ESA program required to create risk-based auditing procedures

As part of the state budget approved in 2024, the Arizona Legislature required the ESA program to work with the state’s Auditor General to create risk-based auditing procedures. The goal of that law, which went into effect in September 2024, is to ensure students and parents who use the program comply with rules on how the money is used. 

According to Arizona Auditor General Lindsey Perry, she told lawmakers on the Joint Legislative Audit Committee the Education Department had blown off her office’s repeated requests over several months to meet with ESA administrators and create the audit processes. 

Caitlin Sievers, a reporter for Arizona Mirror, joined “Arizona Horizon” to discuss the latest developments.

“So to be clear they are doing the audits,” Sievers explained, “…they just didn’t work with the auditor general to create the processes to do the audits.”

When discussing “risk-based procedures,” Sievers says it overlooks the parental purchases made through the program. They tend to take a look at individuals with past misspending, purchases for a website, or purchases that aren’t towards tuition.

“…so looking at some of those purchases that would be more likely to be fraudulent or misspending,” Sievers said.

The spokesperson for the department told Sievers, “…we’re doing the audits, it’s a standard process for government entities and businesses, and we’re talking with the auditor general now.”

Almost one year since the law was put into place and it states, “…the deparment of education and the auditor general’s office shall work together to make risk based audit procedures.”

Sievers emphasized how this to ensure that people are making purchases that follow the proper guidelines. Prior investigations revealed that individuals had made purchases for lingerie, appliances, and diamond rings.