SB 1126

(1) Existing law requires, not later than May 1 of each fiscal year, each county superintendent of schools to provide for an audit of all funds under their jurisdiction and control, and requires the governing board of each local educational agency to either provide for an audit of the books and accounts of the local educational agency or make arrangements with the county superintendent of schools having jurisdiction over the local educational agency to provide for that auditing. Existing law requires, by January 31 of each year, the governing body of each local educational agency to review, at a public meeting, the annual audit of the local educational agency for the prior year, any audit exceptions identified in that audit, the recommendations or findings of any management letter issued by the auditor, and any description of correction or plans to correct any exceptions or management letter issue. This bill would require the governing board or body of each school district, educational joint powers authority, county superintendent of schools, or charter school to post their above-described annual audit report on the local educational agency’s internet website within 30 days of the report’s due date or issue date, as specified. (2) Existing law requires, within 7 months after the close of each fiscal year or within the time prescribed by the Controller, whichever is later, the officer of each local agency, as defined, who has charge of the financial records to furnish to the Controller a report of all the financial transactions of the local agency during the preceding fiscal year, as specified. Existing law requires the report to contain underlying data from audited financial statements prepared in accordance with generally accepted accounting principles, as specified, and to state certain information, including the aggregate income during the preceding fiscal year. Existing law requires the legislative body, upon completion of the report, to either post the report in a conspicuous location on its internet website or to cause copies of the report to be prepared and the clerk of the legislative body to furnish a copy to any person requesting it, as specified. This bill would require a local agency, as defined, that maintains an internet website to post its audited financial statements, or its annual comprehensive financial report, on its internet website within 30 days of the date that the statements or report are completed by the local agency, as specified. The bill would make its provisions applicable to local agencies operative on January 1, 2028. By imposing additional duties on school districts, county superintendents of schools, and local agencies, the bill would impose a state-mandated local program. (3) The bill would include findings and declarations related to these provisions. (4) The bill would include findings that changes proposed by this bill address a matter of statewide concern rather than a municipal affair and, therefore, apply to all cities, including charter cities. (5) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.