The bill amends the Audit Act to enhance audit requirements and broaden the definition of "agency" to include additional entities, such as organizations that support public post-secondary educational institutions. It raises the local public body audit threshold from $50,000 to $100,000 and introduces provisions for statewide federal single audits starting in fiscal year 2028. The auditing process is updated to allow for joint audits by state auditor personnel and independent auditors, with new criteria established for local public bodies based on their financial metrics. Additionally, a non-reverting "audit fund" is created in the state treasury, which will be administered by the state auditor and funded through earmarked revenue, appropriations, and fees from audited agencies.

The bill also clarifies procedures for contract audits by independent auditors for state agencies and local public bodies, requiring them to notify the state auditor when designated for an audit and to contract with an independent auditor of their choice, subject to state auditor rules. It mandates that state-chartered charter schools and agencies under public education oversight obtain approval from their respective agencies before selecting an auditor. Payments for audit services are contingent upon contract approval by the state auditor, with provisions for progress payments based on work demonstrated. Notably, the language regarding the audit fund not reverting at the end of the fiscal year has been deleted, highlighting the continuous funding for the state auditor's operations.

Statutes affected:
introduced version: 6-6-1, 12-6-2, 12-6-3, 12-6-5, 12-6-13, 12-6-14