5-B. Dedicated funds. To review and study expenditures of the dedicated funds of independent boards and commissions.;

6. Staff agency. To serve as a staff agency to the Legislature, or any of its committees, or to the Governor in making investigations of any phase of the state's State's finances.;

7. Reports. To report its findings, with recommendations, on any review or study to the Legislature.;

8. Audit. To perform postaudits audits of all accounts and financial records of any organization, institution or other entity receiving or requesting an appropriation or grant from the State Government and to issue reports on such audits at such times as the Legislature or the State Auditor may require.; and

9.__Single audit.__To conduct financial and compliance audits of financial transactions and accounts kept by or for all state agencies subject to the Single Audit Act Amendments of 1996, 31 United States Code, Sections 7501 to 7507 (1998).__The audits must be conducted in accordance with generally accepted governmental auditing standards.

Sec. 2. 5 MRSA §244, as amended by PL 1995, c. 651, §1 and affected by §5, is further amended to read:

§244. Records and reports

The State Auditor keeps no accounts in the Department of Audit, but shall conduct a continuous postaudit of audit the accounts, books, records and other evidences of financial transactions kept in the Department of Financial and Administrative Services or in the other departments and agencies of the State Government. The State Auditor shall prepare and publish a report for each fiscal year, setting forth the essential facts of such audits in summary form, within the following fiscal year after the books of the State Controller have been officially closed. If the State Auditor finds in the course of an audit evidences of material weaknesses, reportable conditions, improper transactions, or of incompetence in keeping accounts or handling funds or of any other improper practice of financial administration, the State Auditor shall report the same to the Governor and the Legislature immediately. After reporting evidence of material weaknesses or reportable conditions, the State Auditor shall provide for subsequent review to ensure that