SECTION 1. Notwithstanding any general or special law to the contrary, the office of the state auditor shall conduct an annual audit of the department of transitional assistance. The scope of the audit shall include a review of the following information from the previous fiscal year: the processes and internal controls that the department uses to verify and issue benefits to eligible recipients; how many individuals currently hold EBT cards; how many of those with cards are actively receiving benefits; the total amount of benefits that have been utilized out-of-state; how frequently benefits are used out-of-state; a list of locations where benefits are being spent out of state; and a breakdown of the demographic information of those receiving benefits.

SECTION 2. The office of the state auditor shall submit an annual report with its findings no later than January 1st each year, including any recommendations for how the department of transitional assistance can improve its processes to help detect and reduce potential recipient and retailer fraud, waste, or abuse, including improper use of benefits out-of-state. Additionally, the report shall examine factors that may be driving increased enrollment for benefits, and what projected fiscal and operational challenges the department of transitional assistance may face as a result.