Minnesota Legislature
SF 1019
1st Engrossment - 92nd Legislature (2021 - 2022) Posted on 03/10/2021 09:09am
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A bill for an act
relating to legislative audits; modifying various provisions governing Office of
the Legislative Auditor activities; appropriating money; repealing certain auditing
duties; amending Minnesota Statutes 2020, sections 3.971, subdivision 2, by adding
a subdivision; 3.972, subdivisions 2, 2a; 3.9741, subdivision 5; 3.978, subdivision
2; 3.979, subdivision 3; repealing Minnesota Statutes 2020, section 3.972,
subdivisions 2c, 2d.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2020, section 3.971, subdivision 2, is amended to read:
Subd. 2.
Staff; compensation.
(a) The legislative auditor shall establish a Financial
Audits Division and a Program Evaluation Division to fulfill the duties prescribed in this
section.
(b) Each division may be supervised by a deputy auditor, appointed by the legislative
auditor, with the approval of the commission, for a term coterminous with the legislative
auditor's term. The deputy auditors may be removed before the expiration of their terms
only for cause. The legislative auditor and deputy auditors may each appoint deleted text begin a confidential
secretarydeleted text end new text begin an administrative support specialistnew text end to serve at pleasure. The salaries and benefits
of the legislative auditor, deputy auditorsnew text begin ,new text end and deleted text begin confidential secretariesdeleted text end new text begin administrative support
specialistsnew text end shall be determined by the compensation plan approved by the Legislative
Coordinating Commission. The deputy auditors may perform and exercise the powers,
duties and responsibilities imposed by law on the legislative auditor when authorized by
the legislative auditor.
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(c) The legislative auditor must appoint a fiscal oversight officer with duties that include
performing the review under section 3.972, subdivision 4.
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deleted text begin (d)deleted text end new text begin (c)new text end Thenew text begin legislative auditor,new text end deputy auditorsnew text begin ,new text end and deleted text begin the confidential secretariesdeleted text end new text begin
administrative support specialists shallnew text end serve in the unclassified civil service, but deleted text begin the fiscal
oversight officer anddeleted text end all other employees of the legislative auditor deleted text begin aredeleted text end new text begin shall servenew text end in the
classified civil service. Compensation for employees of the legislative auditor in the classified
service shall be governed by a plan prepared by the legislative auditor and approved by the
Legislative Coordinating Commission and the legislature under section 3.855, subdivision
3.
deleted text begin (e)deleted text end new text begin (d)new text end While in office, a person appointed deputy for the Financial Audit Division must
hold an active license as a certified public accountant.
new text begin
(e) Notwithstanding Minnesota Statutes, section 43A.32, subdivisions 2 and 3, or any
other law to the contrary, an employee of the legislative auditor is prohibited from being a
candidate for an elected public office.
new text end
Sec. 2.
Minnesota Statutes 2020, section 3.971, is amended by adding a subdivision to
read:
new text begin Subd. 8a. new text end
new text begin Special reviews. new text end
new text begin
The legislative auditor may conduct a special review to: (1)
fulfill a legal requirement; (2) investigate allegations that an individual or organization
subject to audit by the legislative auditor may not have complied with legal requirements
related to the use of public money, other public resources, or government data classified as
not public; (3) respond to a legislative request for a review of an organization or program
subject to audit by the legislative auditor; or (4) investigate allegations that an individual
may not have complied with Minnesota Statutes, section 43A.38 or 43A.39.
new text end
Sec. 3.
Minnesota Statutes 2020, section 3.972, subdivision 2, is amended to read:
Subd. 2.
Audits of state and semistate agencies.
The legislative auditor shall deleted text begin make a
constantdeleted text end new text begin , as resources permit,new text end audit deleted text begin of alldeleted text end new text begin thenew text end financial deleted text begin affairsdeleted text end new text begin activitiesnew text end ofnew text begin (1)new text end all departments
deleted text begin anddeleted text end new text begin ,new text end agencies deleted text begin ofdeleted text end new text begin , offices, and other organizations innew text end the statedeleted text begin ,deleted text end new text begin executive branch; (2) courts,
offices, and other organizations in the state judicial branch;new text end and deleted text begin of the financial records and
transactions ofdeleted text end new text begin (3) new text end public boards, associations, deleted text begin anddeleted text end societiesnew text begin ,new text end new text begin and other public organizations
created by state law ornew text end supported, wholly or in part, by state funds. deleted text begin Once in each year, if
funds and personnel permit, without previous notice,deleted text end The legislative auditor shall deleted text begin visit each
state department and agency, association or society and, so far as practicable,
deleted text end
deleted text begin
(1) inspect;
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deleted text begin
(2) thoroughly examine its books and accounts, verifying the funds, securities, and other
assets;
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(3) check the items of receipts and disbursements with its voucher records;
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(4) ascertain the character of the official bonds for its officers and the financial ability
of the bonding institution;
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deleted text begin
(5) inspect its sources of revenue and the use and disposition of state appropriations and
property;
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deleted text begin
(6) investigate the methods of purchase and sale and the character of contracts on public
account;
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(7) ascertain proper custody and depository for its funds and securities;
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(8) verify the inventory of public property and other assets held in trust; and
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deleted text begin (9)deleted text end 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 managementnew text begin ,new text end and are for the best protection of deleted text begin thedeleted text end public deleted text begin interestdeleted text end new text begin
funds and other public resourcesnew text end .
Sec. 4.
Minnesota Statutes 2020, section 3.972, subdivision 2a, is amended to read:
Subd. 2a.
Audits of Department of Human Services.
deleted text begin (a)deleted text end To ensure deleted text begin continuousdeleted text end new text begin effectivenew text end
legislative oversight and accountability, the legislative auditor shall give high priority to
auditing the programs, services, and benefits administered by the Department of Human
Services. deleted text begin The audits shall determine whetherdeleted text end new text begin As resources permit, the legislative auditor
shall track and assess expenditures throughout the human service delivery system, fromnew text end the
department deleted text begin offereddeleted text end new text begin to the point of service deliverynew text end new text begin , and determine whether human servicesnew text end
programs deleted text begin and provideddeleted text end new text begin ,new text end servicesnew text begin ,new text end and benefitsnew text begin are being provided cost-effectively andnew text end only
to eligible deleted text begin personsdeleted text end new text begin individualsnew text end and organizationsdeleted text begin , and complieddeleted text end new text begin in compliancenew text end with applicable
legal requirements.
deleted text begin
(b) The legislative auditor shall, based on an assessment of risk and using professional
standards to provide a statistically significant sample, no less than three times each year,
test a representative sample of persons enrolled in a medical assistance program or
MinnesotaCare to determine whether they are eligible to receive benefits under those
programs. The legislative auditor shall report the results to the commissioner of human
services and recommend corrective actions. The commissioner shall provide a response to
the legislative auditor within 20 business days, including corrective actions to be taken to
address any problems identified by the legislative auditor and anticipated completion dates.
The legislative auditor shall monitor the commissioner's implementation of corrective actions
and periodically report the results to the Legislative Audit Commission and the chairs and
ranking minority members of the legislative committees with jurisdiction over health and
human services policy and finance. The legislative auditor's reports to the commission and
the chairs and ranking minority members must include recommendations for any legislative
actions needed to ensure that medical assistance and MinnesotaCare benefits are provided
only to eligible persons.
deleted text end
Sec. 5.
Minnesota Statutes 2020, section 3.9741, subdivision 5, is amended to read:
Subd. 5.
deleted text begin Statedeleted text end Data securitydeleted text begin ;deleted text end accountdeleted text begin ,deleted text end new text begin ;new text end appropriation.
deleted text begin (a)deleted text end The data security account
is created in the special revenue fund.new text begin Money in the account is appropriated to the legislative
auditor.
new text end
deleted text begin
(b) Subject to available funds appropriated under paragraph (a), the legislative auditor
shall:
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(1) review and audit the audit reports of subscribers and requesters submitted under
section 168.327, subdivision 6, including producing findings and opinions;
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(2) in collaboration with the commissioner and affected subscribers and requesters,
recommend corrective action plans to remediate any deficiencies identified under clause
(1); and
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(3) review and audit driver records subscription services and bulk data practices of the
Department of Public Safety, including identifying any deficiencies and making
recommendations to the commissioner.
deleted text end
deleted text begin
(c) The legislative auditor shall submit any reports, findings, and recommendations
under this subdivision to the legislative commission on data practices.
deleted text end
Sec. 6.
Minnesota Statutes 2020, section 3.978, subdivision 2, is amended to read:
Subd. 2.
Inquiry and inspection power; duty to aid legislative auditor.
All public
officials and their deputies and employees, and all corporations, firms, and individuals
having business involving the receipt, disbursement, or custody of public funds shall at all
times afford reasonable facilities for examinations by the legislative auditor, make returns
and reports required by the legislative auditor, attend and answer under oath the legislative
auditor's lawful inquiries, produce and exhibit all books, accounts, documents, data of any
classification, and property that the legislative auditor deleted text begin may needdeleted text end new text begin requestsnew text end to inspect, and in
all things deleted text begin aiddeleted text end new text begin cooperate withnew text end the legislative auditor deleted text begin in the performance of dutiesdeleted text end .
Sec. 7.
Minnesota Statutes 2020, section 3.979, subdivision 3, is amended to read:
Subd. 3.
Audit data.
(a) "Audit" as used in this subdivision means a financial audit,
deleted text begin review,deleted text end program evaluation, deleted text begin best practicesdeleted text end new text begin specialnew text end review, or investigation. Data relating to
an audit are not public or with respect to data on individuals are confidential until the final
report of the audit has been released by the legislative auditor or the audit is no longer being
actively pursued. Upon release of a final audit report by the legislative auditor, data relating
to an audit are public except data otherwise classified as not public.
(b) Data related to an audit but not published in the audit report and that the legislative
auditor reasonably believes will be used in litigation are not public and with respect to data
on individuals are confidential until the litigation has been completed or is no longer being
actively pursued.
(c) Data deleted text begin on individualsdeleted text end that could reasonably be used to determine the identity of an
individual supplying data for an audit are private if the data supplied by the individual were
needed for an audit and the individual would not have provided the data to the legislative
auditor without an assurance that the individual's identity would remain private, or the
legislative auditor reasonably believes that the subject would not have provided the data.
(d) The definitions of terms provided in section 13.02 apply for purposes of this
subdivision.
Sec. 8. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2020, section 3.972, subdivisions 2c and 2d,
new text end
new text begin
are repealed.
new text end
APPENDIX
Repealed Minnesota Statutes: S1019-1
3.972 AUDITS OF AGENCIES.
Subd. 2c.
Audits of the Department of Transportation.
The legislative auditor must audit, as resources permit, the programs and services administered by the Department of Transportation.
Subd. 2d.
Audits of the Department of Public Safety.
The legislative auditor must audit, as resources permit, the programs and services administered by the Department of Public Safety.