https://apps.azleg.gov/billStatus/BillOverview/74301
HB2018 (HB2106 in the 2020 session) makes several changes in Title 15 related to all public
school audits and compliance questionnaires. The bill received unanimous votes in the
House and Senate in 2020 before COVID closed the session.
There are four major provisions:
1. Compliance Questionnaire transparency: All school districts and charters (LEAs)
must complete an annual compliance questionnaire with their auditor to ensure
compliance with state laws related to the uniform system of financial records (USFR).
However, they are often difficult to find if a district has not made them available on
their website. Also, independent auditors were not always making them available to
county school superintendents as required by law. HB2018 requires LEAs (instead of
private auditors) provide these documents (along with all financial audits) to the
Department of Education who will make them publicly available on their website, as
they already do with budgets and annual financial records (AFR).
2. Board Awareness: Elected school board members should be aware of all audits and
compliance questionnaires. The public should also have the opportunity to see and
comment on these reports at board meetings. HB2018 requires audits and
questionnaires be publicly accepted by school boards.
3. State Board of Education (SBE) Awareness: When the SBE is brought a problem
from the Auditor General on LEA misspending or noncompliance, there is little detail
of the extent of the problem. This is the only meaningful opportunity for these issues
to be made public, and the SBE should have the detail to understand the nuance of
the situation. The change in 15-271 requires the Auditor General provide the same
details it provides ADE to the SBE so they can make decisions with full context.
4. Requirement simplification: A.R.S. ยง15-905 is changed to no longer require school
districts file their budgets with the county school superintendent, which is a historical
requirement that is no longer necessary. Budgets are electronically passed to ADE for
acceptance, where counties can easily access them.
Public documents like audits and questionnaires should be publicly available and easy to
find. HB2018 helps close the accountability loop on these documents. Importantly, it will help
the SBE make decisions how to manage noncompliant LEAs by providing them more
context. Lastly, it removes an outdated requirement for school districts related to budget
posting.