Agencies; single audit reports; penalty
The bill will amend Title 41 of the Arizona Revised Statutes to include penalties for late submissions of required audit reports. This legislative change is intended to enhance accountability among state agencies by ensuring they meet federal compliance standards. Furthermore, it includes provisions that allow the state treasurer to withhold appropriated funds equivalent to the penalty amount from the agency’s future allocations, effectively incentivizing timely reporting and adherence to established guidelines.
Senate Bill 1473 introduces provisions for state agencies in Arizona regarding compliance with federal single audit requirements. Specifically, the bill mandates that if an agency fails to submit a schedule of expenditures of federal awards on time, it will incur a penalty of one percent of the federal funds received for every thirty days the submission is late. This change is aimed at promoting timely reporting and financial oversight of federal funds allocated to state agencies.
The sentiment surrounding SB 1473 appears generally supportive among legislators who advocate for stricter financial oversight and increased accountability of public funds. Proponents argue that imposing penalties encourages agencies to uphold their reporting responsibilities. However, concerns may arise from those who fear that strict penalties could inadvertently stifle agency operations, particularly if they are unable to meet deadlines due to resource constraints or funding shortages.
While there is a recognition of the need for compliance and accountability, the bill raises questions regarding its potential impact on agency operations. Opponents may argue that the penalties could lead to negative outcomes for agencies, especially those that are already challenged by administrative or financial limitations. The discussion surrounding this legislation underscores the balance between enforcing compliance and providing sufficient support and resources to ensure agencies can fulfill their obligations without severe financial repercussions.