FOUNDATION SCHOOL PROGRAM SYSTEM REMINDER The deadline for submitting the First Six-Week District Summary Attendance (Superintendent's) Report for completed tracks via the FSP System is today, Friday, October 25, 2002. The deadline was extended for this first six-week reporting period only. Subsequent reports are still due 10 days after the end of the six-week reporting period. Please read instructions at www.tea.state.tx.us/ school.finance/charter/chrt03.html before accessing the FSP system and have them available when contacting the Division of State Funding, 512-463-9238, with questions.

GOVERNANCE REPORTING FORM DEADLINE The Charter School Annual Governance Reporting Form must be completed and turned into the Division of Charter Schools no later than Friday, November 1, 2002. See attached letter. Go to www.tea.state.tx.us/charter/forms/csforms.htm to download the form. Contact Ertha Patrick at 512-463-9575 with questions.

DEPOSITORY CONTRACT Charter holders must deliver to TEA a copy of the depository contract(s) between the charter holder and any bank into which state funds, received on behalf of the charter school, are deposited. See attached depository contract. Call Mary Gonzalez at 512-463-9095 with questions.

TEACHER RETIREMENT SYSTEM (TRS) & TRS -ACTIVE-CARE A document concerning the Teacher Retirement System and TRS-ActiveCare Health Insurance is attached.

September 30, 2002

TO THE CHARTER SCHOOL ADMINISTRATOR ADDRESSED

Subject: Charter School Annual Governance Reporting Form, Articles of Incorporation and By-Laws

Enclosed is a copy of the Charter School Annual Governance Reporting Form that must be completed and turned in to the Division of Charter Schools no later than November 1, 2002. The form is required as provided by Texas Education Code (TEC) § 12.119(b) and Texas Administrative Code (TAC) § 100.101 and has been revised to reflect recent amendments to statute. This form can also be accessed from the Charter Schools Division web pages, http://www.tea.state.tx.us./charter/.

As described in TAC § 100.1013, a copy of your schools' articles of incorporation and bylaws, or comparable documents must be submitted, along with the Governance Reporting Form. If a copy of articles of incorporation and bylaws are already on file with the Charter Schools Division, a copy of any amendments or changes must be submitted. Contact Ertha Patrick, 512-463-9575, with questions.

Sincerely,

Susan Barnes, Assistant Commissioner
Charter Schools Division

Enclosure

DEPOSITORY CONTRACT FOR FUNDS
OF OPEN-ENROLLMENT CHARTER SCHOOLS UNDER TEXAS EDUCATION CODE, CHAPTER12, SUBCHAPTER D,

STATE OF TEXAS COUNTY OF_____________________________

County-District Number________________________________________

Bank Routing Number _________________________________________

ARTICLE I. (insert name of depository bank) ___________________, hereinafter referred to as the "Depository," located at (insert address, city, zip code, name of county) __________________________County, State of Texas, being a bank as that term is defined in section 45.201 of the Texas Education Code, hereinafter referred to as "the Code", was duly selected by the governing body of the ___________________________ Charter School located in __________________ County, Texas, hereinafter referred to as the "School," to serve as the Depository of the school funds of the School received under Section 12.106, Texas Education Code, except those school funds permitted by law to be deposited or invested in accordance with Sections 2256.009-2256.016, Texas Government Code at the sole discretion of the governing board of the School. The action of the governing board of the school was duly taken and the Depository is to serve pursuant to this contract until its successor is selected and has qualified unless sooner terminated by Depository's failure to adhere to all requirements of the Code and of this contract.

ARTICLE II. This contract is executed by the School and the Depository in three copies, all of which shall be deemed originals.

TO BE COMPLETED BY SCHOOL AND VERIFIED BY BANK
(For all funds received from the Texas Education Agency)

Type of Account: __________ Checking ___________ Savings (Check One)

Transit Routing Number _________________________________________ (Must be 9 digits)

Account Number _______________________________________________ (Up to 13 digits)

AGREED AND ACCEPTED on behalf of the School this the ___day of___________________, 2002.

Signature of President of School Board _____________________________________________

Signature of Secretary of School Board _____________________________________________

A T T E S T:
AGREED AND ACCEPTED on behalf of Depository this the ___day of___________________ 2002.

Typed Name of Depository________________________________

Signature of Authorized Officer_____________________________

Title of Authorized Officer_________________________________

Acknowledgment

STATE OF TEXAS
COUNTY OF _____________________

Before me, the undersigned authority in and for said county and state, on this day personally appeared
(insert name of bank officer)________________________________ known to me to be the person whose name is subscribed to the foregoing instrument on behalf of the Depository named therein, and known to me to be an officer authorized to execute the foregoing instrument on behalf of said depository, and acknowledged to me that (s)he executed the same as the act and deed of said Depository, for the purpose therein expressed and in the capacity therein stated.

Given under my hand and seal of office this the _____ day of _____________________________, 2002 .

ACCEPTED AND FILED AT TEXAS EDUCATION AGENCY, AUSTIN, TEXAS

____________________ (Date), ___________________________ (Signature)
The School Financial Audits Division.

III. H. Teacher Retirement System (TRS) and
TRS-ActiveCare (Health Insurance)

Contacts:

TRS
Bob Hoffman (TRS)
phone (512) 397-6400 or 1 (800) 433-5734 X6417
bob.hoffman@trs.state.tx.us
http://www.trs.state.tx.us/

Members call 1 (800) 223-8778
TRS InfoLine 1 (888) 877-0123
Reporting Officials call 1 (800) 433-5734
Benefit Accounting call (512) 370-0599

TRS-ActiveCare (Health Insurance)
phone (512) 397-6446
Maggie Schmitt (TRS)
maggie.Schmitt@trs.state.tx.us

TRS
A charter school employee who qualifies for membership in the TRS must be covered under the system to the same extent a qualified district employee is covered. Qualified employees are those who are employed by the charter holder who work half time or more. If a bus driver is employed by the charter holder, he or she is qualified for membership by driving one route a day.

For each charter school employee covered under the system, the school is responsible for making any contribution that otherwise would be the legal responsibility of a district, and the state is responsible for making contributions to the same extent it would be legally responsible if the employee were a district employee. See TEC § 12.1057.

The TRS website, http://www.trs.state.tx.us/, offers access to many TRS resources. Included among them is the charter school monthly report checklist. This document is available directly at http://www.trs.state.tx.us/Reporting_Officials/charterschoolchklist.pdf.

TRS-ActiveCare (Health Insurance)
House Bill 3343, 77^th Texas Legislature, 2001, established a statewide health care benefits program for employees of school districts, charter schools, regional education service centers, and other educational districts where employees are members of TRS. It is effective September 1, 2002, and will be administered by TRS. Initially, the program will cover smaller districts, but it may broaden to include larger districts over a period of time.

The bill provides that a charter school is eligible to participate in the program if the school agrees to the open records requirements regarding the program and to an audit of its accounts relating to the program. A charter school must request participation in TRS-ActiveCare within 90 days of first receiving state funding. If an established charter school wishes to be reconsidered, it should send a written request to the following address:

Teachers Retirement System-ActiveCare
Attn: Ronnie Jung
1000 Red River
Austin, Texas 78701

Requests will be considered on a case-by-case basis.
Information about the program is available from the TRS website, http://www.trs.state.tx.us/, or directly at
http://www.trs.state.tx.us/TRS-ActiveCare/index.htm.