HF 253

as introduced - 88th Legislature (2013 - 2014) Posted on 02/18/2013 02:45pm

A bill for an act
relating to state government; creating a state auditor enterprise fund;
appropriating money; amending Minnesota Statutes 2012, sections 6.48; 6.56,
subdivision 2; 471.699; proposing coding for new law in Minnesota Statutes,
chapter 6; repealing Minnesota Statutes 2012, section 6.58.

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

Section 1.

Minnesota Statutes 2012, section 6.48, is amended to read:

6.48 EXAMINATION OF COUNTIES; COST, FEES.

All the powers and duties conferred and imposed upon the state auditor shall be
exercised and performed by the state auditor in respect to the offices, institutions, public
property, and improvements of several counties of the state. At least once in each year,
if funds and personnel permit, the state auditor may visit, without previous notice, each
county and make a thorough examination of all accounts and records relating to the
receipt and disbursement of the public funds and the custody of the public funds and
other property. If the audit is performed by a private certified public accountant, the state
auditor may require additional information from the private certified public accountant as
the state auditor deems in the public interest. The state auditor may accept the audit or
make additional examinations as the state auditor deems to be in the public interest. The
state auditor shall prescribe and install systems of accounts and financial reports that shall
be uniform, so far as practicable, for the same class of offices. A copy of the report of
such examination shall be filed and be subject to public inspection in the office of the state
auditor and another copy in the office of the auditor of the county thus examined. The state
auditor may accept the records and audit, or any part thereof, of the Department of Human
Services in lieu of examination of the county social welfare funds, if such audit has been
made within any period covered by the state auditor's audit of the other records of the
county. If any such examination shall disclose malfeasance, misfeasance, or nonfeasance
in any office of such county, such report shall be filed with the county attorney of the
county, and the county attorney shall institute such civil and criminal proceedings as the
law and the protection of the public interests shall require.

The county receiving any examination shall pay to the deleted text begin state general fund,
notwithstanding the provisions of section 16A.125, deleted text end new text begin state auditor enterprise fund new text end the total
cost and expenses of such examinations, including the salaries paid to the examiners
while actually engaged in making such examination. The state auditor on deeming it
advisable may bill counties deleted text begin , having a population of 200,000 or over, monthly deleted text end new text begin periodically
new text end for services rendered and the officials responsible for approving and paying claims shall
cause said bill to be promptly paid. The deleted text begin general deleted text end new text begin state auditor enterprise new text end fund shall be
credited with all collections made for any such examinations.

Sec. 2.

Minnesota Statutes 2012, section 6.56, subdivision 2, is amended to read:

Subd. 2.

Billings by state auditor.

Upon the examination of the books, records,
accounts, and affairs of any political subdivision, as provided by law, such political
subdivision shall be liable to the state for the total cost and expenses of such examination,
including the salaries paid to the examiners while actually engaged in making such
examination. The state auditor may bill such political subdivision deleted text begin monthly deleted text end new text begin periodically
new text end for service rendered and the officials responsible for approving and paying claims are
authorized to pay said bill promptly. Said payments shall be without prejudice to any
defense against said claims that may exist or be asserted. The deleted text begin general deleted text end new text begin state auditor
enterprise new text end fund shall be credited with all collections made for any such examinations,
including interest payments made pursuant to subdivision 3.

Sec. 3.

new text begin [6.581] STATE AUDITOR ENTERPRISE FUND.
new text end

new text begin Subdivision 1. new text end

new text begin State auditor enterprise fund. new text end

new text begin A state auditor enterprise fund
is established in the state treasury. All amounts received for the costs and expenses of
examinations performed under this chapter shall be credited to the fund. Amounts credited
to the fund are annually appropriated to the state auditor to pay the costs and expenses
related to the examinations performed, including, but not limited to, salaries, office
overhead, equipment, authorized contracts, and other expenses.
new text end

new text begin Subd. 2. new text end

new text begin Contract with private parties; equipment acquisition. new text end

new text begin When full-time
personnel are not available, the state auditor may contract with a private entity for
accounting and other technical services. Notwithstanding any law to the contrary, the
acquisition of equipment may include duplicating equipment to be used in producing the
reports issued by the Office of the State Auditor.
new text end

new text begin Subd. 3. new text end

new text begin Schedule of charges. new text end

new text begin The state auditor may adjust the schedule of charges
for the examinations performed so that the charges are sufficient to cover all costs of the
examinations performed and that the aggregate charges collected are sufficient to pay all
salaries and other expenses, including the charges for the use of the equipment used in
connection with the reimbursable examinations performed, and the cost of contracting for
accounting and other technical services. The schedule of charges shall be based on an
estimate of the cost of performing reimbursable examinations including, but not limited
to, salaries, office overhead, equipment, authorized contracts, and other expenses. The
state auditor may allocate a proportionate part of the total costs to an hourly or daily
charge for each person or class of persons engaged in the performance of an examination.
The schedule of charges shall reflect an equitable charge for the expenses incurred in the
performance of any given examination. The state auditor shall review and adjust the
schedule of charges for the examinations performed at least annually. All schedules of
charges must be approved by the commissioner of management and budget before the
charges are adopted to ensure that the amount collected is sufficient to pay all the costs
connected with the examinations performed during the fiscal year.
new text end

Sec. 4.

Minnesota Statutes 2012, section 471.699, is amended to read:

471.699 ENFORCEMENT OF REPORTING REQUIREMENTS.

Failure of a city to timely file a statement or report under section 471.697 or 471.698
shall, in addition to any other penalties provided by law, authorize the state auditor to send
full-time personnel to the city or to contract with private persons, firms, or corporations
pursuant to section deleted text begin 6.58 deleted text end new text begin 6.581 new text end , in order to complete and file the financial statement or
report. The expenses related to the completion and filing of the financial statement or
report shall be charged to the city. Upon failure by the city to pay the charge within 30
days of billing, the state auditor shall so certify to the commissioner of management and
budget who shall forward the amount certified to the general fund and deduct the amount
from any state funds due to the city under any shared taxes or aids. The state auditor's
annual report on cities shall include a listing of all cities failing to file a statement or report.

Sec. 5. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2012, section 6.58, new text end new text begin is repealed.
new text end