New Jersey Assembly Bill A4396

New Jersey 2022-2023 Regular Session

• Introduced: 6/27/22
• Refer: 6/27/22
• Refer: 9/22/22
• Report Pass: 12/12/22
• Engrossed: 12/15/22
• Refer: 12/15/22
• Report Pass: 1/4/24
• Enrolled: 1/8/24
• Vetoed: 1/16/24

Caption

Establishes timelines for review and approval by Commissioner of Education of annual certified audits submitted by approved private schools for students with disabilities.

Impact

The proposed legislation is set to significantly impact the budgeting processes for both APSSDs and sending school districts. Due to the lengthy time frame over which traditional audit reviews have occurred—sometimes extending beyond 20 years—these schools often find themselves in a precarious financial situation. With the new regulation, if the Commissioner fails to complete the review within the stipulated timelines, the audit will automatically be deemed approved, providing much-needed reassurance to the schools and facilitating smoother fiscal operations.

Summary

Assembly Bill A4396 aims to establish definite timelines for the review and approval of annual certified audits submitted by approved private schools for students with disabilities (APSSDs) by the Commissioner of Education. The bill intends to alleviate the significant delays often faced by these schools in receiving acknowledgment or judgments regarding their submitted audits, thus improving the overall efficiency of the auditing process. By mandating that audits submitted for school years ending after the effective date of the act be reviewed within seven years, the bill seeks to expedite a process that has historically lagged, sometimes for decades.

Contention

Despite its intended benefits, A4396 may not be free from contention. Supporters of the bill argue that it provides necessary protections and fairness for APSSDs, who are often unduly held accountable for changes or errors from audits conducted many years ago. On the other hand, critics may raise concerns about the implications of automatically approving audits not thoroughly reviewed, potentially leading to unchecked financial practices within these institutions. Moreover, the speed of the review process imposed by the bill could also challenge the thoroughness of financial oversight.

Considerations

Overall, A4396 represents a pivotal shift in how financial audits for private schools catering to students with disabilities will be managed in New Jersey. It underscores the need for timely assessments while balancing the requirement for accountability. The bill's enactment will demand vigilance to ensure that the need for expediency does not compromise the integrity of the audit process.