This bill mandates that every school, school district, and school administrative unit receiving state funding must undergo an annual independent audit, which is to be submitted to both the Department of Education and the Department of Revenue Administration within 180 days following the end of the fiscal year. The audits must be publicly posted on the respective school websites and shared with key stakeholders, including superintendents and local school board members. If any material deficiencies are identified in the audit, the Department of Education will require quarterly financial reports from the school entity until the issues are resolved. Additionally, the bill empowers the Department of Education to withhold funding from any school entity that fails to comply with these requirements.

The bill introduces new legal language by adding a section to RSA 193-H, specifically section 193-H:6, which outlines the requirements for the annual independent audit and the associated reporting processes. It also specifies that the business administrator must provide necessary data to the auditor in a timely manner and that audits should include comparisons to prior fiscal year data submitted to the Department of Education. The bill does not allocate new funding or positions but anticipates an indeterminable impact on state and local revenues and expenditures due to the implementation of these audit requirements.