This bill, HB 121-FN, amends the audit process for towns, school districts, and village districts in New Hampshire, introducing stricter compliance measures and penalties for noncompliance. Key changes include the amendment of RSA 21-J:19 to require audits to be completed within one year after the close of the fiscal year, and the introduction of a fine of up to $500 per day for failure to meet audit requirements, as established in the new RSA 21-J:20-a. The bill also mandates that completed audit reports be posted on the governing body's website and reviewed at public meetings to enhance transparency. Additionally, it allows the Department of Revenue Administration to order forensic audits and clarifies the process for imposing fines on districts that do not complete audits on time.

Furthermore, the bill establishes a probationary status for public school districts that fail to comply with financial management standards, allowing the State Board of Education to place a district on probation for up to six months, during which a remedial plan must be developed. If issues are not resolved, the State Board may appoint an administrator to oversee the district's operations for up to one year. The bill repeals certain existing statutes related to local school control and reporting requirements, streamlining oversight. It also allows the New Hampshire Department of Education to draw a warrant for administrator payments, clarifying the Governor's authority to do so from unappropriated funds. However, the bill does not provide funding for additional staff or expenses needed to implement these changes, which may hinder the Department's ability to monitor compliance effectively.

Statutes affected:
As Amended by the House: 21-J:19, 21-J:20, 21-J:21, 198:4-f