This bill proposes several updates to current statutes regarding the submission of financial statements by organizations included in the state's reporting entity. Under the new provisions, organizations must submit accurate and complete final financial statements to the Arizona Department of Administration (ADOA) to comply with federal single audit requirements and deadlines. If an organization fails to meet these requirements by October 31, a penalty of one twelfth of one percent of the organization's state General Fund appropriation will be assessed for every 30 days the submission is late, with the total penalty capped at $8,000,000 or one percent of the organization's state General Fund appropriation, whichever is less. Similar penalties apply for late submissions of federal expenditure or program information due by December 31.

Additionally, the bill introduces a mechanism for annually adjusting the maximum penalty amounts based on changes in the state General Fund for legislative appropriations, as determined by the Economic Estimates Commission. The bill also makes conforming changes to ensure consistency with the new requirements. Overall, these updates aim to enhance compliance with financial reporting standards and establish clear penalties for non-compliance.

Statutes affected:
Introduced Version: 35-131
House Engrossed Version: 35-131