SB914 - School accountability: audits: annual review.

Amended IN Senate April 06, 2026 CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION Senate Bill No. 914 Introduced by Senator Ashby January 27, 2026 An act to amend Section 41020.3 of the Education Code, relating to school accountability. LEGISLATIVE COUNSEL'S DIGEST SB 914, as amended, Ashby. School accountability: audits: annual review. Existing law requires the governing board of each local educational agency to either provide for an audit of the books and accounts of the local educational agency or make arrangements with the respective county superintendent of schools to provide for that auditing. Existing law requires the governing board of each local educational agency, by January 31 of each year, to review, at a public meeting as an item on the agenda, the annual audit of the local educational agency for the prior year, any audit exceptions identified in that audit, the recommendations or findings of any management letter issued by the auditor, and any description of correction or plans to correct any exceptions or management letter issue, as provided. This bill would change the date by which the governing board or body of each local educational agency school district, educational joint powers authority, county superintendent of schools, or charter school is required to review the above-described annual audit of the local educational agency at a public meeting from January 31 of each year to instead be March 31 of each year, or within 45 days after the issuance of an audit report, whichever is later. report. The bill would additionally require the governing board or body of the local educational agency, at the public meeting described above, to accept or reject the annual audit report. To the extent the changed date would the bill would impose additional duties on local educational agencies or other local entities or officials, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above. Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YES Bill Text The people of the State of California do enact as follows: SECTION 1. Section 41020.3 of the Education Code is amended to read: 41020.3. (a) By March 31 of each year, or Within 45 days after the issuance of an audit report, whichever is later, the governing board or body of each local educational agency shall review, at a public meeting, the annual audit of the local educational agency for the prior year, any audit exceptions identified in that audit, the recommendations or findings of any management letter issued by the auditor, and any description of correction or plans to correct any exceptions or management letter issue. This review (b) The review in subdivision (a) shall be placed on the agenda of the meeting pursuant to Section 35145. 35145 or 47604.1, as applicable. The action of the governing board or body of the local educational agency shall be to accept or reject the annual audit report. (b) During the 2021–22 fiscal year, the annual audit for the 2020–21 fiscal year and its relevant components, as identified pursuant to subdivision (a), shall instead be reviewed by February 28, 2022. (c) For purposes of this section, “local educational agency” means a school district, educational joint powers authority, county superintendent of schools, or charter school. SEC. 2. If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.