Charter School Office

Audit Guide


Audit Guide  PDF Document  (421 KB) (Updated May 2014)

This guide provides assistance to auditors of charter schools authorized by the Board of Regents as well as for any charter school receiving Federal Charter School Program (“CSP”) funds through the NYS Education Department. This guidance is focused on helping auditors understand the differences between charter schools and other non-profit entities, as well as providing specific guidance to the auditor and charter school management about the form and content of reports and testing required by NYSED and NYS law for Regents-authorized charter schools.

This Guide will be effective beginning with the 2013-14 audits of charter schools.  Please take the time to review the contents of the Guide and, most importantly, to share the document with your independent auditor.

The following are the changes that have been made to the Guide:

What’s New:

Education Corporations that oversee more than one school must provide financial information separately for each school. 

When there are consolidated statements, a statement of activities broken down by related parties should be included as supplementary information. 

  • Auditors should verify that per pupil billing did not exceed the maximum approved enrollment provided for within the charter agreement.


  • Note disclosures in the financial statements are required for contributions of space and other services.
  • The Statement of Functional Expenses must conform to the template provided in Appendix D
  • Effective for 2015-16 fiscal audits, OMB Uniform Guidelines will supercede and consolidate OMB Circular’s A-21, A-87, A-89, A-102, A-110, A-122 and A-133 and portions of A-50 pertaining to audit.

NYSED Preference:

  • Statement of Cash Flow:  The direct and the indirect methods of preparing the statement of cash flow are allowable under accounting standards however NYSED prefers the direct method because it is easier for charter schools to read than the indirect statement of cash flows. When possible the direct method of preparing the statement of cash flow should be used.
Last Updated: July 9, 2014