The proposed bill mandates that any private entity receiving public funds through grants must engage a third-party auditor approved by the state auditor to conduct a comprehensive audit. This audit must include detailed reporting on the total public funds received, itemized expenditures, evaluations of financial statements, and assessments of program effectiveness and community support. Additionally, the bill stipulates that no more than 15 percent of the public funds can be allocated for administrative expenses, and grants must be reapplied for annually to be renewed.

The financial burden of the audit will fall on the private entity being audited, and the completed audit must be submitted to the state auditor within six months of the fiscal year-end. The state auditor is responsible for ensuring compliance with these auditing requirements and will publish all audit results on their website. The bill also provides definitions for key terms such as "community buy-in" and "private entity" to clarify the scope of the legislation.