Bill > HB2058

This bill establishes new requirements for private entities receiving public grants, mandating comprehensive third-party audits that must be approved by the state auditor. The audit must detail the total amount of public funds received, provide an itemized accounting of expenditures, evaluate financial statements, verify proper use of funds, review program effectiveness, assess whether intended goals were achieved, and determine community support (defined as local government resolution or public endorsement). The bill imposes strict limitations on grant usage, restricting administrative expenses to less than 15% of received funds and requiring entities to reapply and be approved annually for grant renewal. Private entities are responsible for covering the audit costs and must submit the completed audit to the state auditor within six months of the fiscal year's end. The state auditor is required to publish these audits on their website and ensure compliance. The bill defines "private entity" broadly to include any non-public organization, firm, corporation, or nonprofit, and "community buy-in" as demonstrable local government or public support for the funded initiative.

Government Affairs

https://app.leg.wa.gov/billsummary?BillNumber=2058&Year=2025&Initiative=false