AN ACT RELATING TO GENERAL ASSEMBLY -- GOVERNMENT PERFORMANCE AUDIT AND ACCOUNTABILITY ACT (Establishes a performance audit division within the office of the auditor general.)

S2448

2026 -- S 2448
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STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
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A N A C T
RELATING TO GENERAL ASSEMBLY -- GOVERNMENT PERFORMANCE AUDIT AND
ACCOUNTABILITY ACT

Introduced By:
Senators Ujifusa, Bell, Valverde, Euer, Murray, Urso, Mack, Acosta, and
Quezada

Date Introduced:
February 06, 2026

Referred To:
Senate Finance
It is enacted by the General Assembly as follows:
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SECTION 1. Purpose.
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The purpose of chapter 13.1 of title 22 is to strengthen the oversight capacity of the office
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of the auditor general ("OAG") created pursuant to the provisions of chapter 13 of title 22 ("Auditor
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General") by establishing a dedicated performance audit division to evaluate the economy,
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efficiency, and effectiveness of state programs and expenditures, and to ensure timely and
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appropriate corrective actions, in a manner that complements, and does not duplicate, existing
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internal control and program integrity activities within state agencies.
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SECTION 2. Legislative findings.
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The general assembly hereby finds and declares:
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(1) The Rhode Island office of the auditor general (OAG) performs high-quality and
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nationally respected financial and compliance audits that safeguard the accuracy of state
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accounting, ensure proper use of state and federal funds, and protect the fiscal integrity of
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government operations. These audits-focused on financial statements, transactions, internal
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controls, and compliance-are distinct from performance audits, which evaluate whether state
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programs operate efficiently, effectively, economically, and in accordance with legislative intent.
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(2) State government responsibilities, fiscal exposure, and operational risks have expanded
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dramatically over the past two decades, including multi-billion-dollar Medicaid program
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expenditures, increasing IT system complexity, major modernization projects, growing

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cybersecurity threats, data integrity and interoperability challenges, and heightened federal
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reporting and compliance obligations, yet the OAG has not received a meaningful staffing increase
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in more than twenty years.
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(3) The OAG is statutorily responsible and professionally capable of conducting both
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financial and performance audits; however, the office currently employs only one performance
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auditor, limiting its ability to evaluate program and operational effectiveness or to ensure timely
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corrective actions. While the OAG may recommend improvements, it cannot require agencies to
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implement corrective operational changes.
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(4) Despite severe under-resourcing, the OAG has demonstrated the value of performance-
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based oversight-identifying millions of dollars in Medicaid payments on behalf of individuals no
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longer residing in Rhode Island and uncovering administrative weaknesses, outdated processes,
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and insufficient outcome tracking in a 2024 review of childcare subsidy programs. These examples
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show the substantial public benefit that could be achieved with a fully resourced performance audit
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function.
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(5) Other states have strengthened accountability and improved government effectiveness
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through dedicated performance audit entities-including Washington's Joint Legislative Audit and
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Review Committee, North Carolina's State Auditor, and Massachusetts' State Auditor-
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demonstrating that independent, well-resourced performance auditing reduces inefficiency,
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prevents waste, and improves program outcomes.
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(6) Establishing a dedicated performance audit division within the OAG is necessary to
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ensure Rhode Island's programs and expenditures are managed efficiently, effectively, and in
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alignment with legislative intent, and to provide the General Assembly and the public with
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independent, data-driven oversight of state operations.
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(7) Performance auditing consistently yields significant fiscal returns. National studies
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show that performance audit offices typically return between three ($3.00) and ten dollars ($10.00)
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in savings or avoided costs for every one dollar invested, and Rhode Island's recent audits have
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already identified millions in recoverable payments and avoided expenditures. Strengthening
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performance auditing is therefore a fiscally responsible investment for the state.
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SECTION 3. Title 22 of the General Laws entitled "GENERAL ASSEMBLY" is hereby
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amended by adding thereto the following chapter:
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CHAPTER 13.1
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GOVERNMENT AUDIT AND ACCOUNTABILITY ACT
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22-13.1-1. Short title.
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This chapter shall be known and may be cited as the "Government Audit and

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Accountability Act."
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22-13.1-2. Establishment of performance audit division.
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(a) There is hereby established within the office of the auditor general ("OAG") a
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performance audit division ("division") responsible for planning, conducting, and reporting on
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performance audits of state agencies and, consistent with existing statutory authority under § 35-7-
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11, contractors or other entities receiving state or federal funds. Performance audits conducted
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under this chapter shall complement and not duplicate existing internal audit, program integrity, or
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oversight activities within state agencies.
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(b) The division shall be staffed with no fewer than five (5) full-time equivalent (FTE)
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positions dedicated to performance audit functions, including a chief performance auditor and
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necessary analysts/auditors, and may be expanded as necessary to meet audit requirements.
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(c) The auditor general may engage outside contractors or consultants for specialized audits
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or subject-matter expertise.
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22-13.1-3. Duties.
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The performance audit division shall:
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(1) Prepare and publish an annual performance audit plan, starting on November 1, 2026,
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or as soon as practicable after division staffing is complete, and annually thereafter, identifying
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proposed audit entities based on fiscal materiality, program risk, and public interest, and prioritizing
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those that involve the highest potential fiscal impact, including but not limited to Medicaid,
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procurement, and information technology projects.
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(2) Conduct audits in accordance with generally accepted government auditing standards
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("GAGAS") issued by the U.S. Government Accountability Office.
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(3) Evaluate whether agencies and contractors or other entities receiving state or federal
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funds:
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(i) Operate efficiently and effectively;
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(ii) Achieve intended outcomes; and
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(iii) Adhere to applicable state and federal statutes and regulations.
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(4) Recommend corrective actions and follow up on prior audit recommendations.
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(5) Provide public reports starting on November 1, 2027, or as soon as practicable
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thereafter, to the general assembly, the governor, and the public detailing audit findings,
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recommendations, and the status of agency compliance.
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(6) Conduct reviews focused on systems and processes rather than individual employee
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performance.
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22-13.1-4. Corrective action and oversight.

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(a) Each audited entity shall, within sixty (60) days of receiving a performance audit report,
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submit to the OAG, the joint committee on legislative services, the house committee on finance,
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and the senate committee on finance, a corrective action plan ("CAP") describing actions being
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taken and timelines for addressing deficiencies.
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(b) The OAG shall monitor implementation of CAPs and report annually on agency
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compliance to the joint committee on legislative services and the house and senate finance
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committees.
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(c) If an audited entity fails to make reasonable progress on a corrective action plan, or if
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a performance audit identifies a potential violation of state or federal law or material financial harm
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to the state resulting from contractor practices, the auditor general may refer the matter to the Rhode
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Island attorney general for further review and enforcement under existing statutory authority.
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22-13.1-5. Budget and staffing.
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Costs of the additional FTEs, contractor services, equipment, training, and any necessary
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office space shall be included in the general revenue appropriation for the office of the auditor
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general.
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22-13.1-6. Independence and access.
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The OAG shall have unrestricted access to records, data, and personnel of all state agencies
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and contractors as necessary to perform its duties under this chapter. Nothing in this section shall
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be construed to alter statutory protections for confidential or proprietary information, which shall
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be protected consistent with state and federal law.
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SECTION 4. This act shall take effect upon passage.
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO GENERAL ASSEMBLY -- GOVERNMENT PERFORMANCE AUDIT AND
ACCOUNTABILITY ACT
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This act would establish a performance audit division within the office of the auditor
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general. The purpose of the performance audit division would include preparing an annual
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performance audit plan, conducting audits in accordance with Generally Accepted Government
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Auditing Standards, evaluating agencies and contractors receiving state or federal funds, and
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publishing a public report containing the divisions’ findings and recommendations.
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This act would take effect upon passage.
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