HF 1917

as introduced - 89th Legislature (2015 - 2016) Posted on 03/16/2015 03:05pm

A bill for an act
relating to the legislature; modifying the duties of the legislative auditor;
requiring the constant audit of community action agencies; requiring community
action agencies to cover the costs of such audits; amending Minnesota Statutes
2014, sections 3.972, subdivision 2; 3.9741, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2014, section 3.972, subdivision 2, is amended to read:

Subd. 2.

Audits of state and semistate agencies.

The legislative auditor shall
make a constant audit of all financial affairs of all departments and agencies of the state,
and of the financial records and transactions of public boards, associations, new text begin community
action agencies, new text end and societies supported, wholly or in part, by state funds. Once in each
year, if funds and personnel permit, without previous notice, the legislative auditor shall
visit each state department and agency, association new text begin , community action agency, new text end or society
and, so far as practicable,

(1) inspect;

(2) thoroughly examine its books and accounts, verifying the funds, securities,
and other assets;

(3) check the items of receipts and disbursements with its voucher records;

(4) ascertain the character of the official bonds for its officers and the financial
ability of the bonding institution;

(5) inspect its sources of revenue and the use and disposition of state appropriations
and property;

(6) investigate the methods of purchase and sale and the character of contracts
on public account;

(7) ascertain proper custody and depository for its funds and securities;

(8) verify the inventory of public property and other assets held in trust; and

(9) ascertain that all financial transactions and operations involving the public funds
and property of the state comply with the spirit and purpose of the law, are sound by modern
standards of financial management and are for the best protection of the public interest.

Sec. 2.

Minnesota Statutes 2014, section 3.9741, is amended by adding a subdivision
to read:

new text begin Subd. 6. new text end

new text begin Community action agencies. new text end

new text begin Upon the audit of a community action
agency pursuant to section 3.972, the agency is liable to the state for the total cost and
expenses of the audit, including the salaries paid to the examiners while actually engaged
in making the examination. The legislative auditor may bill the community action agency
either monthly or at the completion of the audit. All collections received by the legislative
auditor for the audits must be deposited in the general fund.
new text end