SB472: SB472 Local Boards of Education; audit findings or findings by the state auditor of financial mismanagement or misconduct; provide for the suspension of members

26 LC 49 2813S Senate Bill 472 By: Senators Hickman of the 4th, Walker III of the 20th, Tillery of the 19th, Hufstetler of the 52nd, Sims of the 12th and others AS PASSED A BILL TO BE ENTITLED AN ACT To amend Chapter 2 of Title 20 of the Official Code of Georgia Annotated, relating to1 elementary and secondary education, so as to provide for the suspension of members of local2 boards of education following certain audit findings or finding s by the state auditor of3 financial mismanagement or misconduct; to provide for employmen t contract terms,4 conditions, and limitations for local school superintendents un der certain conditions; to5 provide for a cap on the total amount of advance distributions of state allotted funds that may6 be made by the State Board of Education to local units of administration; to provide for plans7 for monitoring, supports, and intervention; to provide for the authority of the state auditor8 relative to such plans; to provide that a petition signed by 10 percent of the qualified voters9 in an independent school system shall be required in order to hold an election to determine10 whether to annul the special law of the independent school system so that it becomes a part11 of the respective county school system or systems in which the territory of the independent12 school system is located; to repeal outdated terms and provisio ns; to make conforming13 changes; to amend Chapter 6 of Title 50 of the Official Code of Georgia Annotated, relating14 to the Department of Audits and Accounts, so as to revise provisions for financial audits of15 local school systems and state charter schools by and on behalf of the Department of Audits16 and Accounts; to require the Department of Audits and Accounts to develop and implement17 a program of progressive monitoring, supports, and interventions to local school systems and18 S. B. 472 - 1 - 26 LC 49 2813S state charter schools; to provide for investigations of local s chool systems by the state19 auditor; to provide for an effective date; to provide for related matters; to repeal conflicting20 laws; and for other purposes.21 BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:22 SECTION 1.23 Chapter 2 of Title 20 of the Official Code of Georgia Annotated, relating to elementary and24 secondary education, is amended in Article 3, relating to local boards of education, by25 revising Code Section 20-2-73, relating to suspension and remov al of local school board26 members upon potential loss of accreditation or when schools in system are turnaround27 eligible schools, procedures, petition for reinstatement, prohibition on use of public funds for28 litigation expenses, and reimbursement of expenses, as follows:29 "20-2-73.30 (a)(1) Notwithstanding Code Section 20-2-54.1 or any other pro visions of law to the31 contrary, if:32 (A) A local school system or school is placed on the level of accreditation immediately33 preceding loss of accreditation for any reason or reasons by on e or more accrediting34 agencies included in subparagraph (A) of paragraph (6) of Code Section 20-3-519, the35 local board of education shall notify the State Board of Educat ion in writing within36 three business days of such placement and the State Board of Education shall conduct37 a hearing in not less than ten days of such notice nor more than 90 days and recommend38 to the Governor whether to suspend all eligible members of the local board of education39 with pay; or40 (B) One-half or more of the schools in a local school system a re turnaround eligible41 schools, as defined in subsection (a) of Code Section 20-14-45, for the fifth or more42 consecutive year, the Department of Education shall notify the State Board of43 S. B. 472 - 2 - 26 LC 49 2813S Education in writing within three business days of the publicat ion of the list of44 turnaround eligible schools by the Office of Student Achievement, and the State Board45 of Education with input from the State School Superintendent shall conduct a hearing46 in not less than ten days of such notice nor more than 90 days and recommend to the47 Governor whether to suspend all eligible members of the local board of education with48 pay; provided, however, that this subparagraph shall be tolled for a local board of49 education while under a contract amendment or intervention contract pursuant to Code50 Section 20-14-45 so long as such local board of education is in substantial compliance51 with the terms of such contract amendment or intervention contract; or52 (C)(i) A local school system is designated by the state auditor as requiring the highest53 level of monitoring, supports, and interventions promulgated by the Department of54 Audits and Accounts pursuant to Code Section 50-6-6, the state auditor shall notify55 the State Board of Education in writing within three business d ays of making such56 designation, and the State Board of Education shall, upon a recommendation of the57 audit committee of the State Board of Education followed by a majority vote of the58 State Board of Education, conduct a hearing in not less than ten days of such vote nor59 more than 90 days and recommend to the Governor whether to suspend any eligible60 members of the local board of education with pay.61 (ii) A local board of education, a member thereof, a local school system, or a local62 school superintendent is the subject of a finding by the state auditor of financial63 mismanagement or misconduct following an investigation made pur suant to Code64 Section 50-6-28, the state auditor shall notify the State Board of Education in writing65 within three business days of such finding, and the State Board of Education shall,66 upon a recommendation of the audit committee of the State Board of Education67 followed by a majority vote of the State Board of Education, conduct a hearing in not68 less than ten days of such vote nor more than 90 days and recommend to the Governor69 whether to suspend any eligible members of the local board of education with pay.70 S. B. 472 - 3 - 26 LC 49 2813S (2) A majority of the members of a local board of education may petition the State Board71 of Education to continue any hearing scheduled under this subsection. Upon a showing72 of good cause, the state board State Board of Education may in its sound discretion73 continue any such hearing. Notwithstanding any other provision of law, deliberations74 held by the State Board of Education pursuant to this subsectio n to formulate its75 recommendation to the Governor shall not be open to the public; provided, however, that76 testimony shall be taken in an open meeting and a vote on the recommendation shall be77 taken in an open meeting following the hearing or at the next r egularly scheduled78 meeting. If the State Board of Education makes such recommenda tion, the Governor79 may, in his or her discretion, suspend all eligible members of the local board of education80 with pay and, in consultation with the State Board of Education , appoint temporary81 replacement members who shall be otherwise qualified to serve a s members of such82 board.83 (b) Any local board of education member suspended under this Code section may petition84 the Governor for reinstatement no earlier than 30 days following suspension and no later85 than 60 days following suspension. In the event that a suspended member does not petition86 for reinstatement within the allotted time period, his or her suspension shall be converted87 into permanent removal, and the temporary replacement member shall become a permanent88 member and serve out the remainder of the term of the removed member.89 (c) Upon petition for reinstatement by a suspended local board of education member, the90 Governor or his or her designated agent shall conduct a hearing for the purpose of receiving91 evidence relative to whether the local board of education member's continued service on92 the local board of education is more likely than not to improve the ability of the local93 school system or school to retain or reattain its accreditation; or to improve the ratings of94 the schools in the local school system so that less than one-half of the schools in such local95 school system are on the turnaround eligible schools list in subsequent years; to no longer96 be designated by the state auditor as requiring the highest lev el of monitoring, supports,97 S. B. 472 - 4 - 26 LC 49 2813S and interventions promulgated by the Department of Audits and Accounts pursuant to Code98 Section 50-6-6; or to remediate or mitigate the state auditor's finding of financial99 mismanagement or misconduct. The appealing member shall be given at least 30 days'100 notice prior to such hearing. Such hearing shall be held not l ater than 90 days after the101 petition is filed and in accordance with Chapter 13 of Title 50, the 'Georgia Administrative102 Procedure Act,' except that the individual conducting the hearing shall have the power to103 call witnesses and request documents on his or her own initiati ve. For purposes of said104 chapter and any hearing conducted pursuant to this Code section , the Governor shall be105 considered the agency, and the Attorney General or his or her designee shall represent the106 interests of the Governor in the hearing. If it is determined that it is more likely than not107 that the local board of education member's continued service on t h e l o c a l b o a r d o f108 education improves the ability of the local school system or school to retain or reattain its109 accreditation; or to improve the ratings of the schools in the local school system so that less110 than one-half of the schools in such local school system are on the turnaround eligible111 schools list in subsequent years; to no longer be designated by the state auditor as requiring112 the highest level of monitoring, supports, and interventions promulgated by the Department113 of Audits and Accounts pursuant to Code Section 50-6-6; or to remediate or mitigate the114 state auditor's finding of financial mismanagement or misconduc t, the member shall be115 immediately reinstated; otherwise, the member shall be permanen tly removed, and the116 temporary replacement member shall become a permanent member an d serve out the117 remainder of the term of the removed member or until the next general election which is118 at least six months after the member was permanently removed, w hichever is sooner. 119 Judicial review of any such decision shall be in accordance with Chapter 13 of Title 50.120 (d)(1) Subparagraph (B) of paragraph (1) of subsection (a) (a)(1)(A) of this Code section121 shall apply to a local school system or school which is placed on the level of accreditation122 immediately preceding loss of accreditation on or after April 20, 2011.123 S. B. 472 - 5 - 26 LC 49 2813S (2) Subparagraph (B) of paragraph (1) of subsection (a) (a)(1)(B) of this Code section124 shall apply to a local school system which, on or after July 1, 2017, has one-half or more125 of the schools in the local school system on the turnaround eli gible schools list for the126 fifth or more consecutive year.127 (3) Subparagraph (a)(1)(C) of this Code section shall apply to a local school system on128 or after July 1, 2026, if:129 (A) Such local school system is designated by the state auditor as requiring the highest130 level of monitoring, suppor ts, and interventions promulgated by the Department of131 Audits and Accounts pursuant to Code Section 50-6-6; or132 (B) Such local school system, the local board of education or a member thereof, or the133 local school superintendent is the subject of a finding of financial mismanagement or134 misconduct.135 (e) For purposes of this Code section, an eligible member of a local board of education136 shall mean a board member who:137 (1) Was serving on the local board of education at the time the accrediting agency placed138 the local school system or school on the level of accreditation immediately preceding loss139 of accreditation; or140 (2) Was serving on the local board of education at the time the local school system had141 one-half or more of the schools in the local school system on t he turnaround eligible142 schools list for the fifth or more consecutive year and had ser ved on the local board of143 education for at least the immediately preceding two years;144 (3) Was serving on the local board of education at the time the local school system was145 designated by the state auditor as requiring the highest level of monitoring, supports, and146 interventions promulgated by the Department of Audits and Accounts pursuant to Code147 Section 50-6-6; or148 S. B. 472 - 6 - 26 LC 49 2813S (4) Was serving on the local board of education at the time the local board of education149 or a member thereof, the local school system, or the local school superintendent was the150 subject of a finding of financial mismanagement or misconduct.151 (f) A local board of education shall not expend any public fun ds for attorney's fees or152 expenses of litigation relating to proceedings initiated pursuant to this Code section except153 to the extent such fees and expenses are incurred prior to and through the recommendation154 of the state board State Board of Education as provided for in subsection (a) of this Code155 section; provided, however, that nothing in this subsection shall be construed to prohibit156 an insurance provider from covering attorney's fees or expenses of litigation under an157 insurance policy.158 (g) Any suspended board member who is reinstated by the Governor pursuant to this Code159 section may be reimbursed by the local board of education for h is or her reasonable160 attorney's fees and related expenses incurred in pursuing such reinstatement."161 SECTION 2.162 Said chapter is further amended in Article 5, relating to local school superintendents, by163 revising Code Section 20-2-101, relating to appointment of scho ol superintendents, as164 follows:165 "20-2-101.166 (a)(1) Except as provided in paragraph (2) of this subsection, each local school167 superintendent Superintendents of each school system shall be employed by the local168 board of education under written contracts for a term of not le ss than one year and not169 more than three years. Any provision of any such contract whic h provides for an170 extension of the duration of employment thereunder, whether aut omatic or contingent171 upon the occurrence of one or more events, shall be void if that extension would result172 in employment under the contract, as extended, for a period which exceeds three years.173 S. B. 472 - 7 - 26 LC 49 2813S (2) At any time a local school system is designated as a high-risk local school system by174 the Department of Audits and Accounts pursuant to Code Section 20-2-67, the local175 school superintendent's contract of employment shall not be extended for a term which176 exceeds 12 months. Any such term which exceeds 12 months shall be void.177 (3) Any contract by which a local school superintendent is employed by a local board of178 education that is entered into or renewed on or after July 1, 2026, shall include terms and179 conditions that shall have the following effect:180 (A) It shall be an act of default for the local school superintendent to be the subject of181 a finding by the state auditor of financial mismanagement or misconduct following an182 investigation made pursuant to Code Section 50-6-28;183 (B) It shall be an act of default for the local school superintendent to be the subject of184 a finding by the state auditor that the local school superintendent has knowingly failed185 or refused to comply with a material requirement of a plan for intervention or other186 corrective action plan put in place in conjunction with the loc al school system being187 designated by the state auditor as requiring the highest level of monitoring, supports,188 and interventions promulgated by the Department of Audits and Accounts pursuant to189 Code Section 50-6-6; and190 (C) In the event of an act of default provided for in subparag raph (A) or (B) of this191 paragraph, the local board of education shall be authorized to terminate the employment192 contract of the local school superintendent for cause.193 (b)(1) No person shall be eligible to be appointed or employed or to serve as a local194 school superintendent of schools of any county or independent school system unless such195 person is of good moral character, has never been convicted of any crime involving moral196 turpitude, and possesses acceptable business or management experience as specified by197 the Professional Standards Commission or the minimum valid cert ificate or a letter of198 eligibility for said certificate required by the Professional Standards Commission.199 S. B. 472 - 8 - 26 LC 49 2813S (2) No person shall be eligible to be appointed or employed, or to serve as a local school200 superintendent of schools of any county or independent school s ystem who has an201 immediate family member sitting on the local board of education for such the local school202 system or who has an immediate family member hired as or promot ed to a principal,203 assistant principal, or system administrative staff on or after July 1, 2009, by that such204 local school system. As used in this subsection paragraph, the term 'immediate family205 member' means a spouse, child, sibling, or parent or the spouse of a child, sibling, or206 parent whose term as a member of the local board of education or whose employment as207 a principal, assistant principal, or system administrative staff in the local school system208 began on or after January 1, 2010. Nothing in this Code sectio n paragraph shall affect209 the employment of any person who is employed by a local school system on or before210 July 1, 2009, or who is employed by a local school system when an immediate family211 member becomes the local school superintendent for that such local school system.212 (c) Local school superintendents Superintendents shall have such additional qualifications213 as may be prescribed by local law or policies of the local board of education for that school214 district, not inconsistent with the provisions of this chapter.215 (d) At any time during the 12 months immediately preceding the expiration of an216 appointed local school superintendent's contract or term of office, or when a vacancy in the217 office of local school superintendent occurs, the local board of education may appoint and218 employ a successor local school superintendent in accordance with the above provisions219 of this Code section, notwithstanding that the terms of some or all of the local board of220 education members will expire before the employment of the superintendent so appointed221 and employed such employment begins.222 (e) A local school superintendent may concurrently serve as a principal, teacher, or in223 another staff position as directed by the local board of education in its sole discretion and224 in accordance with the terms of the contract between the local school superintendent and225 the local board of education. A local school superintendent may also serve concurrently226 S. B. 472 - 9 - 26 LC 49 2813S as local school superintendent of one or more local school systems in accordance with the227 terms of his or her respective contracts and upon approval by e ach affected local school228 system.229 (f) No substantive or procedural right regarding employment or termination of230 employment of a local school superintendent by a local school system shall be created by231 this Code section. Rather, the terms and conditions of employm ent of a local school232 superintendent by a local school system shall be determined exc lusively by the contract233 between those parties and may include, without being limited to, the conditions under and234 procedures by which that such contract may be terminated prior to the end of the term of235 that such contract."236 SECTION 3.237 Said chapter is further amended in Part 4 of Article 6, relating to financing under the "Quality238 Basic Education Act," by revising subsection (b) of Code Section 20-2-166, relating to state239 funds, calculation, allotment, and distribution, as follows:240 "(b)(1) The State Board of Education shall, by regulation, provide for distribution of state241 funds allotted to local units of administration under this article and budgets approved by242 the state board State Board of Education . The state board is authorized to provide for243 distribution of such state allotted funds to local units of administration at such times and244 in such manner as will most likely meet the periodic needs of l ocal units for the state245 allotted funds, except as provided in paragraph (2) of this subsection. In determining the246 time and manner for distribution of state allotted funds, the state board State Board of247 Education may consider the time at which local school tax funds shall be collected and248 made available to local units of administration. State allotted funds to be distributed to249 local units under this article shall be withdrawn from the state treasury on requisitions to250 be signed by the State School Superintendent, which shall be signed in accordance with251 such regulations and directions of the state board State Board of Education.252 S. B. 472 - 10 - 26 LC 49 2813S (2)(A) Except as provided for in subparagraph (B) of this paragraph, the aggregate of253 state allotted funds distributed by the State Board of Educatio n to a local unit of254 administration in advance of the routine periodic allotments established by the Office255 of Planning and Budget shall not exceed an amount that is equal to 50 percent of the256 total of such local unit's state allotted funds for the preceding fiscal year.257 (B) In the event that a local unit of administration requests or, in the opinion of the258 state auditor, requires an advance distribution by the State Board of Education of state259 allotted funds that would exceed the limit provided for in subp aragraph (A) of this260 paragraph, the State Board of Education shall be authorized to make advance261 distributions that exceed the limit provided for in subparagraph (A) of this paragraph262 only under the following conditions:263 (i) The state auditor shall provide a written opinion to the State Board of Education264 that such advance distribution is necessary and appropriate to improve the conditions265 of the financial operations of the local unit of administration and shall include with266 such opinion a plan for monitoring, supports, and intervention for the local unit of267 administration developed by the Department of Audits and Accounts in consultation268 with the Department of Education and the local unit of administration to the extent the269 local unit of administration participates in such consultation. The local unit of270 administration shall have the opportunity to request modificati on of the proposed271 plan; provided, however, that the plan to be implemented shall be determined by the272 state auditor;273 (ii) Within 30 days of the date of such proposed plan, the local board of education or274 other governing body of the local unit of administration shall adopt a resolution275 stating that the local board of education or other governing body of the local unit of276 administration and the officers, employees, and agents of such local unit of277 administration shall strictly comply with the plan for the duration of such plan;278 S. B. 472 - 11 - 26 LC 49 2813S (iii) The State Board of Education shall not authorize an advance distribution of any279 state allotted funds to the local unit of administration without a recommendation in280 writing from the state auditor;281 (iv) The plan may be modified by the state auditor upon written notice to the State282 Board of Education and the local unit of administration; and283 (v) The plan shall remain in effect until concluded in writing by the state auditor."284 SECTION 4.285 Said chapter is further amended in Article 8, relating to conso lidation of independent and286 county school systems, by revising Code Section 20-2-370, relating to referendum on repeal287 of special school law and consolidation of systems, as follows:288 "20-2-370.289 Whenever the citizens of a municipality or qualified voters of the territory included in an290 independent school system district authorized by law to establish and maintain a system291 of schools by local taxation in whole or in part are operating a system of public schools292 independent of the county school system and wish to annul their special school the local293 law establishing such independent school system and become a part of the each respective294 county school system in which such territory is located, they shall present and file with the295 governing authority of the city in which such independent schoo l system is located a296 petition signed by one-fourth 10 percent of the qualified voters of their the territory297 included in the independent school system ; and the such governing authority shall then298 submit the question at an election to be held in accordance with Chapter 2 of Title 21. A299 majority of those voting shall be necessary to carry the electi on. Only qualified voters300 residing within the municipality or district territory included in the independent school301 system for six months prior to the election shall vote. An election shall not be held for the302 same purpose more often than every 12 months."303 S. B. 472 - 12 - 26 LC 49 2813S SECTION 5.304 Said chapter is further amended in said article by revising Code Section 20-2-371, relating305 to proceedings when vote favors repeal and consolidation, as follows:306 "20-2-371.307 When the results of an election held under Code Section 20-2-37 0 are declared and308 published in favor of repealing such independent school system, making the territory309 included in the independent school system thereby to become a part of the each respective310 county school system in which such territory is located, such independent or local school311 system shall continue to function under its local laws, organizations, and regulations until312 the each respective county board of education shall arrange for the operation by t hem of313 such school or schools within the local independent school system as a part of their public314 each respective county school system in which such territory is located."315 SECTION 6.316 Said chapter is further amended in said article by revising Code Section 20-2-372, relating317 to effect of repeal and consolidation, as follows:318 "20-2-372.319 Where any local or independent school system is repealed by and in the manner provided320 for in Code Sections 20-2-370 and 20-2-371, the territory formerly included in such321 independent school system shall become and constitute a school district part of the each322 county school system in which it such territory is located and shall enjoy the same323 privileges and shall be governed by the same laws as other school districts in the existing324 parts of such county school system or systems, including the authority to levy local taxes325 for school purposes; provided, however, that the rate for such taxation shall not exceed the326 rate allowed by law to other similar school districts."327 S. B. 472 - 13 - 26 LC 49 2813S SECTION 7.328 Chapter 6 of Title 50 of the Official Code of Georgia Annotated, relating to the Department329 of Audits and Accounts, is amended by revising Code Section 50- 6-6, relating to audit of330 school and university systems, additional audits authorized, st andards, and reports, as331 follows:332 "50-6-6.333 (a) As used in this Code section, the term:334 (1) 'Local school system' means and includes each local school system and each335 completion special school, as provided for in Article 31C of this chapter, in this state.336 (2) 'State charter school' shall have the same meaning as set forth in Code337 Section 20-2-2081.338 (a.1) It shall be the duty of the Department of Audits and Accounts thoroughly to audit and339 check the books and accounts of the county superintendents of s chools and treasurers of340 local school systems, of municipal systems, of the to:341 (1) Perform or cause to be performed an annual financial and c ompliance audit of342 financial transactions and accounts of:343 (A) Each local school system and state charter school; and344 (B) The several units of the University System of Georgia, and of all other schools345 receiving state aid and making regular and annual reports to th e State School346 Superintendent, showing the amount received, for what purpose received, and for what347 purposes expended. All such; and348 (2) Issue in conjunction with each such audit required under p aragraph (1) of this349 subsection suitable reports that comply with state and federal rules and regulations for350 such audits.351 (a.2) By July 1, 2026, the Department of Audits and Accounts s hall develop and begin352 implementing a program, the purpose of which is to:353 S. B. 472 - 14 - 26 LC 49 2813S (1) Monitor the fiscal condition of each local school system and state charter school in354 this state;355 (2) Provide progressive levels of monitoring, supports, and interventions to local school356 systems and state charter schools, ranging from technical assis tance and audit services357 to significant interventions including strict compliance requirements; and358 (3) Provide reports of the fiscal condition of local school sy stems and state charter359 schools at appropriate intervals.360 (a.3) No state ai d or public funds of any kind shall be held by officials must be kept in361 banks separate from their any official or employee of any local board of education or other362 public school governing body, local school system, state charter school, institution of the363 University System of Georgia, or any other school receiving state aid for any length of time364 in one or more of his or her individual bank accounts.365 (b) Notwithstanding any other provisions of this chapter, the local boards each local board366 of education of the several county, independent, and area public school systems of this state367 or other public school governing body shall be authorized to have an additional audit made368 of the books, records, and accounts financial affairs and transactions of all funds and369 activities of the public school system schools over which any such board or governing body370 has jurisdiction. The local boards of education ; provided, however, that such additional371 audit authorized under this subsection shall not be relied upon by a local school system or372 state charter school in lieu of the audit by the Department of Audits and Accounts required373 under subsection (a.1) of this Code section, nor shall such add itional audit be deemed to374 satisfy the requirements of subsection (a.1) of this Code section, except as provided for in375 subsection (e) of this Code section. Such boards and governing bodies shall be authorized376 to employ certified public accountants of this state to make the additional audits authorized377 under this subsection and to expend funds for the such audits which are received by any378 such board or governing body for educational purposes. Each report of any audit379 conducted as provided for in this subsection shall be completed and a copy of such report380 S. B. 472 - 15 - 26 LC 49 2813S shall be forwarded to the Department of Audits and Accounts wit hin ten days of such381 report being issued to the local school system.382 (c) All audits of such public school systems provided for in subsections (a.1), (b), and (e)383 of this Code section shall be conducted in conformity with generally accepted stand ards384 and principles of governmental accounting and auditing and accordance with generally385 accepted governmental auditing standards over financial stateme nts in conformity with386 generally accepted accounting principles of governmental accoun ting or other basis of387 accounting authorized by this Code section and shall include tests of the accounting records388 and other auditing procedures as considered necessary in the circumstances of such audit. 389 Such audits shall be subject to the standards, rules, and ethics promulgated by the Georgia390 Society of Certified Public Accountants and the American Instit ute of Certified Public391 Accountants. The audit report of each such audit shall include the auditor's unqualified392 opinion upon the presentation of the financial position and the results of the operations of393 the public local school system or state charter school which is audited. If the auditor is394 unable to express an unqualified opinion, he shall so state and shall further detail the395 reasons for qualification or disclaimer of opinion including recommendations necessary to396 make possible future unqualified opinions.397 (d) The Department of Audits and Accounts shall establish mini mum audit readiness398 requirements and audit scheduling priorities based on risk asse ssment, readiness, and399 available resources. The Department of Audits and Accounts shall be authorized to delay400 the commencement of an audit when minimum readiness requirement s are not met. 401 Repeated failure to meet audit readiness requirements in a timely manner may be deemed402 by the Department of Audits and Accounts to constitute a deficiency in internal control or403 governance and may be reported as such in audit findings. The Department of Audits and404 Accounts shall report chronic audit readiness failures to the State Board of Education and405 the General Assembly.406 S. B. 472 - 16 - 26 LC 49 2813S (e)(1) The state auditor shall have discretionary authority to engage certified public407 accountants of this state to perform audits required under subs ection (a.1) of this Code408 section and to authorize local school systems and state charter schools to engage certified409 public accountants to perform audits required under subsection (a.1) of this Code section;410 provided, however, that such certified public accountants shall comply with requirements411 set forth by the Department of Audits and Accounts as it relates to scope, methodology,412 state compliance procedures, and risk assessment; and, provided , further, that no local413 school system or state charter school shall engage a certified public accountant or any414 other person or organization to perform such an audit without written authorization from415 the state auditor.416 (2) The state auditor shall annually submit a written report t o the State Board of417 Education of the local school systems and state charter schools that were audited by418 certified public accountants pursuant to this subsection.419 (f) The Department of Audits and Accounts shall adopt rules, regulations, guidance, and420 procedures necessary to implement this Code section."421 SECTION 8.422 Said chapter is further amended by revising Code Section 50-6-28, relating to investigatory423 duties generally, as follows:424 "50-6-28.425 (a) It shall be the duty of the state auditor to make an investigation as a part of his or her426 audit of each and every department of the state government. When there are facts, records,427 circumstances, or information that indicate mismanagement or misconduct on the part of428 any official or employee of any department of the state government during either a past or429 present administration, it shall be the duty of the state auditor to make the full investigation,430 as provided in Code Section 50-6-29, of the department, official, or employee.431 S. B. 472 - 17 - 26 LC 49 2813S (b) The state auditor shall be authorized to make an investiga tion of any local school432 system or state charter school, as such terms are defined in Co de Section 50-6-6, in the433 state. When there are facts, records, circumstances, or inform ation that indicate434 mismanagement or misconduct on the part of any official or employee of any local school435 system in the state during either a past or present administration of the local school system,436 it shall be the duty of the state auditor to make the full investigation, as provided in Code437 Section 50-6-29, of the local school system, official, or employee."438 SECTION 9.439 This Act shall become effective upon its approval by the Governor or upon its becoming law440 without such approval.441 SECTION 10.442 All laws and parts of laws in conflict with this Act are repealed.443 S. B. 472 - 18 -