There are three major components missing to this piece of legislation, the first being there is no referral mechanism. If, during the audit process there are findings of violations of law, then what? If it is not reported then there is no recovery. In essences, "who cares if you are non-compliant to the grant. Nothing is going to happen."
Secondly, please, someone explain to me just how there is to be audit in child welfare services when everyone knows non-profits, especially in the name of God, are exempted and excluded under certain FOIA provisions for audits and examinations. Everyone knows the mantra "it would not be in the best interests of the child" if these state contracted child placing agencies had to open the books.
Even if there were found aberrant generation of false claims, the failure of foster care and child welfare service agencies would disturb the natural order of fraud. This would simply mean the auditor general would be left powerless as these child welfare agencies self-report.
Lastly, if it is found there were violations of law and policy, there is no avenue for prosecution, recovery, contractual debarment or license revocation.
I wrote this a few years ago. Take a look at it again. http://www.scribd.com/doc/19873869/Beverly-Trans-State-of-Michigan-proposed-bill-to-amend-2003-PA-1-entitled-AUDITS-AND-EXAMINATIONS-MCL-13101-