HF 188

as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am

A bill for an act
relating to state government; defining special district; requiring special districts
to file governance documents with the state auditor; requiring audits of special
districts; proposing coding for new law in Minnesota Statutes, chapter 6.

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

Section 1.

new text begin [6.756] SPECIAL DISTRICTS; INFORMATION REQUIRED TO BE
FILED WITH STATE AUDITOR; AUDITS.
new text end

new text begin Subdivision 1. new text end

new text begin Special district. new text end

new text begin "Special district" means a public entity with a
special or limited purpose, financed by property tax revenues or other public funds, that
is not included in a city, county, or town financial report as a component of that local
government, that is created or authorized by law, and that is governed by (1) persons
directly elected to the governing board of the district, (2) persons appointed to the
governing board of the district by local elected officials, (3) local elected officials who
serve on the board by virtue of their elected office, or (4) a combination of these methods
of selection. Special district includes special taxing districts listed in section 275.066.
new text end

new text begin Subd. 2. new text end

new text begin Governance documents must be filed. new text end

new text begin Each special district must file with
the state auditor, within 60 days of adoption, any document relating to the governance
of the district, including articles of incorporation, bylaws, or agreements, and any
amendment to these documents.
new text end

new text begin Subd. 3. new text end

new text begin Audit requirements. new text end

new text begin (a) A special district with total annual revenue
greater than the amount in paragraph (c) must provide for an annual audit of the district's
financial affairs by the state auditor or a public accountant in accordance with minimum
auditing procedures prescribed by the state auditor.
new text end

new text begin (b) A special district with total annual revenue that is equal to or less than the
amount in paragraph (c) must provide for an audit of the district's financial affairs by
the state auditor or a public accountant in accordance with minimum audit procedures
prescribed by the state auditor at least once every five years. The audit must be for a
one-year period to be determined at random by the person conducting the audit. The
audited financial statement must be prepared in a form prescribed by the state auditor
similar to the reporting requirements for cities under 2,500 in population. For any year
in which a special district is not audited, the district must prepare a financial statement
in a form prescribed by the state auditor similar to the reporting requirements for cities
reporting on a cash basis and file that statement with the state auditor.
new text end

new text begin (c) For the purposes of paragraphs (a) and (b), the amount in 2008 is $150,000 and in
2009 and after, $150,000 adjusted for inflation using the annual implicit price deflator for
government expenditures and gross investment for state and local governments prepared
by the Bureau of Economic Analysis of the United States Department of Commerce for
the 12-month period ending March 31 of the previous year.
new text end

new text begin (d) This subdivision does not apply to a special district subject to financial auditing
and reporting requirements under other law.
new text end

new text begin Subd. 4. new text end

new text begin Presentation to governing board; filing with state auditor. new text end

new text begin Except as
provided by other law, financial statements and audits must be completed, presented to the
district's governing board, and filed with the state auditor within 180 days after the end of
the district's fiscal year.
new text end