HF 3

1st Engrossment - 94th Legislature (2025 - 2026) Posted on 02/13/2025 03:41pm

A bill for an act
relating to state government; requiring the legislative auditor to submit a report to
the legislature related to an agency's implementation of internal control or fiscal
management recommendations; appropriating money; amending Minnesota Statutes
2024, sections 3.971, by adding a subdivision; 16A.057, subdivision 5.

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

Section 1.

Minnesota Statutes 2024, section 3.971, is amended by adding a subdivision
to read:

new text begin Subd. 10. new text end

new text begin Implementation of audit recommendations. new text end

new text begin (a) By February 1 each year,
as resources permit, the legislative auditor must submit a report to the chairs and ranking
minority members of the legislative committees with fiscal jurisdiction over an entity subject
to audit under this section. The report must detail whether the entity has implemented any
recommendations identified by the legislative auditor during the prior five years in a financial
audit, program evaluation, or special review.
new text end

new text begin (b) By July 1 each year, as resources permit, the legislative auditor must submit a report
to designated legislators listing the standing committees in the senate and the house of
representatives to which the legislative auditor did or did not present their internal controls
reports under paragraph (a) in a public hearing. For purposes of this paragraph, "designated
legislators" means the chairs and ranking minority members of the senate Committees on
State Government Policy and Finance, Rules and Administration, and Finance, and the
house of representatives Committees on State Government Finance and Policy, Rules and
Legislative Administration, and Ways and Means.
new text end

Sec. 2.

Minnesota Statutes 2024, section 16A.057, subdivision 5, is amended to read:

Subd. 5.

Monitoring Office of the Legislative Auditor audits.

The commissioner must
review audit reports from the Office of the Legislative Auditor and take appropriate steps
to address internal control problems found in executive agencies. new text begin The commissioner must
submit a report to the legislative auditor no later than September 1 of each year detailing
the implementation status of all recommendations identified in an auditor's report during
the prior five years. The report must include a specific itemization of recommendations that
have not been implemented during that period, along with the basis for that decision.
new text end

Sec. 3. new text begin APPROPRIATIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Legislative auditor. new text end

new text begin $238,000 in fiscal year 2026 and $259,000 in fiscal
year 2027 are appropriated from the general fund to the legislative auditor for purposes of
this act.
new text end

new text begin Subd. 2. new text end

new text begin Management and budget. new text end

new text begin $41,000 in fiscal year 2026 and $41,000 in fiscal
year 2027 are appropriated from the general fund to the commissioner of management and
budget for purposes of this act.
new text end