HF 2928

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/20/2023 04:54pm

A bill for an act
relating to retirement; volunteer firefighter relief associations; recommendation
of the State Auditor's volunteer firefighter working group; increasing the relief
association special fund asset or liability threshold for required annual financial
report and audited financial statements; amending Minnesota Statutes 2022, section
424A.014, subdivision 1.

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

Section 1.

Minnesota Statutes 2022, section 424A.014, subdivision 1, is amended to read:

Subdivision 1.

Financial report and audit.

(a) An annual financial report and audited
financial statements in accordance with paragraphs (c) to (e) must be submitted by the board
of trustees of the Bloomington Fire Department Relief Association and the board of trustees
of each deleted text begin volunteer deleted text end firefighters relief association with special fund assets of at least deleted text begin $500,000 deleted text end
new text begin $750,000 new text end or special fund liabilities of at least deleted text begin $500,000 deleted text end new text begin $750,000 new text end , according to any previous
year's financial report.

(b) The board of trustees of a deleted text begin volunteer deleted text end firefighters relief association with special fund
assets of less than deleted text begin $500,000 deleted text end new text begin $750,000 new text end and special fund liabilities of less than deleted text begin $500,000 deleted text end new text begin
$750,000 new text end , according to each previous year's financial report, may submit an annual financial
report and audited financial statements in accordance with paragraphs (c) to (e).

(c) The financial report must cover the relief association's special fund and general fund
and be in the style and form prescribed by the state auditor. The financial report must be
countersigned by:

(1) the municipal clerk or clerk-treasurer of the municipality in which the relief
association is located if the relief association is directly associated with a municipal fire
department;

(2) the municipal clerk or clerk-treasurer of the largest municipality in population that
contracts with the independent nonprofit firefighting corporation if the volunteer firefighter
relief association is a subsidiary of an independent nonprofit firefighting corporation, and
by the secretary of the independent nonprofit firefighting corporation; or

(3) the chief financial official of the county in which the volunteer firefighter relief
association is located or primarily located if the relief association is associated with a fire
department that is not located in or associated with an organized municipality.

(d) The financial report must be retained in the office of the Bloomington Fire Department
Relief Association or the volunteer firefighter relief association for public inspection and
must be filed with the governing body of the government subdivision in which the associated
fire department is located after the close of the fiscal year. One copy of the financial report
must be furnished to the state auditor on or before June 30 after the close of the fiscal year.

(e) Audited financial statements that present the true financial condition of the relief
association's special fund and general fund must be attested to by a certified public accountant
or by the state auditor and must be filed with the state auditor on or before June 30 after the
close of the fiscal year. Audits must be conducted in compliance with generally accepted
auditing standards and section 6.65 governing audit procedures. The state auditor may accept
audited financial statements in lieu of the financial report required in paragraph (a).

Sec. 2. new text begin EFFECTIVE DATE; APPLICATION.
new text end

new text begin This act is effective on December 31, 2023, and applies to audited financial statements
for calendar year 2023 and thereafter. A relief association with special fund assets of less
than $750,000 and special fund liabilities of less than $750,000 on December 31, 2023, is
not required to submit audited financial statements under Minnesota Statutes, section
424A.014, subdivision 1, unless and until the association's special fund assets or special
fund liabilities exceed $750,000, even if audited financial statements were required on the
date immediately prior to the effective date.
new text end