State Auditor could hire Medicaid experts and charge agencies for audits

The Auditor may make agreements for experts to help audit Medicaid providers and may pay contingent fees from identified overpayments. The agreements concern audits of Medicaid providers. Fees must follow the same calculation and procedures as payments under the cited state law. The Auditor and contractors must work with the health department on possible adverse decisions and refer matters to law enforcement as required. This work is outside the federal Medicaid recovery audit program, and does not limit the state health department’s authority.

The Auditor may charge agencies for certain financial statement audits and related work that supports the state’s annual financial report. Charges may cover state agency financial statement audits and audits of financial information and workbooks submitted for the state’s annual financial report, when they support the Auditor’s opinion. The Auditor may not charge the State Controller’s office for auditing the state’s annual financial report. Collected money goes to the State Auditor’s budget for audit staff and related costs.

A state agency must consult the Auditor and get written approval before contracting for audit services that may affect the state’s annual financial report. This applies to state agencies seeking audit services that may affect the state’s annual financial report. The exception is for audits called for by the Governor under the cited law, when the Governor notifies the Auditor. This section is stated to take effect October 1, 2026.

The Auditor may change existing financial statement audit positions and benefits to receipt-supported positions and benefits; the related appropriated funds do not return to the General Fund. This applies to existing positions and benefits responsible for financial statement audits. This section is stated to take effect July 1, 2026.

The bill would set aside $500,000 in recurring funds for the State Auditor’s office to pay the cost of auditing the state’s annual financial report. The money is for the Office of the State Auditor. The funds are for fiscal year 2026–2027, and this section is stated to take effect July 1, 2026.