Annual Audit
Full definition — An annual audit is an independent review of a charter school's financial records conducted by a licensed certified public accountant (CPA). In North Carolina, charter schools must submit audited financial statements to the State Board of Education and the Local Government Commission by October 31 each year. The audit examines whether financial statements are fairly presented, whether funds were used appropriately, and whether internal controls are adequate. Audit findings or material weaknesses must be addressed by the board.
Why It Matters
The annual audit is a critical accountability mechanism and a key document reviewed during charter renewal. Repeated audit findings or unresolved issues signal governance problems that can jeopardize the school's charter.
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