Pursuant to A.R.S. §15-977, Classroom Site Fund (CSF) monies must be used for teacher base salary increases, teacher compensation increases based on performance and maintenance and operation purposes, which are defined as class size reduction, teacher compensation increases, AIMS intervention programs, teacher development, dropout prevention programs and teacher liability insurance premiums.
While the law specifies how schools must use CSF monies, it does not require schools to expend all of the monies they receive in any given year. The law also does not establish timeframes that the school must follow for distributing CSF monies or require the school to give CSF monies to each teacher. If a school does not expend all of the CSF monies received, then it must have enough cash at year end to cover the unspent portion.
Each charter holder is subject to an annual audit, which is conducted by an independent CPA. Compliance with CSF requirements is reviewed annually as part of the audit.