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Bill

Bill

HB 2058

Concerning third-party audits of private entities receiving public moneys.

2025-2026 Regular Session Introduced by Stephanie Barnard and 3 co-sponsors

HB 2058 mandates third-party audits of private entities receiving public funds to increase accountability and transparency in state spending.

First reading, referred to State Government & Tribal Relations.
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Bill Summary · HB 2058

Legislative bill overview

HB 2058 establishes requirements for third-party audits of private entities that receive public funds in Washington State. The bill creates standards and oversight mechanisms to ensure accountability and transparency when taxpayer money is directed to non-governmental organizations. It appears designed to strengthen fiscal controls over public expenditures distributed to the private sector.

Why is this important

Private entities receiving government contracts and grants handle billions in public resources, yet oversight mechanisms vary widely. This bill addresses concerns about accountability, fraud prevention, and ensuring public funds are used as intended. Clear audit requirements can protect taxpayers while also providing recipient organizations with credibility and clear compliance standards.

Potential points of contention

  • Cost burden on small organizations: Third-party audits are expensive, and increased requirements could disproportionately burden smaller nonprofits and contractors, potentially reducing their competitiveness or limiting service capacity
  • Audit standards and scope: Disagreement may arise over which entities should be covered (all recipients or only those above certain funding thresholds), what constitutes a qualified auditor, and audit frequency and depth
  • Administrative complexity: Questions about who enforces compliance, what penalties apply for non-compliance, and whether the auditing infrastructure exists to handle statewide implementation

Compiled from official sources — confirm details with the bill’s official record.

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