SECTION 1. Each executive office, state agency, state authority or quasi-state authority and constitutional office of the commonwealth that directly received (i) pandemic relief funds, (ii) economic stimulus funds or (iii) loan funds shall allocate and use a portion of such funds to engage an independent third-party firm to perform a risk assessment of each state entities’ controls in administering the use of funds and to audit the disbursement of funds. The state auditor shall oversee any risk assessment and audit performed under this act.

SECTION 2. The secretary of administration and finance shall consult with the state auditor, any firm engaged pursuant to section 1 and each executive office, state agency, state authority or quasi-state authority and constitutional office of the commonwealth that conducts a risk assessment or audit similar to those required in section 1 regarding the scope of any audits performed.

SECTION 3. Annually, by December 31, the secretary of administration and finance shall file a report with the governor and the clerks of the house of representatives and the senate that compiles the findings of any audit performed pursuant to section 1.

SECTION 4. There is hereby appropriated from the coronavirus local fiscal relief funds made available to the commonwealth under the American Rescue Plan Act of 2021, for the fiscal year ending June 30, 2023, the sum of $500,000 for the purposes of section 1.