Senate Bill 89 Summary

• Requires the State Auditor to include corrective action recommendations in audit reports when a state agency fails to follow required practices under G.S. 147-64.6(b).

• Mandates the State Auditor conduct a follow-up audit six months after submitting recommendations to determine whether the state agency has made significant progress in correcting identified deficiencies.

• Requires the State Auditor to report to the Senate Appropriations/Base Budget Committee and House Appropriations Committee chairs if a state agency fails to make significant progress, with recommendations for legislative action including inviting agency testimony, modifying agency authority, adjusting appropriations, or other lawful action.

• Requires the State Auditor to publish an annual report beginning January 1, 2018, identifying all findings of deficiencies from the prior calendar year, categorized by whether they resulted in financial loss, involved failure to comply with state expenditure law, or are other findings.

• Effective when the bill becomes law.