GA HB1164

State Board of Education must appoint an audit committee that meets at least six times annually to review fiscal conditions of local school systems, state charter schools, and completion special schools designated as high-risk or moderate-risk by the Department of Audits and Accounts.

Local school systems and state charter schools must submit annual audit readiness certifications by December 31 and certify they are not delinquent on payments to the state health benefit plan, Teachers Retirement System, Public School Employees Retirement System, or Department of Labor.

Department of Audits and Accounts must develop a four-tiered progressive monitoring system (Tier 1: Fiscally Sound through Tier 4: Critical Fiscal Emergency) by July 1, 2026, with full implementation by the 2028-2029 school year, providing escalating supports and interventions based on fiscal distress indicators.

State Board of Education gains authority to unilaterally amend or terminate performance contracts and charter system contracts when a local school system is designated high-risk; superintendent contract extensions are limited to 12 months while a system holds high-risk designation.

Office of Student Achievement receives expanded authority to conduct performance audits of waiver use by schools and local education agencies, with audit reports provided to legislative committee chairs and posted publicly; effective date is July 1, 2026.