SB 914
School accountability: audits: annual review.
Vote required
Majority
Fiscal committee
No
Appropriation
No
Current location
Education
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- Passed Senate
- Passed Assembly
- To Governor
- Became Law
Bill overview
This bill changes the deadline for school districts and other educational entities to review their annual audits. Currently, they must do so by January 31st each year. The bill extends this deadline to March 31st or 45 days after the audit report is issued, whichever comes later. Additionally, the governing board must formally accept or reject the audit report at a public meeting. The bill also includes a provision for state reimbursement if the Commission on State Mandates determines the bill creates state-mandated costs.
Key provisions
- Extends the deadline for reviewing annual audits from January 31st to March 31st or 45 days after report issuance.
- Requires governing boards to formally accept or reject the annual audit report at a public meeting.
- Defines ‘local educational agency’ to include school districts, joint powers authorities, county superintendents, and charter schools.
- Specifies that the review must include audit exceptions, auditor recommendations, and plans for correction.
- Addresses the audit review timeline for the 2021-22 fiscal year, requiring review by February 28, 2022.
- Establishes a process for state reimbursement if the bill creates state-mandated costs.
Who is affected
- School districts
- Educational joint powers authorities
- County superintendents of schools
- Charter schools
- Governing boards of educational agencies
Notable changes
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SB914:v98#DOCUMENT
Bill Start
| 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.