HF 5223

as introduced - 93rd Legislature (2023 - 2024) Posted on 04/02/2024 11:53am

A bill for an act
relating to local government aid; modifying the audit requirements for cities;
amending Minnesota Statutes 2022, section 477A.017, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2022, section 477A.017, is amended by adding a subdivision
to read:

new text begin Subd. 4. new text end

new text begin Audit requirements. new text end

new text begin (a) Notwithstanding any other law to the contrary, cities
may elect to provide audits required by statute to the state auditor on the schedule established
by this subdivision. The council of a city with an aid amount of at least $50,000 but less
than $100,000 must only provide for an audit of the city's financial affairs if it did not have
an audit in the previous year. A city with an aid amount of less than $50,000 must only
provide for an audit of the city's financial affairs if it did not have an audit in the previous
two years.
new text end

new text begin (b) For the purposes of this subdivision, "aid amount" means the average of the
distributions received under sections 477A.011 to 477A.03 in the previous three calendar
years.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for financial reports made in calendar
year 2025 and thereafter.
new text end