 CHAPTER 70--STRENGTHENING AND IMPROVEMENT OF ELEMENTARY AND SECONDARY 
                                 SCHOOLS
 
             SUBCHAPTER X--PROGRAMS OF NATIONAL SIGNIFICANCE
 
                     Part C--Public Charter Schools
 
   subpart 2--credit enhancement initiatives to assist charter school 
           facility acquisition, construction, and renovation
 
Sec. 8071f. Audits and reports


(a) Financial record maintenance and audit

    The financial records of each eligible entity receiving a grant 
under this subpart shall be maintained in accordance with generally 
accepted accounting principles and shall be subject to an annual audit 
by an independent public accountant.

(b) Reports

                     (1) Grantee annual reports

        Each eligible entity receiving a grant under this subpart 
    annually shall submit to the Secretary a report of its operations 
    and activities under this subpart.

                            (2) Contents

        Each such annual report shall include--
            (A) a copy of the most recent financial statements, and any 
        accompanying opinion on such statements, prepared by the 
        independent public accountant reviewing the financial records of 
        the eligible entity;
            (B) a copy of any report made on an audit of the financial 
        records of the eligible entity that was conducted under 
        subsection (a) of this section during the reporting period;
            (C) an evaluation by the eligible entity of the 
        effectiveness of its use of the Federal funds provided under 
        this subpart in leveraging private funds;
            (D) a listing and description of the charter schools served 
        during the reporting period;
            (E) a description of the activities carried out by the 
        eligible entity to assist charter schools in meeting the 
        objectives set forth in section 8071c of this title; and
            (F) a description of the characteristics of lenders and 
        other financial institutions participating in the activities 
        undertaken by the eligible entity under this subpart during the 
        reporting period.

                       (3) Secretarial report

        The Secretary shall review the reports submitted under paragraph 
    (1) and shall provide a comprehensive annual report to Congress on 
    the activities conducted under this subpart.

(Pub. L. 89-10, title X, Sec. 10327, as added Pub. L. 106-554, 
Sec. 1(a)(1) [title III, Sec. 322(a)(2)], Dec. 21, 2000, 114 Stat. 2763, 
2763A-59.)
