HB 754: Catoosa County; Board of Education; require an internal audit function and establish position of internal auditor

This bill amends the 1993 law that set up the Catoosa County Board of Education to add a new requirement: the board must maintain an internal audit function overseen by an internal auditor. The auditor could be a board employee or the account manager of a hired firm, chosen by the board from nominees submitted by local legislators, and paid from local school funds. The auditor must be a certified internal auditor or certified public accountant with at least five years of experience, cannot engage in partisan political activity, and does not need to live in the school district. Duties include yearly and five-year performance and financial audits, checking for fraud or mismanagement, and reporting findings annually to the board and area legislators. School staff must give the auditor access to records and property, confidential findings go to closed board sessions, and public reports must be available for inspection. This entire arrangement is set to expire on July 1, 2030.

• Adds a new section to Catoosa County's school board law creating a required internal audit function overseen by an internal auditor.
• Sets qualifications for the auditor, requiring certification as either a certified internal auditor or certified public accountant with at least five years' experience.
• Directs the board to appoint the auditor from nominees submitted by local members of the General Assembly and pay for the position from local funds.
• Requires the auditor to conduct one and five year financial and performance audits checking for fraud, mismanagement, or noncompliance with law.
• Requires school officials and employees to give the auditor immediate access to records, property, and facilities needed for audits.
• Places a sunset date of July 1, 2030 on the entire internal auditor provision, after which it would no longer apply unless renewed.

The Catoosa County Board of Education, the school district's superintendent and staff, any firm or individual hired as internal auditor, local legislators who nominate auditor candidates, outside contractors doing business with the school system, and residents of Catoosa County who may inspect public audit reports.

Catoosa County schools would gain a dedicated internal auditor checking finances, efficiency, and possible fraud, giving the public and legislators more insight into how the district spends money. Because the requirement expires in 2030, lawmakers would have to act again to keep the auditor position in place.

• Section 1 adds Section 7.1 to the 1993 Catoosa County school board Act, establishing an internal audit function supervised by an internal auditor.
• Subsection (a) allows the auditor to be either a board employee or the account manager of a hired firm, appointed by the board from legislator-submitted nominees and paid from local funds.
• Subsection (b) requires the auditor to be a certified internal auditor or certified public accountant with at least five years of experience.
• Subsection (f) lists audit duties, including reviewing legal compliance, efficient use of resources, program effectiveness, and signs of fraud or abuse.
• Subsection (g) requires school officials and employees to give the auditor immediate access to records, property, equipment, and facilities.
• Subsection (h) requires confidential findings to be presented in closed board sessions and lets the auditor address the board after superintendent reports.
• Subsection (j) requires audit reports to be made available for public inspection or copying at a reasonable cost.
• Subsection (k) sets a repeal date of July 1, 2030 for the internal auditor provisions.

1. 2025-05-14Effective Date
2. 2025-05-14Act 322
3. 2025-05-14House Date Signed by Governor (House)
4. 2025-04-07House Sent to Governor (House)
5. 2025-03-28Senate Passed/Adopted (Senate)
6. 2025-03-28Senate Committee Favorably Reported (Senate)
7. 2025-03-25Senate Read and Referred (Senate)
8. 2025-03-21House Passed/Adopted (House)

• Mitchell Horner (R, HD-3)Primary sponsor

1. PassedHouse voteMarch 21, 2025

   158 yea, 0 nay (9 not voting, 13 excused)

   Local Calendar: House Vote #293

2. PassedSenate voteMarch 28, 2025

   53 yea, 0 nay (1 not voting, 2 excused)

   LOCAL CONSENT CALENDAR: Senate Vote #313

• school board oversight
• Catoosa County schools
• internal audits
• local government accountability
• education funding