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Legal Compliance Questionnaire changes

Every year, the Charter Board publishes changes and updates to the legal compliance questionnaire. In the hopes to help our Charter schools minimize comments and “No” responses, here is a summary of changes to the current LCQ for FY21.

Don’t miss: The end of the Comprehensive Annual Financial Report acronym

Question #11 – Tuition question changed

“Did the school exclude nonresident students from the school’s student count and state aid calculations and charge tuition, as applicable?”

This question now reads very similarly to the Tuition Question. Auditors will review the ADM15 and ASBATT10 reports to determine whether any students were excluded from the state aid calculation. Reconciling your records for tuition charged students will be necessary for support.

Question #13 is amended to include the online instruction report “ABSATT10”. This is similar to the ADM15 report showing all students who are claimed as of the 40th and 100th day. The ASBATT10 report shows the students total minutes as of the 100th day or at year-end. This report will be used by auditors to confirm with the school’s attendance software that minutes are reported accurately. Schools should attempt to reconcile any differences from their attendance software to the ASBATT10.

Considering most schools dealt with distance learning and more online schools have surfaced, there are two additional questions that were added to the attendance section of the LCQ.

Question #14 – new addition

“Did the school report students that completed all high school requirements with the applicable graduation code and use the appropriate year-end status code for other students?”

Within the ADM15 and ABSATT10 reports, there are exit/withdrawal codes that will indicate how high school seniors have moved to the next level: graduated, still enrolled, other. The codes to determine proper reporting in the attendance system are as follows:

  • G = graduated at year-end
  • C = completed course of study at year-end
  • A = attended – concluded high school education and not expected to re-enroll
  • SA = still enrolled (AIMS)
  • SC = still enrolled (course study requirements)
  • SE = still enrolled (met no requirements)

As auditors, we will verify all students in 12th grade to determine proper coding was used. Additional supporting documents may be requested for a sample to verify proper coding was used.

Question #15 – new addition

“For students participating in distance learning, did the school follow attendance procedures defined in the distance learning plan approved by ADE?”

As required by the state, schools should have procedures in place over the distance learning. Auditors will review the procedures approved and use the attendance software reports and listings to determine whether the School is in compliance.

The LCQ changes and new form can be found online. https://asbcs.az.gov/school-resources/additional-resources/annual-audits

SAIS code definitions can be found at ADE website – http://www.ade.az.gov/schoolfinance/STaR/SAISInfoSeries/SIS32.pdf

Please contact your Henry+Horne tax professional with any questions.

Noemi Barter