUNTING FOR CAPITAL ASSETS The governing body (“Board”) of RAPOPORT ACADEMY PUBLIC SCHOOL adopts the following policy which shall be effective on the date that the policy is adopted by the Board.

SECTION 1

SECTION 1.1. Capital Asset. A capital asset for RAPOPORT ACADEMY PUBLIC SCHOOL is an asset that is:

f. Tangible in nature;

g. Has a life that exceeds one year;

h. Is valued at $5000 per unit; and

i. Is reasonably identified and controlled through a physical inventory system.

SECTION 1.2. Documentation. The Superintendent shall ensure that RAPOPORT ACADEMY PUBLIC SCHOOL maintains accurate records of capital assets in accordance with applicable rules.

SECTION 1.3. Inventory. The Superintendent will ensure that a physical inventory of capital assets takes place once every two years in accordance with rules.

SECTION 1.4. Financial and Compliance Report. For purposes of the Financial and Compliance Report, the Superintendent shall ensure that the report includes:

a. An exhibit in the financial and compliance report identifying all capital assets and

the ownership interest of local, state, and federal parties; or

b. A statement that all property acquired during the term of the RAPOPORT ACADEMY PUBLIC SCHOOL, and all property presently held by RAPOPORT ACADEMY PUBLIC SCHOOL, may be considered public property.



TCSA Model Board Policy Series100.120. Capital Assets

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100.120. CAPITAL ASSETS A. Definition of Capital Asset A capital asset is an asset that is:

1. Tangible in nature;

2. Has a life that exceeds one year;

3. Of significant value ($5,000 per unit or a lower amount designated by the charter holder board of directors); and

4. Reasonably identified and controlled through a physical inventory system.

Examples include: land, buildings, machinery, and furniture.

Rule 1.2.4, Texas Education Agency, Special Supplement to the Financial Accountability SystemResource Guide, Charter Schools, Update 5.0 (January 2010).

B. Accounting for Capital Assets 1. Accurate Records. Charter schools must maintain accurate records of capital assets.

Those records must contain the following information:

a. A description of the capital asset;

b. Identification number (e.g. manufacturer’s serial number, model number, federal stock number, national stock number);

c. Local state, and/or federal funds used to acquire the capital asset;

d. Who has title to the asset (charter school, state government, or the federal government);

e. Date of acquisition or date asset was received;

f. The cost;

g. Information indicating the percentage of state and/or federal participation in the cost of the asset (not applicable to donated equipment);

h. Location and condition of the capital asset and the date the information was reported (e.g. date of the last physical inventory taken by the charter school); and

i. Information containing the ultimate disposition of the data. This should include the disposal date, sales price or method used to determine current fair market value where a charter school compensates the federal awarding agency for its share.




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2. Physical Inventory. A physical inventory must take place once every two years to determine whether or not the capital asset still exists and if it is still in use.

Rule 1.2.4.9, Texas Education Agency, Special Supplement to the Financial Accountability System Resource Guide, Charter Schools, Update 5.0 (January 2010).

3. Reporting. All capital assets, along with the ownership interest of local, state, and federal parties in the capital assets, must be identified by the charter holder in an exhibit which is added to the annual audit report submitted to the Texas Education Agency. A reconciliation of amounts must also be included with the exhibit if the exhibit amounts differ from the amounts reported on the applicable statement of financial position. Instead of an exhibit, a charter holder may include a note of disclosure stating that all property acquired during the term of the charter, and all property presently held by the charter holder, may be considered public property.

Rule 1.2.4.10, Texas Education Agency, Special Supplement to the Financial AccountabilitySystem Resource Guide, Charter Schools, Update 5.0 (January 2010).






100.040. Investment of State Funds RAPOPORT ACADEMY PUBLIC SCHOOL
















Students

Open Government

Human Resources











100.140. INVESTMENT OF STATE FUNDS TCSA Note: a factor in determining whether a charter holder has exercised prudence with respect to an investment decision is whether or not the charter holder has made an investment decision consistent with its investment policy.


SECTION 1. The Superintendent shall ensure that RAPOPORT ACADEMY PUBLIC SCHOOL invests state funds in accordance with applicable state law and rules. The investment of state funds shall be made with judgment and care and not for speculation, but for investment, considering the probable safety of capital and the probable derived income.

SECTION 2. Investment Management Firm and/or Officer. The Superintendent may determine to recommend to the Board to contract with an investment management firm that is registered under the appropriate governmental entities to provide for the investment and management of the funds. Such a contract shall not exceed two years. If the Board determines to renew any such contract the board shall issue the appropriate order or resolution.

SECTION 3. Discrete Maintenance of Records. The Superintendent shall ensure that all investments will be maintained in a discrete, charter investment account, separate from any other of RAPOPORT ACADEMY PUBLIC SCHOOL’s accounts.

SECTION 4. Investments. The approved investments can be found in the approved minutes for the appropriate publically posted board meeting.



TCSA Model Board Policy Series100.140. Investment of State Funds

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100.140. INVESTMENT OF STATE FUNDS The following provisions apply to charter holders unless alternative requirements have been submitted by the charter holder to the State Board of Education (“SBOE”), have received approval from the SBOE, and the commissioner of education has amended the charter contract to adopt the approved procedures.

A. ComplianceCharter holders shall invest state funds in accordance with Texas Government Code, §§2256.009–2256.016

1. State funds invested shall be maintained in a discrete charter investment account, separate and distinct from the operating accounts for the charter school and separate and distinct from any investment accounts related to non-charter activities.

2. Investments will be made in accordance with any applicable provision or covenant contained in a debt instrument, bond indenture, or similar agreement.

3. Investment of state or federal grants is not authorized unless their investment is expressly authorized under the terms of the grant.

B. Standards Investment of state funds shall be made with judgment and care and not for speculation, but for investment, considering the probable safety of capital and the probable income to be derived.

1. Investment of state funds shall be governed by the following objectives, in order of priority:

a. Preservation and safety of principal;

b. Liquidity; and

c. Yield.

2. In determining whether a charter holder, or its employee or agent, has exercised prudence with respect to an investment decision respecting state funds, the determination shall be made taking into consideration:

a. The investment of all funds, or funds under the entity’s control, over which the officer had responsibility rather than a consideration as to the prudence of a single investment; and

b. Whether the investment decision was consistent with the written investment policy of the entity. 19 Tex. Admin. Code §100.1045; Tex. Educ. Code §12.1053(b)(3); Texas Educa-tion Agency, Special Supplement to the Financial Accountability System Resource

http://www.statutes.legis.state.tx.us/Docs/GV/htm/GV.2256.htm#2256.009







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Guide, Update 5.0 (January 2010).

C. Authorized Investments1. Obligations of or guaranteed by a governmental entity:

a. Obligations, including letters of credit, of the United States or its agencies and instrumentalities;

b. Direct obligations of the state of Texas or its agencies and instrumentalities;

c. Collateralized mortgage obligations directly issued by a federal agency or instrumentality of the United States, the underlying security for which is guaranteed by an agency or instrumentality of the United States;

d. Other obligations, the principal and interest of which are unconditionally guaranteed or insured by, or backed by the full faith and credit of, the state of Texas, the United States, or their respective agencies and instrumentalities, including obligations that are fully guaranteed or insured by the Federal Deposit Insurance Corporation or by the explicit full faith and credit of the United States;

e. Obligations of states, agencies, counties, cities, and other political subdivisions of any state rated as to investment quality by a nationally recognized investment rating firm not less than A or its equivalent;

f. Bonds issued, assumed, or guaranteed by the State of Israel.

Tex. Gov’t Code §2256.009(a).

2. Certificates of Deposit and Share Certificates

a. A certificate of deposit or share certificate is an authorized investment if the certifi-cate is issued by a depository institution that has its main office or a branch office in Texas and is:

i. guaranteed or insured by the Federal Deposit Insurance Corporation or its successor or the National Credit Union Share Insurance Fund or its successor;

ii. secured by obligations that are described above in Section (C)(1), including mortgage backed securities directly issued by a federal agency or instrumen-tality that have a market value of not less than the principal amount of the certificates; or

iii. secured in any other manner and amount provided by law for deposits of the investing entity.

b. In addition to the authority to invest funds in certificates of deposit under Subsec-tion (a), an investment in certificates of deposit made in accordance with the fol-lowing conditions is an authorized investment:


http://ritter.tea.state.tx.us/financial.audits/resguide14/charter_supplement_update_5.pdf



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i. the funds are invested by an investing entity through:

(1) a broker that has its main office or a branch office in this state and is selected from a list adopted by the investing entity as required by Section 2256.025; or

(2) a depository institution that has its main office or a branch office in this state and that is selected by the investing entity;

ii. the broker or the depository institution selected by the investing entity under Subdivision (1) arranges for the deposit of the funds in certificates of deposit in one or more federally insured depository institutions, wherever located, for the account of the investing entity;

iii. the full amount of the principal and accrued interest of each of the certificates of deposit is insured by the United States or an instrumentality of the United States; and

iv. the investing entity appoints the depository institution selected by the investing entity under Subdivision (1), an entity described by the Texas Government Code Section 2257.041(d), or a clearing broker-dealer registered with the Securities and Exchange Commission and operating pursuant to Securities and Exchange Commission Rule 15c3-3 (17 C.F.R. Section 240.15c3-3) as custodian for the investing entity with respect to the certificates of deposit issued for the account of the investing entity.

Tex. Gov’t Code § 2256.010.

3. Fully collateralized Repurchase Agreements that:

a. has defined termination date,

b. is secured by a combination of cash and obligations of the United States or its agencies and instrumentalities;

c. requires the securities being purchased by the entity, or cash held by the entity, to be pledged to the entity, held in the entity’s name, and deposited at the time the investment is made with the entity or with a third party selected and approved by the entity; and

d. is placed through a primary government securities dealer, as defined by the Federal Reserve or a financial institution doing business in Texas.

e. The term of any reverse security repurchase agreement may not exceed 90 days after the date the reverse security repurchase agreement is delivered.



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f. Money received by the school under the terms of a reverse security repurchase agree-ment shall be used to acquire additional authorized investments, but the term of the authorized investments acquired must mature not later than the expiration date stated in the reverse security repurchase agreement.


4. Banker’s AcceptanceA banker’s acceptance is an authorized investment if it:

a. Has a stated maturity of 270 days or fewer from the date of issuance;

b. Will be liquidated in full at maturity;

c. Is eligible for collateral for borrowing from a Federal Reserve Bank; and

d. Is accepted by a bank organized and existing under the laws of the United States or any state, if the short-term obligations of the bank, or of a bank holding company of which the bank is the largest subsidiary, are rated not less than A-1 or P-1 or an equivalent rating by at least one nationally recognized credit rating agency.


5. Commercial PaperCommercial paper is an authorized investment if it:

a. Has a stated maturity of 270 days or fewer from the date of issuance;

b. Is rated not less than A-1 or P-1 or an equivalent rating by at least two nationally recognized credit rating agencies or by one nationally recognized credit rating agency and is fully secured by an irrevocable letter of credit issued by a bank organized and existing under U. S. law or the law of any state.


6. Mutual Funds

a. No-load money market mutual funds are authorized if they:

i. Are registered with and regulated by the Securities and Exchange Commission (SEC);

ii. Provide the school with a prospectus and other information required by the Securi-ties and Exchange Act of 1934 (15 U.S.C. 78a et seq.) or the Investment Company Act of 1940 (15 U.S.C. 80a-1 et seq.);

iii. Have a dollar-weighted average stated maturity of 90 days or fewer; and





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iv. Include in their investment objectives the maintenance of a stable net asset value of $1 for each share.

b. No-load market mutual funds that:

i. Are registered with the SEC;

ii. Have an average weighted maturity of less than two years;

iii. Are invested exclusively in obligations approved by the Public Funds Investment Act (Government Code, Chapter 2256);

iv. Are continuously rated by at least one nationally recognized investment rating firm of not less than AAA or its equivalent; and

v. Conform to the requirements in Tex. Gov’t Code § 2256.016(b) and (c) relating to the eligibility of investment pools to receive and invest funds of investing entities.

c. Limitations – the school may not invest:

i. In the aggregate more than 15% of its monthly average fund balance, excluding bond proceeds and reserves and other funds held for debt service, in mutual funds described above in subsection (6)(b);

ii. Any portion of the bond proceeds, reserves, and funds held for debt service, in mutual funds described above in subsection (6)(b)

iii. Funds or funds under its control, including bond proceeds and reserves and other funds held for debt service, in any one mutual fund described above in subsection (6)(b) in an amount that exceeds 10% of the total assets of the mutual fund.


7. Guaranteed Investment ContractsA guaranteed investment contract, as an investment vehicle for bond proceeds, is authorized if:

a. It has a defined termination date;

b. It is secured by obligations described by § 2256.009(a)(1), Tex. Gov’t Code, excluding those obligations described by § 2256.009(b), in an amount at least equal to the amount of bond proceeds invested under the contract;

http://www.statutes.legis.state.tx.us/Docs/GV/htm/GV.2256.htm#00






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c. It is pledged to the school and deposited with the school or with a third party selected and approved by the school’s governing body;

d. The board has specifically authorized guaranteed investment contracts as eligible investments in the order, ordinance, or resolution authorizing the issuance of bonds;

e. The school has received bids from at least three separate providers with no material financial interest in the bonds from which proceeds were received;

f. The school has purchased the highest yielding guaranteed investment contract for which a qualifying bid is received;

g. The price of the guaranteed investment contract must take into account the reasonably expected drawdown schedule for the bond proceeds to be invested. The provider must certify the administrative costs reasonably expected to be paid to third parties in connection with the guaranteed investment contract.


8. Public Fund Investment Pools

a. Investment in a public funds investment pool is authorized if:

b. The pool complies with the requirements of the Public Funds Investment Act; and

c. The board has authorized the investment in the particular pool by resolution.

Tex. Gov’t Code § 2256.016(a).

D. Unauthorized Investments1. Obligations whose payment represents the coupon payments on the outstanding

principal balance of the underlying mortgage-backed security collateral and pays no principal;

2. Obligations whose payment represents the principal stream of cash flow from the underlying mortgage-backed security collateral and bears no interest;

3. Collateralized mortgage obligations that have a stated final maturity date of greater than 10 years;

4. Collateralized mortgage obligations the interest rate of which is determined by an index that adjusts opposite to the changes in a market index.

Bond proceeds, other than bond proceeds representing reserves and funds maintained for debt service purposes, may not be invested in a guaranteed investment contract with a term longer




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than five years from the date of issuance of the bonds.

Tex. Gov’t Code § 2256.009(b); Tex. Gov’t Code § 2256.015(b).

100.160. PAYROLL

A. Texas Payday Act 1. Paydays

a. At a minimum, charter schools must pay employees that are exempt from the overtime pay provisions of the Fair Labor Standards Act of 1938 once a month. Employees that are not exempt from such provisions must be paid at least twice a month. If wages are paid twice a month, each pay period must consist, as much as possible, of an equal number of days.

b. A charter school must designate paydays in accordance with (1)(a). If paydays are not designated, then employer’s paydays are the first and 15th of each month. Charter schools must post in the workplace, in a place likely to attract attention, a notice indicating the paydays.

c. Charter schools must pay an employee who is not paid on a payday for any reason on another regular business day on the employee’s request.

d. Charter schools must pay in full an employee who is discharged from employment not later than the sixth day after the date the employee is discharged. An employee who leaves employment for a reason other than by discharge must be paid not later than the next regularly scheduled payday.

Tex. Labor Code §§61.011–61.014.

2. Form of payment

a. An employer shall pay wages to an employee:

i. In United State currency;

ii. By a written instrument (e.g. check) issued by the employer that is negotiable on demand at full face value for United State currency; or

iii. By the electronic transfer of funds.

b. An employee may agree in writing to receive part or all of the wages in kind or in another form.

c. Payment by a written instrument that is not negotiable or for which payment is refused for any reason attributable to the employer does not constitute payment of wages.



http://www.statutes.legis.state.tx.us/Docs/LA/htm/LA.61.htm#61.011


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Tex. Labor Code §61.016.

3. Delivery of Payment. An employer shall pay wages by:

a. delivering them to the employee at the employee’s regular place of employment during regular employment hours;

b. delivering them to the employee at a time and place agreed on by the employer and employee;

c. sending them to the employee by registered mail, to be received by the employee not later than payday;

d. delivering them in a matter specified in (a),(b), or (c) to a person designated by the employee in writing;

e. delivering them to the employee by any reasonable means authorized by the employee in writing; or

f. a direct deposit plan to an employee’s financial institution account if:

i. the employer has notified each employee that would be affected by this method of payment, at least 60 days before the direct deposit, that the employer is adopting a direct deposit payroll system; and

ii. the employer obtains from the employee any information required by the financial institution, in which the employee maintains the account, that is necessary to implement the electronic funds transfer.


4. Withholding Wages

a. A charter school may not withhold or divert any part of an employee’s wages unless the charter school:

i. is ordered to do so by a court of competent jurisdiction;

ii. is authorized to do so by state or federal law; or

iii. has written authorization from the employee to deduct part of the wages for a lawful purpose.






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B. Teacher Retirement System of Texas1. Charter school employees who qualify for membership in the Teacher Retirement

System of Texas (TRS) shall be covered under TRS to the same extent a qualified employee of a school district is covered.

2. For each employee of the charter school covered under TRS, the charter school is responsible for making any contribution that otherwise would be the legal responsibility of the school district.

Tex. Educ. Code §12.1057.


Xx/xx/


100.160. Payroll RAPOPORT ACADEMY PUBLIC SCHOOL
















Students

Open Government

Human Resources











100.160. PAYROLL SECTION 1.1. Accurate & Timely Payroll. The Superintendent shall ensure that school employees are paid accurately and timely in accordance with applicable laws and rules

SECTION 2.2. Paydays.

a. Exempt Employees. The paydays for exempt employees shall be on the last work day of each month

b. Non-exempt Employees. The paydays for non-exempt employees shall be on Friday

every other week.

SECTION 2.3. Withholding of Wages. The Superintendent shall ensure that the wages of school employees are not withheld except as expressly required or expressly permitted by applicable laws and rules.



TCSA Model Board Policy Series100.160. Payroll

INTRODUCTION

























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THORITY 100.160.

100.160. PAYROLL

A. Texas Payday Act 1. Paydays

a. At a minimum, charter schools must pay employees that are exempt from the overtime pay provisions of the Fair Labor Standards Act of 1938 once a month. Employees that are not exempt from such provisions must be paid at least twice a month. If wages are paid twice a month, each pay period must consist, as much as possible, of an equal number of days.

b. A charter school must designate paydays in accordance with (1)(a). If paydays are not designated, then employer’s paydays are the first and 15th of each month. Charter schools must post in the workplace, in a place likely to attract attention, a notice indicating the paydays.

c. Charter schools must pay an employee who is not paid on a payday for any reason on another regular business day on the employee’s request.

d. Charter schools must pay in full an employee who is discharged from employment not later than the sixth day after the date the employee is discharged. An employee who leaves employment for a reason other than by discharge must be paid not later than the next regularly scheduled payday.

Tex. Labor Code §§61.011–61.014.

2. Form of payment

a. An employer shall pay wages to an employee:

i. In United State currency;

ii. By a written instrument (e.g. check) issued by the employer that is negotiable on demand at full face value for United State currency; or

iii. By the electronic transfer of funds.

b. An employee may agree in writing to receive part or all of the wages in kind or in another form.

c. Payment by a written instrument that is not negotiable or for which payment is refused for any reason attributable to the employer does not constitute payment of wages.





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3. Delivery of Payment. An employer shall pay wages by:

a. delivering them to the employee at the employee’s regular place of employment during regular employment hours;

b. delivering them to the employee at a time and place agreed on by the employer and employee;

c. sending them to the employee by registered mail, to be received by the employee not later than payday;

d. delivering them in a matter specified in (a),(b), or (c) to a person designated by the employee in writing;

e. delivering them to the employee by any reasonable means authorized by the employee in writing; or

f. a direct deposit plan to an employee’s financial institution account if:

i. the employer has notified each employee that would be affected by this method of payment, at least 60 days before the direct deposit, that the employer is adopting a direct deposit payroll system; and

ii. the employer obtains from the employee any information required by the financial institution, in which the employee maintains the account, that is necessary to implement the electronic funds transfer.


4. Withholding Wages

a. A charter school may not withhold or divert any part of an employee’s wages unless the charter school:

i. is ordered to do so by a court of competent jurisdiction;

ii. is authorized to do so by state or federal law; or

iii. has written authorization from the employee to deduct part of the wages for a lawful purpose.





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THORITY 100.160.

B. Teacher Retirement System of Texas1. Charter school employees who qualify for membership in the Teacher Retirement

System of Texas (TRS) shall be covered under TRS to the same extent a qualified employee of a school district is covered.

2. For each employee of the charter school covered under TRS, the charter school is responsible for making any contribution that otherwise would be the legal responsibility of the school district.




100.180. Property RAPOPORT ACADEMY PUBLIC SCHOOL
















Students

Open Government

Human Resources











100.180. PROPERTY The governing body (“Board”) of RAPOPORT ACADEMY PUBLIC SCHOOL adopts the following policy which shall be effective on the date that the policy is adopted by the Board.

SECTION 1. Public Property Held in Trust

SECTION 1.1. Public Property. An interest in real estate or personal property acquired, improved, or maintained using state funds that were received by RAPOPORT ACADEMY PUBLIC SCHOOL on, or after, September 1, 2001, is public property for all purposes under state law.

SECTION 1.2. Public Property Held in Trust. Public property is held by the Rapoport Academy Public School trust for the benefit of enrolled students.

SECTION 2. Use of Public Property

SECTION 2.1. Allowable Use. The Superintendent shall ensure that public property shall only be used for a purpose for which a school district may use school district property and only to implement a program that is described in the open-enrollment charter and is consistent with the Texas Education Code §12.102.

The Superintendent also shall ensure that RAPOPORT ACADEMY PUBLIC SCHOOL employees, agents, contractors, and management companies do not use or apply public property for any purpose but a program described in RAPOPORT ACADEMY PUBLIC SCHOOL’s charter.

SECTION 2.2. Exception to Allowable Use. Employees of RAPOPORT ACADEMY PUBLIC SCHOOL may use local telephone service, cellular phones, electronic mail, Internet connections, and technology for incidental personal use under the following conditions:

a. Such incidental personal use must not result in any direct cost paid with state

funds. If this does happen, the Superintendent shall ensure that the employee which caused the direct cost to be incurred by RAPOPORT ACADEMY PUBLIC SCHOOL shall reimburse RAPOPORT ACADEMY PUBLIC SCHOOL;

b. Such incidental personal use shall not impede the functions of RAPOPORT

ACADEMY PUBLIC SCHOOL;

c. The use of public property for private commercial purposes is strictly prohibited; and

d. Only incidental amounts of an employee’s time for personal matters, comparable to

reasonable coffee breaks during the day, are authorized under this section.

SECTION 2.3. Violations of Section 2. SECTION 2.3.1. Employee Violations. The Superintendent shall ensure that a violation of Section 2 of this policy by an employee of RAPOPORT ACADEMY PUBLIC SCHOOL shall have disciplinary consequences which may include termination of employment.



SECTION 2.3.2. Contractor Violations. The Superintendent shall ensure that each contract between RAPOPORT ACADEMY PUBLIC SCHOOL and another party includes language stating the allowable use of public property and that a violation of the allowable use may lead to termination of a contract. If a contract is terminated based on a violation of Section 2 of this policy RAPOPORT ACADEMY PUBLIC SCHOOL will compensate the entity for services performed as required by law.

SECTION 2.4 Joint Use of Real Property. The Board President shall ensure that the Board takes a separate vote to approve any joint use of real property for charter and non-charter activities. In the meeting minutes of the vote approving the joint use, the Board Secretary shall ensure that the minutes set forth the methodology used to allocate shared costs and the percentage allocation basis between charter and non-charter activities.

SECTION 3. LEASE OF RAPOPORT ACADEMY PUBLIC SCHOOL FACILITIES RAPOPORT ACADEMY PUBLIC SCHOOL may lease its facilities to various organizations such as those that are educational, religious, or civic in nature. However, the availability of facilities for lease by out- side entities will depend on RAPOPORT ACADEMY PUBLIC SCHOOL’s own needs and convenience.



TCSA Model Board Policy Series100.180. Property

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THORITY 100.180.

100.180. PROPERTY A. Public Property Held in Trust

1. An interest in real estate or personal property acquired, improved, or maintained using state funds that were received by the charter holder on or after September 1, 2001, is public property for all purposes under state law.

2. Special rules apply to property acquired with state funds received before September 1, 2001. See Texas Administrative Code §100.1065.

3. Public property is held by the charter holder in trust for the benefit of the students of the charter school. The members of the governing body of the charter holder and charter school, as well as officers of a charter school, are trustees and each is held to the standard of care and fiduciary duties that a trustee owes the beneficiary of a trust under Texas law. The students enrolled in the charter school are beneficiaries.

Tex. Educ. Code §12.128; 19 Tex. Admin. Code §100.1063(a)–(b).

B. Use of Public Property1. A charter holder/school may use public property only for a purpose for which a

school district may use school district property and only to implement a program that is described in the open-enrollment charter and is consistent with the Texas Education Code §12.102. Any use of public property that is inconsistent with this section constitutes misuse and misapplication of such property and is subject to Texas law governing misuse or misapplication of public property.

2. The governing body of a charter holder shall adopt and enforce local policies governing the use of public property by its employees, agents, contractors, and management companies. The policies shall prohibit the use of public property for any purpose but a program described in the open-enrollment charter. The policies may authorize charter holder employees to use local telephone service, cellular phones, electronic mail, Internet connections, and similar public property for inci-dental personal use if the policies:

a. Do not result in any direct cost paid with state funds, or the charter holder is reimbursed for any incurred direct cost;

b. Do not impede charter school functions;

c. Do not authorize incidental personal use of public property for private commercial purposes; and

d. Authorize only incidental amounts of employee time for personal matters.

3. The governing body of a charter holder shall take a separate vote to approve any joint use of real property for charter and non-charter activities. In the meeting minutes of the vote approving the joint use, the governing body shall set forth the methodology used to







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allocate shared costs and the percentage allocation basis between charter and non-charter activities.

4. The members of the governing body of a charter holder and charter school, as well as the officers of a charter school, shall authorize all uses of the public property under their control and shall not authorize a use that is inconsistent with the local policies adopted under (B)(2).

5. If the daily management of public property is delegated to any person, including a management company, the members of the governing body of the charter holder and charter school, as well as the officers of the charter school, remain responsible to authorize all uses of public property and enforce local policies.

6. The board may set and collect rentals, rates, and charges from students and others for the occupancy or use of any of the facilities, in the amounts and manner determined by the board.

Tex. Educ. Code §12.128; 19 Tex. Admin. Code §100.1063(c); Tex. Educ. Code §45.033.

C. Accounting for Public Property1. Each charter holder must include in its annual audit report an exhibit identifying

the fixed assets of the charter holder and the ownership interest of all parties for all real estate and capitalized property presently held by the charter holder or acquired, improved, or maintained by the charter holder during the term of the open-enrollment charter.

a. The annual audit report must separately disclose the cost basis and accumulated depreciation of all public property, and all other property held, acquired, improved, or maintained by the charter holder.

b. Instead of the exhibit required by paragraph (a) of this subsection, a charter holder may substitute a statement that all property acquired, improved, or maintained during the term of the open-enrollment charter, and all property presently held by the charter holder, is public property.

19 Tex. Admin. Code §100.1063(f).

D. Purchasing and Selling Real Property1. A charter holder may not purchase real property held in trust until the trustee submits

to the governing body of the charter holder a copy of the trust agreement identifying the true owner of the property. The trust shall identify the true owner of the property to the charter holder.

2. A charter holder may not sell real property to a trustee until the charter holder receives from the trustee a copy of the trust agreement identifying the person who will be the true owner of the property. The trustee shall identify the person who will be the true owner of the property to the charter holder.

3. A conveyance subject to this section is void if the charter holder fails to comply with






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this section.

4. A trust agreement submitted to the governing body of the charter holder is confidential information excepted from the requirements of the Texas Government Code, §552.021, but must be disclosed to the Texas Education Agency under the Texas Administrative Code §100.1029.

Tex. Admin. Code §100.1071; Tex. Educ. Code §12.1053; Tex. Gov’t Code §2252.092.





TCSA Model Board Policy Series100.200. Purchasing & Contracting

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THORITY 100.200.

100.200. PURCHASING & CONTRACTING The laws listed and summarized below apply to an open-enrollment charter school unless the char-ter school’s charter contract otherwise describes procedures for purchasing and contracting and those procedures have been approved by either the State Board of Education or the Commissioner.

A. Public Works Contracts

1. Chapter 271 of the Texas Local Government Code

2. Chapter 44 of the Texas Education Code

B. Professional Services, Chapter 2254 of the Texas Government Code C. Cooperative Purchasing Programs

D. Federal Purchasing Requirements

E. State’s Travel Services Contracts Program

F. Additional Purchasing Options


A. Public Works Contracts 1. Chapter 271, Texas Local Government Code

a. General Rule. If the awarding of a contract will involve the construction, repair, or renovation of a structure, road, highway, or other improvement or addition to real property that will require the expenditure of more than $50,000 in public funds, a charter holder must comply with Local Government Code, Chapter 271, Subchapter B.

b. Exception. A charter holder may amend its charter to include a statement adopting the provisions of Texas Education Code, Chapter 44, Subchapter B, as the charter holder’s process for awarding a contract for the construction, repair, or renovation of a structure, road, highway, or other improvement or addition to real property that will require expenditure of more than $50,000 in public funds. These alternative procedures must be approved by the Commissioner in the form of a charter amendment. (See Part 2 below, Chapter 44, Texas Education Code).

19 Tex. Admin. Code § 100.103; 19 Tex. Admin. Code § 100.1073; Tex. Loc. Gov’t Code§ §271.021–.030.

c. Competitive Bidding. For any contract involving an expenditure of more than $50,000 on construction, repair, or renovation of a structure, road, highway, or






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other non-facility work, the bidding must be accomplished in the manner set forth below:

i. The charter holder must advertise for bids. The advertisement must include a notice that:

(1) Describes the work;

(2) States the location at which the bidding documents, plans, specifications, or other data may be examined by all bidders; and

(3) States the time and place for submitting bids, and the time and place that bids will be reopened.

ii. The notice must be published at least twice in a newspaper of general circulation in the county or counties in which the work is to be performed. The second publication must be on or before the 10th day before the first date bids may be submitted.

(1) A newspaper of general circulation is one that has more than a de minimis number of subscribers within a particular geographic region, has a diverse subscribership, and contains some news, editorials, and advertisements of a general character and interest to the community.

Tex. Att’y Gen. Op. No. JC-0223 (2000).

iii. The charter holder must mail a notice, on the date of publication or before the day the first newspaper advertisement is published, containing the information included in the advertisement for bids to any organization that:

(1) Requests in advance to receive notices for bids;

(2) Agrees in writing to pay the actual cost of mailing the notice; and

(3) Certifies that it circulates notices for bids to the construction trade in general.

iv. Receipt of Bids

(1) The charter holder shall provide all bidders with the opportunity to bid on the same items on equal terms and have bids judged according to the same standards as set forth in the specifications.

(2) The school shall receive bids in a fair and confidential manner and may receive bids in hard copy format or through electronic transmission.

v. Opening of Bids

https://www.texasattorneygeneral.gov/opinions/opinions/49cornyn/op/2000/htm/jc0223.htm


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Bids may be opened only by the board at a public meeting or by an officer or employee of the school in an office of the school. A bid that has been opened may not be changed for the purpose of correcting an error in the bid price. However, a bidder may withdraw a bid due to material mistake in the bid.

Tex. Loc. Gov’t Code §§271.024 – .026.

d. Award of Contract

i. The charter holder is entitled to reject any bid.

ii. The contract must be awarded to the lowest responsible bidder. The contract may not be awarded to a bidder who is not the lowest bidder, unless, before the award, each lower bidder is given notice of the proposed award, and is given an opportunity to appear before the board or the board’s designee and present evidence concerning the bidder’s responsibility.

Tex. Loc. Gov’t Code §271.027.

e. Safety Record of the Bidder

i. The school may, in determining who is a responsible bidder, take into account the safety record of the bidder if:

(1) The board has adopted a written definition and criteria for accurately determining the safety record of a bidder;

(2) The board has given notice to prospective bidders in the bid specifications that the safety record of a bidder may be considered in determining the responsibility of the bidder; and

(3) The determinations are not arbitrary and capricious.


f. Noncompliance Unless a charter holder has chosen to amend their charter to expressly state that the Texas Education Code, Chapter 44, Subchapter B, applies, a contract awarded in violation of the Local Government Code, Chapter 271, Subchapter B, is void.


2. Chapter 44, Texas Education CodeA charter holder may amend its charter to include a statement adopting the provisions of Texas Education Code, Chapter 44, Subchapter B, as the charter holder’s process for awarding a contract for the construction, repair, or renovation of a structure, road, highway, or other improvement or addition to real property requiring expenditures over






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$50,000. These alternative procedures must be approved by the Commissioner in the form of a charter amendment.

Tex. Admin. Code §100.1073(a); Tex. Admin. Code §100.103

a. Permissible Methods For construction services, an open-enrollment charter school that has adopted Sub-chapter B of Chapter 44 shall follow a method provided by Chapter 2267 of the Texas Government Code. See Chapter 2269 of the Texas Government Code for applicable, mandatory requirements and procedures.

Tex. Educ. Code §44.031(a)(5); Tex. Gov’t Code §2269.

b. Delegation of Authority; Notice of Delegation The board of directors of the open-enrollment charter school may delegate its authority under Chapter 2269 to a designated representative, committee, or other person. The open-enrollment charter school shall provide notice of the delegation, the limits of the delegation, and the name or title of each person to whom such authority has been delegated in the request for bids, proposals, or qualifications or in an addendum to the request.

Tex. Gov’t Code §2269.056; Tex. Gov’t Code §2269.053

c. Requisite Selection Criteria; Sealed Proposals/Qualifications In determining the award of a contract, the open-enrollment charter school shall con-sider and apply any existing laws or rules related to historically underutilized businesses and laws or rules related to the use of women, minority, small or disadvantaged busi-nesses.

Tex. Gov’t Code §2269.055(b)

All bids, proposals or qualifications must be sealed before delivery to the open enroll-ment charter school.

Tex. Gov’t Code §2269.059

d. Discretionary Selection Criteria In determining the award of a contract, the open-enrollment charter school may consider:

i. Price

ii. Experience and reputation

iii. Quality of goods and services

iv. Impact on the ability of the open-enrollment charter school to comply with rules



http://www.statutes.legis.state.tx.us/Docs/GV/htm/GV.2267.htm



http://www.statutes.legis.state.tx.us/Docs/GV/htm/GV.2269.htm%232269.056





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relating to historically underutilized businesses;

v. Safety record

vi. Proposed personnel

vii. Financial capability is appropriate to the size and scope of the project

viii. Any other relevant factor specifically listed in the request for bids, proposals or qualifications.

Tex. Gov’t Code §2269.055(a)

e. Notice Requirements The time by when and the place where the bids, proposals or responses to a request for qualifications will be received and opened shall be published in the county in which the open enrollment charter school’s central administrative office is located, once a week for at least two weeks before the deadline for receiving bids/proposals/responses to requests for qualifications.

Tex. Gov’t Code §2269.052; Tex. Educ. Code §44.031(g)

f. Use of Architect or Engineer If an architect or engineer is required to be selected or designated for the procure-ment, the architect or engineer has full responsibility to comply with Chapter 1051 or 1001, Occupations Code, as applicable. If the selected architect or engineer is not a full-time employee of the charter school, the charter school shall select the architect or engineer on the basis of demonstrated competence and qualifications as provided by §2254.004, Texas Gov’t Code.


g. Use of Other Professional Services Independently of the contractor, construction manager-at-risk, or design-build firm, the open-enrollment charter school shall provide for or contract for the construction materials, engineering, testing and inspection services and the verification testing services necessary for the facility. The open-enrollment charter school shall select these services in accordance with §2254.004, Texas Gov’t Code.


h. Method Other than Competitive Bidding; Best Value An open-enrollment charter school that considers a construction contract using a method authorized by Chapter 2269 other than competitive bidding must, before advertising, determine which method provides the best value for the open-



http://www.statutes.legis.state.tx.us/Docs/ED/htm/ED.44.htm%2344.031







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enrollment charter school.

i. Selection shall be based on applicable criteria listed for the particular method used.

ii. The open-enrollment charter school shall publish in the RFP or RFQ the criteria that will be used to evaluate the offerors, and the applicable weighted value for each criterion.

iii. The open-enrollment charter school shall document the basis of its selection and shall make the evaluations public not later than the seventh (7th) day after the date the contract is awarded.


i. Competitive Bidding Competitive bidding is a procurement method by which an open-enrollment charter school awards the contract to a contractor who is the lowest responsible bidder.

i. The open-enrollment charter school shall select or designate an architect or engineer to prepare the construction documents required for the project.

ii. The open-enrollment charter school must prepare a request for competitive bids that includes:

(1) Construction documents;

(2) Estimated budget;

(3) Project scope;

(4) Estimated project completion date; and

(5) Other information that a contractor may require to submit a bid.

iii. The open-enrollment charter school shall receive, publicly open, and read aloud the names of the offerors and any monetary proposals made by the offerors.

iv. No later than seven (7) days after the date of the award of the contract, the open-enrollment charter school shall document the basis of its decision and make the evaluations public.

Tex. Gov’t Code §§2269.101-106.

j. Competitive Sealed Proposals Competitive sealed proposals is a procurement method by which an open- enrollment charter school requests proposals, ranks the offerors, negotiates




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as prescribed, and then contracts with a general contractor.

i. The open-enrollment charter school shall select or designate an architect or engineer to prepare construction documents for the project.

ii. The open-enrollment charter school shall prepare a request for competitive sealed proposals (RFCSP) that includes:

(1) Construction documents;

(2) Selection criteria and the weighted value for each criterion;

(3) Estimated budget;

(4) Project scope;

(5) Estimated project completion date; and

(6) Other information that a contractor may require to respond to the request.

iii. The open-enrollment charter school shall receive, publicly open, and read aloud the names of the offerors and any monetary proposals made by the offerors.

iv. No later than the 45th day after the date on which the proposals are opened, the open-enrollment charter school shall evaluate and rank each proposal sub-mitted in relation to the published criteria.

v. The open-enrollment charter school shall select the proposal that offers the best value for the school, based on

(1) The selection criteria in the RFP and their weighted value; and

(2) Its ranking evaluation.

vi. The open-enrollment charter school shall first attempt to negotiate a contract with the selected offeror. The open-enrollment charter school and its architect or engineer may discuss with the selected offeror options for a scope and time modification and any price change associated with the modification.

vii. If the open-enrollment charter school is unable to negotiate a contract with the selected offeror, the open-enrollment charter school shall formally end negotia-tions with that offeror and proceed to the next offeror in the order of the selec-tion ranking until a contract is reached or all proposals are rejected.

Tex. Gov’t Code §§2269.151-155

k. Construction Manager-Agent (CMA)



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Construction Manager-Agent (CMA) is a method by which the open-enrollment charter school contracts with a CMA to provide consultation or administrative services during the design and construction phase and to manage multiple contracts with various construction prime contractors. The CMA serves as the agent for the open-enrollment charter school for such services and the CMA represents the open-enrollment charter school in a fiduciary capacity.

i. The contract between the CMA and the open-enrollment charter school may require the CMA to provide:

(1) administrative personnel;

(2) equipment necessary to perform duties;

(3) on-site management; and

(4) other services specified in the contract.

ii. The CMA may not:

(1) Self-perform any aspect of the construction, rehabilitation, alteration or repair of the facility; or

(2) Be a party to a construction subcontract for the construction, rehabilitation, alteration or repair of the facility;

(3) Provide or be required to provide performance and payment bonds for the construction, rehabilitation, alteration or repair of the facility.

iii. On or before the selection of a CMA, the open-enrollment charter school shall select or designate an architect or engineer in accordance with Chapter §1051 or §1001, Occupations Code, as applicable to prepare the construction documents for the project.

iv. The open-enrollment charter school shall select a CMA on the basis of demon-strated competence and qualifications in the same manner that an architect or engineer is selected under §2254.004 of the Government Code.

v. The open-enrollment charter school shall procure, in accordance with appli-cable law, a general contractor, trade contractor or subcontractor who will serve as the prime contractor for their specific portion of the work and provide per-formance and payment bonds to the open-enrollment charter school in accor-dance with applicable laws.

vi. The CMA shall maintain professional liability or errors and omissions insurance in the amount of at least $1 million for each occurrence.

vii. The open-enrollment charter school’s architect or engineer may not serve,


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alone or in combination with another person, as the CMA unless the architect or engineer is hired to serve as the construction manager-agent under a separate or concurrent selection process conducted in accordance with Subchapter E of Texas Government Code. The architect or engineer may provide customary construction phase services under an original professional services agreement in accordance with applicable licensing laws.

Tex. Gov’t Code §§2269.201 - 206

l. Construction Manager-at-Risk (CMR) The Construction Manager- at-Risk (CMR) is a procurement method by which the open-enrollment charter school contracts with an architect or engineer for design and construction phase services and contracts separately with a CMR to serve as the general contractor and to provide consultation during the design and construc-tion, rehabilitation, alteration or repair of a facility. The CMR assumes the risk for the construction, rehabilitation, alteration, or repair of a facility at the contracted price as a general contractor and provides consultation to the open enrollment charter school regarding construction during and after the design of the facility. The contracted price may be a guaranteed maximum price.

i. On or before the selection of a CMR, the open-enrollment charter school shall select or designate an architect or engineer to prepare the construction docu-ments for the project.

ii. The open-enrollment charter school’s architect or engineer, or any entity related to the charter school’s architect or engineer, may not serve, alone or in combi-nation with another person, as the CMR.

(a) An entity is related to the charter school’s architect or engineer if the entity is a sole proprietorship, corporation, partnership, limited liability company, or other entity that is a subsidiary, parent corporation, or partner or has any other relationship in which the charter school’s ar-chitect or engineer has an ownership interest, or is subject to common ownership or control, or is party to an agreement by which it will receive any proceeds of the construction manager-at-risk’s payments from the charter school.

(b) The architect or engineer may provide customary construction phase services under an original professional services agreement in accor-dance with applicable licensing laws.

iii. The CMR shall be selected in a one-step or two-step process.

(1) One Step Process. The open-enrollment charter school shall prepare an RFP that includes:

(a) a statement that the selection process is a one-step process



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(b) general information on the project site

(c) project scope

(d) schedule

(e) selection criteria and the weighted value for each criterion

(f) estimated budget

(g) time and place for receipt of proposals

(h) proposed fees and prices for fulfilling the general conditions; and

(i) other information that may assist the open-enrollment charter school in its selection of an CMR.

(2) Two Step Process. The open-enrollment charter school shall prepare an RFP that includes:

Step One:

(a) a statement that the selection process is a two-step process

(b) general information on the project site

(c) project scope

(d) schedule

(e) election criteria and the weighted value for each criterion

(f) estimated budget

(g) time and place for receipt of proposals; and

(h) other information that may assist the open-enrollment charter school in its selection of an CMR.

In a two-step process, the open-enrollment charter school may NOT request fees or prices in step one.

Step Two: The open-enrollment charter school may request that five or fewer offerors, selected solely on the basis of qualifications, provide additional information, including the CMR’s proposed fee and prices for fulfilling the conditions.


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iv. At each step, the open-enrollment charter school shall receive, publicly open, and read aloud the names of the offerors. At the appropriate step, the open- enrollment charter school shall also read aloud the fees and prices, if any, stated in each proposal as it is opened.

v. Not later than 45 days after the date on which the final proposals are opened, the open-enrollment charter school shall evaluate and rank each proposal sub-mitted in relation to the criteria set forth in the RFP.

vi. The open-enrollment charter school shall select the proposal that offers the best value for the school based on the published selection criteria and on its ranking evaluation.

vii. The open-enrollment charter school shall first attempt to negotiate a contract with the selected offeror. If the open-enrollment charter school is unable to negotiate a satisfactory contract with the selected offeror, the open-enrollment charter school shall, formally and in writing, end negotiations with that offeror and proceed to negotiate with the next offeror in the order of the selection ranking until a contract is reached or negotiations with all ranked offerors end.

viii. Not later than the seventh (7th) day after the date the contract is awarded, the open-enrollment charter school shall make the rankings public.

ix. The CMR shall publicly advertise for bids or proposals and receive bids or proposals from trade contractors or subcontractors for the performance of all major elements of the work other than the minor work that may be included in the general conditions.

x. The CMR may seek to perform portions of the work itself if (1) the CMR submits its bid or proposal for those portions of the work in the same manner as all other trade contractors or subcontractors; and (2) the open-enrollment charter school determines that the CMR’s bid or proposal provides the best value for the school.

xi. The CMR shall review all trade contractor or subcontractor bids or proposals in a manner that does not disclose the contents of the bid or proposal during the selection process to a person not employed by the CMR, architect, engineer, or open-enrollment charter school.

xii. All bids or proposals shall be made available to the open-enrollment charter school on request and to the public after the later of the award of the contract or the seventh (7th) day after the date of final selection of bids or proposals.

xiii. The open-enrollment charter school shall compensate the CMR by a change in price, time or guaranteed maximum cost for any additional cost and risk that the CMR occurs because of the open-enrollment charter school’s requirement that another bid or proposal be accepted.

Tex. Gov’t Code §§2269.251 - 256; 84th Leg., R.S., HB2634




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M. Design-Build ContractDesign-build is a method by which an open-enrollment charter school contracts with a single entity to provide both design and construction services for the construction, rehabilitation, altera-tion, or repair of a facility. The open-enrollment charter school shall enter into a single contract with a design-build firm for the design and construction of a building or associated structure. The design-build firm must include an architect or engineer and a construction contractor.

i. The open-enrollment charter school shall select or designate an architect or engineer independent of the design-build firm to act as the school’s representa-tive for the duration of the project.

ii. The open-enrollment charter school shall prepare a request for qualifications that includes:

(1) General information on the project site;

(2) project scope;

(3) budget;

(4) special systems;

(5) selection criteria and the weighted value for each criterion; and

(6) other information that may assist potential design-build firms in submitting proposals for the project.

iii. The open-enrollment charter school shall also prepare a design criteria package that includes more detailed information on the project. The design criteria package must include a set of documents that provides sufficient information, including criteria for selection, to permit a design-build firm to prepare a re-sponse to the open-enrollment charter school’s request for qualifications and to provide any additional information requested. The design criteria package must specify criteria the open-enrollment charter school considers necessary to describe the project and may include, as appropriate:

(1) the legal description of the site;

(2) survey information concerning the site;

(3) interior space requirements;

(4) special material requirements;

(5) material quality standards;

(6) conceptual criteria for the project;


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(7) special equipment requirements;

(8) cost or budget estimates;

(9) time schedules;

(10) quality assurance and quality control requirements;

(11) site development requirements;

(12) applicable codes and ordinances;

(13) provisions for utilities;

(14) parking requirements; and

(15) any other requirement.

iv. The open-enrollment charter school may not require offerors to submit architec-tural or engineering designs as part of a proposal or a response to a request for qualifications.

v. For each design-build firm that responded to the request for qualifications, the open-enrollment charter school shall evaluate:

(1) the firm's experience;

(2) technical competence, and capability to perform;

(3) the past performance of the firm and members of the firm; and

(4) other appropriate factors submitted by the firm in response to the request for qualifications.

vi. The open-enrollment charter school may not use cost-related or price-related evaluation factors to evaluate the design-build firm.

vii. Each firm must certify to the open-enrollment charter school that each architect or engineer that is a member of the firm was selected based on demonstrated competence and qualifications, in the manner provided by §2254.004, Govern-ment Code.

viii. The open-enrollment charter school shall qualify a maximum of five responders to submit proposals that contain additional information and, if the open-enroll-ment charter school chooses, to interview for final selection.

ix. The open-enrollment charter school shall evaluate the additional information


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submitted by the offerors on the basis of the selection criteria stated in the RFQ and the results of any interview.

x. The open-enrollment charter school may request additional information regarding

(1) demonstrated competence and qualifications,

(2) considerations of the safety and long-term durability of the project,

(3) the feasibility of implementing the project as proposed,

(4) the ability of the offeror to meet schedules, or costing methodology (which is defined in §2269.307(e) and does not include a guaranteed maximum price or bid for overall design or construction).

xi. The open-enrollment charter school shall rank each proposal submitted on the basis of the criteria set forth in the request for qualifications.

xii. The open-enrollment charter school shall select the design-build firm that sub-mits the proposal offering the best value for the open-enrollment charter school on the basis of the published selection criteria and on its ranking evaluations.

xiii. The open-enrollment charter school shall first attempt to negotiate a contract with the selected firm. If the school is unable to negotiate a satisfactory con-tract with the selected firm, the open-enrollment charter school shall, formally and in writing, end all negotiations with that firm and proceed to negotiate with the next firm in the order of the selection ranking until a contract is reached or negotiations with all ranked firms end.

xiv. Not later than the seventh (7th) day after the date the contract is awarded, the open-enrollment charter school shall make the rankings public.

xv. After selection of the design-build firm, that firm's architects or engineers shall submit all design elements for review and determination of scope compliance to the open-enrollment charter school or the open-enrollment charter school's architect or engineer before or concurrently with construction.

Tex. Gov’t Code §§2269.301-309

n. Job Order Contracts “Job order contracting” is a procurement method used for maintenance, repair, alteration, renovation, remediation, or minor construction of a facility when the work is of a recurring nature but the delivery times, type, and quantities of work required are indefinite.

i. The open enrollment charter school may award job order contracts for the maintenance, repair, alteration, renovation, remediation, or minor construction



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of a facility if:

(1) the work is of a recurring nature but the delivery times are indefinite; and

(2) indefinite quantities and orders are awarded substantially on the basis of predescribed and prepriced tasks.

ii. The open-enrollment charter school shall establish the maximum aggregate contract price when it advertises the proposal.

iii. The governing body of a open-enrollment charter school shall approve each job, task, or purchase order that exceeds $500,000.

iv. The open-enrollment charter school may establish contractual unit prices for a job order contract by:

(1) specifying one or more published construction unit price books and the ap-plicable divisions or line items; or

(2) providing a list of work items and requiring the offerors to propose one or more coefficients or multipliers to be applied to the price book or prepriced work items as the price proposal.

v. An open-enrollment charter school may use the competitive sealed proposal method for job order contracts.

vi. The open-enrollment charter school shall advertise for, receive, and publicly open sealed proposals for job order contracts.

vii. The open-enrollment charter school may require offerors to submit informa-tion in addition to rates, including experience, past performance, and proposed personnel and methodology.

viii. The open-enrollment charter school may award job order contracts to one or more job order contractors in connection with each solicitation of proposals.

ix. A job order contract may be used to accomplish work only for the open-enroll-ment charter school that awards the contract unless:

(1) the solicitation for the job order contract and the contract specifically pro-vide for use by other persons; or

(2) the open-enrollment charter school enters into an interlocal agreement that provides otherwise.

x. If a job order contract or an order issued under the contract requires architectural or engineering services that constitute the practice of architec-


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ture within the meaning of Chapter 1051, Occupations Code, or the practice of engineering within the meaning of Chapter 1001, Occupations Code, the open-enrollment charter school shall select or designate an architect or engineer to prepare the construction documents for the project. Subsection (a) does not apply to a job order contract or an order issued under the contract for industrial-ized housing, industrialized buildings, or relocatable educational facilities sub-ject to and approved under Chapter 1202, Occupations Code, if the contractor employs the services of an architect or engineer who approves the documents for the project.

xi. The base term for a job order contract may not exceed two years. The open-enrollment charter school may renew the contract annually for not more than three additional years.

xii. An order for a job or project under a job order contract must be signed by the open-enrollment charter school's representative and the contractor. The order may be:

(1) a fixed price, lump-sum contract based substantially on contractual unit pricing applied to estimated quantities; or

(2) a unit price order based on the quantities and line items delivered.

Tex. Gov’t Code §§2269.401-11

B. Professional Services The following provisions apply to the purchase of professional services unless a charter specifies alternative procedures which are approved by the State Board of Education and the open-enrollment charter is amended by the Commissioner of education to adopt the approved procedures.

Tex. Educ. Code § 12.1053(a); 19 Tex. Admin. Code § 100.1205(a).

1. “Professional services” means services:

a. Within the scope of the practice, as defined by state law, of:

i. Accounting;

ii. Architecture;

iii. Landscape architecture;

iv. Land surveying;

v. Medicine;





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vi. Optometry;

vii. Professional engineering;

viii. Real estate appraising; or

ix. Professional nursing

b. Provided in connection with the professional employment or practice of a person who is licensed or registered as:

i. A certified public accountant;

ii. An architect;

iii. A landscape architect;

iv. A land surveyor;

v. A physician, including a surgeon;

vi. An optometrist;

vii. A professional engineer;

viii. A state certified or state licensed real estate appraiser; or

ix. A registered nurse.

Tex. Gov’t Code § 2254.002(2); 19 Tex. Admin. Code § 100.1205(c).

2. Selection of ProviderThe charter holder/school shall select a provider of professional services on the basis of:

a. Demonstrated competence and qualifications to perform the services; and

b. For a fair and reasonable price.

Tex. Gov’t Code § 2254.003(a).

3. FeesProfessional fees under a contract

a. Must be consistent with, and not higher than the recommended practices and fees published by the applicable professional associations; and





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b. May not exceed any maximum provided by law.

Tex. Gov’t Code § 2254.003(b).

4. Award of Certain Contracts

a. Most Highly Qualified Provider In procuring architectural, engineering, or land surveying services, the school shall:

i. First select the most highly qualified provider of those services on the basis of demonstrated competence and qualifications; and

ii. Then attempt to negotiate with that provider a contract at a fair and reasonable price.

b. Next Most Highly Qualified If a satisfactory contract cannot be negotiated with the most highly qualified provider, the school shall:

i. Formally end negotiations with that provider;

ii. Select the next most highly qualified provider; and

iii. Attempt to negotiate a contract with that provider at a fair and reasonable price.

c. Subsequent Negotiations The school shall continue the process described in subparagraph (B) above, to select and negotiate with providers, until a contract is entered into.


5. Void ContractA contract entered into, or an arrangement made in violation of Section 2254 of the Texas Government Code is void.


C. Cooperative Purchasing Programs1. State Purchasing Programs

a. If a school has amended its charter to provide for cooperative purchasing, the school may participate in the state cooperative purchasing program.

19 Tex. Admin. Code § 100.1201(1).

b. TBPC Program and Services The Texas Building and Procurement Commission (TBPC) shall establish a program by which it performs purchasing services for local governments. The services










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must include:

i. The extension of state contract prices to participating local governments when the TBPC considers it feasible;

ii. Solicitation of bids on items desired by local governments if the solicitation is considered feasible by the TPBC and is desired by the school; and

iii. Provision of information and technical assistance about the purchasing program.

c. Participation The school may participate in the purchasing program of the TBPC, including reverse auction procedures as defined by Texas Gov’t Code § 2155.062(d), by filing with the TBPC a resolution adopted by the board requesting that the school be allowed to participate on a voluntary basis, and to the extent TBPC deems feasible, and stating that the school will:

i. Designate an official to act for the school in all matters relating to the program, including the purchase of items from the vendor under any contract, and that the board will direct the decisions of the representative;

ii. Be responsible for:

(1) Submitting requisitions to the TBPC under any contract; or

(2) Electronically sending purchase orders directly to vendors, or complying with TBPC procedures governing a reverse auction purchase, and electronically sending to the commission reports on actual purchases made under these procedures;

(3) Be responsible for making payment directly to the vendor;

(4) Be responsible for the vendor’s compliance with all conditions of delivery and quality of the purchased item.

d. Effect of TBPC Purchases Purchasing an item through the TBPC satisfies any state law requiring competitive bidding.

Tex. Loc. Gov’t Code §§ 271.082–271.083.

2. Local Purchasing ProgramsIf a school has amended its charter to provide for cooperative purchasing, the school may participate in cooperative purchasing programs with local governments.

19 Tex. Admin. Code § 100.1201(2).

http://www.sos.state.tx.us/tac/


http://www.statutes.legis.state.tx.us/Docs/LG/htm/LG.271.htm



a. Definitions:

i. Local cooperative organization: An organization of governments established to provide local governments access to contracts with vendors for the purchase of materials, supplies, services, or equipment.

ii. Local government: A county, municipality, special district, school district, junior college district, a local workforce development board, or other legally constituted political subdivision of the state.

b. Cooperating Purchasing Program The school may participate in a cooperative purchasing program with a local government or a local cooperative organization. If the school participates in such a program, it may sign an agreement with a local government or a local cooperative organization stating that the signing parties will:

i. Designate a person to act under the direction of, and on behalf of, that entity in all matters relating to the program;

ii. Make payments to a participating entity or directly to a vendor under the cooperative purchasing contract, as provided in the agreement; and

iii. Be responsible for a vendor’s compliance with provisions relating to the quality of items and terms of delivery, to the extent provided by the agreement.

c. Effect of Agreement A school that enters into a contract described in this policy satisfies any state law requiring competitive bidding for the purchase of goods or services.

Tex. Loc. Gov’t Code §§271.101–.102.

3. Federal Purchasing Program If a school has amended its charter to provide for purchasing through the federal General Services Administration (GSA), the school may participate in GSA programs.

19 Tex. Admin. Code §100.1201(3).

To the extent permitted by federal law, the school may purchase goods or services under federal supply schedules of the United States GSA.


4. Intercept Agreements If the school has amended its charter to provide for intercept agreements, the school may enter into such an agreement with the Texas Bond Review Board and the Comptroller of Public Accounts to increase its credit rating.

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Tex. Admin Code §100.1201(4).

D. Federal Purchasing Requirements When using federal grant funds for purchasing goods and services, the charter school shall follow the policy adopted by the Board, reflected in Board Policy Section 100.080, Federal Fiscal Compliance.

E. State’s Travel Services Contracts Program An officer or employee of an open-enrollment charter school who is engaged in official business may participate in the Texas Comptroller’s State Travel Management Program.

Tex. Gov’t Code §2171.055(f).

F. Additional Purchasing Options

1. Interlocal Contracting Authority

a. An open-enrollment charter school is considered to be a local government for pur-poses of Chapter 791, Texas Government Code. TEX. EDUC. CODE § 12.1058 (a); 84th Leg., R. S. HB1170

b. A local government may contract or agree with another local government or feder-ally recognized Indian tribe whose reservation is located within the boundaries of the State of Texas to perform governmental functions and services. TEX. GOV’T CODE §791.011 (a).

c. A party to an interlocal contract may contract with a state agency or a similar agency of another state. TEX. GOV’T CODE §791.011 (b).

d. An interlocal contract must be (1) authorized by the governmental body of each party to the contract, (2) state the purpose, terms, rights, and duties of the con-tracting parties; and (3) specify that each party paying for the performance of governmental funcations or services must make those payments from current revenues available to the paying party. TEX. GOV’T CODE §791.011 (d).

e. An interlocal contractual payment must be in an amount that fairly compensates the performing party fo the services or functions performed under the contract. TEX. GOV’T CODE §791.011 (e).

f. To supervise the performance of an interlocal contract, the parties to the contract may (1) create an administrative agency, (2) designate an eisting local government, or (3) contract with a third party organization that qualifies for federal tax exemption and meets additional criteria under state law. TEX. GOV’T CODE §791.013.

g. A local government and an institution of higher education or university system may contract with one another to perform any governmental functions and services. TEX. GOV’T CODE §791.035.












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2. Self-Insurance Fund

a. An open-enrollment charter school is considered to be a local government for purposes of Chapter 2259, Texas Government Code, except that a charter school may not issue public securities as authorized in Section 2259.031(b)(1). TEX. EDUC. CODE § 12.1058 (a); 84th Leg., R. S. HB1170

b. A governmental unit may establish a self insurance fund to protect the govern-mental unit and its officers, employees, and agents from any insurable risk or hazard. TEX. GOV’T CODE § 2259.031 (a).

c. An open-enrollment charter school that establishes such a self-insurance fund may

i. use any money available to the charter school for the fund, TEX. GOV’T CODE § 2259.031 (b)(2); and

ii. purchase reinsurance for a risk covered through the fund; TEX. GOV’T CODE § 2259.031 (c)

d. d. Any law, including a regulation, requiring insurance may be satisfied by coverage provided through the fund. TEX. GOV’T CODE § 2259.031 (d).

e. e. Any law, including a regulation, requiring a certificate of insurance or an insurance agency’s signature may be satisfied by a certificate of coverage issued on behalf of the charter school demonstrating that coverage is provided through the fund. TEX. GOV’T CODE § 2259.031 (e).

3. Uniform Group Benefits Program.

a. An open-enrollment charter school is considered to be a political subdivision for the purposes of Chapter 172, Texas Local Government Code. TEX. EDUC. CODE § 12.1058 (a); 84th Leg., R. S. HB1170

b. A political subdivision or a group of political subdivisions pursuant to an interlocal contract under Chapter 791, Government Code directly or through a risk pool may provide health and accident coverage for officials, employees, and retirees or for any class of officials, employees or retirees, and employees of affiliated service contractors. The types of coverage that may be provided include group health and accident, group dental, accidental death and dismemberment, and hospital, sur-gical, and medical expense. Dependents also may be covered. TEX. LOC. GOV’T CODE § 172.004

c. An open-enrollment charter school that participates in such a program may pay all or part of the contributions for coverage from local funds, including federal grant or contract pass-through funds, that are not dedicated by law to some other purpose. TEX. LOC. GOV’T CODE § 172.013







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d. An open-enrollment charter school may also pay all or part of the contributions for coverage for officers, employees, retirees, and dependents, but not pay any part of the contributions for coverage for employees of affiliated service contractors or their dependents. TEX. LOC. GOV’T CODE § 172.013.

4. Workers Compensation Coverage

a. An open-enrollment charter school may elect to extend workers’ compensation benefits to employees of the school through any method available to a political sub-division under Chapter 504, Labor Code. An open-enrollment charter school that elects to extend workers’ compensation benefits as permitted under this subsec-tion is considered to be a political subdivision for all purposes under Chapter 504, Labor Code. An open-enrollment charter school that self-insures either individually or collectively under Chapter 504, Labor Code, is considered to be an insurance carrier for purposes of Subtitle A, Title 5, Labor Code. TEX. EDUC. CODE § 12.0158 (a); 84th Leg., R. S. HB1170

b. A political subdivision must extend workers’ compensation benefits to its em-ployees by (1) becoming a self-insurer; providing insurance under a workers’ com-pensations insurance policy; or (3) entering into an interlocal agreement with other political subdivisions providing for self-insurance. TEX. LABOR CODE §504.015



http://www.statutes.legis.state.tx.us/Docs/LA/htm/LA.504.htm


100.200. Purchasing & Contracting RAPOPORT ACADEMY PUBLIC SCHOOL
















Students

Open Government

Human Resources











100.200. PURCHASING & CONTRACTING NOTE 1: The board of directors should adopt Section 1 of this policy if the school has adopted Subchapter B, Chapter 271 of the Texas Local Government for public works contracts. If the school has adopted (as part of its initial charter application or through a subsequent charter amendment) to be governed by Subchapter B, Chapter 44 of the Texas Education Code for public works contracts, the board of directors should adopt Section 2 in lieu of Section 1. NOTE 2: Please review TCSA Charter Board Policy 100.080 (Federal Fiscal Compliance) for policies governing purchasing with federal grant funds.


Section 1. Public Works Contracts Pursuant to Chapter 271, Subchapter B, Local Gov’t Code

SECTION 1.1. Applicable Law. In awarding contracts that will involve the construction, repair, or renovation of a structure, road, highway, or other improvement or addition to real property, the RAPOPORT ACADEMY PUBLIC SCHOOL, will comply with Chapter 271, Subchapter B, of the Local Government Code. The Superintendent shall ensure that all applicable advertisement notice bid requirements are satisfied.

SECTION 1.2. Bidding Threshold. The Superintendent shall engage the applicable law when an expenditure of more than $25,000 in public funds is required.

SECTION 1.3. Contract Award. The Superintendent shall make a recommendation to the Board concerning the award of a public works projects bid pursuant to this policy.

In determining the contract award, the Board may take into account several factors, including:

a. The safety record of the bidder;

b. Whether the bidder, its employees, and agents have relevant and mandatory licen-

sors/registrations;

c. Complaints and/or accident reports to relevant local and/or state agencies;

d. The purchase price;

e. The reputation of the bidder and of the bidder’s goods or services;

f. The quality of the bidder’s good or services;

g. The extent to which the goods or services meet RAPOPORT ACADEMY PUBLIC SCHOOL needs;

h. The bidder’s past relationship with RAPOPORT ACADEMY PUBLIC SCHOOL;

i. The impact on the ability of RAPOPORT ACADEMY PUBLIC SCHOOL to comply with the laws and rules relating to historically underutilized businesses;



j. The total long-term cost to RAPOPORT ACADEMY PUBLIC SCHOOL to acquire

the bidder’s goods or services; and

k. Any other relevant factor specifically listed in the request for bids or proposals.

Section 1.4. Definition of Safety Record. The safety record includes a bidder’s Occupational Safety and Health Administration inspection log for the last three years, a loss analysis from the bidder’s insurance career, any known safety violations on previous projects, and a loss history covering all lines of insurance coverage by the bidder.

SECTION 2. Public Works Contracts – Chapter 44 of the Education Code

SECTION 2.1. Applicable Law. In awarding contracts that will involve the construction, repair, or renovation of a structure, road, highway, or other improvement or addition to real Property (“construction services”), the RAPOPORT ACADEMY PUBLIC SCHOOL will comply with Chapter 44, Subchapter B, of the Education Code. Pursuant to Chapter 44, Subchapter B, of the Education Code, RAPOPORT ACADEMY PUBLIC SCHOOL shall select a method pursuant to Chapter 2269 of the Texas Government Code for construction services.

SECTION 2.2. Bidding Threshold. This policy applies when an expenditure of more than $25,000 in public funds is required for construction services.

SECTION 2.3. Delegation of Authority. The Board of Directors may/may not delegate any or all of its authority under this Policy to the Superintendent. The act of delegating authority itself shall be accomplished through an act of the Board of Directors at a lawfully held meeting in compliance with the Texas Open Meetings Act. Upon delegation of such authority, the Superintendent shall have and may exercise the power and authority of the Board of Directors pursuant to this Policy.

If the Board of Directors has delegated any of its authority under this Policy, the Superintendent shall ensure that any request for bids (RFB), proposals (RFP), or qualifications (RFQ) issued by RAPOPORT ACADEMY PUBLIC SCHOOL, shall provide notice of the delegation, the limits of such delegation, and include the name and title of each person to whom authority has been delegated. If the Executive Director fails to include such notice, any action taken under this Policy by the Executive Director must be ratified by the Board through formal action at a meeting held in compliance with the Texas Open Meetings Act.

SECTION 2.4. Selection of Construction Methodology. For each expenditure of more than $25,000 for construction services, the Board of Directors shall determine the procurement method that provides the best value to RAPOPORT ACADEMY PUBLIC SCHOOL in accordance with applicable law. The procurement methods available to RAPOPORT ACADEMY PUBLIC SCHOOL are as follows:

a. Competitive Bidding

b. Competitive Sealed Proposals

c. Construction Manager-Agent



d. Construction Manager-at-Risk

e. Design-Build Contract

f. Job Order Contracts

SECTION 2.5. Use of Architect or Engineer; Use of Other Professional Services. The selection or designation of any architect or engineer, or the procurement of construction materials, engineering services, testing and inspection services, or verification testing services shall be made on the basis of demonstrated competence and qualifications in accordance with Section 3 of this Policy.

SECTION 2.6. Sealed Bids. The Superintendent shall ensure that all bids, proposals or qualifications are sealed.

SECTION 2.7. Contract Award. In determining the award, regardless of the procurement method selected, the Board must consider any existing laws, including any criteria, related to historically underutilized businesses and/or existing laws or criteria related to the use of women, minority, small or disadvantaged businesses. The Board may take into account several factors, including:

a. Price

b. Experience and Reputation

c. Quality of Goods and Services

d. Impact on the ability of RAPOPORT ACADEMY PUBLIC SCHOOL to comply with rules

relating to historically underutilized businesses

e. Safety Record

f. Proposed Personnel

g. Financial capability appropriate to the size and scope of the project

h. any other relevant factor provided it is specifically listed in the RFB, RFP, or RFQ

The Board shall make its selection based on the applicable criteria for the particular procurement method and document the basis for its selection. The Superintendent shall ensure that the evaluations are made public not later than the seventh (7th) day after the date any contract is awarded.

SECTION 2.8. Advertisement/Notice of Procurement Request and Notice. The Superintendent shall ensure compliance with any advertisement or notice required by Chapter 2269, Texas Government Code upon the issuance of a request for proposal, bid or qualifications, and that any such notice contains the following:



a. The time by when and the place where the bids, proposals, or responses will be received and opened; and

b. The criteria for the particular procurement method that will be used to evaluate the

bids, proposals or responses.

SECTION 3. Professional Services

Section 3.1. Applicable Law. The Superintendent shall ensure that professional service providers are selected in accordance with the applicable law.

SECTION 4. Workers Compensation

Section 4.1. Applicable Law. The Superintendent shall ensure that any workers compensation benefits for employees are selected and provided in accordance with applicable law.

SECTION 5. Cooperative Purchasing Programs and Interlocal Contracts

Section 5.1. The Superintendent shall ensure full compliance with all applicable law and rules if RAPOPORT ACADEMY PUBLIC SCHOOL has amended its charter to enter into a cooperative purchasing program. Section 5.2. The Superintendent shall ensure full compliance with all applicable law and rules if RAPOPORT ACADEMY PUBLIC SCHOOL has determined to enter an interlocal contract with another open-enrollment charter school or any other entity permitted by law to enter into interlocal contracts.

SECTION 6. Other Purchasing and Contracting

Section 6.1 Appropriate Value. In awarding contracts for goods and services that are not governed by Sections 1, 2, 3 or 4 of this policy, the Superintendent shall ensure that the RAPOPORT ACADEMY PUBLIC SCHOOL receives appropriate value for the expenditure.

Section 6.2. Competitive Process Threshold. In an expenditure of school funds for a contract awarded under Section 5.1 will exceed $25,000, then the Superintendent shall engage a competitive process before selecting a person or entity to which to make the award.

Section 6.3. Purchase Order Required. The Superintendent shall establish procedures identifying a purchase order process as the method for purchasing or expending funds. Approval for a purchase or expenditure of funds must be obtained by the Chief Financial Officer, Chief Academic Officer, or Deans (Academic and Student) for each campus before the purchase or expenditure of funds is made.

Section 7. Board Approval Required For any contract or purchase made pursuant to this policy, the board of directors shall approve all contracts valued above $25,000. The Superintendent does not have authority to bind the board of directors or the RAPOPORT ACADEMY PUBLIC SCHOOL to any contract for goods and services valued above $25,000. Any contract or purchase valued above this amount that is not approved by the RAPOPORT ACADEMY PUBLIC SCHOOL board of directors is void and ineffective.

CHARTER BOARD POLICY 100.200. CHARTER BOARD POLICY


Section 8. State Travel Management Program Board members, officers, and employees, engaged in travel on official business of RAPOPORT ACADEMY PUBLIC SCHOOL, shall utilize the Texas Comptroller’s State Travel Management Program where it provides a better value for RAPOPORT ACADEMY PUBLIC SCHOOL.

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TCSA Model Board Policy Series - Rapoport Academy...Lindsey Gordon, Texas Charter Schools...

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