115 STAT. 1802 PUBLIC LAW 107-110-JAN. 8, 2002 "(4) Facilitating the issuance of bonds by charter schools, or by other public entities for the benefit of charter schools, by providing technical, administrative, and other appropriate assistance (including the recruitment of bond counsel, underwriters, and potential investors and the consolidation of multiple charter school projects within a single bond issue), "(b) INVESTMENT.— Funds received under this subpart and deposited in the reserve account established under subsection (a) shall be invested in obligations issued or guaranteed by the United States or a State, or in other similarly low-risk securities. "(c) REINVESTMENT OF EARNINGS.— Any earnings on funds received under this subpart shall be deposited in the reserve account established under subsection (a) and used in accordance with such subsection. 20 USC 7223e. "SEC. 5226. LIMITATION ON ADMINISTRATIVE COSTS. "An eligible entity may use not more than 0.25 percent of the funds received under this subpart for the administrative costs of carrying out its responsibilities under this subpart. 20 USC 7223f. "SEC. 5227. 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 annual report submitted under paragraph (1) 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) 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 5224; 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.
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