Office of the Revisor of Statutes
SF 564
Introduction - 94th Legislature (2025 - 2026)
Posted on 06/18/2025 08:44 a.m.
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A bill for an act
relating to local government; raising the revenue threshold requiring cities to
perform annual audits; amending Minnesota Statutes 2024, section 412.591,
subdivision 3.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2024, section 412.591, subdivision 3, is amended to read:
Subd. 3.
Audit standards if combined.
(a) If the offices of clerk and treasurer are
combined as provided by this section, and the city's annual revenue for all governmental
and enterprise funds combined is more than the amount in paragraph (b), the council shall
provide for an annual audit of the city's financial affairs by the state auditor or a certified
public accountant in accordance with minimum procedures prescribed by the state auditor.
If the offices of clerk and treasurer are combined and the city's annual revenue for all
governmental and enterprise funds combined is the amount in paragraph (b), or less, the
council shall provide for an audit of the city's financial affairs by the state auditor or a
certified public accountant in accordance with minimum audit procedures prescribed by the
state auditor at least once every five years, which audit shall be for a one-year period to be
determined at random by the person conducting the audit.
(b) For the purposes of paragraph (a), the amount in deleted text begin 2004deleted text end new text begin 2025new text end is deleted text begin $150,000deleted text end new text begin $500,000new text end ,
and deleted text begin in 2005 and after, $150,000deleted text end new text begin is new text end adjusted new text begin annually thereafter new text end for inflation using the annual
implicit price deflator for state and local expenditures as published by the United States
Department of Commerce.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective August 1, 2025, and applies to audits
performed for 2026 and thereafter.
new text end