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Bill would require annual independent audits for all school entities and DOE follow‑up when material weaknesses appear
Summary
HB 1823 would require SAUs/districts and schools receiving state funds to submit independent audits to DRA and DOE, post audits publicly and trigger DOE follow‑up when audits show material weaknesses; auditors and DRA warned 180‑day submission is tight and districts bear audit costs.
Representative Hope Damon presented HB 1823 to require annual independent audits for all school administrative units, school districts and schools receiving state funding, to be submitted to the Department of Revenue Administration and the Department of Education and posted publicly. The bill would also require DOE intervention where audits reveal material weaknesses, including quarterly reporting and remedial plans until deficiencies are resolved.
DOE and DRA staff and several school business officials testified in favor of the transparency goals but raised practical concerns. Mark Manganiello (DOE) said the department currently collects and reviews charter school audits but does not collect district audits; implementing HB 1823 would require DOE staff (he estimated a small team) and workflow changes to ingest DRA data. DRA's Bruce Knueuer confirmed a statutory waiver exists and noted DRA already enforces deadlines (including penalties created in 2022) but that audit production timelines vary; auditors said a majority of districts can meet a 12‑month submission timeline, but completing a signed audit report in 180 days is challenging for many districts because of single‑audit timing and limited CPA capacity.
School business officials urged flexible timing and waiver language rather than an inflexible 180‑day requirement; they also warned of limited private‑sector audit capacity in New Hampshire and the potential market effect of sharply increased demand. The committee closed the hearing and asked the legislative budget office for a fiscal note; DOE said it would prepare a staffing and transition estimate if the bill moves forward.
