ARIZONA STATE SENATE
Phoenix, Arizona
school districts; annual
financial reports
Allows school districts to
increase base support levels by an amount equal to the cost of preparing the
previous year’s annual financial report and exempts specified school districts
from conducting a financial audit once every five years in order to conduct a
curriculum audit.
Arizona law requires all
public schools, including charter schools to prepare an annual financial
report. Traditional district schools
subject to the federal Single Audit Act (U.S. Code chapter 75, title 31) and
charter schools are allowed to increase base support levels to cover the cost
of preparing the annual financial report.
Other public schools, not subject to this federal act, may not increase
their base support levels for this purpose.
Currently, not all public
schools have the financial resources to conduct a curriculum audit. Exempting schools from preparing an annual
financial report for one year allows schools to use those funds to conduct a
curriculum audit. Curriculum audits
vary from district to district, but the primary purpose is to review the
policies, practices and procedures of the district to ensure the curriculum and
instruction meet the standards and to identify those areas which might be
strengthened with minimal effort and little or no dollar cost to the district.
This legislation has a
negative fiscal impact on the state general fund.
1.
Allows
a school district to increase its base support level, subject to legislative
appropriation, by the same amount as the cost of the previous year’s annual
financial report.
2.
Exempts
school districts from preparing an annual financial report for one year if a
district has complied with all accounting and reporting provisions for at least
five consecutive years.
3.
Requires
exempted school districts to conduct a curriculum audit with funds set aside to
prepare an annual financial report.
4.
Requires
the Department of Education and the Auditor General to develop a method for
determining an increase in the base support level for a school district for
this purpose.
5.
Requires
the Department of Education and the Auditor General to include a line for
annual financial report expenditures in the maintenance and operation section
of the budget format.
6.
Makes
conforming changes.
7.
Provides
for a general effective date.
Prepared by Senate Staff
February 9, 2000