This bill proposes several updates to the current statutes regarding financial reporting requirements for organizations included in Arizona'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 state and federal audit requirements. If an organization fails to meet these submission deadlines, the ADOA is authorized to assess a penalty of 1/12 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 not exceeding $8,000,000 or one percent of the organization's appropriation for that fiscal year.

Additionally, the bill establishes that the maximum penalty amounts will be adjusted annually based on changes in the state general fund's appropriations, as determined by the Economic Estimates Commission. The bill also clarifies the deadlines for submitting federal expenditure information, with similar penalties for late submissions. Overall, these changes aim to enhance accountability and ensure timely financial reporting by organizations receiving state funds.

Statutes affected:
Introduced Version: 35-131