PUBLIC FINANCE ACCOUNTABILITY ACT

SB 355, the Public Finance Accountability Act, requires state agencies to verify that grant recipients (such as local governments, nonprofits, or other entities) meet specific financial accountability standards before distributing funds. Key provisions include mandating recent annual audits for most grantees, requiring actionable plans to address audit weaknesses, and ensuring grantees demonstrate sound accounting practices if audits aren't required. State agencies must also oversee capital asset sales and use standardized grant agreements. The Department of Finance and Administration will implement these rules, including monitoring compliance, with the law taking effect July 1, 2025. This bill directly affects entities receiving state grants and state agencies managing those funds.