Ariz. Admin. Code § R7-5-501 - General Supervision

A. A charter holder shall:

1. Comply with the provisions of its charter, contractual agreements with the Board, federal and state laws, and this Chapter; and

2. Meet the minimum performance expectations specified in Article 4.

B. The Board may supervise a charter holder's compliance with subsection (A) using any of the following means:

1. Oral or written communication with:

a. The charter representative or authorized charter school personnel; and

b. Representatives of federal, state, and local agencies having jurisdiction over operation of the charter school or having authority to investigate or adjudicate allegations of misconduct by any member of the charter school's staff;

2. Collection and review of reports, audits, data, records, documents, files, and communication from any source relating to any activity or program conducted by or for the charter school;

3. A site visit as described in R7-5-502;

4. Annual academic performance review as described in R7-5-503;

5. Annual audit and financial performance review as described in R7-5-504 and, if necessary, the financial intervention submissions as described in R7-5-509 and R7-5-511;

6. Operational performance review as described in R7-5-505;

7. Five-year-interval review of academic, financial, and operational performance, as described in R7-5-506; and

8. Complaints as described in R7-5-507.

C. The charter holder shall maintain all records reasonably necessary to establish compliance with the requirements of its charter, contractual agreements with the Board, federal and state laws, and this chapter, subject to the record disposal requirements set forth in the applicable retention schedules established by the Arizona State Library, archives and public records.

C.D. A charter holder must report the following to the Board within 10 days of receipt or occurrence:

1. Any notice from a lender or landlord regarding default;

2. Filing a petition for bankruptcy;

3. Any notice from the Internal Revenue Service, Arizona State Retirement System, Arizona Department of Revenue, or Arizona Department of Economic Security regarding a tax lien, levy or garnishment;

4. Correspondence from an insurance provider related to cancellation of health or liability insurance due to nonpayment; or

5. Notice of termination of line of credit initiated by financial institution.

6. Withdrawals from debt service reserve funds.

D.E. By September 1 of each year, each charter holder must notify the Board, in writing, of whether they have an agreement or contract with an Education Service Provider for the current school year. If the charter holder has an agreement or contract with an Education Service Provider, then the charter holder must provide:

1. The name of the Education Service Provider; and

2. A written statement describing the services provided to the charter holder's charter school or schools by the Education Service Provider.

E.F. Each charter school must conspicuously and prominently post a link on its website to the charter holder's page on the Board's online system. For new schools, the link must be conspicuously and prominently posted by September 1 of the charter school's first school year of operation.

F.G. If the charter holder fails to submit or fails to timely submit the information required in subsection (D) or subsection (E) or fails to post the link required in subsection (F) on the charter school's website, the failure shall be noted in the charter holder's operational performance dashboard.

G.H. If the specified deadline has not passed, Board staff may grant a charter holder an extension to submit a CAP or other response required under subsection (D), subsection (E), subsection (F), R7-5-502(G), R7-5-505(D), R7-5-505(E), or R7-5-506(B)(2). In determining whether to grant an extension, Board staff shall consider the following, as applicable:

1. Whether the charter school at issue was in session when the Board provided notice to the charter holder;

2. Whether the charter school at issue was in session during the period provided in the notice for the charter holder to respond to the Board; and

3. Whether additional time is required by the charter holder because of the number or complexity of matters to be addressed.

H.I. If the Department notifies the Board that a charter holder has failed to timely submit, to the Department, the adopted budget, annual financial report, classroom site project narrative results summary, school-level reporting form, food service annual financial report or results-based funding expenditure report or their successor reports, then Board staff shall note such failure on the charter holder's operational performance dashboard. The charter holder may be subject to charter oversight as specified in Article 6.

I.J. Within 30 calendar days of the final audit being issued by the audit firm, each charter school governing body shall meet and publicly accept, by roll call vote, the charter holder's audit conducted under R7-5-504, including the compliance questionnaire. Should the written audit requirements released under R7-5-504(A) establish different submission deadlines for certain audit components (e.g., single audit reports) and should the audit firm not issue all components of the final audit at one time, the charter school governing body shall, within 30 calendar days of each component being issued, meet and publicly accept, by roll call vote, the aforementioned issued audit component.

Notes

Ariz. Admin. Code § R7-5-501

New Section made by final rulemaking at 12 A.A.R. 577, effective February 7, 2006 (Supp. 06-1). Renumbered from R7-5-301 by final rulemaking at 23 A.A.R. 693, effective 5/6/2017. Amended by final exempt rulemaking at 25 A.A.R. 1926, effective 7/8/2019. Amended by final exempt rulemaking at 26 A.A.R. 3245, effective 11/20/2020. Amended by final exempt rulemaking at 27 A.A.R. 1423, effective 9/30/2021. Amended by final exempt rulemaking at 31 A.A.R. 793, effective 1/7/2025.