SF 2419

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to local government; requiring special districts to file information with
the state auditor; proposing coding for new law in Minnesota Statutes, chapter 6.

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

Section 1.

new text begin [6.756] SPECIAL DISTRICTS; INFORMATION REQUIRED TO BE
FILED WITH STATE AUDITOR; AUDITS.
new text end

new text begin Subdivision 1. new text end

new text begin Definition. new text end

new text begin For the purposes of this section, "special district" means a
public entity with a special or limited purpose, financed by property tax revenues or other
public funds, that is not included in a city, county, or town financial report as a component
of that local government, that is created or authorized by law, and that is governed by (1)
persons directly elected to the governing board of the district, (2) persons appointed to the
governing board of the district by local elected officials, (3) local elected officials who
serve on the board by virtue of their elected office, or (4) a combination of these methods
of selection. "Special district" includes special taxing districts listed in section 275.066.
new text end

new text begin Subd. 2. new text end

new text begin Governance documents must be filed. new text end

new text begin Each special district must file with
the state auditor within 60 days of adoption any document relating to the governance of the
district, including articles of incorporation, bylaws, or agreements, and any amendment
to these documents.
new text end

new text begin Subd. 3. new text end

new text begin Audit requirements. new text end

new text begin (a) A special district with total annual revenue
greater than the amount in paragraph (c) must provide for an annual audit of the district's
financial affairs by the state auditor or a public accountant in accordance with minimum
auditing procedures prescribed by the state auditor.
new text end

new text begin (b) A special district with total annual revenue that is equal to or less than the amount
in paragraph (c) mu0st provide for an audit of the district's financial affairs by the state
auditor or a public accountant in accordance with minimum audit procedures prescribed
by the state auditor at least once every five years. The audit must be for a one-year period
to be determined at random by the person conducting the audit. The audited financial
statement must be prepared in a manner similar to the reporting requirements for cities
under 2,500 in population. In any year in which a special district is not audited, the district
must prepare a financial statement in a format similar to the reporting requirements for
cities reporting on a cash basis and file that statement with the state auditor.
new text end

new text begin (c) For the purposes of paragraphs (a) and (b), the amount in 2007 is $150,000, and
in 2008 and thereafter, the amount is $150,000 adjusted for inflation using the annual
implicit price deflator for state and local expenditures as published by the United States
Department of Commerce.
new text end

new text begin (d) This subdivision does not apply to a special district subject to financial auditing
and reporting requirements under other law.
new text end

new text begin Subd. 4. new text end

new text begin Presentation to governing board. new text end

new text begin Except as provided by other law,
financial statements and audits must be completed and presented to the district's governing
board within 180 days after the end of the district's fiscal year.
new text end