Horne: Governor signed bill requiring audit method she now criticizes

 Statement responds to Hobbs’ letter

PHOENIX – State schools chief Tom Horne issued the following statement in response to Governor Hobbs’ letter critical of the risk-based auditing approach for Empowerment Scholarship Program reimbursements:

“The method we are instituting, known as risk-based auditing, is specifically provided for in the budget statute that the Governor signed last session. Maybe she should start reading what she signs.

Equally startling, is that she herself created the problem we are trying to solve by signing a bill to permit private school tuition to be paid under the reimbursement method, rather than going through our vendor, Class Wallet, which was previously required. This played a major role in increasing the delays and reimbursements from 30 days a year ago to over 100 days now.

The Governor played a major role in creating a problem that we now must solve by using a method provided for in a Bill that she signed.

Part of the problem appears to be that staff in the Governor’s office are slow learners.”

Arizona law (A.R.S. 15-2403 (B)), that was signed in the most recent legislative session, states: The department shall conduct or contract for annual audits of Arizona empowerment scholarship accounts to ensure compliance with section 15-2402, subsection B, paragraph 4. The department shall also conduct or contract for random, quarterly and annual audits of Arizona empowerment scholarship accounts as needed to ensure compliance with section 15-2402, subsection B, paragraph 4. The department, in consultation with the office of the auditor general, shall develop risk-based auditing procedures for audits conducted pursuant to this subsection.

The ESA program is among the most accountable program in the State. It’s responsible for demonstrating accountability through reporting that is required by statute, rules, and ad hoc requests from seven government agencies and bodies, including: Governor’s Office; Legislative Leadership; Joint Legislative Budget Committee; Attorney General’s Office (multiple units); Auditor General’s Office (multiple divisions); State Board of Education and the State Ombudsman.