This bill amends the audit process for towns, school districts, and village districts, introducing stricter compliance measures and penalties for failures to complete required audits. Key changes include the amendment of RSA 21-J:19, which now mandates that audits 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 noncompliance, as outlined in the new RSA 21-J:20-a. The bill also requires that completed audit reports be posted on the governing body's website and reviewed at public meetings to enhance transparency. Additionally, the commissioner of the Department of Revenue Administration is tasked with consulting the Department of Education regarding audits related to school districts, ensuring a coordinated approach to financial oversight.

Moreover, the bill establishes a probationary status for public school districts that fail to meet fiscal management standards, allowing the state board to place a district on probation for up to six months, during which a remedial plan must be developed. If the plan is unsuccessful, the Department of Education may appoint an administrator with significant powers to oversee the district's operations. The bill also repeals the election of school district auditors and certain existing laws related to the Department of Education's control over local schools, while establishing new requirements for independent auditors. The act is set to take effect upon its passage.

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