This bill proposes several updates to the current statutes regarding financial reporting requirements for organizations included in the state's reporting entity. Specifically, it introduces new language that mandates these organizations to submit accurate and complete final financial statements and federal expenditure information to the Arizona Department of Administration (ADOA) to comply with federal single audit requirements. The bill establishes penalties for late submissions, stipulating that if an organization fails to meet the deadlines of October 31 and December 31, ADOA will assess a penalty of one twelfth of one percent of the organization's state General Fund appropriation for every 30 days the submission is late, with a cap on total penalties at $8,000,000 or one percent of the organization's state General Fund appropriation for that fiscal year, whichever is less.

Additionally, the bill includes provisions for the annual adjustment of the maximum penalty amounts based on changes in the state General Fund available for legislative appropriations, as determined by the Economic Estimates Commission. The updates aim to enhance compliance with financial reporting standards and ensure timely submission of necessary documentation by organizations receiving state funds.

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