Overview:
Ohio Senate Bill 48 proposes amendments to Section 117.113 of the Ohio Revised Code, which governs the auditing responsibilities of the Auditor of State. The bill seeks to explicitly mandate annual audits of specific funds and accounts of all chartered nonpublic schools in Ohio that receive public money. This expands upon the current law, which already requires annual audits of science, technology, engineering, and mathematics (STEM) schools.
Main Themes and Important Ideas/Facts:
- Expansion of Auditing Requirements: The central theme of SB 48 is the broadening of the Auditor of State’s mandatory auditing responsibilities to include a wider range of chartered nonpublic schools. Currently, Section 117.113(A) specifically requires annual audits only for STEM schools established under Chapter 3326 of the Revised Code.
- The bill introduces a new division (B) stating: “Each fiscal year, the auditor of state shall audit the specific funds or accounts of each chartered nonpublic school in the state into which public money has been placed or deposited for that fiscal year.” (Page 1, lines 9-12)
- Focus on Public Funds: The proposed audits are specifically targeted at funds and accounts within chartered nonpublic schools that have received “public money.”
- The bill explicitly defines “public money” in this context: “For purposes of this division, ‘public money’ includes any funds the school receives from the state for any of the following:” (Page 1, lines 13-15)
- Specific Sources of Public Money Identified: The bill lists three key state funding sources that trigger the mandatory audit requirement for chartered nonpublic schools:
- Educational Choice Scholarship Program: Funds received for participation in the voucher program established under sections 3310.01 to 3310.17 of the Revised Code.
- “(1) Participation in the educational choice scholarship program established under sections 3310.01 to 3310.17 of the Revised Code;” (Page 1, lines 16-18)
- Administrative and Clerical Cost Reimbursements: Funds received as reimbursements prescribed under section 3317.063 of the Revised Code.
- “(2) Administrative and clerical cost reimbursements prescribed under section 3317.063 of the Revised Code;” (Page 2, lines 1-2)
- Auxiliary Services Reimbursements: Funds received as reimbursements prescribed under section 3317.064 of the Revised Code.
- “(3) Auxiliary services reimbursements prescribed under section 3317.064 of the Revised Code.” (Page 2, lines 3-4)
- Annual Audits: The bill mandates that these audits of public funds in chartered nonpublic schools occur “each fiscal year.” (Page 1, line 9) This signifies a consistent and recurring oversight of public money allocated to these schools.
- Amendment and Repeal: The bill explicitly states that it is amending existing Section 117.113 and repealing the current version of that section.
- “Section 1. That section 117.113 of the Revised Code be amended to read as follows:” (Page 1, lines 6-7)
- “Section 2. That existing section 117.113 of the Revised Code is hereby repealed.” (Page 2, lines 22-24) This indicates a clear intent to replace the existing language with the proposed changes.
Potential Implications:
- Increased Oversight: The bill signifies a move towards greater financial oversight of chartered nonpublic schools that receive state funding.
- Transparency and Accountability: Mandating audits of public funds could enhance transparency and accountability in how these schools utilize taxpayer money.
- Administrative Burden: Chartered nonpublic schools receiving the specified public funds may face an increased administrative burden associated with preparing for and undergoing annual audits.
- Resource Allocation for Auditor of State: The Auditor of State’s office will likely need to allocate additional resources to conduct these expanded auditing responsibilities.
Conclusion:
Senate Bill 48 represents a significant proposed change to the auditing requirements for chartered nonpublic schools in Ohio. By mandating annual audits of specific funds derived from state programs like the Educational Choice Scholarship Program and various reimbursements, the bill aims to increase financial accountability and oversight of public money flowing to these institutions. The explicit definition of “public money” within this context clarifies the scope of the proposed auditing requirements. The bill’s passage would repeal the existing language of Section 117.113 and replace it with the expanded auditing mandate.