This bill mandates that school districts publish a school administrative unit audit report following the conclusion of each fiscal year. The current law, specifically RSA 198:4-d, III, is repealed and replaced with new requirements that each city, school district, and chartered public school must file a comprehensive report detailing receipts, expenditures, and a balance sheet of assets and liabilities. The report must be either an audit verified by an independent certified public accountant or a financial audit report from the governing body, which includes detailed breakdowns of revenue sources, payroll, and the school or district's financial obligations. The school board is required to submit this report to the Department of Education within six months of the fiscal year-end, and the commissioner will withhold state funding from any non-compliant entities until the audit is completed and satisfactory.

The bill is set to take effect on July 1, 2026, and aims to enhance financial accountability within school districts. It does not allocate new funding or positions but anticipates an indeterminable impact on state and local revenues and expenditures. The Department of Education estimates that it will require additional staffing and resources to manage the increased oversight of audits, which may lead to higher costs for districts as they adapt to the new requirements. The bill also highlights potential consequences for charter schools, which may face financial strain and possible dissolution due to their reliance on state funding, particularly if they are unable to meet the new audit deadlines.