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ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
homelessness; data; performance audit
Purpose
Requires the Office of the Auditor General (OAG), by December 31, 2026, to conduct a special audit of the amount of monies spent on programs and services for individuals experiencing homelessness in Arizona.
Background
The Auditor General is appointed to a five-year term by the Joint Legislative Audit Committee (JLAC), upon approval of a concurrent resolution of the Legislature. The OAG is charged with several powers and duties, including: 1) preparing an audit plan for approval by JLAC; 2) conducting audits relating to the finances and performance of state agencies, government functions and school districts; 3) performing special research requests, special audits and investigations of state agencies as requested by JLAC; 4) reporting the results of each audit, investigation or review to JLAC; and 5) establishing a uniform expenditure reporting system for political subdivisions (A.R.S. ยง 41-1279.03).
The Arizona Department of Economic Security (DES) offers programs and services to assist persons who are in a time of need including homelessness resources and services. While DES does not directly administer or provide homeless programs or services, the DES Homeless Coordination Office uses a combination of federal and state funds to contract with local nonprofit and governmental entities to provide services to individuals who are homeless in Arizona. Services include rapid rehousing, emergency shelter, homeless prevention and street outreach. The nonprofits and governmental entities may partner with cities, towns or counties and local organizations to provide individuals in need, including individuals who are homeless, with assistance and resources (DES; ADOH).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Requires the OAG to conduct a special audit of the amount of monies spent on programs and services for individuals experiencing homelessness in Arizona including:
a) expenditures by the state;
b) expenditures by municipalities and counties with homeless populations higher than the per capita average in Arizona;
c) expenditures of federal monies allocated to the state for homeless programs; and
d) expenditures by state and local law enforcement agencies to address homelessness, including transportation to emergency shelters, responding to crisis calls, providing overnight shelter in jail and enforcing camping bans.
2. Requires all state and local government entities of the state to cooperate with the special audit and grant access, at no cost, to all financial records and any other information necessary to complete the special audit.
3. Requires the special audit to examine:
a) the awarding of any contracts and grants relating to homeless services and support;
b) any metrics used to examine the success of any expenditures;
c) the efficiency of the use of data management systems in relation to the programs; and
d) the expenditure for each individual experiencing homelessness for each service provided.
4. Requires the OAG, by December 31, 2026, to submit copies of the special audit report to the Governor, the President of the Senate and the Speaker of the House of Representatives and provide a copy of the report to the Secretary of State.
5. Repeals this legislation on July 1, 2027.
6. Becomes effective on the general effective date.
House Action
GOV 2/5/25 DP 4-3-0-0
3rd Read 2/26/25 33-27-0
Prepared by Senate Research
March 17, 2025
AN/DL/mg