Arizona Administrative Code R7-5-504(A) requires that the Board make available on its website written requirements regarding the audit each charter school is required to submit annually under A.R.S. §§ 15-183(E)(6) and 15-914. The written requirements, which are also referred to as the audit documents, include the Board’s Legal Compliance Questionnaire (“LCQ”) and Uniform System of Financial Records for Charter Schools Compliance Questionnaire (“USFRCSCQ”). In its Operational Performance Framework (“Operational Framework”), the Board has included an appendix specific to the Board’s audit review and follow-up process (“Appendix B”).

To improve transparency and ensure consistency about what is expected from charter holders and what is reviewed by audit firms, as well as to reflect current statutory requirements, Board staff is proposing changes to the LCQ, USFRCSCQ and Operational Framework’s Appendix B that include the following:

1. Adding to the LCQ a question related to the charter holder’s financial chart of accounts (see Proposed Chart of Accounts Question)
2. Revising existing questions in the LCQ and USFRCSCQ, including those pertaining to fingerprinting and Open Meeting Law (see Proposed Revisions to Existing Compliance Questionnaire Questions).
3. Updating Appendix B in light of the changes proposed in the previous two bullets (see Proposed Revisions to Operational Framework’s Appendix B).

Board staff anticipates the Board will implement these changes beginning with the fiscal year 2023 audits.

The window for the first opportunity for public comment will be open

July 11, 2022 – August 1, 2022.

Please submit your feedback in writing to the Board during the public comment window using one of the

following options:

• Written comments may be emailed to audits@asbcs.az.gov.
• Written comments may be mailed to the Arizona State Board for Charter Schools, P.O. Box 18328, Phoenix, AZ 85005.
• Written comments may be delivered to the Board office located at 1616 W. Adams St., Suite 170, Phoenix, AZ 85007.

For all responses, please provide the following information:

• First and last name
• Email address
• Mailing address (optional)
• Organization (optional)

All public comment received by August 1, 2022 will be presented to the Board and members of the public will have an additional opportunity to provide comment to the Board at the meeting during which the Board considers the proposed changes to the compliance questionnaires and the Operational Framework’s Appendix B.