HB3722 Summary

• Amends the Public Community College Act to require each community college district board of trustees to establish an audit committee with fiduciary duty for assessing risk and overseeing financial reporting, internal controls, and legal compliance.

• Audit committee must consist of at least 3 board members with at least one qualified financial expert possessing understanding of accounting principles, financial statements, auditing, and internal controls.

• Committee has authority to conduct district-wide investigations through an internal audit department, with unrestricted access to management, records, facilities, and property; may retain independent counsel and accountants for audits and investigations.

• Committee chairperson must approve all human resources actions related to the internal audit director and report committee activities to the board quarterly, including audit plans, findings, and recommendations.

• Committee must meet at least 5 times per year and has extensive duties including reviewing audit results, establishing whistleblower complaint procedures, overseeing internal and external audits, and reporting regularly to the full board on financial integrity and auditor performance.