Ariz. State Rep. Matt Gress (R-Phoenix), left, and Ariz. AG Kris Mayes (D) | AZleg.gov / AZag.gov
Ariz. State Rep. Matt Gress (R-Phoenix), left, and Ariz. AG Kris Mayes (D) | AZleg.gov / AZag.gov
Arizona State Rep. Matt Gress (R-Phoenix), the chairman of the Joint Legislative Audit Committee, said he is “deeply concerned about the lack of compliance” with school district financial reporting to the auditor general.
Thirteen Arizona school districts are currently noncompliant with the uniform system of financial records for Arizona school districts, reported the Grand Canyon Times on Tuesday.
“At our February Audit Committee meeting the Arizona Auditor General (AAG) presented an analysis on school district financial risk,” said Gress. “As of December 2023, four Arizona school districts are at higher financial risk than the other 207 other Arizona school districts based on this analysis. However, we have dozens more that are at financial risk in at least one or more of the 10 categories.”
“We have cases of embezzlement, violations of Open Meeting Laws , and many other egregious acts,” said Gress. “The Attorney General needs to step up enforcement of our current laws governing K-12 school districts.”
Gress said the AAG analysis measures 10 risks related to a school district’s ability to operate within its available cash resources and budget constraints.
The thirteen school districts that are noncompliant were identified through compliance reviews performed by the AAG’s office on school districts and university, or community college-sponsored charter schools.
“The purpose of the review is to evaluate whether the school district or charter school is in substantial compliance with the Uniform System of Financial Records for Arizona School Districts (USFR) or Uniform System of Financial Records for Arizona Charter Schools (USFRCS),” said the AAG web site.
When a school district is found to be out of compliance, a “noncompliance letter for internal control deficiencies” is sent by the AAG to the district. That letter is “primarily based upon the review of the USFR or USFRCS Compliance Questionnaire, auditor’s report on internal control and compliance, management letter, and financial statements.”
The AAG’s office, established by the Legislature in 1969, serves as an independent source of impartial information concerning state and local government entities and provides specific recommendations to improve the operations and accountability of government entities. The office conducts financial and performance audits, reviews compliance with various laws and regulations, and offers consulting services to government agencies.
Gress, who was elected in 2022 and took office in January, has previously served as a public school teacher, school board member, and faculty associate at Arizona State University.
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Which Arizona school districts are currently noncompliant with the uniform system of financial records for Arizona school districts?
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