1.1                          A bill for an act
  1.2             relating to local government; clarifying provisions 
  1.3             for financial audits in certain circumstances; 
  1.4             amending Minnesota Statutes 1994, sections 367.36, 
  1.5             subdivision 1; 412.02, subdivision 3; and 412.591, 
  1.6             subdivision 2. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1994, section 367.36, 
  1.9   subdivision 1, is amended to read: 
  1.10     Subdivision 1.  [INCUMBENT TREASURER; ANNUAL RANDOM AUDIT.] 
  1.11  In a town in which option D is adopted, the incumbent treasurer 
  1.12  shall continue in office until the expiration of the term.  
  1.13  Thereafter the duties of the treasurer prescribed by law shall 
  1.14  be performed by the clerk who shall be referred to as the 
  1.15  clerk-treasurer.  If the offices of clerk and treasurer are 
  1.16  combined and the town's annual revenue is more than $100,000, 
  1.17  the town board shall provide for an annual audit of the town's 
  1.18  financial affairs by the state auditor or a public accountant in 
  1.19  accordance with minimum audit procedures prescribed by the state 
  1.20  auditor.  If the offices of clerk and treasurer are combined and 
  1.21  the town's annual revenue is $100,000 or less, the town board 
  1.22  shall provide for an audit of the town's financial affairs by 
  1.23  the state auditor or a public accountant in accordance with 
  1.24  minimum audit procedures prescribed by the state auditor at 
  1.25  least once every five years, which audit shall be for a one-year 
  1.26  period to be determined at random by the person conducting the 
  2.1   audit.  Upon completion of an audit by a public accountant, the 
  2.2   public accountant shall forward a copy of the audit to the state 
  2.3   auditor.  For purposes of this subdivision, "public accountant" 
  2.4   means a certified public accountant, a certified public 
  2.5   accounting firm, or a licensed public accountant, all licensed 
  2.6   by the board of accountancy under sections 326.17 to 326.23. 
  2.7      Sec. 2.  Minnesota Statutes 1994, section 412.02, 
  2.8   subdivision 3, is amended to read: 
  2.9      Subd. 3.  In cities operating under the standard plan of 
  2.10  government the council may by ordinance adopted at least 60 days 
  2.11  before the next regular city election combine the offices of 
  2.12  clerk and treasurer in the office of clerk-treasurer, but such 
  2.13  an ordinance shall not be effective until the expiration of the 
  2.14  term of the incumbent treasurer or when an earlier vacancy 
  2.15  occurs.  After the effective date of the ordinance, the duties 
  2.16  of the treasurer and deputy treasurer as prescribed by this 
  2.17  chapter shall be performed by the clerk-treasurer or a duly 
  2.18  appointed deputy.  The offices of clerk and treasurer may be 
  2.19  reestablished by ordinance.  If the offices of clerk and 
  2.20  treasurer are combined as provided by this section and the 
  2.21  city's annual revenue for all governmental and enterprise funds 
  2.22  combined is more than $100,000, the council shall provide for an 
  2.23  annual audit of the city's financial affairs by the state 
  2.24  auditor or a public accountant in accordance with minimum 
  2.25  auditing procedures prescribed by the state auditor.  If the 
  2.26  offices of clerk and treasurer are combined and the city's 
  2.27  annual revenue for all governmental and enterprise funds 
  2.28  combined is $100,000 or less, the council shall provide for an 
  2.29  audit of the city's financial affairs by the state auditor or a 
  2.30  public accountant in accordance with minimum audit procedures 
  2.31  prescribed by the state auditor at least once every five years, 
  2.32  which audit shall be for a one-year period to be determined at 
  2.33  random by the person conducting the audit. 
  2.34     Sec. 3.  Minnesota Statutes 1994, section 412.591, 
  2.35  subdivision 2, is amended to read: 
  2.36     Subd. 2.  Cities operating under Optional Plan A may, by an 
  3.1   ordinance effective after the expiration of the term of the 
  3.2   incumbent treasurer at the date of adoption of Optional Plan A, 
  3.3   combine the offices of clerk and treasurer in the office of 
  3.4   clerk-treasurer and thereafter the duties of the treasurer as 
  3.5   prescribed by this chapter shall be performed by the 
  3.6   clerk-treasurer.  The offices of clerk and treasurer may be 
  3.7   reestablished by ordinance.  If the offices of clerk and 
  3.8   treasurer are combined as provided by this section, and the 
  3.9   city's annual revenue for all governmental and enterprise funds 
  3.10  combined is more than $100,000, the council shall provide for an 
  3.11  annual audit of the city's financial affairs by the state 
  3.12  auditor or a public accountant in accordance with minimum 
  3.13  procedures prescribed by the state auditor.  If the offices of 
  3.14  clerk and treasurer are combined and the city's annual revenue 
  3.15  for all governmental and enterprise funds combined is $100,000 
  3.16  or less, the council shall provide for an audit of the city's 
  3.17  financial affairs by the state auditor or a public accountant in 
  3.18  accordance with minimum audit procedures prescribed by the state 
  3.19  auditor at least once every five years, which audit shall be for 
  3.20  a one-year period to be determined at random by the person 
  3.21  conducting the audit. 
  3.22     Sec. 4. [EFFECTIVE DATE.] 
  3.23     This act is effective the day after final enactment.