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

This bill requires New Jersey's State Auditor to annually issue a summary report of school district audits from the previous five years, sent to school boards, the Governor, Legislature, and posted online. School districts must submit an official response within 60 days detailing their compliance with audit recommendations, steps taken to implement best practices, and any obstacles. The bill also mandates the State Auditor to conduct performance audits on districts not meeting standards and on a random annual sample, with false responses requiring reimbursement to a dedicated fund. It appropriates $1.5 million annually to the State Auditor's office to cover these audit costs, offset by reimbursements from school districts. The bill directly affects all New Jersey public school districts and the Office of the State Auditor.