(1) As used in this section, "entity" means:

1. (a) an entity in the executive branch that receives an ongoing line item appropriation in an appropriations act; and
2. (b) any local education agency, as defined in Section 53E-1-102, that receives public funds.

(2)

1. (a) Each year, subject to the availability of work capacity and the discretion of the Audit Subcommittee created in Section 36-12-8, the Office of the Legislative Auditor General may, in addition to other audits performed by the office, perform a systemic performance audit of:

   1. (i) one or more executive branch entities;
   2. (ii) one or more local education agencies;
   3. (iii) one or more institutions of higher education; and
   4. (iv) one or more independent entities.

2. (b) An audit performed under Subsection (2)(a) shall, as is appropriate for each individual audit:

   1. (i) evaluate the extent to which the entity has efficiently and effectively used the appropriation by identifying:

      1. (A) the entity's appropriation history;
      2. (B) the entity's spending and efficiency history; and
      3. (C) historic trends in the entity's operational performance effectiveness;
   2. (ii) evaluate whether the entity's size and operation are commensurate with the entity's spending history;
   3. (iii) evaluate whether the entity is diligent in its stewardship of resources;
   4. (iv) provide a systemic performance audit of the entity's operations performance improvements;
   5. (v) if possible, incorporate the audit methodology of other audits performed by the Office of the Legislative Auditor General; and
   6. (vi) be conducted according to the process established for the Audit Subcommittee.

3. (c) In conducting an audit of an institution of higher education under Subsection (2)(a)(iii), the Office of the Legislator Auditor General shall, in addition to the subjects of evaluation described in Subsection (2)(b), review the institution's admissions practices for:

   1. (i) compliance with applicable laws, rules, and policies;
   2. (ii) best practices; and
   3. (iii) efficiency and effectiveness.

4. (d) After releasing an audit report under Subsection (2)(a), the Audit Subcommittee shall make the audit report available to:

   1. (i) each member of the Senate and the House of Representatives; and
   2. (ii) the governor or the governor's designee.

5. (e) The Office of the Legislative Auditor General shall:

   1. (i) summarize the findings of an audit described in Subsection (2)(a); and
   2. (ii) provide a copy of each audit report and the annual report to the legislative fiscal analyst and director of the Office of Legislative Research and General Counsel as soon as each report is completed.

(4) The Legislature, in evaluating an entity's request for an increase in its base budget, shall:

1. (a) review the audit report required by this section and any relevant audits; and
2. (b) consider the entity's request for an increase in its base budget in light of the entity's prior history of savings and efficiencies as evidenced by the audit report required by this section.