Social equity impact/audits

AN ACT Relating to requiring social equity impact analysis in 1
performance audits and legislative public hearings thereon; and 2
amending RCW 43.09.470. 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
Sec. 1. RCW 43.09.470 and 2006 c 1 s 2 are each amended to read 5
as follows: 6
(1) In addition to audits authorized under RCW 43.88.160, the 7
state auditor shall conduct independent, comprehensive performance 8
audits of ((state)):9
(a) State government and each of its agencies, accounts, and 10
programs; ((local))11
(b) Local governments and each of their agencies, accounts, and 12
programs; ((state))13
(c) State and local education governmental entities and each of 14
their agencies, accounts, and programs; ((state))15
(d) State and local transportation governmental entities and each 16
of their agencies, accounts, and programs; and ((other))17
(e) Other governmental entities, agencies, accounts, and 18
programs. 19
(2) The term "government" means an agency, department, office, 20
officer, board, commission, bureau, division, institution, or 21
Z-0336.1
SENATE BILL 5414
State of Washington 69th Legislature 2025 Regular Session
By Senators Hasegawa, Nobles, and Valdez; by request of State Auditor
Read first time 01/22/25. Referred to Committee on State Government,
Tribal Affairs & Elections.
p. 1 SB 5414
institution of higher education. This includes individual agencies 1
and programs, as well as those programs and activities that cross 2
agency lines. "Government" includes all elective and nonelective 3
offices in the executive branch and includes the judicial and 4
legislative branches. 5
(3) The state auditor shall review and analyze the economy, 6
efficiency, and effectiveness of the policies, management, fiscal 7
affairs, and operations of state and local governments, agencies, 8
programs, and accounts. These performance audits shall be conducted 9
in accordance with the United States general accounting office 10
government auditing standards. 11
(4) The scope for each performance audit shall not be limited and 12
shall include ((nine)) 10 specific elements: 13
(((1))) (a) Identification of cost savings; (((2) 14
identification))15
(b) Identification of services that can be reduced or eliminated; 16
(((3) identification))17
(c) Identification of programs or services that can be 18
transferred to the private sector; (((4) analysis))19
(d) Analysis of gaps or overlaps in programs or services and 20
recommendations to correct gaps or overlaps; (((5) feasibility))21
(e) Feasibility of pooling information technology systems within 22
the department; (((6) analysis))23
(f) Analysis of the roles and functions of the department, and 24
recommendations to change or eliminate departmental roles or 25
functions; (((7) recommendations))26
(g) Recommendations for statutory or regulatory changes that may 27
be necessary for the department to properly carry out its functions; 28
(((8) analysis))29
(h) Analysis of departmental performance data, performance 30
measures, and self-assessment systems; ((and (9) identification))31
(i) Identification of best practices; and32
(j) Analysis of the social equity impact of programs or services.33
(5) The state auditor may contract out any performance audits. 34
For counties and cities, the audit may be conducted as part of audits 35
otherwise required by state law. Each audit report shall be submitted 36
to the corresponding legislative body or legislative bodies and made 37
available to the public on or before ((thirty)) 30 days after the 38
completion of each audit or each follow-up audit. On or before 39
((thirty)) 90 days after the performance audit is made public, the 40
p. 2 SB 5414
corresponding legislative body or legislative bodies shall hold at 1
least one public hearing to consider the findings of the audit and 2
shall receive comments from the public. The state auditor is 3
authorized to issue subpoenas to governmental entities for required 4
documents, memos, and budgets to conduct the performance audits.5
(6) The state auditor may, at any time, conduct a performance 6
audit to determine not only the efficiency, but also the 7
effectiveness, of any government agency, account, or program. No 8
legislative body, officeholder, or employee may impede or restrict 9
the authority or the actions of the state auditor to conduct 10
independent, comprehensive performance audits. To the greatest extent 11
possible, the state auditor shall instruct and advise the appropriate 12
governmental body on a step-by-step remedy to whatever 13
ineffectiveness and inefficiency is discovered in the audited entity. 14
For performance audits of state government and its agencies, 15
programs, and accounts, the legislature must consider the state 16
auditor reports in connection with the legislative appropriations 17
process. 18
(7) An annual report will be submitted by the joint legislative 19
audit and review committee by July 1st of each year detailing the 20
status of the legislative implementation of the state auditor's 21
recommendations. Justification must be provided for recommendations 22
not implemented. Details of other corrective action must be provided 23
as well. For performance audits of local governments and their 24
agencies, programs, and accounts, the corresponding legislative body 25
must consider the state auditor reports in connection with its 26
spending practices. 27
(8) An annual report will be submitted by the legislative body by 28
July 1st of each year detailing the status of the legislative 29
implementation of the state auditor's recommendations. Justification 30
must be provided for recommendations not implemented. Details of 31
other corrective action must be provided as well. The people 32
encourage the state auditor to aggressively pursue the largest, 33
costliest governmental entities first but to pursue all governmental 34
entities in due course. 35
(9) Follow-up performance audits on any state and local 36
government, agency, account, and program may be conducted when 37
determined necessary by the state auditor. Revenues from the 38
p. 3 SB 5414
performance audits of government account, created in RCW 43.09.475, 1
shall be used for the cost of the audits. 2
--- END ---
p. 4 SB 5414