SF 896

2nd Engrossment - 87th Legislature (2011 - 2012) Posted on 03/06/2012 02:37pm

A bill for an act
relating to local government; permitting counties and cities of the first class to
perform private audit meeting standards of state auditor; amending Minnesota
Statutes 2010, sections 6.48; 471.697, subdivision 2.

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

Section 1.

Minnesota Statutes 2010, section 6.48, is amended to read:

6.48 EXAMINATION OF COUNTIES; COST, FEES.

new text begin (a) new text end All the powers and duties conferred and imposed upon the state auditor shall
be exercised and performed by the state auditor in respect to the offices, institutions,
public property, and improvements of several counties of the state. At least once in each
year, if funds and personnel permit, the state auditor may visit, without previous notice,
each county and make a thorough examination of all accounts and records relating to the
receipt and disbursement of the public funds and the custody of the public funds and
other property. If the audit is performed by a private certified public accountant, the state
auditor may require additional information from the private certified public accountant as
the state auditor deems in the public interest. The state auditor may accept the audit or
make additional examinations as the state auditor deems to be in the public interest. The
state auditor shall prescribe and install systems of accounts and financial reports that shall
be uniform, so far as practicable, for the same class of offices. A copy of the report of
such examination shall be filed and be subject to public inspection in the office of the state
auditor and another copy in the office of the auditor of the county thus examined. The state
auditor may accept the records and audit, or any part thereof, of the Department of Human
Services in lieu of examination of the county social welfare funds, if such audit has been
made within any period covered by the state auditor's audit of the other records of the
county. If any such examination shall disclose malfeasance, misfeasance, or nonfeasance
in any office of such county, such report shall be filed with the county attorney of the
county, and the county attorney shall institute such civil and criminal proceedings as the
law and the protection of the public interests shall require.

new text begin (b) new text end The county receiving any examination shall pay to the state general fund,
notwithstanding the provisions of section 16A.125, the total cost and expenses of such
examinations, including the salaries paid to the examiners while actually engaged in
making such examination. The state auditor on deeming it advisable may bill counties,
having a population of 200,000 or over, monthly for services rendered and the officials
responsible for approving and paying claims shall cause said bill to be promptly paid. The
general fund shall be credited with all collections made for any such examinations.

new text begin (c) Notwithstanding paragraph (a), a county may provide for an audit to be
performed by a certified public accountant firm meeting the requirements of section
326A.05. The audit performed under this paragraph must meet the standards and be in the
form required by the state auditor. The state auditor may require additional information
from the certified public accountant firm as the state auditor deems in the public interest,
but the state auditor must accept the audit unless the state auditor determines that it does
not meet recognized industry auditing standards.
new text end

Sec. 2.

Minnesota Statutes 2010, section 471.697, subdivision 2, is amended to read:

Subd. 2.

First class city audits.

deleted text begin The state auditor shall continue to audit cities of the
first class pursuant to deleted text end new text begin Notwithstanding new text end section 6.49 new text begin , a city of the first class may provide for
an audit to be performed by a certified public accountant firm meeting the requirements
of section 326A.05. The audit performed by a certified public accountant must meet the
standards and be in the form required by the state auditor. The state auditor may require
additional information from the certified public accountant firm as the state auditor deems
in the public interest, but the state auditor must accept the audit unless the state auditor
determines that it does not meet recognized industry auditing standards.
new text end