Enacts GS 147-64.6E directing the State Auditor to include recommendations for the State agency in the audit report if a deficiency in meeting required practices, as specified in GS 147-64.6(b), is found. Further requires the State Auditor to conduct a follow-up audit six months after submitting the recommendations, with the purpose of determining if the State agency has made significant progress in correcting the identified deficiencies. If significant progress has not been made, then the State Auditor must submit a report to the Chairs of the Senate Appropriations/Base Budget Committee and to the Chairs of the House Appropriations Committee. Report must include the results of both the initial and follow-up audit with recommendations for legislative action. Specifies examples of legislative action that could be recommended in the report, including inviting the State agency to appear before a legislative committee to provide information about the cited deficiencies or adjusting the amount of State funds appropriated to the agency to implement the process or program that is the source of the deficiency.

Enacts GS 147-64.6F requiring the State Auditor, beginning January 1, 2018, and annually thereafter, to publish a report identifying all deficiencies found during the prior calendar year. Specifies that the report must (1) distinguish the deficiencies as far as they have resulted in financial loss to the State and involve a failure to comply with State law regarding the expenditure of public funds and (2) include all other findings.