NON-COMPLIANCE REPORTING

FAILURE TO COMPLY WITH BOARD TRAINING REQUIREMENT Pursuant to Section 100.1108(3) of Title 19 of the Texas Administrative Code, a charter holder (and/or charter school) is required to disclose in its financial and compliance report any non-compliance with the training requirements mandated by law and rule by any member of the governing body of the charter holder or a charter school and any officer of a charter school. This non-compliance must be disclosed on the schedule of findings included in the financial and compliance report. It is the charter holder’s and/or charter school’s responsibility to disclose any non-compliance to the independent auditor for inclusion on the schedule of findings filed with the financial and compliance report. For additional information regarding the training requirements, refer to 19 TAC 100.1102 through 100.1105. Should you have any questions, please contact Steve Chiang at (512) 463-9095.

RECEIPT OF FINANCIAL & COMPLIANCE CONFIRMATION If you are interested in receiving a written confirmation that the School Financial Audits Division received the financial and compliance report and the state compensatory education agreed-upon procedures report (if required) for the fiscal year ended August 31, 2003 (together, the reports), please include your e-mail address on your transmittal letter. Otherwise, enclose a self-addressed, stamped envelope with the reports. Other than an e-mail or a reply via a self-addressed, stamped envelope, auditors will not provide any other written confirmation regarding receipt of the reports. Should you have any questions, please contact Steve Chiang at (512) 463-9095.

MAXIMUM ALLOWABLE ENROLLMENT Charter schools are permitted to enroll a specified number of students pursuant to the applicable contract for charter and charter application. Auditors from the School Financial Audits Division will propose adjustments to future payments to the charter school from the Foundation School Program if the maximum allowable enrollment is exceeded. If the charter school believes that it needs to increase its maximum allowable enrollment, a charter amendment request must be filed on or before March 1, 2004. If approved, the charter amendment would become effective in the subsequent school year. Should you have any questions, please contact Steve Chiang at (512) 463-9095. For charter amendment requests, please contact Kirsten Moody at (512) 936-2237.