HB 1823-FN - AS INTRODUCED
2026 SESSION
26-2803
07/09
HOUSE BILL 1823-FN
SPONSORS: Rep. Damon, Sull. 8; Rep. Girard, Sull. 6; Rep. Luneau, Merr. 9; Rep. Colby, Merr. 9; Rep. Fellows, Graf. 8; Rep. Bricchi, Merr. 15; Rep. Peeples, Hills. 14
COMMITTEE: Education Policy and Administration
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ANALYSIS
This bill requires every school, school district, and school administrative unit to produce independent audits and financial reports to be posted publicly and sent to the department of education and the department of revenue administration.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
26-2803
07/09
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twenty-Six
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 New Section; Education; School Performance and Accountability; Annual Independent Audit. Amend RSA 193-H by inserting after section 5 the following new section:
193-H:6 Annual Independent Audit.
I. Every school administrative unit, school district, and school that receives state funding shall be required to have an annual audit performed by an independent auditor. An audit report shall be submitted to the department of revenue administration and the department of education within 180 days of the end of the fiscal year. The audit shall follow the provisions of RSA 21-J:19. The findings and recommendations of the audit shall be reviewed at the next meeting of the governing body.
II. If the audit report submitted under paragraph I informs of material deficiencies, the department of education shall designate an individual at the department to receive quarterly financial reports from the school entity, whom shall consult with the school entity to address financial- and operational-related concerns. The department and state board shall consult with the district school board on the development and implementation of a remedial plan to address specific areas of concern. Financial reports shall be submitted to the department of education at least quarterly until the material deficiencies are resolved.
III. All audits shall be posted to school administrative unit, school district, and school websites, as well as provided to the corresponding superintendent, business administrator, district treasurer, chief operating officer, local school board members, and state board of education members.
IV. The business administrator, or their designee, shall be required to provide all necessary data to the independent auditor in a timely manner to assist in the completion of the report required under paragraph I.
V. All audits shall include comparisons to data submitted to the department of education from the corresponding fiscal year.
VI. Notwithstanding any provision of law to the contrary, the department of education shall be empowered to withhold funding for any school administrative unit, school district, and school that fails to comply with this section.
2 Effective Date. This act shall take effect 60 days after its passage.
26-2803
Revised 1/21/26
HB 1823-FN- FISCAL NOTE
AS INTRODUCED
FISCAL IMPACT: This bill does not provide funding, nor does it authorize new positions.
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Estimated State Impact | ||||||
| FY 2026 | FY 2027 | FY 2028 | FY 2029 | ||
Revenue | $0 | Indeterminable | ||||
Revenue Fund(s) | Education Trust Fund | |||||
Expenditures* | $0 | DOE Staffing/Administration $534K in FY27, $461K in FY28, and $484K in FY29
State Aid Payments Indeterminable | ||||
Funding Source(s) | General Fund and Education Trust Fund | |||||
Appropriations* | $0 | $0 | $0 | $0 | ||
Funding Source(s) | None | |||||
*Expenditure = Cost of bill *Appropriation = Authorized funding to cover cost of bill | ||||||
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Estimated Political Subdivision Impact | ||||||
| FY 2026 | FY 2027 | FY 2028 | FY 2029 | ||
Local Revenue | $0 | Indeterminable | ||||
Local Expenditures | $0 | Indeterminable | ||||
METHODOLOGY:
This bill requires school district and charter public schools to submit an audit to the department of education within 180 days after fiscal year close. Audits reporting material deficiencies will require additional reporting to be submitted to the Department of Education. To effectively manage the review, tracking, and oversight of 179 school district and 35 charter school audits, the Department would need two positions focused on district public schools and one position for charter schools. Furthermore, a contract amendment to develop a new module within an existing software system would require $75,000.
| FY 2027 | FY 2028 | FY 2029 |
Two (2) District Auditors (SOC 13-09, Starting Step 9) | $320,000 | $318,000 | $334,000 |
One (1) Charter School Auditor (SOC 13-09, Starting Step 5) | $139,000 | $143,000 | $150,000 |
Contract Expense | $75,000 | $0 | $0 |
Total | $534,000 | $461,000 | $484,000 |
The Department states it would set a reasonable policy of when audits needed to be submitted before funding would halt. While warnings and the publication of that policy and standard would occur, it is expected that in future fiscal years districts and charter school may not meet that requirement. Therefore, distribution of state aid may be delayed in future fiscal years which would increase State interest revenue for the Education Trust Fund Revenue and increase district and charter school interest payments who elect to borrow funds and would be charged interest.
AGENCIES CONTACTED:
Department of Education
| Date | Body | Type |
|---|---|---|
| Jan. 14, 2026 | House | Hearing |
| Jan. 22, 2026 | House | Exec Session |
Jan. 14, 2026: Executive Session: 01/22/2026 10:00 am GP 232
Jan. 8, 2026: Public Hearing: 01/14/2026 02:40 pm GP 232
Dec. 18, 2025: Introduced 01/07/2026 and referred to Education Policy and Administration HJ 1