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Legal Status and Financial Adequacy

September 16, 2019Posted on:

The legal status of the school is clearly defined and the school is approved for its operations by the tribal governing body within whose jurisdiction it is located. The school is adequately financed. Levels of income and expenditure are in reasonable balance. Overall financial resources are sufficient to assure the continuity and stability of services. Debt service or lines of credit are managed in such ways as to assure school governance/policy remains under the control of school authority.

1.1     All documents that define and describe the legal status of the school are on-site and readily available. (i.e., articles of incorporation, charter, by-laws, proprietary registration, partnership agreement, contracts, etc.)

1.2     There is a charter, tribal resolution, contract, license, or permit issued by the tribal governing body that indicates the schools governing body has the authority to operate within that jurisdiction.

1.3     There is identified access to legal counsel qualified to advise the school in its legal status, rights, and responsibilities in the jurisdiction and in regard to other public or private contractual agreements.

1.4     Documents that define and describe pending or current legal proceedings are available for examination. (Public documents only; attorney/client correspondence is privileged.)

1.5     The school conducts no regular business activity that is outside the corporate or civil sanctions established by its legal status and the school has a governing or advisory body that provides advice and assistance to the school.

1.6     The Educational Leader (i.e. Superintendent, Principal, etc.) is given the authority to make administrative decisions without undue interference from parents, community, staff or the Board.

1.7     The accounts of the school are maintained in accordance with accepted accounting procedures and are audited annually. The report of the annual audit is on-site and available to evaluators. Any concerns regarding un-allowed costs have documented abatement plans to resolve the issue. Audits are submitted annually to the Tribal governing body.

1.8     The income from all regular sources appears sufficient to support all regular expenditures.

1.9     Financial institutions that have loaned money to the school or have credit extended to the school derive no control of school governance/policy from the loan or the credit agreement

1.10   Evaluators have access to a balance sheet that describes the overall financial operations and financial condition of the school.