SB388 Alabama 2017 Session

Summary

Primary Sponsor

Tim MelsonSenator

Republican

Session

Regular Session 2017

Title

Education, local boards of education, annual financial audits may be performed by Examiners of Public Accounts or by certified public accounting firm, Sec. 16-13A-7 am'd.

Summary

SB388 would let county boards of education hire certified public accounting firms to perform annual financial audits instead of the Department of Examiners of Public Accounts, under certain circumstances.

What This Bill Does

It extends the existing option available to city boards to county boards as well, allowing annual audits to be done by private CPAs for financial, legal, and program compliance. Private CPA audits must follow standards set by the Department of Examiners of Public Accounts, with adverse findings reported to the State Superintendent (and, if applicable, to the district attorney and Attorney General in cases of misappropriation). If a system has experienced state intervention, it must be audited by the Department of Examiners of Public Accounts for three future years. Audits are public records and findings are presented to the local board and shared with the State Superintendent.

Who It Affects

• County boards of education in Alabama – would be permitted to hire certified public accounting firms to conduct their annual audits instead of using the Department of Examiners of Public Accounts, under specified circumstances.
• State education oversight bodies and affected school systems – may still be subject to Department of Examiners of Public Accounts audits for systems with prior state intervention, with adverse findings reported to the State Superintendent and, in cases of misappropriation, to the district attorney and Attorney General; audit standards are aligned between CPAs and the state department.

Key Provisions

• Amends Section 16-13A-7 to authorize county boards of education to employ certified public accounting firms to perform yearly audits in lieu of the Department of Examiners of Public Accounts, under certain circumstances.
• Allowable audits include financial, legal compliance, and program compliance audits; private CPA audits must adhere to standards established by the Department of Examiners of Public Accounts.
• If a system has had intervention by the State Superintendent of Education, the Department of Examiners of Public Accounts shall audit the system for three consecutive years.
• Adverse audit findings must be reported to the State Superintendent of Education; findings involving misappropriation or theft must also be reported to the district attorney and the Attorney General.
• Audits conducted by CPAs are public records, and findings are presented to the local board, with copies sent to the State Superintendent and the Superintendent notified of meeting details.
• Effective date: the act takes effect on the first day of the third month after its passage and approval by the Governor.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Education