The bill aims to enhance fraud prevention in Washington state by establishing a comprehensive oversight framework for state programs that distribute public funds. It directs the Washington state auditor to create a program similar to the U.S. Government Accountability Office's "high-risk" list, which will identify and assess areas of elevated risk across state agencies. The auditor is tasked with reporting annually to the legislature on these risks, focusing on program characteristics, internal controls, and recommendations for improvements to mitigate fraud and enhance accountability while ensuring timely access to services for eligible individuals.

Additionally, the bill mandates the state auditor to compile a comprehensive inventory of state programs audited in the past decade by July 1, 2026, detailing each program's purpose, funding, internal controls, and audit findings. Starting July 1, 2027, the auditor will produce an annual statewide high-risk list that identifies programs or activities presenting elevated risks, using a risk-based methodology. The report will include explanations for high-risk designations, summaries of internal controls, identification of weaknesses, and recommendations for risk mitigation. The auditor is also required to present these reports transparently and may withhold sensitive information if its disclosure could lead to fraud or misuse of funds. This act may be cited as the Fraud Prevention Act.