This section is repealed January 30, 2006.

Sec. 3. 5 MRSA §243-B is enacted to read:

§243-B.__Report regarding discrepancies

In addition to the report required pursuant to section 243-A, if in the course of any audit of a state department or agency the Department of Audit finds significant discrepancies in the financial records of that state department or agency, the State Auditor shall report, in person, to the joint standing committee of the Legislature that has jurisdiction over that state department or agency within 60 days of the audit findings and the joint standing committees of the Legislature having jurisdiction over appropriations and financial affairs and state and local government matters.__If the Legislature is not in session during that 60 days, the State Auditor may report in writing to those committees.

Sec. 4. 5 MRSA §244, as amended by PL 1999, c. 208, §2, is further amended to read:

§244. Records and reports; findings of improper practices

The State Auditor keeps no accounts in the Department of Audit may not perform the accounting functions for the State, but shall 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 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 unacceptable practices 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 those conditions are addressed in a timely manner and report to the Governor and the Legislature to confirm the status of the correction of those conditions. If the State Auditor finds evidences of illegal transactions, the State Auditor shall immediately report those transactions both to the Governor and to the Attorney General. All such evidences must be