Bill > SB719

This bill strengthens financial and performance audit requirements for local educational agencies, including school districts, county offices of education, and charter schools, by introducing several key provisions. The California Board of Accountancy will now be required to adopt regulations for peer review of firms conducting educational agency audits, ensuring that review teams include members with experience in local educational agency financial audits. The Controller will conduct more comprehensive quality control reviews, including mandatory reviews after an auditor's first local educational agency audit and every three years for charter school audits. Starting in the 2026-27 fiscal year, auditors will be required to complete 24 hours of continuing education specific to governmental accounting and local educational agency requirements, and demonstrate prior experience or professional development in conducting such audits. The bill also expands the circumstances under which an independent auditor can be referred to the California Board of Accountancy for potential disciplinary action, such as discovering material deficiencies during quality control or peer reviews. Additionally, the legislation aims to improve accountability by requiring more detailed reporting, review of audit exceptions, and ensuring that audit teams have the necessary expertise to conduct thorough and accurate financial reviews of educational agencies.

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https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260SB719