Arizona Superintendent of Public Instruction Tom Horne has responded to criticism from Attorney General Kris Mayes regarding the Empowerment Scholarship Account (ESA) program. In a letter, Horne addressed comments made by Mayes in a recent television interview and written communication, asserting that the public was misled about how improper ESA purchases are handled.
Horne stated, “In your letter today, and in a recent television interview, you misled the public by stating that improper ESA purchases had been approved, without any reference to the fact that under risk-based auditing dictated by the legislature the money has been recovered or is in the process of being recovered. We have collected or are in the process of collecting more than $600,000 that was paid out for improper purchases.”
He defended risk-based auditing as a standard practice among auditors and noted the experience of the ESA Director. According to Horne, “Risk-based auditing is a very common and appropriate practice used by auditors, and the ESA Director has more than 16 years’ experience as an auditor. The risk-based approach involves not approving purchases prior to review, but paying amounts under $2,000 subject to later review, which is how we were able to collect or be in the process of collecting more than $600,000.”
Horne also challenged Mayes’s claim that her actions were nonpartisan. He said: “You state that this is not partisan. That is disproved by all the false statements you made on the television interview.”
The superintendent pointed out that current procedures follow legislative requirements set forth in ARS section 15–2403B: “‘The department, in consultation with the office of the auditor general, shall develop risk-based auditing procedures for audits conducted pursuing to this subsection.’” He explained these measures were adopted because staffing levels for purchase reviews have not increased despite significant program growth.
Horne further stated that legislative efforts to increase staff funding were removed after threats of a budget veto from Governor Katie Hobbs. This limitation led to delays exceeding two months for reimbursement requests—a situation he described as difficult for parents seeking timely payments.
Addressing concerns over approval of questionable expenses within ESA accounts, Horne wrote: “Again, you misled the public in your interview by stating that these improper items have been approved. They were not approved, and as to all the items you mentioned, the accounts have already been frozen.” He added it was incorrect not to acknowledge recovery efforts totaling over $600,000 and reiterated legislative direction on audit procedures.
Regarding oversight discussions with Arizona’s auditor general following a July 21 legislative audit committee meeting, Horne clarified: “Some have erroneously interpreted the word ‘consultation’ to mean that the auditor general has the right to dictate terms to us. That is incorrect. The normal English language use of the word consultation is that we have a discussion, which we have done, and then proceed. However, we have agreed to have further consultations with the auditor general and will do so.”
