HF 1160

1st Engrossment - 90th Legislature (2017 - 2018) Posted on 03/16/2017 04:38pm

A bill for an act
relating to transportation; requiring auditing and reporting on certain transit financial
activity; appropriating money; amending Minnesota Statutes 2016, sections 3.971,
subdivisions 2, 6; 3.972, by adding a subdivision.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2016, section 3.971, subdivision 2, is amended to read:

Subd. 2.

Staff; compensation.

new text begin (a) new text end The legislative auditor shall establish a Financial
Audits Division and a Program Evaluation Division to fulfill the duties prescribed in this
section.

new text begin (b) new text end Each division may be supervised by a deputy auditor, appointed by the legislative
auditor, with the approval of the commission, for a term coterminous with the legislative
auditor's term. The deputy auditors may be removed before the expiration of their terms
only for cause. The legislative auditor and deputy auditors may each appoint a confidential
secretary to serve at pleasure. The salaries and benefits of the legislative auditor, deputy
auditors and confidential secretaries shall be determined by the compensation plan approved
by the Legislative Coordinating Commission. The deputy auditors may perform and exercise
the powers, duties and responsibilities imposed by law on the legislative auditor when
authorized by the legislative auditor.

new text begin (c) The legislative auditor must appoint a fiscal oversight officer with duties that include
performing the review under section 3.972, subdivision 4.
new text end

new text begin (d) new text end The deputy auditors and the confidential secretaries serve in the unclassified civil
service, but new text begin the fiscal oversight officer and new text end all other employees of the legislative auditor are
in the classified civil service. Compensation for employees of the legislative auditor in the
classified service shall be governed by a plan prepared by the legislative auditor and approved
by the Legislative Coordinating Commission and the legislature under section 3.855,
subdivision 3.

new text begin (e) new text end While in office, a person appointed deputy for the Financial Audit Division must
hold an active license as a certified public accountant.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2016, section 3.971, subdivision 6, is amended to read:

Subd. 6.

Financial audits.

The legislative auditor shall audit the financial statements
of the state of Minnesota required by section 16A.50 and, as resources permit, Minnesota
State Colleges and Universities, the University of Minnesota, state agencies, departments,
boards, commissions, offices, courts, and other organizations subject to audit by the
legislative auditor, including, but not limited to, the State Agricultural Society, Agricultural
Utilization Research Institute, Enterprise Minnesota, Inc., Minnesota Historical Society,
ClearWay Minnesota, Minnesota Sports Facilities Authority, new text begin Metropolitan Council, new text end
Metropolitan Airports Commission, and Metropolitan Mosquito Control District. Financial
audits must be conducted according to generally accepted government auditing standards.
The legislative auditor shall see that all provisions of law respecting the appropriate and
economic use of public funds and other public resources are complied with and may, as
part of a financial audit or separately, investigate allegations of noncompliance.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2016, section 3.972, is amended by adding a subdivision to
read:

new text begin Subd. 4. new text end

new text begin Certain transit financial activity reporting. new text end

new text begin (a) The legislative auditor must
perform a transit financial activity review of financial information for the Metropolitan
Council's Transportation Division and the joint powers board under section 297A.992.
Within 14 days of the end of each fiscal quarter, the legislative auditor must submit the
review to the Legislative Audit Commission and the chairs and ranking minority members
of the legislative committees with jurisdiction over transportation policy and finance, finance,
and ways and means.
new text end

new text begin (b) At a minimum, each transit financial activity review must include:
new text end

new text begin (1) a summary of monthly financial statements, including balance sheets and operating
statements, that shows income, expenditures, and fund balance;
new text end

new text begin (2) a list of any obligations and agreements entered into related to transit purposes,
whether for capital or operating, including but not limited to bonds, notes, grants, and future
funding commitments;
new text end

new text begin (3) the amount of funds in clause (2) that has been committed;
new text end

new text begin (4) independent analysis by the fiscal oversight officer of the fiscal viability of revenues
and fund balance compared to expenditures, taking into account (i) all expenditure
commitments, (ii) cash flow, (iii) sufficiency of estimated funds, and (iv) financial solvency
of anticipated transit projects; and
new text end

new text begin (5) a notification concerning whether the requirements under paragraph (c) have been
met.
new text end

new text begin (c) The Metropolitan Council and the joint powers board under section 297A.992 must
produce monthly financial statements as necessary for the review under paragraph (b),
clause (1), and provide timely information as requested by the legislative auditor.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 4. new text begin INITIAL TRANSIT FINANCIAL ACTIVITY REPORTING.
new text end

new text begin (a) The first transit financial activity review and report submitted under Minnesota
Statutes, section 3.972, subdivision 4, must include financial information from the period
beginning on January 1, 2016, and through the end of the fiscal quarter immediately preceding
the date of the report.
new text end

new text begin (b) The legislative auditor must provide a copy of the review under paragraph (a) to
each county that is party to the joint powers agreement under Minnesota Statutes, section
297A.992.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 5. new text begin APPROPRIATION.
new text end

new text begin $....... in fiscal year 2017 is appropriated from the general fund to the legislative auditor
for the purposes specified in Minnesota Statutes, section 3.972, subdivision 4.
Notwithstanding Minnesota Statutes, section 16A.28, this appropriation is available for two
years after the year of appropriation.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end