This bill creates a new law by adding a section to chapter 43.09 RCW. It requires any private entity that receives public moneys through grants to hire a state‑auditor‑approved third‑party auditor and to submit audits to the state auditor within six months after the close of the fiscal year in which the public moneys were received. Audits must be paid for by the audited entity and must include: total state and federal moneys received; an itemized accounting of how public moneys were spent; evaluation of financial statements and budgets; verification of proper allocation and use of public moneys; review of program effectiveness and outcomes; evaluation of whether funded uses achieved intended goals and objectives; and a determination of whether there is “community buy‑in” (defined as local government support by resolution or other publicly visible means). The state auditor must approve third‑party auditors, ensure compliance, and publish all audits on the Office of the State Auditor website. The bill also imposes program and administrative limits and procedural rules: less than 15 percent of public moneys may be used for administrative expenses, and grants may not be renewed or reissued without the private entity reapplying for and being approved for the grant each year. “Private entity” is broadly defined to include nonpublic firms, corporations, associations, partnerships, consortia, joint ventures, nonprofits, and other nonpublic entities. The bill affects the Office of the State Auditor, private entities receiving grant funds, and local government insofar as community buy‑in is defined. It is identified as H-2001.1, House Bill 2058, 69th Legislature, 2025 Regular Session, first read 03/25/25 and referred to the Committee on State Government & Tribal Relations. Missing or unspecified in the provided text are a specific RCW section number for the new provision, detailed criteria or procedures and timelines for state auditor approval of third‑party auditors, enforcement mechanisms or penalties for noncompliance, the precise scope or minimum amounts of grants covered, and any implementation funding or timeline for the state auditor.

If enacted, private organizations (including nonprofits and businesses) that get state or federal grant money would have to pay for an annual independent audit approved by the state auditor, file that audit within six months after the fiscal year ends, and make it public. Those audits must show exactly how all public funds were spent, verify proper allocation and results, assess whether funded programs met goals and had “community buy‑in,” and confirm administrative costs are under 15 percent. Grants could not be renewed without the grantee reapplying and being approved each year, so failing to meet these audit, spending, or community‑support standards could jeopardize future funding. The groups most affected are private grant recipients, who face higher administrative costs, tighter limits on overhead, and added reporting and reapplication work. The Office of the State Auditor would take on approval of auditors, receipt and publication of audits, and oversight to ensure compliance, which likely increases its workload though no new funding or enforcement details are provided. Important details are missing about which grants are covered, how the state auditor will approve auditors, what counts as “community buy‑in,” and what penalties or remedies apply for noncompliance.