The Public Finance Accountability Act establishes a framework for enhancing accountability in public finance by creating the Public Finance Accountability Fund, which will be administered by the office of the state auditor. This fund will consist of appropriations, gifts, grants, donations, and investment income, and is intended to assist grantees in complying with the Audit Act. The Act outlines specific funding criteria that grantees must meet to be eligible for grants, including requirements related to annual audits, compliance with financial reporting, and the ability to manage grant funds effectively.

Additionally, the Act mandates the Department of Finance and Administration to establish grant management and oversight requirements for state agencies, ensuring that capital assets acquired with grant funds are managed in accordance with applicable laws. The department is tasked with developing procedures, policies, and templates for grant agreements, as well as monitoring compliance with the established criteria. The provisions of this Act will take effect on July 1, 2025.