Act 55 of 2024 introduced testing and reporting requirements for charter schools that also affected their independent accountants and auditors. Its provisions did not align with generally accepted auditing standards and a fix was needed before the requirements would meet professional standards.
When Gov. Josh Shapiro signed Act 55 of 2024 (Act 55) on July 11, 2024, the law amended the Public School Code of 1949 and introduced testing and reporting requirements for charter schools. The requirements also directly affected the independent accountants and auditors who serve those schools. Although the legislation was intended to advance accountability, its provisions did not align neatly with generally accepted auditing standards (GAAS). Additional guidance from the Pennsylvania Department of Education was needed before the requirements could be implemented consistently and in accordance with professional standards.
The challenge was practical as well as technical: how could charter school CPAs help their clients meet new statutory obligations while continuing to test and report under existing professional standards? In fall 2024, as charter-school clients raised these questions with our firm, we contacted the PICPA, specifically Peter Calcara, vice president of government relations, and Allison Henry, vice president of professional and technical standards. Peter and Allison immediately recognized the need for members to engage and collaborate with state officials and the Department of Education to resolve the incompatibility of the legislation's wording and professional standards.
A small practitioner subgroup began discussions with state officials and Department of Education representatives in early 2025 and continued into early 2026. Charter school audits for the year ended June 30, 2025, were completed before Department of Education guidance was available. Some firms chose not to perform additional Act 55 reporting because of the uncertainty; others developed their own approaches. The result was confusion for charter schools and their independent accountants and auditors, as well as inconsistent information being provided to the Department of Education.
In March 2026, the Department of Education contacted Peter to discuss draft guidance under development. The practitioner subgroup met with Department of Education representatives and provided comments. After several additional meetings and rounds of review, the Department of Education disseminated its final guidance on June 1, 2026.
The procedures honored the intent of Act 55 while enabling the independent CPAs serving charter schools to test and report in conformity with professional standards, and the partnership between the Department of Education and the PICPA was instrumental in finding common ground. The process also demonstrated the value of open, constructive dialogue among regulators, state society leaders, and practitioners. The participants in this effort anticipate that the procedures may be refined in future years as questions arise and the Department of Education reviews the resulting reports. Even so, most charter schools should be able to implement the new procedures seamlessly.
No individual firm could have achieved this outcome alone. This statewide issue required access to state officials and the Department of Education that only a respected state CPA society could provide. This will not be the last time that well-intentioned legislation intersects with the realities of the professional standards of CPAs. When that happens, collaboration is not a luxury – it is what turns a well-intentioned law into workable practice. A strong state society like the PICPA, respected throughout Pennsylvania government, is an essential partner for all practitioners.
Find out more about the Act 55 resolution as well as other PICPA advocacy wins and issues we are tracking on our Professional Issues Tracker.
Betsy Krisher, CPA, is chairman of Maher Duessel in Pittsburgh. She can be reached at bkrisher@MD-CPAS.com.
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Statements of fact and opinion are the author's responsibility alone and do not imply an opinion on the part of the PICPA's officers or members. The information contained herein does not constitute accounting, legal, or professional advice. For actionable advice, you must engage or consult with a qualified professional.
