114 STAT. 2763A-60 PUBLIC LAW 106-554—APPENDIX A 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 such annual report 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 10324; 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. "SEC. 10328. NO FULL FAITH AND CREDIT FOR GRANTEE OBLIGATIONS. "No financial obligation of an eligible entity entered into pursuant to this subpart (such as an obligation under a guarantee, bond, note, evidence of debt, or loan) shall be an obligation of, or guaranteed in any respect by, the United States. The full faith and credit of the United States is not pledged to the payment of funds which may be required to be paid under any obligation made by an eligible entity pursuant to any provision of this subpart. "SEC. 10329. RECOVERY OF FUNDS. "(a) IN GENERAL. —The Secretary, in accordance with chapter 37 of title 31, United States Code, shall collect— "(1) all of the funds in a reserve account established by an eligible entity under section 10325(a) if the Secretary determines, not earlier than 2 years after the date on which the entity first received funds under this subpart, that the entity has failed to make substantial progress in carrying out the purposes described in section 10325(a); or "(2) all or a portion of the ftinds in a reserve account established by an eligible entity under section 10325(a) if the Secretary determines that the eligible entity has permanently ceased to use all or a portion of the funds in such account to accomplish any purpose described in section 10325(a). "(b) EXERCISE OF AUTHORITY.— The Secretary shall not exercise the authority provided in subsection (a) to collect from any eligible
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