(a) The Legislative Joint Auditing Committee may refer an audit report of a school district to the Department of Education if:

1. (1) The report identifies a substantial issue of noncompliance with state or federal financial or other reporting requirements; and
2. (2) The same issue has been identified in two (2) consecutive audit reports.

(b)

1. (1) The department shall submit the audit report referred to in subsection (a) of this section to the Professional Licensure Standards Board in forms approved by the department.

2. (2) The board shall:

   1. (A) Investigate any referral made by the committee; and
   2. (B) Provide a report on the disposition of all referrals no later than July 1 of each year.