Establishes timelines for review and approval by Commissioner of Education of annual certified audits submitted by approved private schools for students with disabilities.

S3432

SENATE, No. 3432

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED FEBRUARY 9, 2026

Sponsored by:

Senator� JAMES BEACH

District 6 (Burlington and Camden)

Senator� ANGELA V. MCKNIGHT

District 31 (Hudson)

SYNOPSIS

���� Establishes timelines for review and approval by
Commissioner of Education of annual certified audits submitted by approved
private schools for students with disabilities.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
concerning annual audits of approved private schools
for students with disabilities and supplementing chapter 46 of Title 18A of the
New Jersey Statutes.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.� a.� Notwithstanding the
provisions of any law to the contrary, the Commissioner of Education shall not
issue an adverse finding, adjustment, or penalty regarding a review of an
annual independent certified audit conducted on behalf of an approved private
school for students with disabilities, beyond the following timelines:

���� (1)� for an independent
certified audit submitted for any school year ending after the effective date
of this act, seven years following the date of the submission of the audit; or

���� (2) for an independent
certified audit submitted for any school year ending prior to the effective
date of this act, seven years following the date of the submission of the audit
or two years following the effective date of this act, whichever is the later
date.

���� b.� If the commissioner does
not conduct and complete the audit review pursuant to the timelines established
in subsection a. of this section, the audit shall be deemed approved for all
purposes.

���� 2.��� This act shall take
effect immediately.

STATEMENT

���� Many of New Jersey�s most
vulnerable students receive the educational program and services required in
their individual education program at approved private schools for students
with disabilities (APSSDs) as part of the statutorily created continuum of services
established pursuant to N.J.S.18A:46-14.

���� Pursuant to regulation, APSSDs
are required to submit annually to the Commissioner of Education an independent
audit as part of the tuition setting process and accountability structure.� It
is not uncommon for the commissioner to take 20 years or more to complete the
review of the submitted annual audit and finalize the tuition rate charged by
the APSSDs to sending school districts for that school year.� This inordinate
delay creates havoc in the budgeting process for both the APSSDs and the
sending school districts.� There is also a manifest unfairness in holding
APSSDs responsible for audits that were completed so far in the past, because
it is difficult for the APSSDs to defend themselves against the audit review
findings under these circumstances.� Basic fairness to the APSSDs requires
timely notice of the audit review findings and a meaningful chance to be heard
and defend against the finding.� There is also a concern that an audit finding
by the commissioner regarding an audit completed many years ago will be
repeated in each succeeding year as a continuing finding and thereby compound
the financial impact of any disagreement, error, or omission.

���� The bill provides a timeline
within which the Commissioner of Education must issue any adverse finding,
adjustment, or penalty regarding an audit submitted by an APSSD.� For audits
submitted for any school year ending after the effective date of the bill, the
action of the commissioner must be within seven years of the date of the
submission of that audit.� For audits submitted for any school year ending
prior to the effective date of the bill, the action of the commissioner must be
within seven years of the date of the submission of that audit or two years
following the effective date of the bill, whichever is the later date.�