SB 251 — AN ACT CONCERNING THE AUDITORS OF PUBLIC ACCOUNTS, AUDITS OF PRIVATE ENTITIES AND PERFORMANCE AND ACCOUNTABILITY STANDARDS FOR STATE AND QUASI-PUBLIC AGENCIES.

Senate General Assembly RaisedFile Bill No.

251346 February Session, 2026 LCOSubstitute Senate Bill No.

1670251 ReferredSenate, toApril 2, 2026 The Committee on GOVERNMENTGovernment OVERSIGHTOversight Introducedreported by:through SEN.

(GOS)GADKAR-WILCOX ANof ACTthe INCREASING22nd THEDist., AUTHORITYChairperson OFof THEthe AUDITORSCommittee OFon PUBLICthe ACCOUNTS.part of the Senate, that the substitute bill ought to pass.

AN ACT CONCERNING THE AUDITORS OF PUBLIC ACCOUNTS, AUDITS OF PRIVATE ENTITIES AND PERFORMANCE AND ACCOUNTABILITY STANDARDS FOR STATE AND QUASI-PUBLIC AGENCIES.

The auditors shall, at least annuallysSB251 and/ asFile frequentlyNo. as they deem necessary, audit the books and accounts of the Comptroller and certify the results to the Governor.

They346 shall1 examinesSB251 andFile prepare certificates of audit with respect to the financial statements contained in the annual reports of the Treasurer LCO No.

1670346 1annually ofand 7as Raisedfrequently Billas No.251they deem necessary, audit the books and Comptroller,accounts whichof certificatesthe shallComptroller beand madecertify partthe ofresults suchto annualthe reports.Governor.

They shall examine and prepare certificates of audit with respect to the financial statements contained in the annual reports of the Treasurer and Comptroller, which certificates shall be made part of such annual reports.

If(3) onlyFor aeach samplingsuch ofaudit transactions of thea contracted private entity arethat providedtoreceives thetwo auditorshundred byfifty suchthousand entity,dollars theor auditorsmore mayin requirestate additionalfunds transactionannually information to beprovide providedhousing uponor requesthuman andservices, requirethe additionalauditors reviewshall visit the principal office of such entity as part of the audit, unless such entity is subject to a single audit findingsor thata wereprogram-specific basedaudit uponpursuant suchto sampling.section 4-231.

(3) For each such audit of a private entity that receives twenty-five thousand dollars or more in state funds annually to provide housing or human services, theauditorsshallvisit theprincipaloffice of suchentity as part of the audit.

The joint standing committee oftheGeneralAssembly having cognizance of matters relating to government oversight may request the LCOauditors No.to perform a limited performance engagement.

1670Not 2later ofthan 7sSB251 Raised/ BillFile No.251No. auditors to perform a limited performance engagement.

Not346 later2 thansSB251 sixtyFile daysNo. after receipt of such request, the auditors shall respond regarding whether they will perform such limited performance engagement and, if so, the suggested scope and schedule for such engagement.

346 sixty days after receipt of such request, the auditors shall respond regarding whether they will perform such limited performance engagement and, if so, the suggested scope and schedule for such engagement.

(f) (1) If the Auditors ofPublic Accounts discover,or if it should come to their knowledge, that any unauthorized, illegal, irregular or unsafe LCOhandling or expenditure of state funds or quasi-public agency funds or any breakdown in the safekeeping of any resources of the state or a quasi-public agency has occurred or is contemplated, they shall sSB251 / File No.

1670346 3 ofsSB251 7File RaisedNo. Bill No.251 handling or expenditure of state funds or quasi-public agency funds or any breakdown in the safekeeping of any resources of the state or a quasi-public agency has occurred or is contemplated, they shall forthwith report the facts to the Governor, the State Comptroller, the clerk of each house of the General Assembly, the joint standing committee of the General Assembly having cognizance of matters relating to government oversight and the Attorney General, except that if a matter reported to the Auditors of Public Accounts pursuant to section 4-33a is still under investigation by a state or quasi-public agency, the Auditors of Public Accounts may give the agency a reasonable amount of time to conduct such investigation prior to the auditors reporting the matter to said officials and committee or the auditors may decide to investigate the matter.

If346 forthwith report the Auditorsfacts ofto Publicthe AccountsGovernor, decidethe toState investigateComptroller, the matter,theyclerk mayof summoneach witnesses,house requireof the productionGeneral Assembly, the joint standing committee of anythe necessaryGeneral books,Assembly papershaving orcognizance otherof documentsmatters relating to government oversight and administerthe oathsAttorney General, except that if a matter reported to witnesses,the whereAuditors necessary,of forPublic Accounts pursuant to section 4-33a is still under investigation by a state or quasi-public agency, the purposeAuditors of anPublic Accounts may give the agency a reasonable amount of time to conduct such investigation pursuantprior to thisthe section.auditors reporting the matter to said officials and committee.

Service of a subpoena ad testificandum, subpoena duces tecum and a notice of deposition, may be made by:

(A) Personal service or service at the usual place of abode;

or (B) registered or certified mail, return receipt requested, a duly executed copy thereof addressed to the person to be served at such person's principal place of business in this state, or, if such person has no principal place of business in this state, at such person's principal office or such person's residence.

LCO(4) No.Any state agency or quasi-public agency that is the subject of a report of the Auditors of Public Accounts that contains violations of state statute or regulation, other than only minor or technical recommendations, not later than six months after the issuance of the auditors' report, shall report on the status of any corrective action undertaken by such state agency or quasi-public agency to address such violations, to the auditors, the Governor and the General Assembly, in accordance with the provisions of section 11-4a.

1670 4 of 7 Raised Bill No.251 (4) Any state agency or quasi-public agency that is the subject of a report of the Auditors of Public Accounts that contains violations of state statute or regulation, other than only minor or technical recommendations, not later than six months after the issuance of the auditors' report, shall report on the status of any corrective action undertaken by such state agency or quasi-public agency to address such violations, to the auditors, the Governor and the General Assembly, in accordance with the provisions of section 11-4a.

(5) The auditors may establish performance and accountability standards for any state agency or quasi-public agency that is the subject ofsSB251 a/ reportFile ofNo. the Auditors of Public Accounts that contains substantial violations of state statute or regulation concerning one or more contracts.

346 4 sSB251 File No.

346 of a report of the Auditors of Public Accounts that contains substantial violations of state statute or regulation concerning one or more contracts.

(i) Where there are statutory requirements of confidentiality with LCOregard No.to such records and accounts or examinations of nongovernmental entities which are maintained by a state agency, such requirements of confidentiality and the penalties for the violation thereof shall apply to the auditors and to their authorized representatives in the same manner and to the same extent as such requirementsofconfidentialityandpenaltiesapplytosuchstateagency.

1670 5 of 7 Raised Bill No.

251 regard to such records and accounts or examinations of nongovernmental entities which are maintained by a state agency, such requirements of confidentiality and the penalties for the violation thereof shall apply to the auditors and to their authorized representatives in the same manner and to the same extent as such requirementsofconfidentialityandpenaltiesapplytosuchstateagency.

Any private providersSB251 of/ specialFile educationNo. services being audited by said auditors shall provide any information said auditors deem necessary to conduct such audit.

346 5 sSB251 File No.

346 provider of special education services being audited by said auditors shall provide any information said auditors deem necessary to conduct such audit.

Section 1 October 1, 2026 2-90 StatementGOS ofJoint Purpose:Favorable Subst.

TosSB251 authorize/ theFile AuditorsNo. of Public Accounts to (1) require additional review in audits where only a sampling of transactions was obtained, (2) require physical site visits of certain housing and human services providers, (3) establish agency and quasi-public agency performance and accountability standards, and (4) issue subpoenas pursuant to an investigation.

LCO346 6 sSB251 File No.

1670346 6The offollowing 7Fiscal RaisedImpact Statement and Bill No.Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.

251In [Proposedgeneral, deletionsfiscal impacts are enclosedbased inupon brackets.a variety of informational sources, including the analyst’s professional knowledge.

ProposedWhenever additionsapplicable, areagency indicateddata byis underline,consulted exceptas thatpart whenof the entireanalysis, texthowever offinal aproducts billdo ornot resolutionnecessarily orreflect aan sectionassessment offrom aany billspecific ordepartment. resolution is new, it is not underlined.] LCO No.

1670OFA 7Fiscal ofNote 7State Impact:

Agency Affected Fund-Effect FY 27 $ FY 28 $ Auditors GF - Potential Minimal Minimal Cost Note: