The proposed bill, HB 7982, 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 existing internal audit, program integrity, or oversight activities within state agencies without duplication.

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 may also engage outside contractors or consultants for specialized audits or subject-matter expertise.

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), evaluating the efficiency and effectiveness of agencies and contractors receiving state or federal funds, recommending corrective actions, and providing public reports detailing audit findings and recommendations starting on November 1, 2027.

Audited entities are required to submit a corrective action plan within sixty days of receiving a performance audit report, outlining 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 and enforcement.

Additionally, the bill 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.