Fraud prevention/auditor

AN ACT Relating to fraud prevention; adding a new section to 1
chapter 43.09 RCW; and creating new sections. 2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:3
NEW SECTION. Sec. 1. (1) The legislature finds that:4
(a) Washington state administers a wide range of programs that 5
distribute public funds, deliver critical services, and rely on 6
partnerships with local governments, nonprofits, and private 7
entities. Maintaining strong public trust in these programs requires 8
proactive oversight and effective risk management practices that 9
evolve as programs, technology, and service delivery models change.10
(b) Recent national attention on fraud in publicly funded 11
programs underscores the importance of regularly assessing areas of 12
risk before problems become systemic. While Washington has existing 13
audit and accountability mechanisms, the legislature recognizes the 14
value of a coordinated, statewide, risk-based assessment to identify 15
common vulnerabilities, highlight effective practices, and strengthen 16
prevention and early detection efforts across agencies.17
(c) In 1990, the United States government accountability office 18
began reporting to congress with a "high-risk" list, which identifies 19
and helps resolve serious weaknesses in areas that involve 20
substantial public funds and critical services to the public. The 21
S-4001.1
SENATE BILL 6215
State of Washington 69th Legislature 2026 Regular Session
By Senators Hansen, Boehnke, and Valdez
Read first time 01/19/26. Referred to Committee on State Government,
Tribal Affairs & Elections.
p. 1 SB 6215
"high-risk" list provides congress with accessible and actionable 1
information and recommendations that have been used to improve 2
programs and yield financial and other benefits. 3
(2)(a) It is the intent of the legislature to promote 4
transparency and efficient use of oversight resources by directing 5
the Washington state auditor to develop a program like the United 6
States government accountability office's "high-risk" list and to 7
report to the legislature annually on risk across state agencies, 8
focusing on identifying program characteristics associated with 9
elevated risk, assessing the effectiveness of existing internal 10
controls, and recommending improvements that support ongoing risk 11
mitigation. 12
(b) The legislature further intends that the results of this work 13
support practical, scalable strategies that enhance accountability 14
while preserving timely access to services for eligible individuals 15
and communities. By taking a proactive approach, the state can 16
strengthen stewardship of public funds, reduce the likelihood of 17
future fraud, and reinforce public confidence in state government.18
NEW SECTION. Sec. 2. A new section is added to chapter 43.09 19
RCW to read as follows: 20
(1) By July 1, 2026, the Washington state auditor shall prepare 21
and submit to the appropriate committees of the legislature a 22
comprehensive inventory of state programs that have been subject to 23
audit by the state auditor within the preceding 10 years. The 24
inventory must include for each identified program:25
(a) A brief description of the program's purpose, scope, and 26
administering agency; 27
(b) The amount of funds expended by the program during the most 28
recently completed fiscal year, including the primary sources of 29
those funds, such as state general fund appropriations, federal 30
funds, local funds, or other revenue sources; 31
(c) A summary description of the program's key internal controls 32
and safeguards intended to prevent, detect, or mitigate fraud, waste, 33
abuse, or mismanagement; 34
(d) A summary of relevant findings, recommendations, or 35
management letters from prior audits conducted by the state auditor, 36
including whether significant findings have been resolved or remain 37
open; and 38
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(e) Any other contextual information the state auditor determines 1
would assist the legislature in understanding the program's risk 2
profile and existing accountability structure. 3
(2) Beginning July 1, 2027, and annually thereafter, the state 4
auditor shall prepare and submit to the legislature a statewide high-5
risk list that identifies state programs, functions, or activities 6
determined by the auditor to present elevated risk to the state.7
(3) In developing the high-risk list under subsection (2) of this 8
section, the state auditor shall use a risk-based methodology and may 9
consider factors including, but not limited to: 10
(a) The size, complexity, and growth of a program;11
(b) The degree of reliance on third parties, including local 12
governments, contractors, or nonprofit organizations;13
(c) The adequacy and maturity of internal controls;14
(d) The significance of prior audit findings, including repeat or 15
unresolved issues; 16
(e) Susceptibility to fraud, improper payments, or misuse of 17
funds; and 18
(f) The potential impact on public trust, service delivery, or 19
state finances. 20
(4) For each program or area included on the high-risk list, the 21
report must include: 22
(a) An explanation of the factors contributing to its high-risk 23
designation; 24
(b) A summary of existing internal controls and oversight 25
mechanisms; 26
(c) Identification of gaps or weaknesses contributing to elevated 27
risk; and 28
(d) Recommendations for risk mitigation, improved controls, or 29
enhanced oversight. 30
(5) The state auditor shall present the reports required under 31
this section in a manner that promotes transparency and public 32
understanding, including the use of plain language, clear 33
organization, and explanatory context sufficient for readers without 34
technical or auditing backgrounds. 35
(6) The state auditor may withhold or summarize information in 36
the reports required under this section if the auditor determines 37
that disclosure of such information would create a risk of fraud, 38
misuse of funds, circumvention of internal controls, or other harm to 39
a state program. 40
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NEW SECTION. Sec. 3. This act may be known and cited as the 1
fraud prevention act.2
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