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ARIZONA STATE SENATE
Fifty-Seventh Legislature, Second Regular Session
performance audits; auditor general
Purpose
Requires the Auditor General (OAG), if requested by the Joint Legislative Audit Committee (JLAC), to conduct performance audits of an agency or political subdivision to determine whether the required terms and conditions are being met.
Background
JLAC is a statutory committee that consists of five members of the Senate who are appointed by the President of the Senate and five members of the House of Representatives (House) who are appointed by the Speaker of the House. JLAC must: 1) oversee all audit functions of the Legislature and state agencies; 2) require state agencies to comply with findings and directions of JLAC; and 3) perform all functions required by statute relating to the sunset review of state agencies (A.R.S. § 41-1279).
The OAG must prepare an audit plan for approval by JLAC and report to JLAC the results of each audit and investigation and other reviews conducted by the OAG. As designated by JLAC, the OAG must perform special audits and related assignments and, at the request of JLAC, conduct performance audits, special audits, special research requests and investigations of any state agency. A performance audit means an audit that determines with regard to the purpose, functions and duties of the audited agency: 1) whether the audited agency is managing or using its resources, including public monies of the state, personnel, property, equipment and space, in an economical and efficient manner; 2) the causes of inefficiencies or uneconomical practices, including inadequacies in management information systems, internal and administrative procedures, organizational structure, use of resources, allocation of personnel, purchasing policies and equipment; 3) whether the desired results are being achieved; and 4) whether objectives established by the Legislature or other authorizing body are being met (A.R.S. §§ 41-1278 and 41-1279.03).
In 2025, the Joint Legislative Budget Committee (JLBC) published a fiscal note on S.B. 1323, an identical measure to S.B. 1645, which states that JLBC cannot estimate the impact in advance since the workload is dependent on the degree to which JLAC directs the OAG to conduct the performance audits specified by the legislation (JLBC fiscal note).
Provisions
1. Requires the OAG, if requested by JLAC, to conduct performance audits of an agency or political subdivision of the state that receives taxpayer monies to determine whether the terms and conditions that are required to receive the taxpayer monies are being met.
2. Makes technical changes.
3. Becomes effective on the general effective date.
Prepared by Senate Research
February 13, 2026
AN/ci