Charter Schools providing financial assistance to non-governmental entities are required to notify those entities annually in writing the following information:
1) The Entity Annual Report (E-1) filing requirement established by IC 5-11-1-4 and the audit requirement established by IC 5-11-1-9;
2) The source(s) of the funding provided;
a) Local and/or state funds (in the case of subsidies, contributions, or general aid),
b) Federal grants passed through including the formal name of the program and CFDA number, or
c) Fee for service arrangements,
3) The State Board of Accounts may request documentation to support the categorization of the financial assistance,
4) The E-1 is not to be confused with the Secretary of State’s Business Entity report, and
5) The entity may obtain additional information from the State Board of Accounts at firstname.lastname@example.org.
‘Entity” is defined in IC 5-11-1-16 as “any provider of goods, services, or other benefits that is: (1) maintained in whole or in part at public expense; or (2) supported in whole or in part by appropriations or public funds or by taxation.” This includes for-profit and not-for-profit corporations, unincorporated associations, organizations, individuals, etc. Examples of non-governmental entities are volunteer fire departments, a local YMCA, youth leagues, senior citizen centers, 4-H clubs, daycare centers, health service organizations, emergency medical service organizations, community centers, historical societies, etc.
Financial assistance to non-governmental entities is defined as payments received in the form of grants (whether from local, state, or federal sources), subsidies, contributions as permitted by statute, aid, or other agreements. For more information on what constitutes financial assistance, please refer to the State Board of Accounts’ Uniform Compliance Guidelines for Examinations of Entities Receiving Financial Assistance from Governmental Sources found on the State Board of Accounts’ website at www.in.gov/sboa under Private Examiner Audits/Non-Governmental Entities Receiving Governmental Assistance/Uniform Compliance Guidelines.
Each non-governmental entity receiving financial assistance from governmental units is required to submit a Gateway financial report, the E-1, in accordance with IC 5-11-1-4(a). Information requested includes the source and use of financial assistance provided by governmental units. The entity is subject to a State Board of Accounts audit in accordance with IC 5-11-1-9 if certain funding thresholds are met.
IC 20-24-2 provides that a charter school may be established to provide innovative and autonomous programs that: (1) serve the different learning styles and needs of public school students. (2) Offer public school students appropriate and innovative choices. (3) Provide varied opportunities for professional educators. (4) Allow public schools freedom and flexibility in exchange for exceptional levels of accountability. (5) Provide parents, students, community members, and local entities with an expanded opportunity for involvement in the public school system.
Charter Schools are required to be examined by IC 5-11-1-9. Starting in 2013, they were required to be examined annually to meet federal and state grant guidelines. IC 5-11-1-7(b) provides that the State Examiner has the ability to allow Charter Schools to engage private examiners to meet the examination requirements. The Guidelines for the Audits of Charter Schools Performed by Private Examiners was created by the SBOA and details the oversight responsibilities and procedures that are required for the Charter School examinations.
Effective July 1, 2017, IC 5-11-5-1.5 (House Bill 1031) went into effect that requires entities audited by the SBOA to submit a Corrective Action Plan for any noncompliance issues that have been repeated from prior reports.
We have created the following guidelines and FAQs in regards to this: 1031 Guidelines
If you need to submit a CAP, please click here.
CAP Template - This is a template of the CAP for your reference, but please remember, you have to submit it online via the link above. For any modifications that are requested by the SBOA, we will contact the submitter via email.
Please submit any questions you have related to this process to CAP@sboa.in.gov.