HB1147

When the Department of Legislative Audit finds probable cause that a state agency, public institution, or other government entity has committed fraud, embezzlement, or misappropriation of public funds, that entity must undergo a forensic audit to examine all financial transactions, evaluate internal controls, and document any misconduct or irregularities. The audit can be conducted by the Department of Legislative Audit itself or by an independent forensic accounting expert, and the results must be publicly reported. The public entity being audited must pay all costs associated with the forensic investigation.