This bill mandates that school districts publish an audit report for their administrative units following the conclusion of each fiscal year. The current law, specifically RSA 198:4-d, III, is repealed and replaced with new requirements. Under the new provisions, each city, school district, and chartered public school must file a comprehensive report detailing receipts and expenditures, along with a balance sheet of assets and liabilities. The report can either be an audit verified by an independent certified public accountant or a financial audit report from the governing body, which must include various itemized lists related to revenue, expenditures, payroll, benefits, and capital investments. The report is due by September 1 each year and must be certified by the chairperson of the governing body.

Additionally, the bill stipulates that the commissioner of the Department of Education will verify the completeness of the submitted reports and withhold state funding from any non-compliant entities until they fulfill the reporting requirements. The act is set to take effect on July 1, 2026. The fiscal impact of this legislation is currently undetermined, as the Office of Legislative Budget Assistant is awaiting further information from the Department of Education to complete a fiscal note.