CHAPTER 7. FISCAL MATTERS
IC 20-24-7
Chapter 7. Fiscal Matters
IC 20-24-7-1
Organizer as fiscal agent
Sec. 1. (a) The organizer is the fiscal agent for the charter school.
(b) The organizer has exclusive control of:
(1) funds received by the charter school; and
(2) financial matters of the charter school.
(c) The organizer shall maintain separate accountings of all fundsreceived and disbursed by the charter school.
As added by P.L.1-2005, SEC.8.
IC 20-24-7-2
Charter school student information; distribution of state funds;calculation of share of local funds
Sec. 2. (a) Not later than the date established by the departmentfor determining ADM, and after May 31 each year, the organizershall submit to the department the following information on a formprescribed by the department:
(1) The number of students enrolled in the charter school.
(2) The name and address of each student.
(3) The name of the school corporation in which the student haslegal settlement.
(4) The name of the school corporation, if any, that the studentattended during the immediately preceding school year.
(5) The grade level in which the student will enroll in thecharter school.
The department shall verify the accuracy of the information reported.
(b) This subsection applies after December 31 of the calendar yearin which a charter school begins its initial operation. The departmentshall distribute to the organizer the state tuition support distribution.The department shall make a distribution under this subsection at thesame time and in the same manner as the department makes adistribution of state tuition support under IC 20-43-2 to other schoolcorporations.
As added by P.L.1-2005, SEC.8. Amended by P.L.2-2006, SEC.106;P.L.146-2008, SEC.460.
IC 20-24-7-3
Calculation and distribution of state funds to conversion charterschool; advance from charter school advancement account
Sec. 3. (a) This section applies to a conversion charter school.
(b) Beginning not more than sixty (60) days after the departmentreceives the information reported under section 2(a) of this chapter,the department shall distribute to the organizer:
(1) tuition support and other state funding for any purpose forstudents enrolled in the conversion charter school;
(2) a proportionate share of state and federal funds received:
(A) for students with disabilities; or (B) for staff services for students with disabilities;
enrolled in the conversion charter school; and
(3) a proportionate share of funds received under federal orstate categorical aid programs for students who are eligible forthe federal or state categorical aid and are enrolled in theconversion charter school;
for the second six (6) months of the calendar year in which theconversion charter school is established. The department shall makea distribution under this subsection at the same time and in the samemanner as the department makes a distribution to the governing bodyof the school corporation in which the conversion charter school islocated. A distribution to the governing body of the schoolcorporation in which the conversion charter school is located isreduced by the amount distributed to the conversion charter school.This subsection does not apply to a conversion charter school afterDecember 31 of the calendar year in which the conversion charterschool is established.
(c) This subsection applies during the second six (6) months ofthe calendar year in which a conversion charter school is established.A conversion charter school may apply for an advance from thecharter school advancement account under IC 20-49-7 in the amountdetermined under STEP FOUR of the following formula:
STEP ONE: Determine the result under subsection (d) STEPONE (A).
STEP TWO: Determine the difference between:
(A) the conversion charter school's current ADM; minus
(B) the STEP ONE amount.
STEP THREE: Determine the quotient of:
(A) the STEP TWO amount; divided by
(B) the conversion charter school's current ADM.
STEP FOUR: Determine the product of:
(A) the STEP THREE amount; multiplied by
(B) the quotient of:
(i) the subsection (d) STEP TWO amount; divided by
(ii) two (2).
As added by P.L.1-2005, SEC.8. Amended by P.L.2-2006, SEC.107;P.L.146-2008, SEC.461.
IC 20-24-7-4
Costs of services provided by school corporation; administrativefee for state educational institution serving as sponsor
Sec. 4. (a) Services that a school corporation provides to a charterschool, including transportation, may be provided at not more thanone hundred three percent (103%) of the actual cost of the services.
(b) This subsection applies to a sponsor that is a state educationalinstitution described in IC 20-24-1-7(2). In a calendar year, a stateeducational institution may receive from the organizer of a charterschool sponsored by the state educational institution anadministrative fee equal to not more than three percent (3%) of thetotal amount the organizer receives during the calendar year from
basic tuition support (as defined in IC 20-43-1-8).
As added by P.L.1-2005, SEC.8. Amended by P.L.2-2006, SEC.108;P.L.146-2008, SEC.462.
IC 20-24-7-5
Grants and private and federal funds
Sec. 5. (a) An organizer may apply for and accept for a charterschool:
(1) independent financial grants; and
(2) funds from public or private sources other than thedepartment.
(b) An organizer shall make all applications, enter into allcontracts, and sign all documents necessary for the receipt by acharter school of aid, money, or property from the federalgovernment.
As added by P.L.1-2005, SEC.8.
IC 20-24-7-6
Distribution of share of school corporation's capital project fund
Sec. 6. With the approval of a majority of the members of thegoverning body, a school corporation may distribute a proportionateshare of the school corporation's capital project fund to a charterschool.
As added by P.L.1-2005, SEC.8.
IC 20-24-7-7
Building projects; applicability of bidding and wage determinationlaws
Sec. 7. When a charter school uses public funds for theconstruction, reconstruction, alteration, or renovation of a publicbuilding, bidding and wage determination laws and all other statutesand rules apply.
As added by P.L.1-2005, SEC.8.
IC 20-24-7-8
Sponsor's right to receive financial reports from organizer
Sec. 8. A sponsor may request and receive financial reportsconcerning a charter school from the organizer at any time.
As added by P.L.1-2005, SEC.8.
IC 20-24-7-9
Termination of charter; distribution of funds; repayment ofobligations
Sec. 9. (a) This section applies if:
(1) a sponsor:
(A) revokes a charter before the end of the term for whichthe charter is granted; or
(B) does not renew a charter; or
(2) a charter school otherwise terminates its charter before theend of the term for which the charter is granted. (b) Any state funds that remain to be distributed to the charterschool in the calendar year in which an event described in subsection(a) occurs shall be distributed as follows:
(1) First, to the common school loan fund to repay any existingobligations of the charter school under IC 20-49-7.
(2) Second, to the entities that distributed the funds to thecharter school. A distribution under this subdivision shall be ona pro rata basis.
(c) If the funds described in subsection (b) are insufficient torepay all existing obligations of the charter school under IC 20-49-7,the state shall repay any remaining obligations of the charter schoolunder IC 20-49-7 from the amount appropriated for state tuitionsupport distributions.
As added by P.L.1-2005, SEC.8. Amended by P.L.2-2006, SEC.109;P.L.146-2008, SEC.463.
IC 20-24-7-10
Federal funds for charter schools; department's responsibilities
Sec. 10. (a) The department shall carry out a program to identifyall federal funds for which a charter school is eligible.
(b) The department shall apply for all federal funds that areavailable for charter schools and for which Indiana is eligible.
(c) Upon receiving notice under IC 20-5.5-3-9 from a sponsor thata charter has been approved, the department shall immediatelyinform the organizer of the organizer's potential eligibility for federalcharter school start-up grants.
(d) The department shall distribute federal charter school start-upgrants to eligible organizers in a timely manner according to thedepartment's published guidelines for distributing the grants.
(e) The department shall compile a biannual report and submit thereport to the state office of federal grants and procurement and tocharter school organizers and sponsors. The report submitted underthis subsection must contain the following information for grantsdistributed under this section:
(1) Beginning and end dates for each grant cycle.
(2) The dates on which:
(A) grant applications and requests for renewal werereceived; and
(B) grants were awarded.
(3) The amount of each grant awarded.
As added by P.L.169-2005, SEC.14.
IC 20-24-7-11
Matching funds for federal grants to charter schools
Sec. 11. (a) If the United States Department of Educationapproves a new competition for states to receive matching funds forcharter school facilities, the department shall pursue this federalfunding.
(b) The department shall use the common school fund interestbalance to provide state matching funds for the federal funding
described in subsection (a) for the benefit of charter schools.
(c) To increase the state's opportunity to receive matching fundsfrom the United States Department of Education, the departmentshall develop a facilities incentive grants program before January 1,2010.
(d) The department shall use the priority criteria set forth in 21U.S.C. 7221d(b) and 34 CFR 226.12 through 34 CFR 226.14 todevelop the facilities incentive grants program.
As added by P.L.169-2005, SEC.15 and P.L.246-2005, SEC.129.Amended by P.L.182-2009(ss), SEC.314.
IC 20-24-7-12
Repealed
(Repealed by P.L.146-2008, SEC.807.)
IC 20-24-7-13
Virtual charter schools
Sec. 13. (a) As used in this section, "virtual charter school" meansany charter school, including a conversion charter school, thatprovides for the delivery of more than fifty percent (50%) ofinstruction to students through:
(1) virtual distance learning;
(2) online technologies; or
(3) computer based instruction.
(b) The department shall establish a pilot program to providefunding for a statewide total of up to two hundred (200) students whoattend virtual charter schools in the school year ending in 2010 andfive hundred (500) students who attend virtual charter schools in theschool year ending in 2011. The department shall choose an entity orentities to operate the virtual charter school. The pilot program mustfocus on children who have medical disabilities or circumstances thatprevent them from attending school or for whom a virtual charterschool is a better alternative than a traditional school. At leastseventy-five percent (75%) of the students enrolled in virtual charterschools under this section must have been included in the ADMcount for the previous school year.
(c) A virtual charter school is entitled to receive funding from thestate in an amount equal to the product of:
(1) the number of students included in the virtual charterschool's ADM who are participating in the pilot program;multiplied by
(2) eighty percent (80%) of the statewide average basic tuitionsupport.
(d) The department shall adopt rules under IC 4-22-2 to governthe operation of virtual charter schools.
(e) Beginning in 2009, the department shall before December 1 ofeach year submit an annual report to the budget committeeconcerning the program under this section.
As added by P.L.182-2009(ss), SEC.315. As amended by P.L.1-2010,SEC.78.