Bill Text: AZ SB1487 | 2024 | Fifty-sixth Legislature 2nd Regular | Introduced
Bill Title: Qualified schools; audits; reporting requirements
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Introduced - Dead) 2024-06-14 - Assigned to Senate RULES Committee [SB1487 Detail]
Download: Arizona-2024-SB1487-Introduced.html
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REFERENCE TITLE: qualified schools; audits; reporting requirements |
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State of Arizona Senate Fifty-sixth Legislature Second Regular Session 2024
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SB 1487 |
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Introduced by Senators Diaz: Alston, Fernandez, Sundareshan; Representative Hernandez A
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An Act
amending sections 15-2404 and 41-1279.03, Arizona Revised Statutes; relating to Arizona empowerment scholarship accounts.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 15-2404, Arizona Revised Statutes, is amended to read:
15-2404. State control over nonpublic schools; prohibition; application; reporting requirements; transparency portal
A. Except as provided in section 15-2402, subsection J and this section, this chapter does not permit allow any government agency to exercise control or supervision over any nonpublic school or homeschool.
B. A qualified school that accepts a payment from a parent pursuant to this chapter is not an agent of the state or federal government.
C. A qualified school shall not be required to alter its creed, practices, admissions policy or curriculum in order to accept students whose parents pay tuition or fees from an Arizona empowerment scholarship account pursuant to this chapter in order to participate as a qualified school.
D. In any legal proceeding challenging the application of this chapter to a qualified school, the state bears the burden of establishing that the law is necessary and does not impose any undue burden on qualified schools.
E. Notwithstanding subsections C and D of this section, a qualified school that accepts a payment from a parent or qualified student pursuant to this chapter shall do all of the following, consistent with the family educational rights and privacy act of 1974 (20 United States Code section 1232g):
1. Comply with the reporting, follow-up and hearing participation requirements prescribed by section 41-1279.03.
2. Comply with the financial reporting required pursuant to subsection F of this section.
3. Comply with any requests for information from the department or the state board of education for the purpose of the financial transparency portal developed pursuant to subsection G of this section.
F. The state board of education shall develop and adopt minimum financial performance requirements for qualified schools that accept payment from a parent or qualified student pursuant to this chapter and prescribe financial reporting requirements for each qualified school that do all of the following:
1. Require the same data points that are collected from school districts and charter schools pursuant to annual financial and compliance audits and financial statement audits required under section 15-914.
2. Require any data or information necessary to evaluate all of the following:
(a) The qualified school's financial ability to continue operating.
(b) Whether the qualified school is in financial default.
(c) Whether the qualified school's operating costs exceed its available resources.
(d) Whether the qualified school is able to pay debt principal, interest payments and facility costs that become due.
(e) The percentage change of the qualified school's student count each year.
3. Summarize the qualified school's financial performance, including whether the qualified school meets the minimum financial performance requirements adopted pursuant to this subsection.
G. The department shall develop a financial transparency portal that includes all information reported pursuant to subsection F of this section. The department may contract with a third party to develop and maintain the portal.
Sec. 2. Section 41-1279.03, Arizona Revised Statutes, is amended to read:
41-1279.03. Powers and duties
A. The auditor general shall:
1. Prepare an audit plan for approval by the committee and report to the committee the results of each audit and investigation and other reviews conducted by the auditor general.
2. Conduct or cause to be conducted annual financial and compliance audits of financial transactions and accounts kept by or for all state agencies subject to the federal single audit requirements. The audits shall be conducted in accordance with generally accepted governmental auditing standards and accordingly shall include tests of the accounting records and other auditing procedures as may be considered necessary in the circumstances. The audits shall include the issuance of suitable reports as required by the federal single audit requirements so that the legislature, the federal government and others will be informed as to the adequacy of financial statements of this state in compliance with generally accepted accounting principles and to determine whether this state has complied with laws and regulations that may have a material effect on the financial statements and on major federal assistance programs.
3. Perform procedural reviews for all state agencies at times determined by the auditor general. These reviews may include evaluation of administrative and accounting internal controls and reports on these reviews.
4. Perform special research requests, special audits and related assignments as designated by the committee and conduct performance audits, special audits, special research requests and investigations of any state agency, whether created by the constitution or otherwise, as may be requested by the committee.
5. Annually on or before the fourth Monday of December, prepare a written report to the governor and to the committee that contains a summary of activities for the previous fiscal year.
6. In the fifth year and in each fifth year thereafter in which a transportation excise tax is in effect in a county as provided in section 42-6106 or 42-6107, conduct a performance audit that:
(a) Reviews past expenditures and future planned expenditures of the transportation excise revenues and determines the impact of the expenditures in solving transportation problems within the county and, for a transportation excise tax in effect in a county as provided in section 42-6107, determines whether the expenditures of the transportation excise revenues comply with section 28-6392, subsection B.
(b) Reviews projects completed to date and projects to be completed during the remaining years in which a transportation excise tax is in effect. Within six months after each review period, the auditor general shall present a report to the speaker of the house of representatives and the president of the senate detailing findings and making recommendations.
(c) Reviews, determines, reports and makes recommendations to the speaker of the house of representatives and the president of the senate whether the distribution of Arizona highway user revenues complies with title 28, chapter 18, article 2.
7. If requested by the committee, conduct performance audits of counties and incorporated cities and towns receiving Arizona highway user revenue fund monies pursuant to title 28, chapter 18, article 2 to determine whether the monies are being spent as provided in section 28-6533, subsection B.
8. Perform special audits designated pursuant to law if the auditor general determines that there are adequate monies appropriated for the auditor general to complete the audit. If the auditor general determines the appropriated monies are inadequate, the auditor general shall notify the joint legislative audit committee. Based on information provided by the auditor general, for any legislative measure that requires the auditor general to perform a special audit, the joint legislative budget committee staff shall notify all the members of the legislature as soon as practicable of the cost to conduct the special audit.
9. Establish a schoolwide audit team in the office of the auditor general to conduct performance audits and monitor school districts to determine the percentage of every dollar spent in the classroom by the school district. Each school district shall prominently post on its website home page a copy of its profile pages that displays the percentage of every dollar spent in the classroom by that school district from the most recent status report issued by the auditor general pursuant to this paragraph. The auditor general shall determine, through random selection, the school districts to be audited each year, subject to review by the joint legislative audit committee. A school district that is subject to an audit pursuant to this paragraph shall notify the auditor general in writing whether the school district agrees or disagrees with the findings of the audit and whether the school district will implement the recommendations, implement modifications to the recommendations or refuse to implement the recommendations. The school district shall submit to the auditor general a written status report on the implementation of the audit recommendations at the request of the auditor general, within the two-year period following the issuance of an audit conducted pursuant to this paragraph. The auditor general shall review the school district's progress toward implementing the recommendations of the audit and provide status reports of the reviews to the joint legislative audit committee during this two-year period. The auditor general may review a school district's progress beyond this two-year period for recommendations that have not yet been implemented by the school district. The school district shall participate in any hearing scheduled during this review period by the joint legislative audit committee or by any other legislative committee designated by the joint legislative audit committee.
10. Annually review per diem compensation and reimbursement of expenses for employees of this state and members of a state board, commission, council or advisory committee by judgmentally selecting samples and evaluating the propriety of per diem compensation and expense reimbursements.
11. Establish an audit team in the office of the auditor general to conduct audits and monitor qualified schools to determine the percentage of Arizona empowerment scholarship account monies that are spent in the classroom by the qualified school. Notwithstanding any other law, a qualified school that accepts a payment from a parent or qualified student pursuant to title 15, chapter 19 shall prominently post on its website home page a copy of its profile pages that displays the percentage of Arizona empowerment scholarship account monies spent in the classroom by that qualified school from the most recent status report issued by the auditor general pursuant to this paragraph. The auditor general shall determine, through random selection, the qualified schools to be audited each year, subject to review by the joint legislative audit committee. A qualified school that is subject to an audit pursuant to this paragraph shall notify the auditor general in writing whether the qualified school agrees or disagrees with the findings and recommendations of the audit and whether the qualified school will implement the findings and recommendations, implement modifications to the findings and recommendations or refuse to implement the findings and recommendations. The qualified school shall submit to the auditor general a written status report on the implementation of the audit findings and recommendations every six months for two years after the completion of an audit conducted pursuant to this paragraph. The auditor general shall review the qualified school's progress toward implementing the findings and recommendations of the audit every six months after receiving the qualified school's status report for two years. The auditor general may review a qualified school's progress beyond this two-year period for recommendations that have not yet been implemented by the qualified school. The auditor general shall provide a status report of these reviews to the joint legislative audit committee. The qualified school shall participate in any hearing scheduled during this review period by the joint legislative audit committee or by any other legislative committee designated by the joint legislative audit committee. For the purposes of this paragraph, "qualified school" has the same meaning prescribed in section 15-2401.
B. The auditor general may:
1. Subject to approval by the committee, adopt rules necessary to administer the duties of the office.
2. Hire consultants to conduct the studies required by subsection A, paragraphs 6 and 7 of this section.
C. If approved by the committee, the auditor general may charge a reasonable fee for the cost of performing audits or providing accounting services for auditing federal funds, special audits or special services requested by political subdivisions of this state. Monies collected pursuant to this subsection shall be deposited in the audit services revolving fund.
D. The department of transportation, the county treasurer, the county transportation excise tax recipients, and the board of supervisors of a county that has approved a county transportation excise tax as provided in section 42-6106 or 42-6107 and the governing bodies of counties, cities and towns receiving Arizona highway user revenue fund monies shall cooperate with and provide necessary information to the auditor general or the auditor general's consultant.
E. The department of transportation or the county transportation excise tax recipients shall reimburse the auditor general as follows, and the auditor general shall deposit the reimbursed monies in the audit services revolving fund:
1. For the cost of conducting the studies or hiring a consultant to conduct the studies required by subsection A, paragraph 6, subdivisions (a) and (b) of this section, from monies collected pursuant to a county transportation excise tax levied pursuant to section 42-6106 or 42-6107.
2. For the cost of conducting the studies or hiring a consultant pursuant to subsection A, paragraph 6, subdivision (c) and paragraph 7 of this section, from the Arizona highway user revenue fund.
