Expands authority of State Auditor on performance audits of school districts; requires State Auditor to issue report on school district audits from previous five years; requires appropriation of $1.5 million to Office of State Auditor annually for such audits.

This bill requires New Jersey's State Auditor to annually issue a summary report on school district performance audits from the previous five years, including recommended best practices. School districts must submit certified responses within 60 days detailing their compliance with these recommendations and any implementation barriers. The State Auditor gains expanded authority to conduct follow-up audits on non-compliant districts and may require reimbursement from districts making false statements, with funds deposited into a dedicated "School District Performance Audit Reimbursement Fund." The bill mandates an annual $1.5 million appropriation from the state budget to cover these audit costs, reduced by funds collected through reimbursements.