SB1473 introduces a new penalty for state agencies that fail to submit their Schedule of Expenditures of Federal Awards (SEFA) on time to the Auditor General. The bill mandates a penalty of one percent of the federal funds received by the agency annually for every 30 days the SEFA is late. Additionally, if a state agency is late in submitting its SEFA, the Auditor General must inform the State Treasurer of the penalty amount, and the State Treasurer is then directed to withhold that amount from the agency's appropriation for the next fiscal year.

The bill amends Title 41, Chapter 7, Article 10.1 of the Arizona Revised Statutes by adding Section 41-1279.08, which specifically outlines the penalty process for late SEFA submissions. This represents a change from the current law, which does not specify such penalties for late submissions. The bill was vetoed by the Governor, who expressed concern that state agencies should not be penalized for utilizing federal funding to improve services for Arizonans.

Statutes affected:
Introduced Version: 41-1279.08
Senate Engrossed Version: 41-1279.08
House Engrossed Version: 41-1279.08