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 information such as the total amount of state and federal funds received, an itemized account of expenditures, evaluations of financial statements, and assessments of program effectiveness and community support. Additionally, the bill imposes restrictions on the use of public funds, limiting administrative expenses to less than 15% of the total received and requiring annual reapplication for grant renewals.

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 after the fiscal year ends. The state auditor is responsible for ensuring compliance with these auditing requirements and will publish all audits 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.