The proposed bill, SB 2448, aims to enhance the oversight capabilities of the Office of the Auditor General (OAG) in Rhode Island by establishing a dedicated performance audit division. This division will be responsible for planning, conducting, and reporting on performance audits of state agencies and contractors or other entities receiving state or federal funds. The bill specifies that the performance audit division shall complement and not duplicate existing internal audit, program integrity, or oversight activities within state agencies.

The division is mandated to be staffed with no fewer than five full-time equivalent positions, including a chief performance auditor and necessary analysts/auditors, with the possibility of expansion as needed. The auditor general is also authorized to engage outside contractors or consultants for specialized audits.

Key responsibilities of the performance audit division include preparing and publishing an annual performance audit plan starting on November 1, 2026, conducting audits in accordance with Generally Accepted Government Auditing Standards (GAGAS), and evaluating the efficiency and effectiveness of agencies and contractors receiving state or federal funds. The division will also recommend corrective actions and follow up on prior audit recommendations.

Audited entities will be required to submit a corrective action plan within sixty days of receiving a performance audit report, detailing actions taken and timelines for addressing deficiencies. The OAG will monitor the implementation of these plans and report annually on agency compliance. If an audited entity fails to make reasonable progress on a corrective action plan or if a performance audit identifies potential violations of law or material financial harm, the auditor general may refer the matter to the Rhode Island attorney general for further review.

The bill also ensures that the OAG has unrestricted access to records, data, and personnel of all state agencies and contractors as necessary to perform its duties, while maintaining protections for confidential or proprietary information consistent with state and federal law. This act is designed to improve government accountability and efficiency.