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 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 responsibility for the audit falls on the private entity being audited, which must submit the completed audit to the state auditor within six months after the fiscal year ends. The state auditor is tasked with ensuring compliance with these auditing requirements and will publish all audits on their website. The bill also provides definitions for key terms, including "community buy-in" and "private entity," to clarify the scope and intent of the legislation.