Assigned to ED FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Fifth Legislature, Second Regular Session
FACT SHEET FOR H.B. 2179
schools; accounting responsibility plans; counties
Purpose
Directs a school district applying to the State Board of Education (SBE) to assume
accounting responsibility of the district to first apply for a county treasurer evaluation and requires
the school district to file the accounting responsibility plan with the county school superintendent.
Background
The office of county superintendent is designated as a local education agency serving as
an education service agency eligible to receive and spend local, state and federal monies to provide
programs and services to school districts and other educational entities within the county. The
county school superintendent must apportion school monies to the school districts of the county
(A.R.S. §§ 15-301 and 15-303).
A school district may apply to the SBE to assume accounting responsibility by filing with
the Arizona Department of Education an accounting responsibility plan that documents:
1) specified administrative and internal accounting controls to achieve compliance with the
Uniform System of Financial Records; and 2) a compilation of resources required to implement
accounting responsibility. Before submitting the application, the school district must apply for an
evaluation by the Auditor General that includes the school district's most recent audited financial
statements, reports on internal control and compliance and Uniform System of Financial Records
compliance questionnaire. On notification of a school district's intent to assume accounting
responsibility, the county treasurer must establish acceptable standards for interface by school
districts with the county treasurer, including specifications for computer hardware compatibility
and procedures to ensure the capacity of each school district to reconcile accounts with the county
treasurer's accounts.
Accounting responsibility is the authority for a school district to operate with full
independence from the county school superintendent with respect to revenues and expenditures,
including allocating revenues, monitoring vouchers, authorizing warrants and maintaining and
verifying staff records for certification and payroll purposes (A.R.S. § 15-914.01).
There is no anticipated fiscal impact to the state General Fund associated with this
legislation.
Provisions
1. Directs a school district, before January 1 of the fiscal year preceding the fiscal year of
implementation and before submitting an application to assume accounting responsibility, to
apply for evaluation by the county treasurer of the county in which the school district is located. FACT SHEET
H.B. 2179
Page 2
2. Authorizes the county treasurer, on completion of the evaluation, to recommend to the SBE
the approval or denial of accounting responsibility.
3. Requires the county treasurer evaluation to include, at a minimum, an analysis of the computer
programming required for the county to manage school district funds.
4. Directs a county treasurer to perform the evaluation contingent on staff availability and allows
the county treasurer to bill the evaluation to the school district at cost.
5. Replaces the requirement that a school district notify the county school superintendent of its
intention to assume accounting responsibility with a requirement to file an accounting
responsibility plan with the county school superintendent.
6. Removes the requirement that a school district notify the county treasurer of its intent to
assume accounting responsibility.
7. Requires the county treasurer, on receipt of an accounting responsibility plan, rather than on
notification, to establish acceptable standards for interface by school districts with the county
treasurer as prescribed.
8. Makes technical and conforming changes.
9. Becomes effective on the general effective date.
House Action
ED 2/15/22 DPA 9-0-0-1
3
rd
Read 2/23/22 59-0-1
Prepared by Senate Research
March 11, 2022
LB/KJA/slp